Annual Report 2009/10 Excellence in Retailing - Douglas Holding

Annual Report 2009/10 

Excellence in Retailing

U2 DOUGLAS HOLDING AG 

THE DOUGLAS GROUP 

FACTS & FIGURES 

Facts & Figures 

2009/10 2008/09 Change 

(in %) 

Sales EUR m 3,320.8 3,200.8 3.7 

national EUR m 2,168.2 2,071.5 4.7 

international EUR m 1,152.6 1,129.3 2.1 

EBITDA EUR m 286.9 255.0 12.5 

margin in % 8.6 8.0 − 

EBT before closing costs 1) EUR m 131.2 127.6 2.8 


EBT EUR m 131.2 103.9 26.3 


Net income EUR m 76.1 62.8 21.2 

Share price (September 30) EUR 36.83 31.25 17.9 

EBITDA per share EUR 7.30 6.49 12.5 

Earnings per share EUR 1.93 1.60 20.6 

Dividend per share EUR 1.10 1.10 − 

DVA EUR m 23.7 20.5 15.6 

Free Cash Flow EUR m 88.2 84.5 4.4 

Capital expenditure EUR m 117.5 112.3 4.6 

09/30/2010 09/30/2009 Change 


Non-current assets EUR m 792.1 798.8 −0.8 

Current assets EUR m 886.8 889.8 −0.3 

Equity EUR m 764.8 710.9 7.6 

Non-current liabilities EUR m 113.8 129.7 −12.3 

Current liabilities EUR m 827.6 848.0 −2.4 

Balance sheet total EUR m 1,713.4 1,688.6 1.5 

Working capital EUR m 418.1 455.0 −8.1 

Net bank debt EUR m 124.0 165.3 −25.0 

Employees 24,655 24,190 − 

Stores 1,973 2,005 − 

Sales area 1,000 m2 596.6 590.6 − 

1) 2008/09: Closing costs of 23.7 EUR m

U3 DOUGLAS HOLDING AG 

1 

DOUGLAS HOLDING AG 

26 

MANAGEMENT REPORT 

71 

DIVISIONS 

111 

FINANCIAL STATEMENTS 

175 

FURTHER INFORMATION 

CONTENTS 

1 Mission Statement 

2 Letter to the Shareholders 

4 Executive Board 

5 Corporate Governance 

8 Report of the Supervisory Board 

10 DOUGLAS Share 

14 Impressions 

18 Human Resources 

26 The DOUGLAS Group Brands 

29 Key results 

30 Business activities and operating environment 

35 Net assets, financial position and result of operations 

45 DOUGLAS HOLDING AG 

46 Subsequent events 

47 Control system and success factors 

57 Opportunities and risks situation 

63 Statutory disclosures 

64 Forecast and overall assessment 

72 Perfumeries 

84 Books 

92 Jewelry 

98 Fashion 

104 Confectionery 

110 Services 

112 Facts & figures 

113 Consolidated income statement 

114 Consolidated balance sheet 

115 Statement of changes in Group equity 

116 Segment reporting 

118 Consolidated Cash Flow statement 

119 Notes 

135 Notes to the income statement 

140 Notes to the balance sheet 

174 Auditor’s report 

176 Overview of the past several years 

178 Glossary 

180 Financial calendar 

180 Credits

THE DOUGLAS GROUP 

The DOUGLAS Group stands for “Excellence in Retailing,” a principle embraced by all of its subsidiaries 

and service organizations. The five retail divisions (Douglas, Thalia, Christ, Appelrath- 

Cüpper and Hussel) form the public face of the DOUGLAS Group. Each ranks among the trendsetters 

and market leaders in its segment. 

Various organizations perform key administrative functions within the Group and support the 

Executive Board and the managements at the sales subsidiaries. They include service companies 

(such as DOUGLAS Corporate Service GmbH (DCS), DOUGLAS Informatik & Service GmbH (DIS), 

DOUGLAS Immobilien GmbH & Co. KG, DOUGLAS Leasing GmbH, DOUGLAS Versicherungsvermittlung 

GmbH (DVV) and EKV Einkaufsverbund GMBH) and the holding company’s own service 

divisions (Auditing, Communication, Controlling, Finance, Group Development, Human Resources, 

Investor Relations, Legal Affairs, Mergers & Acquisitions, Risk Management and Taxes). 

Sales in EUR m Sales in EUR m Sales in EUR m Sales in EUR m Sales in EUR m 

1,879 906 310 124 99 

Employees Employees Employees Employees Employees 

www.douglas.de 

14,834 5,186 2,173 751 1,141 

Stores Stores Stores Stores Stores 

1,205 289 204 14 261 

www.thalia.de 

www.buch.de 

DOUGLAS DOUGLAS HOLDING HOLDING AG U4 

AG U4 

www.christ.de www.appelrath.de www.hussel.de

MISSION STATEMENT 


Mission Statement 

Letter to the Shareholders 

Executive Board 

Corporate Governance 

Report of the Supervisory Board 

DOUGLAS Share 

Impressions 

Human Resources 

Customer satisfaction is our paramount corporate 

objective. We create shopping environments that 

appeal to all of our customers’ senses. We advise and 

serve these customers with a passion, because we 

want to satisfy their every need, win their trust and 

make their lives happier: at each of our locations, in 

every country, every single day. Offering outstanding 

service, first-class product ranges and a stimulating 

shopping experience are goals we aspire to daily 

throughout our organization. Our employees rank 

among the very best in the retail segment. Warmth, 

enthusiasm, dedication, a willingness to learn, and 

mutual respect are the cornerstones of their – and our – 

success. 

The DOUGLAS Group is a decentralized organization 

which intentionally places its faith in the strength 

of local decision-makers. And having consistently 

prioritized and promoted local entrepreneurship has 

made us one of Europe’s leading retailers today. Our 

five retail divisions – with their Douglas perfumeries, 

Thalia bookstores, Christ jewelry stores, Appelrath- 

Cüpper fashion stores and Hussel confectionery shops 

– number among the leaders and trendsetters in their 

respective segments. 

The DOUGLAS Group stands for 

“Excellence in Retailing” – offering outstanding 

service, first-class product ranges, a stimulating 

shopping ambiance and the industry’s 

friendliest employees. 

As a listed and family-made company, we have 

equal obligations to our shareholders, our workforce, 

our clientele and our business partners. We foster 

a culture in which customers, employees and partners 

all feel comfortable. This ethos is crystallized by 

our philosophy of “Excellence in Retailing,” a principle 

that we will continue to embrace – enabling the 

DOUGLAS Group to sustain profitable growth in the 

future. 

1







DOUGLAS Share 

Impressions 


Dear Shareholders and 

Friends of the DOUGLAS Group, 

The DOUGLAS Group once again achieved the goals 

we set for the 2009/10 financial year. Despite the financial 

crisis, consolidated sales were up 3.7 percent to over EUR 

3.3 billion, slightly surpassing our target of a 2 percent increase. 

At EUR 131.2 million, earnings before taxes (EBT) 

were just above our target range of EUR 120 to 130 million. 

Once again this year we owe our success first and 

foremost to our more than 24,000 employees. With their 

warmth, professionalism and dedication, they reminded 

our customers time and time again how rewarding shopping 

in the DOUGLAS Group’s specialty stores can be. 

I would therefore like to express my heartfelt thanks to each 

and every valued member of the DOUGLAS Group’s team 

for their tremendous contribution! 

Our solid performance was achieved by the fact that we 

once again remained true to our corporate principles – most 

importantly to our focus on superior customer service. We 

have persevered with our philosophy and offered customers 

outstanding service, an attractive shopping atmosphere 

and first-class merchandise in our stores while maintaining 

fair prices. 

The sales trends were particularly encouraging in our 

key home market. Sales in Germany’s DOUGLAS Group 

stores rose by 4.7 percent, producing a like-for-like increase 

of 2 percent. Most notably, the Douglas perfumeries and 

Christ jewelry stores augmented their market share. Sales 

abroad were up by 2.1 percent. However, like-for-like sales 

outside of Germany declined by 2.7 percent. This downturn 

was partially caused by the financial crisis hitting consumer 

spending abroad harder than in our home market. 

Despite the generally disappointing trends abroad, the 

DOUGLAS Group posted improvements in its key indicators. 

DOUGLAS Value Added (DVA) was up by some EUR 

3 million to almost EUR 24 million. At EUR 88 million, Free 

Cash Flow was slightly higher than in the previous year, 

while our Return On Capital Employed (ROCE) climbed 

from 7.9 percent to 8.2 percent after taxes. 

Investments were also marginally higher at just under 

EUR 118 million. In total, we opened 72 new stores during 

2009/10 and closed 104 unprofitable venues, a consequence 

of the network optimization program launched in 

2008/09. At the very beginning of the economic crisis, we 

conducted a full review of our entire store network, and 

decided to close all the locations whose profitability had 

proved unsustainable. 

Today the DOUGLAS Group store network is in a very 

healthy position, once again offering a platform from 

which we can improve sales and increase investment. An 

investment budget of some EUR 125 million has been set 

aside for the 2010/11 fiscal year. These funds will go toward 

opening new stores and upgrading existing locations, both 

at home and abroad. Some 50 to 60 stores are due to open 

their doors across Europe in the Perfumeries division alone. 

Expansion activities will focus on countries in which the 

Douglas perfumeries already lead the market or can expect 

Dr. Henning Kreke 

President and CEO

to within the foreseeable future. At Thalia, openings of at 

least ten new multi-channel bookstores will claim the bulk of 

the investments. In addition Christ and Hussel will also be 

cementing their market leading positions by opening new 

locations and modernizing existing venues. While AppelrathCüpper 

has no plans for expansion, it will continue to 

invest in upgrading its existing locations. 

Beyond attracting customers into our many store locations, 

we now want to motivate them even more to use our 

online shops. The future, after all, will belong to retailers 

who can forge lasting bonds with customers both personally 

– at fixed-location stores in city centers and malls – and 

“virtually” with their shops on the Internet. The DOUGLAS 

Group definitely has a clear edge over vendors who operate 

exclusively online. In addition to ultra-modern online 

shops, we can offer almost 2,000 first-class specialty stores 

where customers can browse at their leisure and draw on 

expert advice from professionals. As a result, our customers 

can obtain information on their favorite products at 

their local store or on the Internet, and buy them either 

directly in our stores or online for convenient delivery to 

their doorsteps. 

Despite the euphoria about online shopping, there can 

be no “either – or.” We want to offer the best of both worlds: 

an ideal combination of in-store shopping and online retailing. 

We are determined to take advantage of the opportunity 

that we have to boost the image of our brands 

Douglas, Thalia, Christ, AppelrathCüpper and Hussel both 

in our stores as well as through our websites. The employees 

at our stores will therefore be making renewed, more proactive 

efforts to convince their customers of the benefits of 

our online shops. Conversely, we will be drawing the attention 

of all of our online customers to the unique services 

they will only find inside the DOUGLAS Group’s specialty 

stores. By integrating our online and stationary services, 

we aim to tap the huge growth potential opening up for 

multi-channel retailers. 

Regardless of location, the customer and his or her utmost 

satisfaction will always be the focus of our strategy. 

Our highly capable employees once again demonstrated 

this successfully during the 2010 holiday season. In the 

first quarter of our new financial year – from October 


through December 2010 – sales in the DOUGLAS Group 

were up by approximately 4 percent. Like for like, this represents 

an increase of nearly 2 percent. As a result, we 

have already laid solid foundations for the remainder of 

the 2010/11 financial year. 

Consequently, the prospects for the DOUGLAS Group 

are positive across the board. That applies particularly to 

our key home market, where we generate some 65 percent 

of consolidated sales. Unemployment in Germany is now 

as low as it was 20 years ago, and rising wages combined 

with relatively stable prices should also drive domestic 

consumption. At the same time consumers’ “piggy banks” 

are reasonably full, and if the mood of optimism prevails, 

they will feel they can afford to spend more again. With its 

lifestyle strategy tailored to deliver outstanding customer 

service, first-class merchandise and a stimulating shopping 

ambiance, the DOUGLAS Group should be well positioned 

to benefit from this renewed customer optimism 

more than others. 

Given this encouraging outlook and the Group’s respectable 

performance in 2009/10, the DOUGLAS HOLDING 

AG Executive and Supervisory Boards will propose that 

the Shareholders’ Meeting of March 23, 2011 approve a 

dividend of EUR 1.10 per dividend-bearing share. This distribution 

ratio of 57 percent of the Group’s net earnings is 

yet again somewhat higher than our long-term target of 

about 50 percent. We are delighted that this recommendation 

will allow you – our esteemed shareholders – to participate 

in the DOUGLAS Group’s solid performance. 

Hagen, January 2011 

Sincerely, 






DOUGLAS Share 

Impressions 


3







DOUGLAS Share 

Impressions 


EXECUTIVE BOARD 

AND DIRECTORS 

Dr. Henning Kreke 

President and CEO 

since 2001 

Anke Giesen 

Dr. Burkhard Bamberger 

Chief Human Resources Officer 

CFO 

since 2009 


Manfred Kroneder 

Director of the Jewelry, Fashion 

and Confectionery Divisions 


Michael Busch 

Director of the 

Books Division 


Reiner Unkel 

Director of the 

Perfumeries Division 

since 2007

CORPORATE 

GOVERNANCE 


First established in 2000 and updated several times since, the principles of Corporate Governance in effect 

at DOUGLAS HOLDING AG – like the requirements, recommendations and proposals for responsible corporate 

governance specified in the German Corporate Governance Code – form a constituent component of the 

Group’s corporate culture. 

The Corporate Governance principles adopted 

by DOUGLAS HOLDING AG help to ensure that the 

DOUGLAS Group is managed and controlled in a responsible 

manner which is designed to create value. 

Corporate Governance generates transparency and 

openness, respect for the interests of shareowners, 

fairness to customers and employees and efficient 

and trusting cooperation between the Executive 

and Supervisory Boards, with the goal of producing 

a sustained increase in value within the DOUGLAS 

Group. Compliance with the applicable versions of 

the DOUGLAS Principles of Corporate Governance 

and the German Corporate Governance Code is monitored 

by a compliance officer specially appointed by 

the Supervisory Board. 

Implementation of Code Recommendations 

The changes made to the German Corporate 

Governance Code on May 26, 2010 from the Federal 

Commission of the German Corporate Governance 

Code have been implemented by DOUGLAS HOLD- 

ING AG except for the postal ballot. 

In the composition of the Executive Board, the 

Supervisory Board already provided in the past for 

a proper consideration of female executives early on 

with the first time appointment of a female executive 

on the Executive Board back in 2000. The same holds 

true for the Supervisory Board, in which women have 

been represented for decades. In addition, due care is 

taken that the members possess the required knowledge, 

skills and professional experience needed for the 

proper performance of their duties. This also applies 

to next year’s election of four representatives from 

the shareholder side. The proposed candidates possess 

special knowledge, skills and experience in areas 

of great importance to the specialty retail business of 

DOUGLAS HOLDING AG. This spectrum extends from 






DOUGLAS Share 

Impressions 


international marketing expertise to subjects such as 

real estate management and capital market experience. 

The aim is to assist the Executive Board as best 

as possible in its responsibilities and challenges with 

know-how, experience and advice. This applies in 

particular to issues arising from new developments, 

which cannot be drawn on personal experience. 

During the 2009/10 fiscal year, the Executive and 

Supervisory Boards of DOUGLAS HOLDING AG again 

demonstrated full compliance with the recommendations 

and proposals of the most recent version of the 

German Corporate Governance Code (DCGK) except 

for the three items listed below: 

1. The DOUGLAS HOLDING AG is refraining from 

the option of postal voting at the 2011 Annual 

Shareholders’ Meeting (No. 2.3.3. DCGK Code). 

Given the high attendance at the Annual Shareholders’ 

Meeting and the shareholder structure, 

the additional costs to be incurred would be disproportionate 

to the expected voting turnout by 

postal vote. Also, the postal vote does not offer any 

perceived added value to the shareholders in the 

personal exercise of their rights against the written 

proxy offered by the DOUGLAS HOLDING AG 

up to the date of the Annual Shareholders’ Meeting. 

Instead the DOUGLAS HOLDING AG is investing 

in an electronic voting system that facilitates 

the casting of votes at the Annual Shareholders’ 

Meeting and shall provide for a faster determination 

of the voting results. 

2. Although the DOUGLAS HOLDING AG’s fiscal 

year ends on September 30, the publication of its 

consolidated financial statements does not take 

place prior to the close of that calendar year 

(12/31), but rather in January of the following 

5







DOUGLAS Share 

Impressions 


Corporate Governance on the Internet: 

www.douglas-holding.com 

Principles of Corporate Governance 

Declaration of Compliance pursuant 

to Section 161 of the German Stock 

Corporation Law (AktG) 

Principles governing Executive Board 

remuneration 

year. This ensures greater attention from investors 

and better visibility with shareholders and the 

media than might be expected from publication 

at the end of December (No. 7.1.2. sent. 4, DCGK 

Code). Next year, DOUGLAS HOLDING AG will 

release a Trading Statement a few days after the 

close of the financial year, as it has done in the 

past. 

3. In line with the statutory provisions, DOUGLAS 

HOLDING AG discloses the shares in DOUGLAS 

HOLDING AG held by the members of the Executive 

and Supervisory Boards to the extent that 

the shareholding exceeds or falls short of the relevant 

reporting limits prescribed by Section 21 of 

the German Securities Trading Act (WpHG). It also 

publishes details of all transactions of DOUGLAS 

HOLDING shares that involve the above individuals. 

To protect their privacy, no further details 

of the Executive and Supervisory Board members’ 

shareholdings are disclosed (No. 6.6. para. 

2, DCGK Code). 

In conformity with the current version of the German 

Corporate Governance Code as of May 26, 2010, 

the Executive and Supervisory Boards of DOUGLAS 

HOLDING AG have issued a declaration of compliance 

pursuant to Section 161 of the German Stock 

Corporation Law (AktG). This is published under 

www.douglas-holding.com/en/cg. 

Executive Board remuneration 

The remuneration system for Executive Board 

members is resolved by the entire Supervisory Board. 

The remuneration amount of DOUGLAS HOLDING 

AG Executive Board members is proposed by the Supervisory 

Board’s Executive Committee and determined 

by the entire Supervisory Board. In the 2009/10 

fiscal year, a total of 2,821.2 thousand EUR was paid 

to the members of the Executive Board for their work 

rendered on behalf of DOUGLAS HOLDING AG and 

its subsidiaries. Of this amount, 1,326.1 thousand EUR 

comprised of non-performance related and 1,495.1 

thousand EUR performance-related income. The variable 

components for compensation to all Executive 

Board members (except for the Chief Human Resources 

Officer) are based on the result from ordinary business 

activities of the DOUGLAS Group less a 10 percent 

virtual accrual of the Group’s equity. The variable

167 

168 

component of the Chief Human Resources Officer’s 

remuneration depends 50 percent on the result from 

ordinary business activities and 50 percent on individually 

agreed target arrangements. The remuneration 

structure is in line with a sustainable business development. 

Variable remuneration is not based on the 

result of a respective fiscal year, but is weighted for 

an average of the results recorded for the past three 

fiscal years. The variable remuneration is also limited, 

because it cannot exceed a clearly defined percentage 

in base salary. With respect to the other 

Division heads, the variable components are based on 

the net results of the respective division in a comparative 

form. 

There are no stock option programs for Executive 

Board members. A D&O insurance policy with an appropriate 

self-deductible portion was entered into for 

the Executive and Supervisory Boards for the first time 

in fiscal year 2007/08. The self-deductible portion has 

corresponded to the statutory requirements in effect 

since July 1, 2010. 

Further details regarding the remuneration paid 

to the Executive Board members – including pensions 

and pension provisions – are published under 

www.douglas-holding.com/en/cg; a breakdown by 

member is shown in the Notes accompanying the 

consolidated financial statements on page 167 of this 

Annual Report. 

Supervisory Board remuneration 

The remuneration of the Supervisory Board is determined 

by the Annual Shareholders’ Meeting and 

governed by Section 14 of the statutes of DOUGLAS 

HOLDING AG. Such remuneration contains a fixed as 

well as a variable, performance-oriented component 

that is keyed to the earnings per share. The time spent 

chairing and attending committee meetings is accorded 

due consideration. The members of the DOUGLAS 

HOLDING AG Supervisory Board were paid a total 

of 811.2 thousand EUR during the 2009/10 fiscal year. 

Of this sum, 608.2 thousand EUR comprised fixed 

components and 203.0 thousand EUR variable components. 

A breakdown by member is shown in the Notes 

accompanying the consolidated financial statements 

on page 168 of this Annual Report. 

No conflict of interest 


No conflicts of interest subject to the Supervisory 

Board’s immediate notification were reported by the 

members of the Executive and Supervisory Boards. In 

the estimation of the DOUGLAS HOLDING AG Supervisory 

Board, the number of independent members 

in its ranks is sufficient. The efficiency examination 

– performed at intervals – confirmed that the Supervisory 

Board is efficiently organized and the collaboration 

between the Executive and Supervisory Boards 

functions quite well. 

Directors’ Dealings 

During the 2009/10 fiscal year, the members of the 

Executive and Supervisory Boards as well as the senior 

management of the DOUGLAS Group complied with 

the applicable reporting requirements of the German 

Securities Trading Act in respect to trading involving 

DOUGLAS shares. This also applies to the trading 

of derivatives. Security trading information can be 

found in the Notes accompanying the consolidated financial 

statements on page 168 of this Annual Report. 

Independence of Auditors 






DOUGLAS Share 

Impressions 


Prior to commencing the audit of the consolidated 

financial report for the fiscal year 2009/10, the 

Supervisory Board obtained confirmation from the 

auditors, Susat & Partner, to the effect that there were 

no business, financial, personal or other ties between 

the auditors, members of their executive bodies or 

the audit directors on the one hand and the company 

and the members of its executive bodies on the other 

which might constitute grounds to doubt the auditors’ 

independence. It was further confirmed that no consulting 

services of significance were rendered by Susat 

& Partner during the year under review or agreed for 

the fiscal year 2010/11. 

7 

168







DOUGLAS Share 

Impressions 


REPORT OF THE 

SUPERVISORY 

BOARD 

Dear Shareholders, 

The Supervisory Board of DOUGLAS HOLDING AG 

dealt extensively with the business and strategic performance 

of our Group during the fiscal year under 

review. In the 2009/10 fiscal year, the Supervisory 

Board fulfilled its duties in accordance with the legal 

requirements and the company’s statutes, rules of 

order and Principles of Corporate Governance of 

DOUGLAS and further monitored and provided advice 

to the Executive Board. The Executive Board 

reported to the Supervisory Board regularly, comprehensively 

and in a timely manner. Beyond these 

meetings, the Chairmen of the Supervisory and 

Executive Boards remained in close contact to regularly 

review strategy options and current policy issues. 

Focus of deliberations 

The Supervisory and Executive Boards held four 

ordinary meetings to discuss in-depth the business 

trends in the European retail sector and the financial 

performance of the DOUGLAS Group’s individual 

corporate divisions. The Executive Board submitted 

detailed reports to all Supervisory Board members 

before the Supervisory Board meetings. Discussions 

were held and decisions made on numerous issues including, 

among others: 

a) risks and opportunities for the DOUGLAS Group’s 

corporate divisions arising from E-Commerce and 

the implementation of own multi-channel concepts 

for all corporate divisions; 

b) intensification of the vertical integration strategy 

by means of expanding private and exclusive labels; 

c) impact of digitalization on the bookselling business; 

d) strategically necessary measures in certain countries; 

e) further development of the remuneration system 

for the Executive Board; 

f) diverse measures to secure earnings in a tough economic 

environment; 

g) strategic considerations to promote growth of the 

Douglas Perfumeries outside of Germany. 

Given the impact of the global economic crisis, 

weaknesses in the organization and store network 

were analyzed and adjusted, processes optimized and 

services improved in all markets in which the DOUG- 

LAS Group operates. In this respect, pleasing and impressive 

progress was made in all areas, so that the 

market position was upheld and expanded. 


Under www.douglas-holding.com the declaration 

of compliance according to the Corporate Governance 

Code and pursuant to Section 161 of the German Stock 

Corporation Law (AktG) was updated and publicized 

on the Internet, together with the DOUGLAS HOLD- 

ING AG Principles of Corporate Governance. 

For purposes of self-evaluation, the Supervisory 

Board performs an efficiency audit at regular intervals, 

which confirms the open communication and 

constructive work among the Board and Committees. 

Committees 

In addition to holding numerous teleconferences 

and individual discussions, the Executive Committee 

convened for one meeting during the period under review. 

Among other topics, its discussions covered the 

strategic further development of the DOUGLAS Group 

in Germany and abroad, significant leases, a range of 

acquisitions and divestiture projects as well as Executive 

Board remuneration and issues relating to human resources. 

Additionally, the form and content of the Supervisory 

Board’s activities were discussed and reviewed, 

with both being found efficient and appropriate by the 

Supervisory Board and its Executive Committee. 

The Audit Committee met on three occasions during 

the 2009/10 financial year. The main focal points 

of its deliberations were the DOUGLAS HOLDING AG’s 

separate and consolidated annual financial statements, 

the current financial structure, the hedging of interest 

and foreign currency risks and the operational planning 

for the Group. Moreover, the Executive Board and 

Audit Committee held three in-depth teleconferences 

concerning the quarterly financial reports of the fiscal 

year under review. The Supervisory Board as a whole 

was kept fully informed of the outcome of the discussions 

held at all the committee meetings. There was no 

need to convene the Arbitration Committee (pursuant 

to Section 27 (3) of the German Codetermination Act).

Dr. Dr. h.c. Jörn Kreke, Chairman of the Supervisory Board 

Human resource issues 

1. In the 2009/10 fiscal year, Ms Anke Giesen undertook 

her duties as a Member of the Executive Board 

on November 1, 2009, and is responsible for the areas 

of Human Resources and Legal. 

2. Ms Malene Volkers, Trade Union Secretary, resigned 

from her position on the Supervisory Board 

as per the end of the Annual Shareholders’ Meeting 

on March 24, 2010. Mr Johann Rösch, Trade Union 

Secretary ver.di, was appointed effective April 28, 

2010 as the new employee representative on the Supervisory 

Board. 

3. One Supervisory Board member participated in 

less than half of the Supervisory Board meetings 

due to illness. 

Auditors 

In accordance with a vote at the Annual Shareholders’ 

Meeting, the Supervisory Board appointed 

Susat & Partner oHG Wirtschaftsprüfungsgesellschaft, 

Hamburg, in August 2010 to audit the separate 

and consolidated annual financial statements for the 

2009/10 fiscal year. Prior thereto, the extent and focus 

of the audit had been defined by the Audit Committee. 

The accounting and separate financial statements 

of DOUGLAS HOLDING AG, the consolidated financial 

statements for the 2009/10 fiscal year as well as 

the combined management report covering both the 

Group and DOUGLAS HOLDING AG, were audited by 

the auditors, concluded that they comply with legal 

DOUGLAS HOLDING AG 9 






DOUGLAS Share 

Impressions 


requirements and the company statutes and issued 

an unqualified audit report. 

On December 7, 2010, the Audit Committee joined 

the Executive Board to hold full discussions with the 

auditors on the audit findings, risk management system 

and organization matters of the Group’s subsidiaries. 

The auditors were party to the discussions on 

the agenda items relating to their work at the Supervisory 

Board’s balance sheet meeting on December 8, 

2010, where they also reported on the principal findings 

of the audit and answered questions. Copies of 

the auditor’s reports were presented to the Supervisory 

Board. The Supervisory Board approved the findings 

of the audit; no objections were raised. 

Annual financial statements of DOUGLAS 

HOLDING AG and the Group 

In accordance with legal obligations, the Supervisory 

Board conducted a review of the separate and 

consolidated financial statements, the combined 

management report of the Group and DOUGLAS 

HOLDING AG, as well as the proposed appropriation 

of profits – all of which had been submitted in good 

time – and gave its approval in writing. The annual 

financial statements are therefore deemed adopted 

pursuant to Section 172 of the German Stock Corporation 

Law (AktG). The release of the consolidated financial 

statements was approved on January 10, 2011. 

The Supervisory Board approved the proposal for the 

appropriation of profits as submitted by the Executive 

Board, including a dividend payout of 1.10 EUR 

per dividend-bearing share for the 2009/10 fiscal year. 

The Supervisory Board would like to thank the Executive 

Board, the management and all the employees 

of the DOUGLAS Group in Germany and abroad 

for their impressive commitment and successful work 

achieved under challenging economic conditions in 

the 2009/10 fiscal year. 


On behalf of the Supervisory Board 

Dr. Jörn Kreke 

Chairman

Fig. 1 

10 DOUGLAS HOLDING AG 






DOUGLAS Share 

Impressions 


THE DOUGLAS SHARE 

The international stock markets delivered an overall pleasing performance in the 2009/10 fiscal year of DOUGLAS 

HOLDING AG. In an environment of historically low interest rates, the share prices climbed worldwide in the 

wake of the emerging global economy, whose recovery was supported by extensive economic programs of the 

leading industrial nations. For export countries like Germany, additional growth impetus came from the unexpectedly 

high demand in import goods from emerging countries. In Germany, the higher consumer spending 

also contributed to this growth. By contrast, the worldwide share prices suffered from doubts surrounding the 

financial sector’s stability and from the credit rating and financial problems arising from high budget deficits of 

some Euro zone countries. And in particular, the mood on the capital markets was impacted by the repeatedly 

established recession scenarios for the USA. 

Major European indices reported a positive performance 

in the year under review: The German 

stock index, DAX, stood at 5,682 points at the beginning 

of DOUGLAS HOLDING AG’s 2009/10 fiscal year 

on October 1, 2009 – falling to an annual low of 5,353 

points by the beginning of November 2009. In the following 

months the DAX succeeded in making up losses, 

closing at 6,229 points as of the balance sheet date 

on September 30, 2010. This corresponded to a plus 

of 9.6 percent based on the fiscal year. An even better 

performance was delivered by the MDAX, which 

also lists the DOUGLAS shares. The index gained 

19.0 percent over the same period, closing at 8,768 

points. The performance of the German retail stocks 

is tracked in the DAXsector Retail index. Following 

the index’s drop of 3.4 percent in the preceding year, 

it sharply climbed by 18.3 percent in the 2009/10 

Fig. 1 · Indexed price of the DOUGLAS share in the 2009/10 fiscal year 

140 % 

120 % 

100 % 

80 % 

fiscal year. The substantial gain in the DAXsector 

Retail index reflected the good economic fundamental 

indicators in Germany and the related optimistic assessment 

of the capital markets regarding the further 

performance of domestic demand in Germany. 

Positive share price performance 

In the improved capital market environment, the 

DOUGLAS share gave a pleasing performance and 

benefited from the sharp rise in expectations for consumer 

spending in Germany. The DOUGLAS share 

closed on XETRA at 36.83 Euro on September 30, 2010 

after starting at 31.25 Euro at the beginning of the fiscal 

year. This represented a gain of 17.9 percent following a 

contraction of 3.8 percent in the previous year. Taking 

Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 

DOUGLAS share DAX MDAX DAXsector Retail EURO STOXX Retail Supersector 

Fig. 2

Fig. 3 

Fig. 2 · Maximum and minimum price of the DOUGLAS share in the 2009/10 fiscal year 

EUR 38 

EUR 36 

EUR 34 

EUR 32 

EUR 30 

EUR 28 


Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 

31.99 

30.29 

34.32 

29.95 

34.93 

33.83 

34.47 

32.08 

35.27 

31.70 

into account the 2008/09 dividend of 1.10 Euro per 

share, this translates into a total shareholder return 

of 21.4 percent. Subsequently, the DOUGLAS share 

followed the performance of the comparative indices. 

On the balance sheet date as of September 30, 2010, 

the share reached its yearly high at 36.83 Euro for the 

2009/10 fiscal year and recorded its yearly low at 29.95 

Euro on November 3, 2009. 

Lower trading volume 

With the stabilization of the financial markets and 

the resulting fall in the volatility of the stock markets, 

the trading volume dropped on the international 

stock exchanges. The DOUGLAS shares could not escape 

from this trend. The average daily turnover on 

the electronic platform XETRA, which is where nearly 

90 percent of all trading in DOUGLAS shares takes 

place, declined by 38 percent to 85,000 shares in 

the 2009/10 fiscal year (FY 2008/09: 137,000 shares). 

Nonetheless, at peak times, more than 350,000 shares 

changed hands in a single day. Alternative electronic 

trading platforms are becoming increasingly more important 

for the DOUGLAS share, and reached a share 

in total sales of roughly ten percent in the 2009/10 

fiscal year. 

Compared to the prior year’s closing date, the 

DOUGLAS share had a market capitalization of 1.45 

billion Euro as of September 30, 2010 (9/30/2009: 1.23 

36.24 

34.21 

35.49 

33.95 

35.20 

32.80 

35.06 

34.28 

34.99 

33.70 

34.98 

33.22 

36.83 

34.16 

billion Euro). According to Deutsche Börse AG’s index 

system, which only takes free float into account when 

calculating market capitalization, the shares were 

ranked 34th in the MDAX (9/30/2009: 26th), with an 

index-weighting of around 1.2 percent as of the close 

of the fiscal year (9/30/2009: 1.4 percent). 

Intensive dialog with capital markets 

Maintaining ongoing and transparent dialogs 

with analysts as well as institutional and private 

investors feature strongly in the DOUGLAS Group. 

Alongside the reporting of key financial indicators, 

the focus of the investor relations’ activities is also 

the communication of the DOUGLAS Group’s valueoriented 

corporate strategy. The objective is to clarify 

Fig. 3 · Trading volume – Five year overview 1) 

shares 2005/06 2006/07 2007/08 2008/09 2009/10 

250,000 

200,000 

150,000 

100,000 

50,000 

1) daily average 

120,000 

174,000 

236,000 






DOUGLAS Share 

Impressions 


137,000 

85,000 

11







DOUGLAS Share 

Impressions 


Fig. 4 · DOUGLAS share – Market overview 

the business model and the potential of the DOUGLAS 

Group to the capital markets, thus achieving an objective 

and fair valuation of the DOUGLAS share. 

Also in the 2009/10 fiscal year, the Executive Board 

and the Investor Relations Team kept investors and 

financial analysts promptly and comprehensively informed 

about current business developments, strategic 

planning and the targets of the DOUGLAS Group. 

Representatives of the DOUGLAS HOLDING AG answered 

investors’ inquiries in the course of 25 road 

shows and investor conferences and in over 180 one-onone 

or group meetings in all major financial centers 

in Europe, the USA and at the company’s headquarters 

in Hagen, Germany. The top management of the 

operating divisions was also included in the communication 

to the capital markets. Furthermore, at 

a Store Tour in Berlin, analysts and institutional in- 

Fig. 5 · DOUGLAS share – Key information 

Type of share/denomination No-par value share 

Admission segment Prime standard 

Industry Retail 

Index MDAX 

ISIN DE0006099005 

Stock exchanges 

Symbol DOU.ETR 

Ticker symbol Bloomberg DOU GR 

Ticker symbol Reuters DOHG.DE 

Designated Sponsor WestLB AG 

Frankfurt on the Main, Dusseldorf, 

Berlin, Hamburg, Stuttgart, 

Hanover and Munich 

2009/10 2008/09 

Shares issued as of balance sheet date m 39.3 39.3 

Shares issued as of balance sheet date, not including treasury shares m 39.3 39.3 

Capital stock EUR m 118.0 117.8 

Highest stock quotation (XETRA) EUR 36.83 33.80 

Lowest stock quotation (XETRA) EUR 29.95 25.62 

Stock quotation as of end of fiscal year (XETRA) EUR 36.83 31.25 

Market capitalization as of end of fiscal year EUR m 1,448.2 1,227.5 

Earnings per share EUR 1.93 1.60 

Dividend per share EUR 1.10 1.10 

vestors had the opportunity to take a first-hand look 

at the DOUGLAS Group’s operations, and to convince 

themselves of the consistent manner in which lifestyle 

demands are being met in the specialty stores. 

An important date on the financial calendar is the 

annual Analysts’ Conference. At the Analysts’ Conference 

held back in January 2010 in Frankfurt on 

the Main, the Executive Board gave a full report to 

around 60 analysts and investors on the past 2008/09 

fiscal year and on the sales and earnings forecasts for 

2009/10. In three telephone conferences with an average 

of 35 participants, business developments in the 

first three quarters of 2009/10 were discussed in detail. 

The DOUGLAS Group attaches great importance 

to communicating with private investors. Many of 

whom took advantage of the Shareholders’ Meeting on 

March 24, 2010 held at the City Hall in Hagen to obtain 

a thorough picture from the DOUGLAS HOLDING 

AG’s Executive Board of business developments. The 

roughly 1,200 shareholders present at the Shareholders’ 

Meeting represented 58 percent of the capital 

stock (prior year: 59 percent) and approved all agenda 

topics. In order to meet the informational needs of 

private investors, the Investor Relations Team also 

addressed issues raised by investors at the DAF Share 

Forum in Berlin. 

Apart from personal talks, DOUGLAS HOLDING 

AG’s Internet website presents an alternative to shareholders 

and all interested potential investors to gain 

extensive information about the DOUGLAS Group. 

Under www.douglas-holding.com, share information, 

current news and dates, presentations and scripts

from Executive Board speeches as well as annual 

and interim financial reports can be accessed. Moreover, 

major portions of the Shareholders’ Meeting are 

broadcast live on the Internet every year. Company 

figures are continuously updated and during the current 

fiscal year information provided on the website 

will continue to improve in terms of content and to 

expand in specific areas. 

It was most gratifying that the Investor Relations 

initiatives of DOUGLAS HOLDING AG in the 

2009/10 fiscal year reached top positions in external 

evaluations. As a result, DOUGLAS HOLDING AG 

ranked third place in the MDAX category of the German 

Investor Relations Award granted annually by the 

Deutsche Investor Relations Verband e.V. (DIRK). The 

economic magazine, Capital, and the Society of Investment 

Professionals in Germany (DVFA) awarded the 

Investor Relations Team second place with the “Capital 

Investor Relations” prize in the MDAX category. 

Investor Relations activities will be further improved 

in the 2010/11 fiscal year. DOUGLAS HOLDING 

AG’s idea is to strengthen communication not only 

in continuing to give first-class attention to existing 

shareholders, but also to attract new investors in 

Germany and abroad for the DOUGLAS share. 

High interest exhibited by analysts 

In the 2009/10 fiscal year, 24 analysts from renowned 

investment firms – mainly from Germany 

and the United Kingdom – regularly published studies 

and commentaries of current developments of the 

Fig. 6 · Dividend performance 

EUR 1.20 

EUR 1.00 

EUR 0.80 

EUR 0.60 

EUR 0.40 

EUR 0.20 

EUR 0.00 

2005/06 2006/07 2007/08 2008/09 2009/10 

1.10 1.10 1.10 1.10 1.10 


DOUGLAS Group and made their recommendations. 

As of September 30, 2010, eight analysts recommended 

buying the DOUGLAS share, thirteen categorized 

them as “hold” and only three gave a “sell” recommendation. 

The majority of the analysts raised the 

share targets for the DOUGLAS share during the 

course of the year. In their studies, the analysts 

concluded that the DOUGLAS Group is very well 

positioned and should benefit disproportionately 

from the much improved economic conditions and 

the increased consumer spending, especially in Germany. 

Stable dividend 

The Executive and Supervisory Boards of DOUG- 

LAS HOLDING AG will propose to the Shareholders’ 

Meeting on March 23, 2011 to approve a dividend of 

1.10 Euro per no-par value share for the 2009/10 fiscal 

year just like in the preceding year. This corresponds 

to a payout ratio of 57 percent of the consolidated net 

income allocated to DOUGLAS shareholders. If the 

dividend is viewed in relation to the market price of 

36.83 Euro for DOUGLAS shares as of the end of the 

2009/10 fiscal year, this would result in a dividend 

yield of 3.0 percent. 

Therefore, on the basis of a stable dividend payout 

year-on-year – even during an overall global financial 

market crisis – the Executive and Supervisory Boards 

want to demonstrate their shareholder-friendly dividend 

policy, thus allowing shareholders to also participate 

in the solid corporate development in an appropriate 

manner for the 2009/10 fiscal year. 

Fig. 7 · Dividend yield 

6.0 % 

5.0 % 

4.0 % 

3.0 % 

2.0 % 

1.0 % 

0.0 % 


3.0 

2.5 






DOUGLAS Share 

Impressions 


3.4 3.5 

3.0 

13 

Fig. 6 

Fig. 7


Wishing you a pleasant tour of the highlights from 

our 2009/10 financial year: Julia Wagener (left) and 

Ann-Kristin Mugrauer from Douglas in Weiterstadt.

IMPRESSIONS 

October 2009 

With Douglas, Thalia, Christ and Hussel openings, 

the DOUGLAS Group offers no less than four 

new stores at the futuristic “Loop5” shopping center 

in Weiterstadt near Frankfurt. 

Douglas, Christ and Hussel open new locations at 

the “Limbecker Platz” mall in Essen. Thalia opened a 

bookstore here in March 2008. 

November 2009 

The DOUGLAS Executive Board honors the winner 

of the “TOP TEAM 2009” sales competition. The 

“crème de la crème” win a four-day Mediterranean 

cruise on the AIDA. 

Anke Giesen assumes responsibility for the Human 

Resources and Legal Affairs portfolios on the 

DOUGLAS HOLDING AG Executive Board. 

December 2009 

Thalia Holding acquires a majority interest in the 

online bookseller buch.de. 

Douglas and Thalia are named German “Retailers 

of the Year” in the categories “Perfumery“ and “Books 

and Magazines” – the results of a survey of 45,000 consumers 

conducted by Q&A Research & Consultancy. 

DOUGLAS HOLDING donates EUR 2,000 to the 

“Meals for Children” initiative run by the Young Protestants 

organization in Hagen. 

January 2010 

Douglas joins the cosmetics manufacturer Origins 

in the “Plant a Tree” ecology campaign. 

The top model Katrin Thormann becomes the new 

face of AppelrathCüpper. 







DOUGLAS Share 

Impressions 


15







DOUGLAS Share 

Impressions 


February 2010 

A quartet of DOUGLAS Group shops opens at 

the new “Rathaus-Galerie” in Leverkusen: Douglas, 

Thalia, Christ and Hussel. 

TV talkmaster Alfred Biolek guests at the buch.de 

soirée in Münster. 

March 2010 

The DOUGLAS Lifestyle building on Frankfurt’s 

Zeil shopping street celebrates its 10th anniversary. 

Joining in: Douglas and AppelrathCüpper. 

On the occasion of its Shareholders’ Meeting, 

DOUGLAS HOLDING once again donates EUR 25,000 

to three local charities. 

April 2010 

Douglas employee Marion Thode celebrates her 

50th jubilee! On April 1, 1960 she began her apprenticeship 

at Douglas on Hamburg’s Neuer Wall – and 

stayed until entering a well-deserved retirement at 

the end of April 2010. 

May 2010 

Douglas commemorates the centenary of the firstever 

Douglas perfumery – opened at Neuer Wall 5 in 

Hamburg on May 24, 1910. 

Thalia opens a new, ultra-modern multi-channel 

bookstore with nearly 20,000 square feet of sales 

space on Dortmund’s Westenhellweg. 

Douglas opens the first perfumery exclusively 

illuminated with LED lighting in Frankenthal (southwest 

Germany). 

Dr. Jörn Kreke, Chairman of the DOUGLAS HOLD- 

ING Supervisory Board, turns 70.

June 2010 

Hussel pilots a “new world of great taste” in 

Aschaffenburg and launches www.hussel.de. 

Best-selling author Sebastian Fitzek visits the 

Thalia bookshops in Bielefeld, Cottbus and Dresden. 

July 2010 

The world’s most expensive perfume goes on 

sale at Douglas on Düsseldorf’s Königsallee – for the 

princely sum of EUR 285,000. 

Many shop teams organize exciting events for 

their customers during the Soccer World Cup. 

August 2010 

The DOUGLAS Group welcomes some 670 new 

apprentices across Germany – more than ever before. 

Thalia opens Austria’s first-ever multi-channel 

bookstore in Vöcklabruck. 

September 2010 

The new Douglas perfumery on Berlin’s Tauentzienstrasse 

captures imaginations with its “world of 

colors” – a rich array of cosmetic products, a section 

devoted to exclusive care ranges, and multi-channel 

features such as touchscreens for browsing online. 

Halle Berry presents her new perfume ‘ Reveal’ at 

Douglas in Hamburg. 

Thalia shows off its own eReader ‘OYO’ at the IFA 

trade fair in Berlin. 

Christ reopens in grand style on Frankfurt’s Zeil 

boulevard, setting new standards in the process. 

AppelrathCüpper launches its website and attracts 

customers in Münster with a revamped store design. 

The “mini-store,” the DOUGLAS HOLDING kindergarten, 

is among the winners of Germany’s “365 Places 

in a Land of Ideas” competition. 







DOUGLAS Share 

Impressions 


17







DOUGLAS Share 

Impressions 


ENTHUSIASM DRIVES SUCCESS 

The DOUGLAS Group is synonymous with supreme customer and service orientation and therefore considers 

the professionalism and enthusiasm of its over 24,000 employees paramount. The human resources work centers 

on carefully planned training and personnel development programs which once again proved a key component 

of the 2009/10 financial year. But the DOUGLAS Group also focused heavily on preparing for impending 

challenges – ensuring its capacity to operate successfully in the future. 

Highly qualified training 

When it comes to training employees, the DOUG- 

LAS Group is one of the most active retailers in Germany. 

With a share of apprentices that has comfortably 

exceeded 10 percent for years, it offers numerous 

graduates the chance of professional training. The 

start of the 2010 training year brought a new record, 

with some 670 young women and men launching their 

careers with the Group – the highest figure ever and 

a good 200 more than 12 months earlier. All of the 

subsidiaries intensified their training activities; most 

notably, the Douglas perfumeries which – with 337 

new apprentices (previous year: 205) – again supplied 

the majority. But Christ jewelers and the fashion store 

AppelrathCüpper also invested more vigorously in 

training. A total of 25 trainees began apprenticeships 

at Hussel (previous year: 15), 38 at AppelrathCüpper 

(previous year: 18), and 119 at Christ (previous year: 

65). At September 30, 2010, the DOUGLAS Group had 

1,526 apprentices on its books in Germany, the majority 

of them pursuing a qualification in retailing. At 

just under 13 percent, the proportion of trainees was 

still well above the German retail industry average 

of 8 percent. 

In addition to the prescribed training, apprentices 

in the holding company and subsidiaries had access to 

attractive optional courses designed to broaden their 

horizons. Apprentices at AppelrathCüpper, for example, 

hold get-togethers with their counterparts at other 

retail companies to discuss their experiences and 

training. And third-year apprentices learning wholesaling 

and foreign trade in the holding company can 

apply to spend four weeks at a foreign subsidiary. 

The instructors in the DOUGLAS Group are also 

rewarded for their dedication. Their charges are regularly 

awarded outstanding grades in examinations, 

with many of them being honored by local chambers 

of commerce and industry. On average, 70 percent of 

successful apprentices enter permanent employment 

with the DOUGLAS Group and go on to develop their 

careers at programs in the various subsidiaries. 

High-appeal training programs 

Yet again, numerous employees in the DOUGLAS 

Group subscribed to attractive HR development programs 

on an array of technical, managerial and social 

topics during the 2009/10 financial year. In the 

Perfumeries division, some 60 candidates graduated 

from the Douglas Academy – a program designed to 

impart sales management skills. The tried and trusted 

“PROMIs” training scheme at Christ pursues similar 

goals for jewelry professionals, with over 20 young employees 

completing the course during the year ended. 

As part of its succession planning program, the Perfumeries 

division focused throughout Germany on 

identifying potential candidates for regional manager 

positions. Since this year, sales management personnel 

have also been offered a new opportunity: from a 

range of training modules they can select those that 

match their individual requirements and most effectively 

foster their development. 

Employees 

09/30/10 09/30/09 Change 

Perfumeries 14,834 14,611 223 

Books 5,186 5,151 35 

Jewelry 2,173 2,025 148 

Fashion 751 757 – 6 

Confectionery 1,141 1,097 44 

Services/Holding 570 549 21 

DOUGLAS Group 24,655 24,190 465 

national 15,164 14,761 403 

international 9,491 9,429 62







DOUGLAS Share 

Impressions 


Transporting their customers into a world 

of beauty: the friendly Douglas employees 

– seen here Katharina Dzienisz (left) and 

Sibel Ok from Recklinghausen.







DOUGLAS Share 

Impressions 


In the “Thalia Academy,” the Books division has 

centralized its development programs in the areas 

of sales and services. The modules extend from “Active 

and Emotional Selling” through to its three-year 

“Leadership” program, on completion of which college 

graduates are equipped to take up management positions. 

In conjunction with the renowned Seckbacher 

Kolleg, Thalia also created an e-learning application 

for employees joining the company from other industries. 

The year 2010 also brought the introduction of 

the new merchandise management system “Thawis” 

and one of the most comprehensive training programs 

in Thalia’s history. In 2010 and 2011 alone, some 2,300 

employees from over 130 bookstores will be learning 

how to operate the system – by completing personal 

training courses followed by e-learning programs. 

AppelrathCüpper also expanded its training for 

young employees during 2009/10. Its two-year program 

combines theory and practice. As part of their 

training, budding managers are charged with supervising 

apprentices in the fashion stores. 

The year also saw a sales training program initiated 

at Hussel. Entitled “Selling with Heart and 

Mind,” it incorporated dedicated modules for managers, 

store employees and service personnel. Hussel 

also launched its “Store Management Training” program 

which – given the positive feedback – is being 

expanded during the next fiscal year. 

To give the approximately 1,200 service employees 

a better appreciation of their colleagues’ work in the 

stores, many again engaged in “networking” during 

the 2009/10 financial year – assisting with inventories 

and sales in shops or supporting local promotions. 

The DOUGLAS Group successfully extended its 

training program for top managers. At the DOUG- 

LAS HOLDING ACADEMY, a total of 125 management 

personnel enhanced their skills at seminars, 

workshops and information events that covered topics 

ranging from strategy and leadership through to 

innovation and change management. Thanks to the 

Group’s partnerships with top colleges such as the 

Leipzig Graduate School of Management, the ACAD- 

EMY curriculum is guaranteed to offer the most relevant 

and up-to-date topics and first-class speakers 

from the realms of industry and education. Thirteen 

Thalia managers completed a general management 

Training is a top priority in the DOUGLAS Group: Dr. Henning Kreke, CEO (2nd row, 5th from left), and Anke Giesen, Chief Human Resources 

Officer (2nd row, 6th from left) together with apprentices who launched their careers in August 2010.

Valued for their reading tips: Maria Sander, 

Silvana Millstein and Bettina Dalhues 

(left to right) from Dortmund – representing 

over 5,000 Thalia employees. 







DOUGLAS Share 

Impressions 

Human Resources







DOUGLAS Share 

Impressions 


The customers are not alone in feeling 

comfortable at Christ. Enjoying their work: 

Claudia Klee (store management, left) and Eda Acar 

from Christ on Frankfurt’s Zeil boulevard.

seminar at the Zeppelin University in Friedrichshafen 

during 2010, learning how best to develop strategies 

and execute them within their teams. During a twoyear 

period, every Thalia manager will be participating 

in this ten-day seminar. Digitization – a process 

that has specifically sparked fundamental changes in 

the bookselling segment – numbers among the seminars’ 

key themes. 

Diversified human resource marketing 

For years, college marketing has formed the key 

thrust in the classical “offline” efforts to secure qualified 

young employees. By maintaining very close ties 

to selected colleges – such as the traditional universities 

of Münster and Cologne and the universities of 

applied science in Bremen and Worms – HR managers 

are able to engage with students personally and awaken 

their interest in the DOUGLAS Group. Through 

student placements, assessment center exercises, 

workshops, talks on practical aspects of retailing, 

seminars focusing on case studies and activities at 

recruiting fairs, students learn a great deal about the 

DOUGLAS Group and its benefits as an employer. 

The redesigned career website is the hub of the 

Group’s online marketing activities. The varied types 

of employment and diversified career opportunities 

available in the DOUGLAS Group are all detailed at 

http://karriere.douglas-holding.com along with adverts 

on open positions. 

With its blogs, social networks like XING, Facebook 

and SchülerVZ, and online platforms like YouTube, 

Web 2.0 technology has ushered in a new and innovative 

form of human resource marketing. And these 

channels are being progressively integrated into the 

Group’s personnel marketing activities. In an initial 

step, a corporate profile was published on XING in 

October 2010. Managers can also post want ads on 

this site and, once registered, directly contact suitably 

skilled subscribers. Plans to establish a brand page for 

the Human Resources department on Facebook are 

currently being evaluated with the goal of presenting 

an authentic picture of working in the DOUGLAS 

Group and highlighting the company’s attractions for 

employees. 

Preparations for blogs are already underway. Echoing 

the theme of “Rock the Blog!” a new blog is being 







DOUGLAS Share 

Impressions 


launched in February 2011 – with 9 apprentices from 

the holding company and subsidiaries posting reports 

on their training. Schoolchildren interested in learning 

about their experiences and contacting them online 

can do so at www.azubi-blog.douglas-holding.de. 

With heart and mind into the future 

The new channels of communication are not the 

only major challenges facing the Group’s Human Resources 

department. Given shifting demographic patterns, 

it needs to make detailed preparations now for 

the employment markets in five and ten years’ time. 

In this context, the DOUGLAS Group is remaining true 

to its philosophy of offering abundant training opportunities. 

Furthermore, older members of staff are 

receiving additional support in the form of special 

programs etc. For this reason, the Group is continuing 

to contribute to “Experience 50+,” a project jointly 

sponsored by the German Retail Federation (HDE) 

and the country’s Ministry of Family Affairs which 

runs special training courses keyed to the needs of the 

over-fifties. A good mix between experienced older 

and curious younger employees will remain a significant 

key to success in the future. Blended perfectly, 

they can make the ideal team. 

Exploring the possibilities of multi-channel retailing, 

and instilling enthusiasm for its potential, will be 

one of the main tasks facing managers and human 

resource development officers during 2011. One major 

challenge in sales training will be sensitizing employees 

to the idea of multi-channel retailing. This entails 

increasing their awareness of the Internet and demonstrating 

the mutual benefits of coordinating operations 

at stationary and online stores. To this end, the 

Human Resources department is providing courses 

that enable store employees to give the best possible 

advice to their customers. This might, for example, include 

helping a customer order an out-of-stock product 

from the company’s Internet shop. 

With some 90 percent of the workforce female, 

supporting women at work is naturally a key aspect 

of the Group’s HR development activities. An array of 

options reconciling work and family needs – such as 

a “Parents’ Hotline” and flexible working schedules – 

allow mothers to remain in their jobs and personally 

configure their working hours to fit their individual 

timetables. With the “Minifiliale” kindergarten at







DOUGLAS Share 

Impressions 


Teaming up for AC’s success: managers 

from the fashion stores – shown here 

Susanne Deckenbrock (Dortmund) and 

Oliver Lambor (Essen).







DOUGLAS Share 

Impressions 


Engaging and personal service: a Hussel hallmark – shown here Pranvera Pllunci (left) and Stefanie Wörder (Store Manager) from Remscheid. 

corporate headquarters in Hagen, the Group is now 

operating another valuable childcare service. The facility 

opened in August with 12 children aged up to 

three, with a further 15 up to six years old joining in 

August 2010. 

Developing the specific corporate culture of the 

DOUGLAS Group will be another key focus. In line 

with the corporate motto of “Excellence in Retail,” this 

culture reflects a desire for commercial success combined 

with fairness and mutual respect. The corporate 

values and management principles that apply to all 

the DOUGLAS Group companies serve as the “rules” 

underpinning this culture. During the 2010/11 financial 

year, these will be revised to ensure their continuing 

relevance and the accuracy of their wording – to 

reflect changing circumstances. 

In the future the DOUGLAS Group will hold fast to 

its long-standing principles of decentralized decisionmaking, 

personal interaction and high satisfaction 

levels among the workforce. Reinterpreting these principles 

over the passage of time – that too is a hallmark 

of the DOUGLAS Group’s human resources work. It 

is for good reason the Group’s motto for the 2010/11 

reads “With heart and mind into the future.” 

25

26 Management Report 

Key results 

Business activities and operating environment 

Net assets, financial position and result of operations 


Subsequent events 

Control system and success factors 

Opportunities and risks situation 

Statutory disclosures 

Forecast and overall assessment 

THE DOUGLAS GROUP BRANDS 

The DOUGLAS Group embodies five decentralized corporate divisions with approximately 2,000 specialty 

stores and more than 24,000 employees spanning across 20 countries in Europe. The divisions Douglas, Thalia, 

Christ, AppelrathCüpper and Hussel lead the market in their respective segments. The divisions stand for excellent 

service, first-class products and provide a stimulating shopping experience at their specialty stores. All 

corporate divisions have created solid conditions to develop further in their market segments and to become 

leading multi-channel providers. 

The DOUGLAS Group Brands 

With 1,205 perfumeries in 20 countries, Douglas, which is the market leader 

in Europe, stands for high expertise at both the perfumeries and the online 

shop in the areas of perfumes, cosmetics and skin care. 


The bookselling group – Thalia – holds a leading position in German-speaking 

countries with their multi-channel offerings comprising of 289 bookstores, 

online shops and an extensive e-book product range. 

www.thalia.de 

The 204 Christ jewelry stores lead the market in Germany in the mid to upper 

price range for jewelry and watches. With the new online shop, Christ has taken 

an important step towards becoming a multi-channel provider. 

www.christ.de 

The 14 AppelrathCüpper fashion stores and the AC online shop are held in 

high esteem as an expert premium seller of high quality women’s clothing. 

www.appelrath.de 

The 261 Hussel confectionery shops have a strong market position in Germany 

with their innovative confectionery creations and attractive private labels and 

are expanding their expertise in online retailing. 

www.hussel.de

MANAGEMENT REPORT CONTENTS 

Management Report 

29 Key results 

30 Business activities and operating environment 

35 Net assets, financial position and result of operations 


46 Subsequent events 

47 Control system and success factors 

57 Opportunities and risks situation 

63 Statutory disclosures 

64 Forecast and overall assessment 

27 

Management Report


Key results 









Christ looks back on one of its most successful business years. 

Douglas succeeded in expanding its market leadership particularly in Germany.

KEY RESULTS 

IN THE 2009/10 FISCAL YEAR: 

Group sales up 3.7 percent over the prior year (target: 0 to 2 percent) 

• Sales benefit from full consolidation of buch.de 

• Pleasing like-for-like sales performance delivered by Jewelry division and 

German perfumeries 

• Lower like-for-like sales outside of Germany in some perfumeries 

due to challenging macroeconomic conditions 

• Weak sales performance given in the Books division due to industry factors 

Earnings before taxes (EBT) at 131.2 million EUR (target: 120 to 130 million EUR) 

• Higher earnings contribution from Jewelry division; earnings from 

Douglas perfumeries at last year’s level 

• Earnings increase in Books division due to revaluation of buch.de shares 

• Earnings negatively impacted by extraordinary write-downs 

Dividend of 1.10 EUR per share in line with prior year 

• Earnings per share increases to 1.93 EUR 

• Dividend payout ratio at 57 percent 

Solid financing and capital structure 

• Free Cash Flow rises to 88.2 million EUR 

• Net bank debt drops from 165.3 to 124.0 million EUR 

• Financing assured via revolving credit facility 

DOUGLAS Value Added (DVA) climbs to 23.7 million EUR 

• Higher value contribution from Perfumeries, Jewelry and Confectionery divisions 

• Significant DVA decline in Books division 

• Negative value contribution from the Fashion division 


Key results 









29


Key results 









U4 

170-171 

GROUP MANAGEMENT 

REPORT 

BUSINESS ACTIVITIES AND 

OPERATING ENVIRONMENT 

A leading European specialty retailer 

The DOUGLAS Group embodies five decentralized retailing divisions with more than 

24,000 employees and about 2,000 specialty stores spanning across 20 countries throughout 

Europe. In many countries, the DOUGLAS Group with its focus on excellent service, 

first-class products in an attractive shopping ambiance has a leading position – particularly 

in German-speaking countries where a major portion of sales are generated. The 

DOUGLAS Group received confirmation of its retailing expertise in 2010 in its all-important 

home market in Germany. On the basis of a consumer survey conducted by the German 

Retail Association (HDE), three of the Group’s subsidiaries were named “The Retailer 

of the Year 2010”: The Douglas perfumeries in the category “Perfumeries”, the Thalia bookstores 

for “Books and Magazines” and the Christ jewelry stores in the category “Jewelry”. 

The largest division is the Douglas perfumeries division with 1,205 perfumeries, which 

are market leaders in Europe, standing for expertise in the areas of perfume, cosmetics 

and skin care. With its multi-channel strategy that includes 289 bookstores, an online 

shop and an extensive e-book product range the book retailing group Thalia has a leading 

market position in German-speaking countries. The 204 Christ jewelry stores lead the 

market in Germany in the mid to upper price range of the jewelry and watches segment 

thanks to its successful product-mix strategy of private, exclusive and popular trend labels. 

The 14 women’s fashion stores from AppelrathCüpper are held in high esteem by its 

customers at all their locations for the excellent quality of the clothing offered. The 261 

Hussel confectionery shops have attained an excellent market position in the German confectionery 

sector with its innovative confectionery creations and attractive private labels. 

DOUGLAS HOLDING AG, with its head office in Hagen, Germany, is the strategic investment 

and management holding company responsible for the centralized management 

and service functions for the DOUGLAS Group. In addition, the service companies, 

which operate as profit centers, and the service head offices of the distribution companies 

incorporate important administrative tasks and support the retail stores with their dayto-day 

operations. A company overview of the DOUGLAS Group can be found on page 

U4. A list of significant shareholdings of the DOUGLAS Group can be found on pages 170 

to 171 of this Annual Report. 

Corporate philosophy and objectives of the DOUGLAS Group 

The DOUGLAS Group stands for “retail with heart and mind”, which defines its corporate 

values and culture. With its aforementioned lifestyle philosophy comprising of expert 

advice, excellent service and first-class products in an attractive shopping atmosphere, the 

DOUGLAS Group strives to offer its customers a unique shopping experience.

All five retailing divisions combine this lifestyle philosophy and implement the mutual 

corporate objectives: quality and service leadership, sustained value-oriented growth 

and securing a leading market position – even in countries where the DOUGLAS Group 

has not yet achieved a key market position. 

To secure further value-oriented growth, each and every planned investment is examined 

to determine whether it contributes to the sustained increase of the business value. 

Added value is then created, when a return is generated that is above the costs of capital. 

Corporate management and controls 

The responsibility for the DOUGLAS Group’s management underlies three members of 

the Executive Board of DOUGLAS HOLDING AG as well as three division directors, who 

are responsible for the operating subsidiaries. The Executive Board reports regularly to 

the Supervisory Board, which is composed of an equal number of representatives of the 

shareholders and employees for a total of 16 members. 

The remuneration of the Executive Board is resolved by the Supervisory Board and the 

remuneration of the Supervisory Board is determined by the Annual Shareholders’ Meeting. 

Such remuneration contains a fixed as well as a variable, performance-based component. 

The variable remuneration component of all Executive Board members (except for 

the Human Resources Director) is oriented on the DOUGLAS Group’s earnings from normal 

business activities – less a ten percent virtual return on shareholders’ Group equity. 

Fifty percent of the variable component for the Human Resources Director depends on the 

earnings from normal business activities and the other 50 percent on individually agreed 

target arrangements. The remuneration structure is aligned towards a sustainable business 

performance. The variable remuneration components are not based on the earnings 

of the fiscal year, but are weighted by the earnings over the past three fiscal years. And 

the variable component is limited, because it cannot exceed a clearly defined percentage 

rate of the base salary. The variable components for the Division Directors are determined 

in a similar manner as the earnings of the individual divisions. There are no stock option 

programs. Further details concerning the remuneration paid to the Executive and Supervisory 

Boards can be found in the Corporate Governance report on pages 6 to 7 and in the 

Notes accompanying the consolidated financial statements. 

In the 2009/10 fiscal year, the Executive and Supervisory Boards of DOUGLAS HOLDING 

AG again demonstrated full compliance with the recommendations and proposals of the 

most recent version of the German Corporate Governance Code (DCGK) except for three exceptions. 

The declaration of conformity pursuant to Section 161 of the German Stock Corporation 

Law (AktG) has been published on the DOUGLAS HOLDING AG’s internet homepage. 

Corporate controlling and strategies 

As a retailer, it is very important to meet the needs of the customer and maintain a 

close partnership with our suppliers. With its attractive specialty retail stores and online 

shopping, the DOUGLAS Group offers modern and diverse shopping alternatives. This is 

also held in high esteem by the industry, which is an important and reliable partner for 

the DOUGLAS Group for the placement of products. 

True to the principle of the DOUGLAS Group “as much decentralization as possible, as 

much centralization as necessary”, decisions should be made as close to customers as pos- 


Key results 









6-7 

31


Key results 









sible. The local employees are allowed the greatest possible scope of entrepreneurial activity 

to fulfill the customer’s wishes quickly and uncomplicatedly. By contrast, a centralized 

system can be found in the administrative department to enable an efficient controlling of 

the Group. For example, this is evident in the real estate, treasury and tax departments. 

Even supportive services such as bookkeeping or payroll accounting are bundled in one 

company and centrally rendered for the significant operating companies. 

For purposes of attaining measurable business controlling, the Executive Board determines 

annual target values for sales and earnings before taxes (EBT) as well as key performance 

indicators based on the DOUGLAS Value Added concept (DVA). The DOUGLAS 

Group’s positioning in the existing markets in comparison to competitors is of particular 

importance for achieving the sales and earnings targets. Therefore, the focus is to further 

secure the market positions in existing European markets. That is why the Douglas perfumeries 

have ceased their operations during the past two fiscal years in Slovakia, Estonia, 

Denmark and in the USA. Furthermore, the Russian subsidiaries have been classified 

as held for sale, because their disposal is deemed to be more than likely as of the balance 

sheet date. Special importance will be attached in the future to the German home market, 

which has proven to be a crucial pillar for the DOUGLAS Group in the last two fiscal years 

in the wake of the challenging consumer environment. Market entry into new countries 

is not planned at the present time. 

The Executive Board’s overall assessment of business developments in the 2009/10 

fiscal year 

Against continuously difficult consumer conditions, the DOUGLAS Group delivered a 

respectable performance in the reporting period, increasing net sales by 3.7 percent to 3.3 

billion EUR. Alongside the solid performance in Germany, the first time full consolidation 

of buch.de internetstores AG (buch.de), Münster, as of December 1, 2009, also contributed 

to the sales growth. 

On a comparative basis (hereinafter referred to as “like-for-like”), which reflects only 

those stores that operated during both the reporting and the comparable prior periods, 

net sales saw a slight gain of 0.4 percent, thus reaching the prior year’s level. In Germany, 

sales and like-for-like sales increased. However, like-for-like sales outside of Germany 

remained behind the previous year due to the continued difficult economic conditions. 

In the first quarter of the 2009/10 fiscal year, which represents the all-important Christmas 

quarter, the DOUGLAS Group did not succeed in completely detaching itself from the 

challenging consumer environment in some foreign markets and the restrained sales performance 

in the German retail sector. Despite these factors, the first quarter performed 

quite satisfactory. The second quarter benefited from the earlier Easter business. Based on 

the half-year figures (from October to March), the Executive Board formalized the annual 

guidance by anticipating that the upper end of the targets for sales and earnings before 

taxes would be reached. The projected range for sales growth was between 0 to 2 percent 

and pre-tax earnings between 120 and 130 million EUR. The third quarter was negatively 

impacted by the shift in Easter business and the ongoing difficult business outside of Germany. 

Moreover, the planned investment volume of 120 million EUR was adjusted, because 

the projected amount would have only been exhausted by an amount of between 100 and 

110 million EUR. While the fourth quarter noted a recovery in consumer demand in Germany, 

the sales performance delivered abroad was still unsatisfactory.

Fig. 1 · Targets and results 

Targets 2009/10 Results 2009/10 Targets 2010/11 

Group sales growth at upper end 

of target range of 0 to 2 percent 

Earnings before taxes (EBT) at 

upper end of target range of 

120 to 130 million EUR 

Capital expenditure volume of 100 

to 110 million EUR (formalized after 

initial guidance: 120 million EUR) 

Sustainable increase in business 

value based on DVA 

Continued dividend policy – about 

50 percent of Group net profit 

intended to be distributed 

Increase of 3.7 percent to 3.3 

billion EUR 

The streamlining of the store network announced in the last fiscal year for the closure 

of about 50 stores lacking sustainable profits was executed as scheduled to a large extent 

in the reporting period. 

Overall, the 2009/10 fiscal year of the Christ jewelry stores was marked by a particularly 

pleasing sales performance. The domestic perfumeries, too, delivered quite a respectable 

performance. As supported by the first time full consolidation of the internet book 

retailer, buch.de, sales climbed in the Books division. 

Comparison of the targets and results of the 2009/10 fiscal year 

Group sales increase of between 

2 and 4 percent 

EBT at 131.2 million EUR EBT at about 140 million EUR 

Capital expenditure totals 

117.5 million EUR 

Capital expenditure volume of 

about 125 million EUR 

DVA climbs to 23.7 million EUR Sustainable increase in business 

value based on DVA 

Dividend proposal of 1.10 EUR per 

share as in prior year corresponds 

to a distribution ratio of 57 percent 

Continued dividend policy – about 

50 percent of Group net profit 

intended to be distributed 

The DOUGLAS Group achieved the sales and earnings targets set for the 2009/10 fiscal 

year as finalized during the course of the fiscal year. Sales growth of 3.7 percent and earnings 

before taxes of 131.2 million EUR surpassed the projected target ranges. On the basis 

of the proposed dividend payout of 43.3 million EUR (1.10 EUR per share), the dividend distribution 

ratio is 57 percent, and in line with the intended objective of distributing about 

half of the Group net profit. This dividend proposal takes into account the consistency 

strived for and the DOUGLAS Group’s profitability. The business value of the DOUGLAS 

Group – measured in terms of the DVA – increased the business value again. With 23.7 

million EUR, the DVA surpassed the prior year’s figure by 3.2 million EUR. 

The capital expenditure volume excluding acquisitions totaled 117.5 million EUR in 

the 2009/10 fiscal year, which was in line with the originally defined target figure. On the 

whole, a total of 72 new specialty stores opened in Germany and abroad (prior year: 104). 

This figure is offset by 104 store closures (prior year: 70). This mainly related to the Perfumeries 

and Confectionery divisions and also contained closures as part of the planned 

store streamlining. As of September 30, 2010, the store network comprised of 1,973 locations 

following 2,005 stores the year before. 


Key results 









Fig. 1 

33


Key results 









Overall economic operating environment 

Global economy once again grows robustly 

The global economic recovery continued into the first half of 2010, which had commenced 

already in the preceding year. According to the predictions of the Institute for 

World Economy (IfW), the global economy grew substantially during this period, reaching 

almost the record level of the first half of 2008. An important contribution to the economic 

recovery came in particular from the emerging countries of Asia and Latin America. But 

western countries also made significant contributions towards economic recovery with 

high export activities and growing consumer spending. The third quarter of 2010 saw a 

somewhat declined momentum in the world economic recovery, which was, among others, 

due to the phasing out of economic stimulus packages and restrictions on fiscal consolidation 

in some countries. All in all, the economic outlook however remains positive. In 

particular, economies with strong exports will continue to profit from the Asian growth 

dynamic. Overall, IfW predicts economic production to grow by about 3.7 percent in 2010, 

thus nearly as much as in the years before the financial crisis. 

Heterogeneous development in the euro zone 

The economic recovery also accelerated in the euro zone in the first half of 2010. Particularly, 

export-oriented economies like Germany profited from the recovery of world 

trading. While in Germany production growth stood at 2.2 percent, the gross domestic 

product excluding Germany grew by only 0.6 percent. Below average production increases 

were posted by Portugal, Spain and Italy; while total production in Greece and 

Ireland dropped. On the whole, economic growth slightly cooled down in the second 

half of 2010. The IfW predicts an increase in the gross domestic product of 1.6 percent 

for the euro zone for 2010. 

Rapid economic recovery in Germany 

The German economy recovered in the first nine months of 2010 seemly faster than 

most of the other industrial nations as a result of exports. Germany benefited to a large extent 

from the rising demand for capital goods by expanding emerging economies. But the 

domestic economy developed positively, too – both private consumer spending and corporate 

capital expenditure increased considerably. The sharp decline in the unemployment 

figures, higher net salaries and the lower interest rates all supported this development. 

Consequently, Germany recovered rather quickly from the financial crisis compared to 

most of the other industrial countries. The IfW predicts a significant increase in the real 

gross domestic product of 3.5 percent for 2010. 

Company-specific operating environment 

Positive retail trading development 

According to the German Retail Association (HDE), the framework conditions for retailing 

improved dramatically during the course of 2010. This was aided in particular by the 

overall economic recovery, the upwards trend on the employment market and the stable 

consumer mood. Between January and September, the German retailing sector was higher 

by a nominal 2.1 percent and a real 1.1 percent over the same period last year. Looking

ahead at the positive economic outlook, the HDE raised their sales predictions at the end 

of September 2010 to a nominal plus of 1.5 percent for 2010. 

German employment market profits from economic recovery 

Above all, the employment market profited the most from the positive economic development 

in Germany during the reporting period. The gainful employment and mandatory 

socially insured numbers increased sharply in 2010; while the use of part-time 

work declined. In October 2010, the unemployment number dropped to below three million, 

translating to a rate of 7.0 percent. In the euro zone, the unemployment rate of 10.1 

percent, which varies strongly among individual European countries, was considerably 

above this figure. 

NET ASSETS, FINANCIAL POSITION 

AND RESULT OF OPERATIONS 

Group sales increase to more than 3.3 billion EUR 

In the 2009/10 fiscal year, the DOUGLAS Group recorded a 3.7 percent increase in net 

sales for a total of over 3.3 billion EUR, thus clearly surpassing the most recently forecasted 

target of about 2 percent. Adjusted for currency effects, sales rose by 3.3 percent compared 

to the same period last year. This overall satisfying performance was encouraged 

by the German subsidiaries with a sales gain of 4.7 percent and by the foreign subsidiaries 

with a sales plus of 2.1 percent. Accordingly, the share of foreign subsidiaries in Group 

sales slightly declined to 34.7 percent (prior year: 35.3 percent). Sales generated in Poland 

Fig. 2 · Net sales by division and store network development 

Net sales 

(in EUR m) 

Change 



Key results 









Stores Change 

2009/10 2008/09 Total Like-for-like 09/30/2010 09/30/2009 absolute 

Perfumeries 1,878.7 1,853.5 1.4 −0.7 1,205 1,220 −15 

national 946.7 920.0 2.9 2.3 445 452 −7 

international 932.0 933.5 −0.2 −3.7 760 768 −8 

Books 905.8 819.7 10.5 1.2 289 294 −5 

national 689.7 628.7 9.7 1.2 232 238 −6 

international 216.1 191.0 13.1 1.3 57 56 1 

Jewelry 310.2 292.4 6.1 6.0 204 203 1 

Fashion 124.1 131.0 −5.3 −1.2 14 14 − 

Confectionery 99.4 101.0 −1.6 −0.9 261 274 −13 

national 94.9 96.2 −1.3 −0.8 247 258 −11 

international 4.5 4.8 −7.0 −2.7 14 16 −2 

Services 2.6 3.2 − − − − − 

DOUGLAS Group 3,320.8 3,200.8 3.7 0.4 1,973 2,005 −32 

national 2,168.2 2,071.5 4.7 2.0 1,142 1,165 −23 

international 1,152.6 1,129.3 2.1 −2.7 831 840 −9 

Fig. 2 

Fig. 3 

35


Key results 









Fig. 3 · Foreign sales of the DOUGLAS Group 

Net sales 


Change 


2009/10 2008/09 absolute currency-adj. 

Austria 193.6 188.5 2.7 2.7 

Netherlands 177.2 176.9 0.2 0.2 

Italy 160.6 158.8 1.1 1.1 

France/Monaco 134.8 135.8 −0.7 −0.7 

Switzerland 132.9 112.4 18.2 11.6 

Spain/Portugal 97.3 104.1 −6.6 −6.5 

Poland 86.1 72.5 18.9 13.7 

Russia 57.0 55.1 3.4 −0.2 

Baltic States 24.2 30.2 −19.9 −19.9 

Croatia 19.8 21.0 −5.5 −6.1 

Hungary 19.4 21.2 −8.3 −9.8 

Turkey 9.0 7.3 23.6 19.7 

Others* 40.7 45.5 −4.7 − 

Total 1,152.6 1,129.3 2.1 0.9 

* Bulgaria, Denmark, Romania, Slovenia, Czech Republic, U.S.A. 

developed on a very positive note following the dynamic expansion activities. By contrast, 

sales were lower in some Eastern European countries, because the macroeconomic conditions 

have not undergone a sustainable improvement. 

On a comparative basis – this reflects only those stores that operated during both the 

reporting and the comparable prior period – Group sales rose fractionally by 0.4 percent 

compared to the preceding year. With comparative growth of 2.0 percent, the performance 

in Germany proved to be better than abroad, which posted a comparative sales 

drop of 2.7 percent. 

If the sales of the online bookseller, buch.de internetstores AG (buch.de), Münster, 

would be fully accounted for in the previous and current years for the DOUGLAS Group, 

then the sales growth would amount to 1.8 percent (Germany: 2.4 percent; abroad: 0.7 percent). 

Not taking buch.de into account, like-for-like sales would result in a slight decrease 

of 0.4 percent (Germany: 1.0 percent; abroad: –2.9 percent). 

The 1,205 Douglas perfumeries increased their sales by 1.4 percent (currency-adjusted 

by 0.9 percent) to nearly 1.9 billion EUR, therefore further expanding its leadership of the 

European market. In Germany, the 445 Douglas perfumeries generated sales of 946.7 million 

EUR for an increase of 2.9 percent. Like-for-like sales rose by a pleasing 2.3 percent above 

the prior year’s figure. Subsequently, Douglas further secured its leading market position 

on the all-important home market notwithstanding the challenging economic conditions. 

Despite the store network streamlining, the sales of the 760 Douglas perfumeries outside 

of Germany totaled 932.0 million EUR, which were in line with the prior year’s figure 

(–0.2 percent). Like-for-like sales however were down 3.7 percent. Ongoing poor consumption 

conditions in many foreign markets had a negative impact. The respectable sales performance 

delivered by the Douglas perfumeries in Poland and Italy however could not offset 

the sales decreases posted in Spain, the Baltic States, Hungary, Croatia and Portugal.

In the fiscal year, Douglas opened a total of 48 new stores, mostly in Poland, Bulgaria 

and Italy. The number of perfumeries slightly declined to 1,205 as of the balance sheet 

date due to the store network streamlining program conducted during the reporting year. 

Since countries outside of Germany were impacted the most from this program, the share 

of foreign subsidiaries in Group perfumery sales slightly decreased to 49.6 percent. 

The Books division increased sales in the 289 Thalia bookstores in Germany, Austria 

and Switzerland by 10.5 percent to 905.8 million EUR. In spite of the slightly lower store 

network number, Thalia further expanded its leading market position in German-speaking 

countries. Like-for-like sales increased by 1.2 percent. Equivalent shares in sales were 

contributed by both domestic and foreign subsidiaries. The pleasing performance given in 

Austria is again emphasized here. Like-for-like sales of the 33 Thalia bookstores climbed 

by 5.1 percent irrespective of the very solid prior year’s figure. The performance of the 24 

Thalia bookstores in Switzerland rose by 1.8 percent. 

If the sales from buch.de would be fully accounted for in the prior and current years 

for the Thalia bookstores, a sales gain of 2.9 percent would arise (Germany: 2.3 percent; 

abroad: 5.0 percent). Excluding buch.de, a slight decrease of 1.6 percent in like-for-like 

sales would arise (Germany: –2.2 percent; foreign: 0.5 percent). 

In the Jewelry division, the 204 Christ jewelry stores reported a sales gain of 6.1 

percent to 310.2 million EUR during the fiscal year under review. Like-for-like sales surpassed 

the prior year’s high figure by 6.0 percent. This was realized primarily from the 

successful implementation of the exclusive and private label strategy. Therefore, Christ 

once again outshined the overall stagnating market performance, securing its strong 

market position in the mid to upper price range in Germany. The number of Christ stores 

increased by only one store; however, numerous older stores were completely modernized 

and expanded. 

Sales in the Fashion division stood at 124.1 million EUR, 5.3 percent behind the previous 

year. Adjusted for the store closed in Berlin in January 2009, the like-for-like sales 

decline is only 1.2 percent. The fashion stores in Bonn and Münster reopened their doors 

in September 2010 following extensive modernization work. In line with the restructuring 

program, the 14 AppelrathCüpper fashion stores focus on the mid to upper genre for 

women’s fashion clothing with excellent expertise. 

In the Confectionery division, Hussel further expanded its leading market position 

in Germany. The 261 Hussel confectionery shops in Germany and Austria generated sales 

of 99.4 million EUR, falling just short of the prior year’s level (–1.6 percent). Like-for-like 

sales for German shops were down 0.8 percent, while the Austrian Hussel shops reported 

a drop of 2.7 percent. Following the closure of unprofitable shops, the store network number 

decreased as planned by 13 confectionery shops. 

Additional information about strategy and figures of the individual business divisions 

can be found on pages 71 to 109 of this Annual Report and in the Notes accompanying the 

consolidated financial statements. 

Earnings target slightly surpassed 

Earnings before taxes (EBT) came in at 131.2 million EUR after 103.9 million EUR a year 

earlier. Therefore, the earnings target of nearly 130 million EUR was slightly exceeded. 

Management Report 37 

Key results 









71–109


Key results 









Fig. 5 

Adjusted for the costs incurred for the store network streamlining, the prior year’s figure 

stood at 127.6 million EUR. Hence, despite the weak sales increase, like-for-like earnings 

slightly improved. Similar to the preceding year, the return on sales – the ratio of EBT to 

sales – came in at 4.0 percent. 

Following the majority acquisition of buch.de, a revaluation of shares already held 

was performed in conformity with IFRS 3. The one-off income amount of 6.1 million EUR 

positively impacted the earnings for the year under review. This one-off effect however 

was offset by additional costs incurred, because goodwill impairments for the reporting 

period were 10,8 million EUR more than in the preceding year. 

Consequent implementation of the store network streamlining 

In the preceding year, the DOUGLAS Group resolved a store network streamlining program, 

in which all stores generating a negative cash flow with no expectation of a sustainable 

improvement in earnings on the medium term were to be closed. A decisive factor 

was the cash-effect of costs associated with a store closure. As far as the cash costs of a 

store closure were estimated to be lower in the next one to two years than the anticipated 

negative cash flows from continuing operations, it was decided to close the store. In total, 

closing costs amounting to 23.7 million EUR were recognized in the previous year. These 

costs related to the divisions Perfumeries (19.2 million EUR), Fashion (3.8 million EUR) 

and Confectionery (0.7 million EUR). As of September 30, 2010 the planned store network 

streamlining program was largely completed. 

Operating earnings contribution by the divisions 

The Perfumeries’ earnings before taxes (EBT) reached 87.9 million EUR following 87.7 

million EUR before closing costs in the same period last year. Correspondingly, the return 

on sales (EBT margin) remained unchanged at 4.7 percent. While the earnings contribution 

of the domestic perfumeries significantly exceeded the prior year’s level due to the 

respectable sales performance, the EBT of the perfumeries outside of Germany declined 

further. This was caused by the ongoing challenging macroeconomic conditions in several 

countries, which led to lower sales and higher goodwill write-downs in some foreign 

subsidiaries. 

Fig. 4 · EBITDA and EBITDA margins 

EBITDA 


Change 


EBITDA margin 


2009/10 2008/09 2009/10 2008/09 

Perfumeries 186.3 181.0 2.9 9.9 9.8 

Books 60.0 57.9 3.6 6.6 7.1 

Jewelry 30.9 24.4 26.6 10.0 8.3 

Fashion 7.4 7.3 1.4 6.0 5.6 

Confectionery 5.8 6.4 −9.4 5.8 6.3 

Services −3.5 −8.6 59.3 − − 

DOUGLAS Group 

before closing costs 

286.9 268.4 6.9 8.6 8.4 

Closing costs 0.0 −13.4 

DOUGLAS Group 286.9 255.0 12.5 8.6 8.0

The operating earnings in the Books division climbed by 2.3 million EUR to 25.1 million 

EUR. The EBT margin of 2.8 percent was in line with the prior year. Excluding the oneoff 

income amount arising from the revaluation of the buch.de shares totaling 6.1 million 

EUR, the earnings decreased to 19.0 million EUR. Alongside the generally weak market 

development in the book retailing sector, the reporting period was also impacted by special 

effects from the introduction of a new merchandise management system. 

The Jewelry division posted a higher EBT from 15.1 million EUR in the preceding year 

to 17.4 million EUR in the year under review. The EBT margin improved to 5.6 percent after 

5.2 percent a year earlier. This positive development arose from the very solid sales performance 

in comparison to the sector and to the further expansion of the exclusive and 

private labels, which also further improved Christ’s gross profit margin. 

The Fashion division’s earnings before closing costs for the Berlin store resulted in a 

balanced outcome just like in the previous year. Despite the slight sales decline, pre-tax 

earnings stabilized as a consequence of consistent cost management. In terms of costs, 

the restructuring has been completed. Therefore, the focus is now on communicating the 

new direction with the aim of attaining a sustainable sales increase. 

The EBT of the Confectionery division of 2.8 million EUR just missed the prior year’s 

figure by 0.5 million EUR (before costs for the store network streamlining). Correspondingly, 

the EBT margin dropped from 3.3 percent in the prior year to 2.8 percent in the reporting 

period. 

The marginal earnings decrease in the Services division arose from a lower net interest 

result. This was caused in particular by lower interest income from loans granted to 

subsidiaries. 

The DOUGLAS Group’s cost structure (excluding the prior year’s costs for the store network 

streamlining) in the year under review did not materially change compared to the 

prior year. The personnel costs rose disproportionately to sales. Accordingly, the personnel 

cost ratio slightly decreased to 21.7 percent. The rental and energy costs rose in proportion 

to sales. In addition to scheduled depreciation, which was in line with the prior year’s 

level, extraordinary write-downs were higher by 6.2 million EUR. 

Fig. 5 · EBT and EBT margins 

EBT 


Change 


EBT margin 



Perfumeries 87.9 87.7 0.2 4.7 4.7 

Books 25.1 22.8 10.0 2.8 2.8 

Jewelry 17.4 15.1 15.2 5.6 5.2 

Fashion 0.1 0.0 − 0.1 0.0 

Confectionery 2.8 3.3 −15.2 2.8 3.3 

Services −2.1 −1.3 −60.7 − − 

DOUGLAS Group 

before closing costs 

131.2 127.6 2.8 4.0 4.0 

Closing costs 0.0 −23.7 

DOUGLAS Group 131.2 103.9 26.3 4.0 3.2 


Key results 









39


Key results 









113 

135–139 

129–134 

Fig. 6 

Tax expenses stood at 55.1 million EUR in the reporting year after 41.1 million in the 

same period last year. In all, the Group tax rate increased by 2.4 percentage points to 42.0 

percent of the pre-tax earnings. The higher tax rate is mainly the result of losses reported 

by some foreign subsidiaries for which no deferred tax assets had previously been recognized 

as well as the higher write-downs for goodwill. 

The 2009/10 fiscal year closed with net income of 76.1 million EUR. The portion of net 

income attributable to minority interests amounted to 0.2 million EUR (prior year: 0.0 million 

EUR). Consequently, the portion of net income attributable to the DOUGLAS shareholders 

amounted to 75.9 million EUR compared to 62.8 million EUR the year before. Earnings 

per share rose to 1.93 EUR following 1.60 EUR in the preceding year. 

The DOUGLAS Group’s detailed consolidated income statement can be found on page 

113 of this Annual Report. Further explanations of the development of individual income 

and expense items can be found in the Notes accompanying the consolidated financial 

statements commencing on page 135. 

Measurement decisions applied to the accounting and valuation principles as well as 

important forward-looking assumptions are explained in detail in the Notes accompanying 

the consolidated financial statements under Note 5 (commencing on page 129). 

Capital expenditure slightly above the prior year’s level 

The DOUGLAS Group invested a total of 117.5 million EUR in the 2009/10 fiscal year, 

mostly for the expansion and modernization of the existing store network. Capital expenditure 

therefore exceeded the prior year’s amount by 5.2 million EUR and the adjusted 

capital expenditure budget earmarked at between 100 to 110 million EUR. The number of 

Investing in modern shop designs – like here at Hussel in Cologne.

Fig. 6 · Development of capital expenditure in Germany and abroad 

international 

national 

35.4% 

64.6% 

2006/07 2007/08 2008/09 2009/10 

Total (in EUR m) 155.8 155.5 112.3 117.5 

Change year-on-year +10.3 −0.2 −27.8 +4.6 

stores fell by 32 to a total of 1,973 stores. Total Group sales space stood at 596,575 square 

meter as of the closing date compared to 590,646 square meter the year before. The lower 

store network figure arose from the planned store network streamlining conducted during 

the reporting period. In total, the 104 store closures were offset by the opening of 72 new 

stores. The continued moderate investment level relates to a more restrictive investment 

policy and the increasing demand in the quality of store location. 

In the Perfumeries division, Douglas invested 56.3 million EUR for the opening of 48 

new perfumeries as well as in the modernization of the store network (prior year: 61.1 million 

EUR). The focal point of new openings was placed on 41 new stores outside of Germany 

with an investment sum of 30.9 million EUR. The new store openings were mainly in 

Poland, Bulgaria and Italy. In Germany, an investment amount of 25.4 million EUR went 

primarily towards numerous modernization projects as well as to seven new perfumery 

stores. As of September 30, 2010, the retail store network stood at 1,205 perfumeries with a 

total sales space of 279,050 square meter following 1,220 stores with a total sales space of 

277,455 square meter the year before. 

A total of 30.3 million EUR was invested in the Books division for six new Thalia bookstores 

and the refurbishment of the existing store network (prior year: 24.2 million EUR); 

of which 22.5 million EUR related to Germany and 7.8 million EUR to Switzerland and Austria, 

respectively. Five new bookstores were opened in Germany and one abroad. Thus, 

the store network as of the balance sheet date amounted to 289 bookstores with a total 

sales space of 244,766 square meter compared to 294 stores and total sales space of 242,204 

square meter in the prior year. 

The investment increase in the Jewelry division from 8.0 million to 14.4 million EUR 

resulted from the slightly higher number of 9 new openings (prior year: 6) and diverse 

modernization work for the existing store network. The 204 stores (prior year: 203) had a 

total sales space of 21,904 square meter as of September 30, 2010. Subsequently, the yearon-year 

comparison of sales space was higher by 2,107 square meter. 

41.6% 

58.4% 

41.1% 

58.9% 

32.9 % 

67.1% 


Key results 









41


Key results 









Fig. 7 

Fig. 8 

Fig. 7 · Free Cash Flow 

In the Fashion division, an amount of 1.8 million EUR (prior year: 5.0 million EUR) 

was invested in the modernization of existing fashion houses. As per the fiscal year end, 

AppelrathCüpper operated a total of 14 women’s fashion stores with a total sales space of 

35,556 square meter. 

A total investment volume of 3.4 million EUR (prior year: 3.8 million EUR) was applied 

to the Confectionery division for the enlargement and modernization of the existing 

store network as well as for nine new openings in Germany. Hussel operated a total 

of 261 confectionery shops with a sales space of 15,299 square meter as of September 30, 

2010 compared to 274 shops with a sales space of 15,827 square meter in the previous year. 

Free Cash Flow climbs to 88.2 million EUR 


(in EUR m) (in EUR m) 

Net cash inflow from operating activities 246.2 191.7 

Investments in fixed assets −117.3 −111.3 

Inflow from the disposal of fixed assets 4.5 7.5 

Outflow for the purchase of consolidated companies −45.2 −3.4 

Free Cash Flow 88.2 84.5 

At 88.2 million EUR, the Free Cash Flow – the sum of cash inflow and outflow from operating 

and investing activities – for the 2009/10 fiscal year was slightly above the prior 

year’s amount of 84.5 million EUR. The year-on-year significantly higher cash flow from 

operating activities was offset by higher capital expenditure spending. 

Net cash inflow from operating activities in the 2009/10 fiscal year increased by 54.5 

million EUR to 246.2 million EUR. The higher cash inflow mostly resulted from the improved 

EBIT, which climbed from 116.1 million EUR in the prior year to 141.7 million EUR in 

the year under review. Tax payments dropped by 16.8 million EUR in the reporting period 

following the impact on the preceding year from aperiodic tax payments. The reduction 

in provisions mainly related to the implementation of the planned store network stream- 

Fig. 8 · Cash Flow (in EUR m) 


−17.1 

151.1 

−5.9 

Free Cash Flow Operating Cash Flow 

195.7 

40.1 

208.4 

84.5 

191.7 

88.2 

246.2

lining, which had a liquidity effect in the reporting period. In addition, capital employed 

in inventories declined by 19.9 million EUR. 

The net cash outflow for investing activities increased by 50.8 million EUR to 158.0 million 

EUR in the 2009/10 fiscal year. This was the result of the acquisition of buch.de shares 

and minority shareholdings in two Group companies. The acquisition-related expenditures 

therefore rose from 3.4 million EUR to 45.2 million EUR. 

The Free Cash Flow generated in the reporting period was largely applied for the dividend 

payout of 43.3 million EUR and for the repayment of bank liabilities. 

The detailed consolidated cash flow statement of the DOUGLAS Group can be found 

on page 118 of this Annual Report. 

Improved net assets and capital structure 

Total assets increased by 1.5 percent to around 1.7 billion EUR as of September 30, 2010. 

This was predominantly due to the first time inclusion of the assets and liabilities of buch. 

de in the consolidated financial statements. An offsetting effect came from a decrease in 

the working capital balance of 36.9 million EUR to 418.1 million EUR. 

The capital structure remains balanced. Non-current assets account for 46.3 percent 

of total assets, with non-current capital accounting for 51.3 percent of total equity and liabilities. 

Non-current assets were down 6.7 million EUR to 792.1 million EUR as a consequence 

of the separate presentation of assets held for sale in the reporting period. This related to 

the assets of the Russian subsidiaries OOO Douglas Rivoli and OOO Parfümerie International 

Company, each based in Moscow/Russia and Douglas Rivoli Holding B.V. based in 

Nijmegen/The Netherlands, which were classified as assets held for sale because the realization 

of assets and liabilities arising from their sale was classified as highly probable 

as of the balance sheet date. This effect was offset by the assets of buch.de, which were 

consolidated for the first time in the year under review. 

At 886.8 million EUR, current assets almost matched the prior year’s figure. As a consequence 

of the improved working capital management, inventories dropped by 19.9 million 

EUR. Accounts receivable and supplier reimbursements only slightly increased despite 

the first time inclusion of buch.de in the consolidated financial statements. Cash 

and cash equivalents increased from 35.8 million EUR to 51.6 million EUR, representing 

3.0 percent of total assets. 

As per September 30, 2010, equity totaled 764.8 million EUR compared to 710.9 million 

EUR on the previous balance sheet date. The DOUGLAS Group’s equity ratio moved 

ahead from 42.1 to 44.6 percent. 

Non-current liabilities fell by 15.9 million EUR to 113.8 million EUR as a result of the repayment 

of bilateral bank loans. The ratio of non-current liabilities to the balance sheet 

total decreased from 7.7 percent to 6.7 percent year-on-year. 

The drop in current liabilities by 20.4 million EUR to 827.6 million EUR was predominantly 

due to the lower liabilities from minority options, liabilities to minority sharehold- 


Key results 









118 

Fig. 9 

Fig. 10 

43


Key results 









Fig. 9 · Consolidated balance sheet: assets 

Non-current assets 

Current assets 

Assets held for sale 

ers and liabilities to buch.de. By contrast, accounts payable increased from 254.8 million 

EUR to 277.1 million EUR – also due to the first time inclusion of buch.de as of the balance 

sheet date. 

Solid financing 

46 % 

52 % 

2% 

47 % 

53 % 

09/30/2010 09/30/2009 

1,713.4 EUR m 1,688.6 EUR m 

Fig. 10 · Consolidated balance sheet: equity and liabilities 

Equity 

Non-current liabilities 

Current liabilities 

The DOUGLAS Group’s net debt – the net balance of cash and cash equivalents less 

bank liabilities – stood at 124.0 million EUR as of the balance sheet date following 165.3 

million EUR on the same date last year. The lower net debt as of the closing date mainly 

relates to the higher Free Cash Flow. In the fiscal year under review, the average net debt 

– derived from net debt amounts as of the four quarterly closing dates – amounted to 76,0 

million EUR compared to an average of 146,5 million EUR as of the preceding year. 

The banks attest to a low level of debt and a solid financing structure of the DOUGLAS 

Group. Since September 2007, a credit facility for a term of five years has been contractually 

available. This syndicated credit facility that was agreed with eleven banks and matures 

in September 2012, allows the DOUGLAS Group to withdraw up to 500 million EUR. 

Drawings amounted to only 91.3 million EUR as of the balance sheet date. 

Executive Board’s overall assessment of the current economic situation 


1,713.4 EUR m 1,688.6 EUR m 

The DOUGLAS Group recorded a sound business development during the first quarter 

of the current 2010/11 fiscal year which contains the important Christmas business. 

In all, the Executive Board assessed the business development as of the preparation 

date of this report as positive. From today’s standpoint, the Executive Board assumes that 

sales and earnings will perform as projected and that the financial key indicators will be 

reached as planned. As of the printing date of this report, the expectations were basically 

in line with the current business development. 

45 % 

7% 

48% 

42 % 

8% 

50 %


The DOUGLAS HOLDING AG, with its head office in Hagen/Germany, is the strategic 

investment and management holding company responsible for centralized management 

and service functions for the subsidiaries of the DOUGLAS Group. This embodies making 

all decisions concerning fundamental aspects of corporate strategy, the financing 

and funding of Group companies and appointment of key management positions in the 

Group. For purposes of supporting the financing functions, Douglas Finance B.V., Nijmegen/The 

Netherlands, assumed the tasks of financing the foreign subsidiaries already in 

the previous year. 

The DOUGLAS HOLDING AG’s annual net income calculated in accordance with the 

provisions of the German Commercial Code (HGB) is decisive for the calculation of the 

proposed dividend payout; this is basically determined by the earnings received from 

participating interests in operating subsidiaries. Since profit and loss transfer agreements 

exist with key German companies, the bulk of the earnings recorded are received in the 

same fiscal year. 

For the 2009/10 fiscal year, the DOUGLAS HOLDING AG’s income statement reports 

investment earnings of 123.2 million EUR as compared to 111.2 million EUR in the preceding 

fiscal year. The main contributor to this figure was the Perfumeries division with 

earnings from investments of 92.3 million EUR (prior year: 85.4 million EUR). The higher 

year-on-year figure largely relates to higher earnings contributed by the German perfumery 

companies. 

The investment earnings from the Jewelry division increased to 18.1 million EUR after 

14.9 million EUR the year before due to the positive business performance. Because 

of the poor business performance and the non-distributable profit from the revaluation 

of the buch.de shares, the investment earnings from the Books division decreased from 

12.0 million EUR to 5.8 million EUR. There were no notable investment earnings from the 

Fashion division. 

As a result of the prior year’s transfer of special reserves with an equity portion to investments 

at the head office in Hagen, Germany, other operating income and depreciation 

each increased by 7.1 million EUR. 

The net interest result fell by 4.6 million EUR to 8.9 million EUR. This was caused by 

lower interest rates that led to lower interest income from short term loans granted to subsidiaries. 

Particularly from the higher investment earnings, the earnings from the operating 

activities of DOUGLAS HOLDING AG climbed to 116.2 million EUR (prior year: 108.0 

million EUR). 

The increase in income taxes from 32.0 million EUR to 36.8 million EUR was due to the 

improved pre-tax earnings. Net income, i.e. earnings from operating activities after deducting 

taxes, reached 86.7 million EUR following 75.9 million EUR the year before. 

As per September 30, 2010, the balance sheet total increased by 28.5 million EUR to 

969.9 million EUR year-on-year. On the assets side, the investment net carrying values 

increased by 71.0 million EUR as a result of capital increases executed for the subsidiaries 

during the reporting period. An offsetting effect came from lower loans to affiliated 


Key results 









45


Key results 









companies, which was the result of the higher funding of foreign subsidiaries by Douglas 

Finance B.V., Nijmegen/The Netherlands. The liabilities side increased due to additions 

made to reserves in comparison to the preceding year. 

An amount of 43.4 million EUR was transferred to retained earnings from the 2009/10 

net income amount. Taking into account the profit carried forward from the previous year 

in the amount of 0.7 million EUR, net retained profits totaled 44.0 million EUR like in the 

preceding fiscal year. Correspondingly, the DOUGLAS HOLDING AG reported equity of 

776.5 million EUR as of September 30, 2010 (prior year: 732.4 million EUR) and an equity 

ratio of 80.1 percent (prior year: 77.8 percent). 

The complete set of financial statements of DOUGLAS HOLDING AG, which have been 

issued with an unqualified audit opinion by the independent accountants, are publicized 

in Germany in the so-called “elektronischer Bundesanzeiger” (“electronic Federal Gazette”, 

Internet platform for official publications). They may also be requested in paper form from 

the DOUGLAS HOLDING AG as well as being available online at www.douglas-holding.com. 

Dividend stable at 1.10 EUR 

Similar to the previous year, the Executive and Supervisory Boards of DOUGLAS 

HOLDING AG will propose to the Annual Shareholders’ Meeting on March 23, 2011 to approve 

a dividend distribution from the net retained profits of 1.10 EUR per dividend-bearing 

share. This corresponds to a distribution ratio of 57 percent. Therefore, this proposal 

is in line with the objective of distributing about 50 percent of Group net income. 

Based on a closing share price of 36.83 EUR as of September 30, 2010, the dividend yield 

would be 3.0 percent. A total distribution for the dividend-bearing capital in the amount 

of 118.1 million EUR would result in a distribution payout of 43.3 million EUR. 

SUBSEQUENT EVENTS 

Effective December 30, 201o, the shareholding interests in Douglas Rivoli Holding B.V., 

Nijmegen/Netherlands, OOO Douglas Rivoli, Moscow/Russia and OOO Parfümerie International 

Company, Moscow/Russia were sold. 

As a result of the capital increase to issue employee shares executed on November 23, 

2010, the capital stock rose by 0.2 million EUR to 118.1 million EUR. The transactions described 

above do not materially impact the net assets, financial position and result of operations 

of the DOUGLAS Group. 

Other important events subsequent to the balance sheet date did not arise.

INTERNAL CONTROL SYSTEM AND 

KEY SUCCESS FACTORS 

The Group aims to raise the business value on a sustained basis, particularly for sales 

and earnings growth, as well as raising profitability. For purposes of value-oriented monitoring 

of the required capital employment, the DOUGLAS Group applies an Economic 

Value Added Analysis (EVA®) model, which has been adapted to the specific framework 

conditions of a retail company – namely the DOUGLAS Value Added (DVA). The DVA measures 

the contribution made by the operative companies to increase the business value. 

DVA in fiscal year 2009/10 

As a consequence of the positive sales and earnings performance of the 2009/10 fiscal 

year, the DOUGLAS Group increased the DVA to 23.7 million EUR. Therefore, the preceding 

year’s DVA was surpassed by 3.2 million EUR. In addition to the improved net operating 

profit after taxes (NOPAT), the assets in use were reduced on the average for the reporting 

year and consequently the capital costs were alleviated. 

With a DVA of 33.6 million EUR, the Perfumeries division significantly surpassed the 

prior year’s figure. This increase was mainly due to the improved NOPAT. It is noted here 

that the substantially higher goodwill amortization year-on-year was not taken into account 

in the determination of the NOPAT. 

The Books division reported a negative value contribution of 5.1 million EUR for the 

fiscal year. This decrease of 8.2 million EUR primarily relates to the challenging development 

of the stationary book trade throughout the industry and the higher assets, which 

Fig. 11 · Internal control factors and key performance indicators 


Net sales EUR m 3,320.8 3,200.8 

Gross profit EUR m 1,571.3 1,517.3 

Margin in % 47.3 47.4 

EBITDA EUR m 286.9 255.0 


EBT EUR m 131.2 103.9 


DVA EUR m 23.7 20.5 

Delta-DVA EUR m 3.2 −13.6 

Equity ratio in % 44.6 42.1 

Working capital* EUR m 418.1 455.0 

Net bank debt** EUR m 124.0 165.3 

* Inventories and trade accounts receivable less trade accounts payable 

** Liabilities to banks less cash and cash equivalents 


Key results 









Fig. 11 

Fig. 12 

47


Key results 









Fig. 12 · DVA and Delta DVA by division – Fiscal year 2009/10 

NOPAT 


Capital employed 


mainly arose from the first time full consolidation of buch.de in the fiscal year under review. 

The valuation effect contained in the earnings before taxes (EBT) from buch.de in 

the amount of 6.1 million EUR was eliminated in calculating the DVA. 

The highest percentage value increase was realized in the Jewelry division with a 

DVA increase of 1.5 million EUR to 5.6 million EUR in the reporting year. Both the positive 

earnings performance and the improved working capital management enabled the 

DVA to increase. With a return on capital employed (ROCE) of 11.3 percent, the Jewelry 

division together with the Confectionery division were the top leaders of the DOUGLAS 

Group. 

The Fashion division reduced the capital employed as a result of the closure of the 

fashion store in Berlin; thus, posting a slightly improved DVA over the preceding year. 

Nevertheless, AppelrathCüpper reported a negative value contribution of 6.6 million EUR 

for the reporting year. 

The Confectionery division reached a positive DVA of 1.2 million EUR in the reporting 

year; thereby exceeding the prior year’s DVA by 0.3 million EUR. 

The Other Companies/Consolidation division increased the value contribution by 

1.5 million EUR in the fiscal year under review. However, the absolute value contribution 

of the administrative companies continued to be negative at 5.0 million EUR. 

DVA as a key performance indicator of corporate control 

DVA 1) 


ROCE 2) 


Delta DVA 


Perfumeries 76.6 836.6 33.6 10.5 7.3 

Books 16.7 388.6 −5.1 5.2 −8.2 

Jewelry 12.8 117.5 5.6 11.3 1.5 

Fashion 0.8 113.0 −6.6 0.7 0.8 

Confectionery 2.6 25.3 1.2 11.3 0.3 

Sales subsidiaries 109.5 1.481.0 28.7 8.4 1.7 

Other companies/consolidation −8.7 −56.0 −5.0 − 1.5 

DOUGLAS Group 100.9 1.425.0 23.7 8.2 3.2 

1) Adjusted for the planned start-up costs from the store-related investments. These are added to the DVA of the period, 

shown in the capital employed of the subsequent period and charged to cost of capital. 

2) ROCE = (NOPAT + start-up costs) / capital employed 

The control factor, the DOUGLAS Value Added (DVA), was introduced in 2001 together 

with the business consultants Stern Stewart. Based on the internationally recognized control 

and management system, the Economic Value Added® (EVA®) concept the DVA allows 

the measuring of all decision-making processes in terms of increasing the business value. 

In addition to operating and strategic decisions, all investment decisions in particular 

are reviewed in terms of their sustained contribution to value. In order to be certain that 

this is performed in all operating units, the DVA is implemented in all internal reporting 

within the Group – right down to the store level.

DVA calculation 

Based on the premise that the DOUGLAS Group and its individual subsidiaries only 

generate value if the required cost of capital employed is at least covered by their earnings, 

the DVA is calculated by subtracting the imputed financial costs of capital employed from 

the net operating profit after taxes (NOPAT). The NOPAT is the operating profit before financing 

costs minus income taxes. Capital employed is the total of all assets minus all noninterest 

bearing liabilities plus the allocable present value of rental and lease obligations. 

The capital employed is calculated based on the average of the four quarters of a fiscal year. 

The DOUGLAS Group’s cost of capital is derived from the weighted average cost of 

capital (WACC) concept. As in the preceding year, this amounted to 6.5 percent after taxes 

for the DOUGLAS Group in the year under review. This takes into account interest for 

both lenders and investors. The cost of equity is calculated using the capital asset pricing 

model (CAPM). In addition to the absolute DVA of the period, the Delta DVA is also a key 

performance indicator. This illustrates whether, and the extent to which, the DVA could 

be increased in comparison to the preceding year. 

Statement of Value Added 

The DOUGLAS Group’s statement of value added details the origin and the use of economic 

performance in the reporting and preceding fiscal years. Value added is calculated 

by deducting intermediate input – cost of materials, depreciation and amortization and 

other expenses – from the Group’s performance. The origin and use of the valued added 

is then compared. The portions of value added received are shown by the individual inter- 

Fig. 13 · Statement of Value Added 


(in EUR m) (in %) (in EUR m) (in %) (in %) 

Origin of Value Added 

Net sales 3,320.8 93.9 3,200.8 93.7 3.7 

Other income 215.0 6.1 213.8 6.3 0.6 

Group performance 3,535.8 100.0 3,414.6 100.0 3.5 

Cost of materials −1,749.5 −49.5 −1,683.5 −49.2 3.9 

Depreciation/amortization −145.2 −4.1 −138.9 −4.1 4.5 

Other Expenses −776.1 −21.9 −772.0 −22.6 0.5 

Value Added 865.0 24.5 820.2 24.0 5.5 

Use of Value Added 

Employees 720.3 83.2 698.3 85.1 3.2 

Public sector 55.1 6.4 41.1 5.0 34.1 

Shareholders 43.3 5.0 43.2 5.3 0.0 

Company (retained earnings) 32.6 3.8 19.6 2.4 66.8 

Creditors 13.5 1.6 18.0 2.2 −25.0 

Minority interests 0.2 0.0 0.0 0.0 − 

Value Added 865.0 100.0 820.2 100.0 5.5 


Key results 









Fig. 13 

49


Key results 









Fig. 14 

est groups – employees, shareholders, creditors or the public sector. The result represents 

the macroeconomic performance of the DOUGLAS Group. 

In the 2009/10 fiscal year, the Group’s performance increased by 3.5 percent to over 3.5 

billion EUR as a consequence of sales growth. Net of intermediate input, the value added 

generated by the DOUGLAS Group totaled 865.0 million EUR (prior year: 820.2 million 

EUR), translating into an increase of 5.5 percent year-on-year. 

The bulk of the value added – 83.2 percent – went to the benefit of the DOUGLAS 

Group’s employees. The public sector received 6.4 percent of value added. Based on the 

dividend currently being proposed, the DOUGLAS Group’s shareholders account for 5.0 

percent of value added with 1.6 percent going to creditors and 3.8 percent remaining within 

the Group. 

Headcount slightly higher 

The DOUGLAS Group’s positive performance delivered in the 2009/10 fiscal year is 

largely due to the high dedication of its employees. With their extraordinary enthusiasm 

and high service-orientation, the employees make sure that the customers receive expert 

advice and service, thus enjoying making purchases at the DOUGLAS Group’s specialty 

retail stores. 

As of September 30, 2010, the headcount increased by 465 to 24,655 year-on-year. 

This includes new employees both in Germany and abroad. As of the balance sheet date, 

there were 15,164 employees in Germany or 403 more than the year before. Outside of 

Germany, the workforce number of 9,491 was slightly higher than the prior year’s figure 

of 9,429. 

Personnel expenses in the 2009/10 fiscal year totaled 720.3 million EUR or 3.2 percent 

above the prior year’s figure. The ratio of personnel expenses to sales of 21.7 percent 

matched the prior year’s level. 

To meet the demographic changes and increasing demands from customers, the 

DOUGLAS Group focuses on consistent training and continuing education of its employees. 

In 2010, 670 young individuals began their vocational training at a specialty retail 

store or at the service headquarters. This represents a trainee rate of nearly 13 percent, 

which once again places the Group well above the sector average of roughly eight percent. 

Accordingly, the DOUGLAS Group again proves its high commitment to the training 

of young professionals. 

Another instrumental success factor is staff development, which deals with both technical 

and leadership issues. Specified for the requirements of the subsidiaries, special programs 

and courses are developed to meet the individual needs of the employees. 

Continuing education is offered at the “Douglas Academy” for the German Douglas 

perfumeries, at the “PROMIs-Program” for the Christ jewelry stores and at the “Thalia 

Academy” for the Thalia bookstores. On a cross-company level, the DOUGLAS HOLDING 

ACADEMY creates seminars, workshops and informative events for upper management, 

focusing on the latest developments and trends in the strategic further development of 

the divisions. In addition, it supports the exchange of information across all departments

Fig. 14 · Employees by division 

Change 

year-on-year 

and makes a key contribution to improving internal knowledge at the management level 

and developing corporate culture. 

The training courses offered to sales staff continues to focus on the key “selling” topic. 

The 2009/10 fiscal year kicked off with successful, new programs, which dealt with the 

emotional side of selling. Moreover, the potential of integrating stationary retail trade and 

online distribution was illustrated to convince the sales staff of the multi-channel strategy. 

With the development of the store sponsorship concept, the employees at the service 

headquarters and the Holding have the opportunity of getting to know the sales department 

better. Following the positive feedback in the first year, this concept has now been 

permanently established. The store participation of key executives would comprise at 

least four days per year. 

Additional information in this respect can be found in the “Human Resources” section 

on pages 18 to 25 of this Annual Report. 

Research and development 

In a retail group such as the DOUGLAS Group, there are no research and development 

expenses in the traditional sense. Nevertheless, consumption trends are continually 

monitored and all relevant markets are intensively analyzed. The knowledge gained 

therefrom helps in the selection of new and attractive products and in the developing of 

new platforms and distribution channels. Even the designing of modern store concepts 

and the development of marketing instruments and IT systems profit from the ongoing 

market analysis. It also assures the monitoring and identification of important new developments 

such as communication via the so-called Social Media, so that they can be 

profitably implemented for the DOUGLAS Group. 

Procurement and logistics 

Douglas Thalia Christ AC Hussel Holding/ 

Services 

14,834 

5,186 

2,173 

+1.5% +0.7% +7.3% −0.8% +4.0% +3.8% 

Procurements and logistics play a decisive role for a retail group operating at an international 

level. With the increasing relevance of online distribution, the DOUGLAS Group 

751 

1,141 

570 


Key results 









18–25 

51


Key results 









also attaches more importance to functioning logistics. Competitive advantages can be 

generated by ensuring punctuality in delivery and perfect product quality. This also necessitates 

good supplier relationships, on which the DOUGLAS Group can rely on a partnership 

and a long-term basis. 

In the Perfumeries division, focus was placed on the new structuring of logistics locations 

in Germany. The number of cross docking centers declined from eight to five sites. 

Based on optimum logistics criteria, the stores were regrouped to the cross docking centers 

with the aim of reducing transport costs. Furthermore, numerous IT systems were integrated 

at the Douglas perfumeries. The computer-supported system for store orders (SAF) 

was rolled out at the beginning of 2010. The system supports store disposition by calculating 

a disposition recommendation based on past figures and parameters for future events. 

In addition, the ATOSS SES system replaces the old staff planning system. Moreover, the 

Douglas perfumeries met the current safety requirements (TA 7.0) with the implementation 

of the new payment terminals. 

The fiscal year’s focus in the Books division was on further development and the roll 

out of the new merchandise system Thawis. The new system should assure the company’s 

overall operations and growth potential as well as raising profitability – by means of realizing 

cost savings potential and optimizing business processes. A major portion of the 

stores was successfully converted to the new system in the 2009/10 fiscal year. 

Sustainability 

The DOUGLAS Group associates corporate responsibility with a clear claim: Retailing 

with heart and mind. This means to reconcile economic success with social and ecologic 

commitment. The company responds to the challenges of the future with a number 

of projects and initiatives. In 2008, the DOUGLAS Group established the in-house “Corporate 

Social Responsibility Council”, comprising of representatives from the operating 

divisions and the Holding in an advisory capacity. In addition, employees, customers, investors 

and other interest groups exhibit concrete expectations of the DOUGLAS Group. 

Their interests are bundled and evaluated by the Council; the Council then defines key 

corporate responsibility topics as part of its regular meetings, such as the supplier code of 

conduct that is mandatory for all suppliers. 

Claim to the suppliers 

In choosing suppliers, the DOUGLAS Group sees it as its duty to comply with both generally 

accepted and local legislative rules and special features with respect to social and 

ecological standards. This claim is established in the supplier code of conduct throughout 

the entire group. It is based on the human rights declaration of the United Nations (UN) 

and the conventions of the International Labour Organization (ILO), and must be signed 

by all suppliers of the DOUGLAS Group. 

Responsibility to employees 

A corporation is only successful when its employees are given the opportunity for further 

development. Especially for the DOUGLAS Group, which relies on excellent service 

and expert advice, this is the key for sustainable success. With regard to the demographic 

change and rising competition for hiring professionals and managers, the retention and

development of highly qualified employees are crucial. The aim is to make young professionals 

enthusiastic about starting a career in retailing. That is why the DOUGLAS Group 

has offered attractive training courses and diverse career opportunities within the company 

for many years. In August 2010, roughly 670 young people launched their careers in 

the DOUGLAS Group throughout Germany – more than ever before. In total, some 1,526 

apprentices were employed in Germany as of September 30, 2010, which correlates to a 

trainee rate of nearly 13 percent and is again well above the industry average of the German 

retail trade of about eight percent. 

The DOUGLAS Group also relies on a healthy generation-mix. Particularly, longstanding 

employees provide continuity and have a wealth of experience. Together with their 

new colleagues and junior staff, who provide impetus for changes and innovations, they 

form top teams. In order to stay up-to-date, the continuing education of all our employees 

is essential. In terms of “lifelong learning”, the DOUGLAS HOLDING and all the subsidiaries 

offer attractive courses in technical and management areas as well as individual 

training. Modern human resources policies also include special offers for longstanding 

and experienced staff. Therefore, the DOUGLAS Group participates in the “Experience 50 

plus” project initiated by the German Retail Association (HDE) and the Federal Ministry 

of Family. This aims to accompany participants with age-appropriate training for constantly 

changing requirements in sales. 

The better the employees feel, the longer they remain loyal to the company. In the 

2009/10 fiscal year, roughly 4,900 men and women celebrated their 10-year anniversary 

in the DOUGLAS Group and some 1,700 celebrated their 20th anniversary. For purposes of 

keeping currently informed about the working atmosphere, written and anonymous employee 

surveys are conducted at regular intervals – in 2010, too. The results are discussed 

in workshops and suggestions for improvement are created together. 

The balance between work and family life for mothers and fathers is becoming of 

greater relevance in the DOUGLAS Group. By means of flexible work schedules, flextime 

and part-time work, the company allows the daily working days to be designed by the individuals. 

This is particularly essential in sales. Here, management can apply its decentralized 

decision-making powers to mutually develop individual and tailored models together 

with their staff. The DOUGLAS company kindergarten opened in August 2009 in 

Hagen named “Minifiliale” was selected among one of “365 places in Germany” in the “a 

place in the land of ideas” competition. The “Minifiliale” was largely awarded for the exemplary 

cooperation between company, municipality and the AWO (Arbeiterwohlfahrt 

Bundesverband e.V.). In 2010, the care of children between zero and three was extended 

by a group of 15 children up to six years old. 

Also the staff’s health is a top concern for the DOUGLAS Group. For example, the service 

headquarters in Hagen regularly host “Health Days” featuring optimal nutrition, 

proper motion at work or the topic “A Healthy Back”. At the end of 2009, the DOUGLAS 

Group participated in the “ACTIVE Companies NRW” competition from the German Foundation 

for Stroke Aide and was awarded second place. The objective was to motivate staff 

to keep active in their daily work life, thus preventing strokes. 

Responsibility to the environment 

The conscious use of natural resources and energy play a central role in the DOUGLAS 

Group. That is why all subsidiaries in the group are encouraged to contribute to protect- 


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ing the environment at their specialty retail stores. This includes the application of energy-saving 

techniques in air conditioning and ventilation systems for new construction 

and renovations. Constant room temperatures at the stores are ensured by so-called aircurtain 

systems. The stores test the use of alternative lighting sources to further reduce 

the power consumption per square meter. In April 2010, the Douglas perfumery in Frankenthal 

was used as a pilot store and was fully equipped with LED lighting. Through the 

installation of an additional system to measure energy use, the consumption will be exactly 

measured and the effect between air conditioning, heating, lighting, door systems 

and IT will be assessed. 

Moreover, the DOUGLAS Group is reviewing continuous applications to minimize the 

impact of logistics on the environment. Therefore, Douglas fundamentally overhauled its 

logistics in Germany. As a consequence of the new regrouping of the perfumeries to only 

five locations instead of eight cross docking sites, the transport volume was significantly 

reduced over the previous year despite higher quantities of goods. The Thalia bookstores 

signed a new logistics agreement with their service providers in the 2009/10 fiscal 

year, which allows all national sales companies to be processed via one logistics system 

in the future. This minimizes the transportation routes. AppelrathCüpper also analyzed 

their logistics process and modified their delivery terms. Therefore, the fashion houses 

will now receive deliveries twice per week instead of every day. Furthermore, Appelrath- 

Cüpper focused on one provider for the delivery of goods for cost-saving and environmentally-friendly 

purposes. 

To protect the forests, the DOUGLAS HOLDING has used FSC-certified paper for many 

years and has switched to using recycled paper at its service headquarters in Hagen. In 

January 2010, the Douglas perfumeries and the cosmetics manufacturer Origins launched 

a mutual project. With the purchase of an Origins product a new tree is planted by the 

“WikiWoods” organization. In total, 6,000 trees have been planted in the Stechlin nature 

reserve in Rheinsberg in Brandenburg. Hussel is also committed to protecting the forests. 

More than half of the packaging of the Hussel confectionery products bear the FSC seal. 

Social responsibility 

The DOUGLAS Group’s social commitment encompasses diverse activities. Such as 

in prior years, the company donated a total of 25,000 EUR on the occasion of its Annual 

Shareholders’ Meeting in 2010. The foundation “Evangelische Stiftung Volmarstein” received 

a donation of 12,500 EUR, the child protection department of the “Diakonisches 

Werk Ennepe-Ruhr/Hagen” and the soup kitchen (Suppenküche Hagen e.V.) each received 

funds of 6,250 EUR. In the new 2010/11 fiscal year, the DOUGLAS HOLDING also 

supported the 33rd German Protestant Church Day in Dresden in 2011 by sponsoring a 

sum of 10,000 EUR. 

As a company in Hagen, the DOUGLAS Group is actively involved in local assistance 

projects. This includes active involvement since 2006 in the “Local Alliance for the Family”, 

an initiative established by the German Federal Ministry of Family. Support is provided 

both financially and through hands-on-activities as well. Moreover, the human resources 

department of DOUGLAS HOLDING has assisted the Employment Office in Hagen since 

2006 with the job application training of long-term unemployed and mothers returning 

to the workforce after maternity leaves.

Corporate responsibility is also an integral component of social responsibility for the 

subsidiaries. Since 2008, the Douglas perfumeries, as the main sponsor, have supported 

the organization DKMS LIFE, a subsidiary of the German Database of Bone Marrow Donators 

(DKMS). DKMS LIFE offers free cosmetic seminars for the benefit of women with 

cancer by helping them cope better with the external consequences of their sickness and 

its treatment. Since the start of this cooperation back in 2008, the Douglas perfumeries 

have held more than 450 cosmetic seminars for DKMS LIFE and have allocated a total sum 

of roughly 470,000 EUR for DKMS LIFE. Furthermore, the Douglas perfumeries were again 

the main sponsor of the DKMS LIFE Charity Event “dreamball 2010”. The Douglas perfumeries 

will continue to support DKMS LIFE in 2011 as well. 

The Douglas perfumeries are also engaged outside of Germany for charitable purposes. 

Under the slogan “La Flamme Marie Claire”, the women’s magazine “Marie Claire” 

launched an initiative in France to promote the schooling of girls around the world. The 

Douglas perfumeries in France also counted among the renowned partners. 

The bookseller, Thalia, seeks to promote the fascination for literature. In the 2009/10 

fiscal year, Thalia not only sponsored the international literature festival “lit.COLOGNE” 

in Cologne, but also displayed with its team how much fun literature can be. Nine book 

retailers reported about Europe’s largest literature festival – in a sketchbook specially designed 

by Thalia on the Internet. Also, numerous authors such as Carlos Ruiz Zafón, Martin 

Suter, Frank Schätzing, Mo Hayder and Wladimir Kaminer made contributions. 

In Switzerland, Thalia supported the UNICEF project “School-in-a-Box”, which provides 

further schooling for children in war zones and crisis areas in the event of emergencies 

and natural disasters. Each “Box” contains basic equipment for the instructional use 

by one teacher and up to 40 students. Thalia donated all proceeds – totaling roughly 5,000 

Swiss Francs – received from the ticket sales of the Swiss Literature Club. 

And Christ also campaigns for more social responsibility. Hence, the Jewelry division 

purchases the diamonds used for the Christ diamond jewelry pieces exclusively from companies 

buying their diamonds from “Sightholders” (direct buyers) of the “Diamond Trading 

Company (DTC)” (De Beers Group). All diamonds correspond to the so-called Kimberley-process, 

which is an inspection system that stops so-called conflict-diamonds via 

state certificates of origination for trading. Locally, the Christ jeweler has worked closely 

together for two years with the “Werkstatt über den Teichen GmbH” in Dortmund, a recognized 

facility for disabled persons. The cooperation comprises the production of store 

elements and processing work of all types and is planned to be further expanded in the 

coming years. 

The Hussel confectionery stores have been committed for more than ten years on a 

local level for children’s and youth sports by organizing a youth’s golf tournament and 

a track and field athletics sports festival in Hagen. In the 2009/10 fiscal year, Hussel was 

the sponsor of the Children’s Village for the second time in the context of the internationally 

known and top-class equestrian event “Balve Optimum” and was the promoter for 

the first time of the therapeutic equestrian courses offered there. 

Hussel cooperated for the first time in 2010 with WWF (World Wildlife Fund) and 

launched a chocolate advent calendar with tigers featuring the “Year of the Tiger” based 

on the Chinese calendar. One Euro earned per calendar sold goes to the WWF to save the 

endangered predatory cat species. In addition, Hussel has presented its top private label 


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55


Social Commitment of the DOUGLAS Group 

The DOUGLAS Group associates corporate responsibility with a clear claim: Retailing with heart and mind. 

The company’s social commitment is reflected by various small and large activities and initiatives. 

On the occasion of its Annual Shareholders’ Meeting, the DOUGLAS HOLDING 

donated a total of 25,000 Euro to three institutions in and in the vicinity of Hagen 

(from left): Jürgen Dittrich (Board Speaker of “Evangelische Stiftung Volmarstein”), 

Dr. Henning Kreke (President and CEO of DOUGLAS HOLDING), Dr. Ingeborg 

Otto (Soup Kitchen in Hagen), Anke Giesen (Executive Board member of DOUG- 

LAS HOLDING), Heide Alscher (Head of the children’s protection ambulance in 

Hagen) and Thomas Haensel (Managing Director of the Social Welfare Facility). 

Douglas and DKMS LIFE: Since 2008 the perfumeries have 

organized over 450 cosmetic seminars free-of-charge to 

women suffering from cancer. 

A heart for the children: Hussel was the sponsor of the Children’s Village at 

the equestrian tournament “Balve Optimum.” 

Presented with a cheque: Sabine Riede (fifth from left), Managing 

Director of Sekten-Info NRW e.V., an association which 

informs on the issue “sects.“ From left to right: Kathrin Jaeger 

(Hussel), Eva Dörrenbach (trainee), Diana Dilmenc (Christ), 

Nina Heckerott (Douglas), Roland Höfer (Christ), Viviane 

Oberkampf (DOUGLAS HOLDING), Angelika Burger (Thalia), 

Oliver Lambor and Arzu Aslani (both AppelrathCüpper). 

At Christmas time, DOUGLAS Corporate Service GmbH (DCS) and DOUGLAS 

Informatik & Service GmbH (DIS) made children’s wishes come true. 

On the occasion of its 20th anniversary, the Douglas perfumery 

in Andernach supported “Die Tafel.“

“La Margerita” in organic quality bearing the “Rainforest Alliance” seal since 2009. The 

products Grand Cru Chocolates “Iara” and “Bejofo” are also organically certified and are 

produced from cultivated high-grade cocoa beans. 

OPPORTUNITIES AND RISKS SITUATION 

Opportunities and risks situation unchanged 

Opportunities and risk management 

In principle, the DOUGLAS Group takes risks only when they are deemed controllable 

and the corresponding opportunities are likely to provide an appropriate increase in 

value. 

Opportunities and risks are identified by experienced risk managers appointed for 

each Group company in Germany and abroad through clearly defined processes and with 

the assistance of a standard, centrally administered opportunities and risk management 

system. This system allows a monetary evaluation of opportunities and risks as well as 

the documentation of measures applied. 

The system’s effectiveness and efficiency is periodically assessed by the Group’s internal 

auditing unit and the independent auditor. The findings therefrom are presented to 

the Executive Board and the Supervisory Board. 

The Executive Board also receives an overview of identified opportunities and risks at 

regular intervals to assure that information is received in a timely manner. In the event 

of sudden and material risks being incurred, the Executive Board immediately receives 

all necessary information. 

Environment and business opportunities and risks 

The macroeconomic development in the all-important markets of the DOUGLAS Group 

is extremely hard to estimate; and it has a material impact on the net assets, financial 

position and result of operations of the Group. Thus, a downward trend in retail sales 

in Europe presents a risk. By positive contrast, a significantly growing consumption demand 

presents an opportunity for the Group. For purposes of responding to changes in 

the framework conditions in a timely manner, not only are budget reports regularly updated, 

but scenario analyses are also prepared. 

The risks from internationalization are countered by the DOUGLAS Group by adjusting 

the respective product lines to the country-specific characteristics. Moreover, the national 

political, economic and legal framework conditions are carefully monitored and 

evaluated by experienced local managing directors. 

For purposes of optimizing the store network to the current and anticipated future 

framework conditions, not only were numerous openings and acquisitions carried out, 

but stores closed as well. In the 2008/09 fiscal year a special program was conducted to 

streamline the store network. This incorporated the closure of those stores that did not 


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162–165 

indicate a sustainable improvement in earnings on the medium term. The store network 

streamlining was completed to a large extent in the reporting period. 

Sales and purchasing opportunities and risks 

In order to always assure an attractive and modern product-mix, the DOUGLAS 

Group maintains business relations with a number of selected suppliers and manufacturers. 

Through supplier agreements based on longer terms and ongoing market observations, 

potential procurement risks are minimized. The solid national and international 

negotiation position of the DOUGLAS Group with landlords, suppliers and manufacturers 

helps to realize key procurement advantages. 

Rising rental and energy prices as well as growing competition necessitate intensive 

cost management. The opportunities and risk management system supports the search 

for reasonable solutions. 

For an international retail group, changes in consumer habits present significant 

risks, especially in the changing demands of the customers. The continuous development 

of the Customer Relationship Management not only contributes to the further development 

of the exclusive and private brands concept, but also promotes customer loyalty. 

Furthermore, the DOUGLAS Group aims to profit from the trend towards online retailing 

and has accordingly developed a multi-channel strategy. 

All these activities are subject to regular reviews in order to spot trends early and 

respond appropriately. 

Financial opportunities and risks 

The DOUGLAS Group displays a moderate financial risk profile. Due to its concentration 

in the euro zone, currency risks are insignificant. The same holds true for liquidity 

and interest risks due to the Group’s solid capital and financial structure. Default risks 

are countered by the DOUGLAS Group by distributing the business volume into both 

money deposits and financial instruments among various contractual partners. Because 

of the global economic uncertainties, large money investments will be avoided where 

possible or invested with only first-rated banks in Germany. 

A detailed description of the financial risks and their managing tactics can be found 

in the Notes accompanying the consolidated financial statements on pages 162 to 165. 

Receivables default risk 

The receivables default risk is only of minimum relevance for the DOUGLAS Group. 

The continuous evaluation and monitoring of receivables by means of an active receivables 

management through internal and external service providers minimized the risks 

from receivables default throughout the Group. In addition, the timely offsetting of receivables 

against payables with suppliers helps to reduce the default risk. Risks from 

cash and non-cash payments are limited by group-wide guidelines in effect and systematic 

examination procedures. Losses from forgery of banknotes are immaterial due 

to the controls in place.

Information technology opportunities and risks 

The dependency on the availability and quality of data in increasingly more complex 

IT systems and the interfacing of individual companies present a significant risk potential. 

In order to counter this, a group-wide IT safeguarding concept has been implemented. 

Comprehensive precautionary measures, such as firewall systems and daily virus protection 

safeguard the availability, reliability and efficiency of the systems and data. 

The increasing requirements for data protection – among others, the amendment to 

the Federal Privacy Act of 2009 – are met by the DOUGLAS Group conducting extensive 

data protection training for all relevant employees and by access restrictions. Moreover, 

a modern processing center and constant controls and monitoring of the systems as part 

of emergency plans and actions assure the quality and safety of the processes concerning 

data processing. 

The extensive standardization of the IT infrastructure within the Group, the introduction 

of standard cash register systems and the further development of merchandise management 

allow for a much more effective processing. 

Furthermore, the efficient application of the information technologies provides competitive 

advantages. They can extend the range of the services in place to alternative distribution 

channels, such as via the Internet. 

Human resources opportunities and risks 

Key components of the lifestyle philosophy include expert advice and outstanding 

service. Employees who are inadequately qualified and have insufficient service orientation 

pose significant risks. Another risk comes from experienced employees leaving the 

company. 

In addition to establishing a positive working atmosphere, the focus of human resources’ 

efforts is on offering company training and continuing education and in promoting 

young management professionals through international management development programs. 

Thus, top executives have the opportunity of receiving specific training and to simultaneously 

exchanging their experiences across the divisions. 

Opportunities arise in particular from the high attractiveness of the DOUGLAS Group 

as an employer and high proportion of apprentices. Consequently, this should make qualified 

young management professionals loyal to the company in the future. 

Legal opportunities and risks 

Significant legal risks could arise from possible violations against statutory requirements 

or internal corporate guidelines. 

Besides consistent compliance with the current legal situations in all relevant countries, 

particular attention is also given to imminent legislative changes. The early inclusion 

of internal and external local legal advisors helps to take the necessary steps. 

The Compliance department also provides support in keeping the DOUGLAS Group 

and its employees in compliance with the rules in effect. This not only includes the statu- 


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Key results 









tory requirements, but also those which the DOUGLAS Group has voluntarily enacted. 

The Compliance department coordinates all compliance issues throughout the Group and 

therefore further expands the corporate structure. 

As a rule, all major contracts are subject to prior review by a legal advisor. Any potential 

residual claims or liability risks are covered by comprehensive insurance policies, 

the extent to which is centrally adjusted and continually improved. Warranty claims for 

product defects or receivables from the product liability law are contractually secured by 

agreements with suppliers containing recourse clauses. 

Legal disputes that could materially impact the financial position of the DOUGLAS 

Group are neither pending nor is the company threatened by any such disputes at this time. 

Internal control system and risk management system 

The accounting-related internal control and risk management system of the 

DOUGLAS Group aims to prevent and minimize the risk of misstatements in accounting 

and in external reporting or to recognize and minimize it in a timely manner. 

The DOUGLAS Group has a uniform accounting manual which is regularly updated to 

meet the legal framework conditions. This Group accounting manual prescribes accounting 

in conformity with IFRS for all Group companies in Germany and abroad to ensure 

the application of uniform recognition, valuation and presentation methods in the IFRS 

consolidated financial statements. For purposes of assuring uniform accounting within 

the DOUGLAS Group, the corporate accounting department of DOUGLAS HOLDING AG 

prepared the accounting guidelines. 

The manual is made available via the Group’s intranet to all employees involved in the 

accounting process. To assure a smooth process in the preparation of individual financial 

statements by the subsidiaries, complex accounting issues or accounting principles are discussed 

and explained well before the balance sheet date. 

The individual financial statements of the Group companies are prepared with the 

assistance of the centralized ERP software SAP (SAP-FI). The necessary accounting steps 

are subject to diverse, automated and manual controls and to reasonableness tests. Key 

controls are, for example, the reconciliation of the general and subsidiary ledgers or the 

central classification and maintenance of the balance sheet structure. Other regular controls 

such as automated accounting controls and processes, the daily comparison of store 

revenues with the cash receipts on bank accounts or the examination of posting disruptions 

help to ensure the high quality of the individual financial statements. Once the individual 

financial statements have been given final approval, subsequent changes by bookkeeping 

are no longer possible. 

Consolidation of the individual financial statements of the Group companies is performed 

for all companies via the Hyperion Financial Management software system (HFM). 

A standardized chart of accounts is established for this purpose, which is used by all companies 

and is defined and maintained by corporate accounting. The individual financial 

statements prepared in SAP are automatically transferred to HFM. Other than the financial 

statements, additional relevant year-end closing information regarding tax deferral, 

consolidation and preparation of the Notes are transferred via HFM and other supplemental 

systems.

The data transferred is then automatically examined for reasonableness. In the event 

that warning or error messages should arise, the respective company must resolve the issues 

before the data is submitted to corporate accounting. Manual controls with respect 

to quality and completeness are performed by corporate accounting. 

Another example of a controlling instrument is the financial statement presentation of 

the individual subsidiaries. The respective managing directors of all material subsidiaries 

present their financial statements according to centralized, standard formats to the Executive 

Board, corporate accounting and the Group independent auditors. Furthermore, the 

managing directors can be questioned about critical issues by those bodies. In conclusion, 

the respective managing directors confirm that all requirements have been complied with 

and confirm the completeness of all data relevant to the consolidated financial statements 

by submitting an internal letter of representation. 

The necessary accounting steps as part of the final consolidation conducted by corporate 

accounting are subject to various automated and manual controls and reasonableness 

tests. Key controls in this respect include automated reasonableness tests and 

manual comparisons of actual-to-budget and current-to-prior year. The preparation 

of the cash flow statement and changes in equity is also system-supported just like the 

segment reporting. 

Valuations in connection with the acquisition of shares (e.g. purchase price allocation) 

are generally performed for material acquisitions on the basis of external expert valuations. 

The valuation of provisions, namely personnel provisions, is conducted by external 

actuaries on a regular basis for the year-end closing. 

For purposes of the material processes for the individual and consolidated financial 

statement preparation, organization handbooks, instructions and guidelines are available 

in German and in English. These are regularly adjusted to conform to current conditions 

and are made available to all those employees involved. 

As a rule, the principle of dual control is applied, which means that all material transactions 

are controlled by at least a second person. The principle of separation of duties is 

also applied to all transactions, that is, the rights and access of employees are restricted 

to the extent that the principle of dual control will not be defeated. In certain Group companies, 

such a separation of duties control is not possible due to the low staff number. In 

this respect, compensating control mechanisms are in place that would prevent or detect 

possible violations. 

The compliance and execution of these controls are regularly reviewed both operationally 

and technically by the Group Internal Audit & Risk Management division. Accordingly, 

the Group Internal Audit & Risk Management division prepares, together with 

the Executive Board and the managing directors of the Group companies, an annual riskoriented 

audit plan, which is supplemented during the current year by special audits. The 

findings therefrom are presented to the CFO and the Chairman of the Executive Board 

as well as the managing directors of the companies audited and actions are resolved to 

minimize the risks discovered. 

In addition to the contextual and technical risks, risks could arise from failing to 

meet deadlines. To prevent such risks, corporate accounting monitors the processes in 

place for the individual and consolidated financial statements in conformity with IFRS 


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Key results 









AppelrathCüpper: always presenting itself with top fashion – like here in Münster. 

both in terms of content and time. The financial statement preparation process is also 

presented in detail in a scheduling plan that contains the single steps by due date and 

responsibility. 

To assure the reliability, confidentiality and availability of the data, clear access rules 

are defined in the accounting-related IT systems. Each Group company in Germany and 

abroad is subject to these rules, which are summarized in an IT safeguarding manual 

and its compliance is monitored across the Group by the corporate internal audit division. 

This ensures that the user of the systems only has access to the information and systems 

required to fulfill the user’s duties. 

As part of the year-end audit, the independent auditor examines selected internal controls 

and assesses their effectiveness. In addition, the financial statements of all material 

companies are audited by local independent auditors. The compliance of accounting standards 

and the accuracy and completeness of all other decentralized documents that are 

of relevance to the consolidated financial statements are examined. 

Management’s overall assessment of the DOUGLAS Group’s risk exposure 

The basis of assessing the risk situation is the DOUGLAS Group’s regular discussions 

about the risks and opportunities management system with the internal management of 

the subsidiaries at the Board Meetings. 

Included among the main types of potential risks for the DOUGLAS Group are those 

caused by factors that cannot be influenced or only indirectly influenced such as the state 

of the national and international economies and the associated change in purchasing 

power. Another type of risk is generally of an operational nature, which can be combated 

directly by taking all appropriate steps in the companies.

The existing risks both as individual risks and in connection with other risks are limited 

and from today’s standpoint are immaterial to the going concern of the DOUGLAS 

Group. All prerequisites of an organizational nature have been established in order to be 

informed about any potential risk situations at an early stage. 

Credit rating 

The DOUGLAS Group’s financial standing is evaluated very positively by the banks. 

The revolving credit facility agreed in September 2007 with a banking syndicate has a term 

of five years and allows drawing a credit line of up to 500 million EUR. 

This financial facility was used by less than 20 percent as of the balance sheet date and 

offers adequate financial flexibility over the coming years. This agreement was stipulated 

under attractive conditions and necessitated no external credit rating. More detailed information 

about the revolving credit facility can be found in the Notes accompanying the 

consolidated financial statements on page 165. 

STATUTORY DISCLOSURES 

Information required under the Takeover Law pursuant to § 289 (4) together with 

§ 315 (4) HGB 

The company’s share capital amounted to 117.962.676 EUR as of the balance sheet date 

on September 30, 2010. It was divided into 39,320,892 no-par value shares. The shares have 

a theoretical par value of 3.00 EUR per share. 

The company is not aware of any restrictions that would affect voting rights or the 

transfer of shares. 

A 25.81 percent direct interest in the company’s equity (which exceeds ten percent of 

the voting rights) was held by Dr. August Oetker Finanzierungs- und Beteiligungs GmbH 

as of the balance sheet date. 

There are no holders of no-par value shares who have special controlling rights. Also, 

there is no special controlling of voting rights nor are there controlling rights of employees 

participating in equity that are not being directly exercised. 

Regarding the appointment and dismissal of Executive Board members, reference 

is made to the statutory provisions pursuant to Sections 84 and 85 of the German Stock 

Corporation Act (AktG). In conformity with Section 5 (1) of the Articles of Incorporation, 

the Supervisory Board determines the number of Executive Board members; the 

Executive Board must however have at least two members. The Supervisory Board can 

appoint one member to be the Chairman of the Executive Board. Remuneration to the 

members of the Executive Board contains components that are non-performance and 

performance based. The variable remuneration is determined as performance-based. 

Further information regarding the Executive and Supervisory Boards’ remuneration 

structure can be found in the Notes accompanying the consolidated financial statements 

on pages 167 to 168. 


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165 

167–168 

63


Key results 









Amendments to the company’s Articles of Incorporation can only be made in accordance 

with Sections 133 and 179 AktG and Section 12 of DOUGLAS HOLDING AG’s Articles 

of Incorporation. 

In accordance with the resolution adopted by the Annual Shareholders’ Meeting on 

March 24, 2010, the Executive Board is authorized until September 23, 2011 to acquire nopar 

value shares for treasury stock up to ten percent of the current share capital. 

According to Section 4 (2) of the Articles of Incorporation, the Executive Board is authorized, 

with the approval of the Supervisory Board, to increase the company’s share 

capital by up to 25,000,000 EUR in the period up to March 11, 2013 by issuing, on one or 

more occasions, new no-par value shares against cash or non-cash contributions (authorized 

capital I). According to Section 4 (3) of the Articles of Incorporation, the Executive 

Board is also authorized, with the approval of the Supervisory Board, to increase 

the company’s share capital by up to 1,246,260 EUR in the period up to March 11, 2013 

by issuing, on one or more occasions, new no-par value shares against cash contributions 

(authorized capital II). 

DOUGLAS HOLDING AG’s revolving credit facility contains a market-conform 

“change-of-control” clause that empowers the contractual partners additional rights of 

information and rights of termination in the event of a change of the controlling and 

majority powers. 

No agreements have been entered into with either the members of the Executive 

Board or with employees regarding the issuance of compensation in the event of a takeover 

bid. 

Declaration of Corporate Governance pursuant to Section 289 a HGB 

The declaration of corporate governance pursuant to Section 289 a of the German Commercial 

Code (HGB) comprises the declaration of compliance in conformity with Section 

161 of the German Stock Corporation Law (AktG), disclosures concerning corporate governance 

principles and a description of the duties of the Executive and Supervisory Boards. 

The declaration is publicized on DOUGLAS HOLDING AG’s homepage under “Investor 

Relations/Corporate Governance”. 

FORECAST AND THE EXECUTIVE BOARD’S 

OVERALL ASSESSMENT OF THE DOUGLAS 

GROUP 

Expansion of the world economy slows down 

According the predictions of the IfW, the economic recovery of the world economy will 

proceed into 2011. However, the economic pace, especially in the developed economies, 

will slow down. This is impacted by the phasing-out of the economic stimulus programs

in most industrial countries, the stricter measures to consolidate deficit countries and the 

tightening of monetary and economic policies in emerging countries. Nonetheless, the IfW 

still predicts a rise of 2.8 percent in global production for 2011. 

Slight growth continues in the euro zone 

The economic development in the euro zone is expected to remain highly heterogeneous 

in 2011, too. On one side, some countries, such as Germany, will most likely benefit 

and have good developments in 2011 from the low interest rates and demand from emerging 

economies. On the other side, the economic outlook of some countries in the European 

Union will continue to be restrained. On the whole, the IfW predicts growth of 1.3 percent 

in the gross domestic product for the euro zone in 2011. 

Higher domestic demand in Germany 

The upwards trend of the German economy is likely to continue into 2011. While the 

economic upswing was mostly supported by exports in 2010, growth in domestic demand 

is additionally predicted for 2011. In particular, the drop in the unemployment figure and 

higher salaries in 2010 with simultaneously higher price stability are anticipated to have 

a positive impact on domestic spending. All in all, the IfW projects a rise of 2.0 percent in 

overall economic production. 

Retail segment satisfied with Christmas business 

According to surveys conducted by the German Retail Association (HDE), retailers were 

satisfied with their Christmas sales. Compared to the previous year’s period, HDE had anticipated 

a nominal sales increase of 2.5 percent for November-December 2010. Overall 

sales are projected to have risen by a nominal 1.5 percent during the 2010 year as a whole. 

Impact of proposed tax and legislative enactments in Germany 

The proposed trade tax reform prescribed in the 2009 Growth Acceleration Act, which 

was to provide a reduction in the trade tax add-back in real estate rents and a permanent 

increase in the exemption limit for tax-deductible interests expenses will probably not be 

implemented in 2011.Therefore, the proposed tax relief requested by the HDE will not take 

place in the coming year. 

No change in the DOUGLAS Group’s strategic direction 

The DOUGLAS Group will continue to pursue its strategic direction. The aim is for all 

corporate divisions to gain market share to reach or secure a leading market position in 

their branch sector. The sales markets of the Group remain in Europe. From today’s standpoint, 

new markets are not expected to be entered in the current and next fiscal years . 

The DOUGLAS Group aims to expand and modernize its sales network. The store network 

streamlining resolved in the 2008/09 fiscal year was implemented to a major extent in the 

fiscal year under review. A substantial rise in consumer demand, in particular, from the 

recovery of foreign markets, would have a direct positive impact on earnings. 


Key results 









65


Key results 









Opportunities for the DOUGLAS Group are expected to come from the growing demands 

from customers for diverse selling channels. The exclusive option of making purchases 

only at the specialty retail stores is no longer sufficient for many consumers. The 

customer wants to shop at both stationary stores and online, too. The interlinking of both 

alternatives into a multi-channel strategy offered by the DOUGLAS Group not only provides 

its customers with both selling channels, but also generates additional advantages 

for the customer, such as online orders with the option of product pick-up at the store. The 

process optimization steps undertaken in the areas of logistics and IT have already paved 

the way for a successful implementation of the multi-channel strategy. Even the development 

in the field of Web 2.0 is seen as an opportunity by the DOUGLAS Group in actively 

communicating with the customer. 

Moreover, the business group sees key opportunities from vertical integration. The Jewelry 

division will be testing new sales channels by opening stores in the areas of monolabel 

and multi-label. In addition, all corporate divisions except for the Books division attach 

great importance to exclusive and private labels. Through the use of exclusive and 

private labels, customer loyalty is intended to be raised, with a stronger differentiation 

among competitors. Decisive for the further success of the DOUGLAS Group will be the 

steps taken towards the correct direction of the product-mix strategy. 

Following the lower capital expenditure budgets of the last two fiscal years, the investment 

volume is estimated at approximately 125 million EUR for the 2010/11 fiscal year, 

with the aim of again reaching a level of roughly 150 million EUR on a medium-term. In 

addition to new store openings, the DOUGLAS Group intends to grow further by means 

of acquisitions. That is why acquisition opportunities are continuously monitored and 

evaluated. 

The DOUGLAS Group’s financing of investments is secured from the access to various 

financial sources. This includes cash and cash equivalents, operating cash flow and 

bank credits. In addition to the syndicated revolving credit facility that was contractually 

agreed with eleven banks up through September 2012, bilateral credit lines are also 

available in the amount of 37.2 million EUR as of the balance sheet date on September 30, 

2010. As of the balance sheet date, the Group had at its disposal borrowing headroom in 

the amount of 409 million EUR from the revolving credit facility. Procurement of larger 

financing commitments before the maturity date of the revolving credit facility is not considered 

necessary at the present time. In the case that financing needs should dramatically 

change, the financing strategy would then be accordingly adjusted in a timely manner. 

No material changes are anticipated in the cost structure in the current and fiscal 

years ahead. The personnel cost ratio is expected to remain at about 22 percent of net 

sales. Even the rental expense ratio is expected to remain relatively stable due to the longterm 

nature of these agreements. Energy costs of nearly one percent of net sales are also 

expected in the future. 

Economic outlook of the business divisions in the fiscal years 2010/11 and 2011/12 

The multi-channel strategy is gaining in importance for the DOUGLAS Group. The integration 

of the Internet platform with stationary retailing is becoming of more relevance 

in all corporate divisions. In this respect, the DOUGLAS Group deems this to be a key advantage 

over its competitors. The store network with almost 2,000 highly-qualified spe-

cialty retail stores forms a solid base to now link new media and sales channels. In the 

second half of 2010, three top-modern shops went “online” with the Internet platforms 

www.christ.de, www.appelrath.com and www.hussel.de. The Perfumeries division with 

www.douglas.de and the Books division with www.thalia.de and www.buch.de have been 

successful in internet selling for a number of years. Consequently, solid prerequisites have 

now been created in all selling divisions to further develop the DOUGLAS Group into a 

leading multi-channel provider. 

In the current and coming fiscal years, the focal point of the investment activities will 

continue to be on the Douglas perfumeries. Up to 65 million EUR is planned to be invested 

in the opening of 50 to 60 new perfumeries, the modernization of the existing store network 

and the expansion of online selling. The Douglas perfumeries aim to strengthen their 

leading market position for selective cosmetics on the Internet as well. 

Now that the store network streamlining program is nearly complete, Douglas can 

further focus on increasing market share in the existing European markets. Therefore, 

new markets are not planned to be entered in the next two fiscal years. The all-important 

market is still Germany, where the stable sales and earnings performance constitute 

an important pillar for the Douglas perfumeries. Since a weak performance from 

some foreign markets is still likely to continue, the home market will remain a key market 

in the future, too. 

Douglas will become even more a “place to experience.” Here, the shopping experience 

will not only count at the specialty store, but in Internet as well. By offering both alternatives, 

Douglas makes the shopping experience possible around the clock and flexibly 

adjusted to the respective needs of the customer. Key success factors are still the excellent 

service quality offered by its employees and the first-class and exclusive product range. 

Being a trendsetter, the Douglas perfumeries in Germany are considered a partner for 

cosmetic manufacturers in launching new perfumery products. This cooperation is also 

planned to be expanded outside of Germany. 

In an ongoing price-sensitive competitive background, Douglas sees a decisive success 

factor to come from increasing customer loyalty. With the Douglas Card, the company 

has already established a very successful customer loyalty program, which is currently 

being offered in ten countries. As part of the so-called “social media”, Douglas is already 

conducting intensive online dialogs with its customers. The introduction of an “App” for 

the mobile phone further enables Douglas to inform its customers about current events, 

services and offers on-the-go. Moreover, the exclusive and private labels, which will be 

increased even more in the coming years, strengthen customer loyalty and improve competitive 

differentiation. All in all, the Douglas perfumeries are on a solid path towards a 

sustained expansion of its market leadership in Europe and its presence and expertise in 

the Internet in the areas of perfume, cosmetics and skin care. 

The Thalia bookstores will continue to concentrate their activities on Germany, Austria 

and Switzerland in the two fiscal years ahead. The focal point is still on expanding its 

leading market position in German-speaking countries, to consistently move ahead with 

the multi-channel strategy and to increase profitability. Correspondingly, an investment 

budget of about 30 million EUR has been set aside in the 2010/11 fiscal year for the opening 

of more than ten bookstores, modernizing the store network and the further implementation 

of the multi-channel concept. The introduction of a new merchandise management 

and information system initiated in 2009 establishes the important prerequisites for the 


Key results 









67


Key results 









Thalia builds further on its multi-channel strategy – like here in Göttingen. 

earnings-oriented realization of the strategy. The implementation of the system will be 

pushed ahead further at Thalia in the current and coming fiscal years. 

The Thalia Group will continue to work on interlinking its expertise from the stationary 

business with those of the Internet business and the offering of e-books. In addition to its 

own e-book shop established in the autumn 2010, Thalia also launched an eReader – an 

electronic reading gadget – named “OYO” on the market. In so doing, Thalia is attaching 

importance to the increasing relevance of the digital content of books in the years ahead. 

The dynamic development in the area of social media is being applied by Thalia to 

set-up and expand its direct ongoing communication with its customers. Thus, more and 

more multimedia elements are being integrated at the bookstores. Moreover, the services 

are rounded out by top-qualified book retailers and the atmosphere of the shopping experience 

at the bookstores with the concept of the Thalia book universes. 

The Christ jewelry stores will continue to concentrate its efforts in Germany in the current 

and coming fiscal years and will not enter any new markets. An investment budget 

of roughly 4 million EUR for the 2010/11 fiscal year has been earmarked for five to ten new 

stores openings and various renovation and modernization work. 

The product-mix strategy of private and exclusive labels has proven to a decisive success 

factor for Christ. The product range will be rounded out in the future with additional 

fashionable labels. Christ constantly observes the market to identify trends in the jewelry 

sector early on. Furthermore, Christ continuously works on sharpening its image with customers 

as a highly-qualified jeweler. Customer loyalty will be secured with the enlarged 

range of service offers and the exclusive and private labels. This is decisive for the trend 

towards verticalization in the jewelry retail business and the associated growing fierce 

competition. In addition, Christ will test other distribution concepts in the areas of both 

multi-label and mono-label.

By relaunching its online presentation in autumn 2010, Christ has completed another 

step towards the direction of the multi-channel concept. The aim is to secure its solid position 

attained in stationary retailing and to expand its expertise as an online retailer in 

the jewelry and watches segment. 

In the Fashion division, AppelrathCüpper will focus on the further, consequent implementation 

of its new direction for women’s fashion stores in the areas of marketing and 

store design in the fiscal years ahead. The first signs of success are already evident from 

gaining new suppliers. Moreover, the product line and accessories have been broadened. 

The challenge now for AppelrathCüpper is to make the new strategy known to the customer 

– through the support of intensive marketing measures. 

With the launch of the AC online shop www.appelrath.com in autumn 2010, 

AppelrathCüpper tapped into the Internet business as a distribution channel. The aim 

is to improve both sales and earnings and to successfully establish “AC” as a profiled 

premium brands seller in the mid to upper genre for women’s fashion clothing at attractive 

prices. 

The Hussel confectionery shops will focus on its home market in Germany in the next 

two fiscal years. Entry in new markets is not planned at this time. The focus of the 2010/11 

fiscal year will particularly be set on the scheduled numerous modernization work and 

implementing the new shop design concept. An investment budget of about 4 million EUR 

has been set aside. 

Together with the new shop concept, which has been successfully tested at the pilot 

shop in Aschaffenburg, Hussel has introduced a new logo in 2010, modified the presentation 

of products and packaging and offers additional services. The objective of the new 

concept is to highlight Hussel’s expertise in the area of high-quality chocolates. Hussel 

aims to profit from the current trend of a more conscious consumption and to establish 

itself as a qualitative and innovative leader in the confectionery market. 

The target is to fascinate existing customers for the new Hussel concept and to win new 

customers. Moreover, Hussel will secure its leading market position on the German confectionery 

market and expand its expertise in the confectionery segment on the Internet. 

Positive overall assessment of the DOUGLAS Group 

The DOUGLAS HOLDING AG’s Executive Board continues to assess the situation of 

the DOUGLAS Group as being positive. The Group has once again demonstrated a successful 

performance and has increased both sales and earnings in the year under review. 

Pleasingly, the positive performance of the all-important home market in Germany could 

offset the adverse sales performance delivered in some foreign markets. 

The DOUGLAS Group is well-positioned in all corporate divisions and has available 

solid net assets, financial position and result of operations positions. It will continue to 

carryforward its investment portfolio from today’s standpoint and will continuously examine 

and use the optimization potential. Decisive for corporate success in the future is 

the commitment of its employees, the first-class products and a modern store network. 

Furthermore, with the group-wide introduction of the multi-channel concept, a forwardlooking 

strategy has been developed for all five of the corporate divisions. 


Key results 









69


Key results 









Given the improvement in consumer confidence, the Group’s sales proved sound 

at the start of the new 2010/11 fiscal year. During the first quarter of the 2010/11 fiscal 

year – which includes the important Christmas business – sales were up about 4 percent. 

Like-for-like, Group sales were almost 2 percent higher than in the previous year’s quarter. 

The German Retail Association HDE is projecting an overall increase in turnover of 

1.5 percent for 2010. While yet to issue a concrete forecast for 2011, it is expecting a steady 

development. Similarly, the various industries had yet to publish specific projections for the 

new year by the start of 2011. However, the mood in the perfumery market appears to be 

brightening, according to a fall 2010 survey by the German Perfumeries Association, with 

the trend for 2011 holding steady. Sales at Germany’s stationary bookstores were down 

approximately 3 percent during 2010, according to the industry’s BuchReport magazine. 

No estimate has been provided as yet for 2011. The German Federation of Jewelry and 

Watch Retailers is anticipating that sales will have increased by some 6 percent in 2010, 

although this is largely due to higher material costs. Industry analysts project that the 

watch and jewelry market should develop steadily during 2011, provided the general economic 

climate does not change significantly. According to the magazine Textilwirtschaft, 

the German fashion industry posted a 3 to 4 percent gain in sales during 2010; prospects 

for 2011 are optimistic. The market research institute IRI concluded that confectionery segment 

sales had declined slightly as at the end of October 2010; the industry’s professional 

associations have yet to venture forecasts for 2011. 

From today’s standpoint, the Executive Board predicts a sales increase of between 

2 and 4 percent and earnings before taxes of about 140 million EUR. For purposes of promoting 

further growth of the DOUGLAS Group, a capital expenditure volume of about 

125 million EUR is available. The shareholder-friendly dividend policy will be continued. 

Therefore, a payout ratio of about half of consolidated net income is the future target as 

well. The forecast takes into account all those events known at the time of preparing the 

financial statements which might impact the business developments of the DOUGLAS 

Group. 



The Executive Board 

Dr. Henning Kreke Dr. Burkhard Bamberger Anke Giesen

DIVISIONS CONTENTS 

72 Perfumeries 

84 Books 

92 Jewelry 

98 Fashion 

104 Confectionery 

110 Services 

Geschäftsbereiche 

Douglas · Parfümerien 

Thalia · Bücher 

Christ · Schmuck 

AppelrathCüpper · Mode 

Hussel · Süßwaren 

Dienstleistungen und Servicebereiche 

1 

Divisions

72 Divisions 

Douglas · Perfumeries

THE WORLD OF BEAUTY 

First, the good news: during the 2009/10 financial 

year Douglas was able to increase its sales by 1.4 percent 

to approximately EUR 1.9 billion, despite the undeniable 

effects of the economic crisis which most impacted 

operations outside Germany. Notwithstanding the 

crisis, the Douglas perfumeries remained true to their 

lifestyle strategy and continued to win over customers 

with outstanding service, first-rate product ranges and 

a sophisticated store ambiance. Yet again, some 15,000 

dedicated employees played a key role in this success. 

With their friendly and enthusiastic attitudes, they turn 

Berlin’s “beauty spot”: the new Douglas perfumery on Tauentzienstrasse. 

Did you know ... 

that almost 60 million customers shop at 

Douglas perfumeries across Europe every year? 

Given 300 shopping days, that is equivalent 

to some 200,000 a day. 

Divisions 

Douglas · Perfumeries 

shopping at Douglas into a truly unique experience for 

customers – day after day, at each store, in every single 

country. 

Douglas invested some EUR 56 million in opening 

48 new perfumeries and modernizing existing locations 

during the 2009/10 financial year. During the same period 

a total of 63 stores were closed for lack of long-term 

profitability potential. The year therefore saw a net decline 

in the number of Douglas perfumeries to 1,205; 

sales at Douglas nonetheless rose. 

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74 Divisions 



that, on the average, more than 

70,000 Internet users open the douglas.de 

homepage every day? At peak times 

like the pre-Christmas period, up to 

150,000 Douglas fans visit our online 

shop in a single day. 

Developments in the company’s 

key domestic market of Germany proved especially 

positive. Although the number of perfumeries 

declined overall by seven to 445, turnover was up by 

2.9 percent to approximately EUR 947 million, enabling 

Douglas to successfully cement its market leadership. 

Douglas Germany also profited from the numerous promotions 

surrounding the centenary of its first-ever perfumery 

on Hamburg’s Neuer Wall in 1910 (see also pages 

82 and 83). The standout among the seven new venues 

was the redesigned Douglas perfumery on Tauentzienstrasse 

in the German capital: Berlin’s new beauty hot- 

Futuristic and colorful: the cosmetics section at Douglas in Berlin. 

spot opened its doors in September 2010. Its customers 

will experience a flagship store worthy of any worldclass 

city, with almost 10,000 square feet of sales area 

spanning two floors and sporting a dramatically new 

shop design. The ground level’s “World of Color” hosts 

brands like “MAC,” “O.P.I.” and “Benefit” and the American 

label “Kiehl’s since 1851” – which boasts a large 

counter for the first time ever in a Douglas perfumery. 

Care and fragrance products predominate upstairs, 

where customers will also find Germany’s first and only 

“Clinique Treatment Center,” a space that exists in this 

form to date only in New York and Copenhagen. Interactive 

services such as touchscreen terminals for skin analyses 

and styling tips round out the high-appeal offerings 

of Berlin’s new “beauty.” 

Events outside Germany varied considerably from 

region to region. Douglas was confronted by daunting 

challenges resulting from the global economic downturn 

and – at the very start of the crisis in 2008 – initiated a 

consolidation program focusing on countries where it is 

already the market leader or can secure this status within 

the foreseeable future. As a consequence, Douglas 

discontinued operations in Denmark and the United 

States during 2010, and also closed a number of unprofitable 

locations, particularly in Spain and the Baltic 

States.

Nowy Sa˛ cz, Poland, October 2009 

Hamm, Allee-Center, April 2010 

Divisions 


OVER 40 

GRAND OPENINGS 

Leverkusen, Rathaus-Galerie, February 2010 

Hilden, Mittelstrasse, July 2010 

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76 Divisions 



that Douglas sold over 14 million 

fragrance products in 2010? That’s 

equivalent to some 4,000 full bathtubs! 

However, the period also saw 41 

new perfumeries opening their doors, the 

majority of them in Poland (17), Bulgaria (5) and Italy 

(4). All in all, sales at the 760 Douglas perfumeries outside 

Germany exceeded EUR 930 million, almost matching 

the previous year’s figure. Italy, Poland and Turkey 

in particular posted strong gains. They were ably supported 

by the perfumeries in the Netherlands and Austria, 

where Douglas – despite facing strong competition 

– has led the market for years. 

At home and abroad, Douglas is still placing its faith 

in an unwavering customer orientation, excellent product 

ranges and above all dedicated and professional 

personnel who offer first-class service and outstanding 

shopping experiences every single day. The customers 

have honored this commitment with high sales – and 

by voting Douglas “Retailer of the Year” for the second 

time running in 2010: Douglas came in first in the “Perfumery” 

category of a major survey conducted by the 

independent “Q&A Research & Consultancy” institute in 

conjunction with the German Retail Federation and the 

“Handelsblatt” newspaper. An accolade of this stature 

both represents praise and recognition for Douglas and 

its employees and provides an incentive to remain “Germany’s 

best perfumery” in the eyes of its customers. 

In merchandising, Douglas continued to expand the 

share of own and exclusive brands in Germany and beyond. 

Numerous trend brands such as the cult fragrances 

from “Ed Hardy,” “True Religion” and “Dsquared2” 

are available exclusively from Douglas in many European 

countries, as are nail varnish by Essie and natural cosmetics 

from Mádara. The partnership with the jewelry 

designer Thomas Sabo is also auguring well: his debut 

fragrance “Charm Rose” numbered among the most 

successful launches of 2010. An unusual partnership between 

Douglas and Tommy Hilfiger has also proved a 

great success. Douglas employees from across Germany 

helped to design the new Hilfiger fragrance – including 

the packaging and marketing. The result was a true 

The Douglas beauty professionals do everything to make their customers feel good; shown here, Wolfgang Zühlke from Hilden.

Natalia Wörner and Michael Michalsky 

Minh-Khai Phan-Thi and Friederike Kempter 

Parties, perfumes and personalities 

Divisions 


BERLIN’S MOST BEAUTIFUL 

NEW STORE 

In party mood: the great team 

from the Tauentzienstrasse store. 

Gesine Cukrowski 

Empowered women at Douglas: Bettina Plasa, 

Iris Zeidler and Martina Thoms 

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78 Divisions 


Melanie Sidiras 

Store Manager, Zeil Frankfurt 

Sabine Wittenbecher 

Regional Manager, 

Douglas North 

“I’ve never regretted a 

single day during more 

than 30 years at Douglas. 

For me, nothing beats 

working in a team for 

joint success.” 

Marion Schreiber 

Regional Manager, 

Douglas North-West 

“I’m always impressed 

to find everyone so 

generous and friendly 

in a company the size 

of Douglas!” 

Fabian Siek 

Store Manager, Hamburg, 

Mönckebergstrasse 

“It’s great that Douglas 

has stuck by its principles 

even in difficult times, 

and shared its trust and 

confidence with all of 

its employees.” 

Hanna Arntzen 

Regional management assistant, 

Douglas North-West 

“Our decentralized 

organization allows me 

to configure shops for local 

customers’ needs. That’s 

why no two perfumeries 

ever look alike!”

showpiece: “Hilfiger Woman” – available only at Douglas 

– instantly captured customers’ hearts and senses. 

In addition to expanding its exclusive and own 

brands, Douglas remains a first-class showcase for all the 

premium global brands from the bodycare, fragrance, 

cosmetics, boutiques and accessories segments. The 

organic cosmetics concept “Naturally Beautifully” has 

also been well received, with Douglas cosmeticians offering 

certified natural, organic and botanical cosmetics 

and expert advice in selected stores. Other features 

such as the “Douglas Hairdesign” salons, beauty cubicles 

and nail spas add the finishing touches to the perfumeries’ 

services. 

The “virtual perfumery” at www.douglas.de continued 

to prosper during the 2009/10 financial year. With a 

million registered customers and sales up by a good 30 

percent to EUR over 50 million, the online shop is now 

the biggest Douglas “branch” – and easily Germany’s 

largest online vendor of beauty products. This success 

has been powered by comprehensive ranges, an exceptionally 

user-friendly portal, and a fast and dependable 

delivery service, with added extras like competitions, 

newsletters and online TV adding the spice. As part of 

the international rollout, France, Poland and Switzerland 

followed the Netherlands and Austria by opening online 

shops during the 2009/10 financial year. 

The Douglas Card was a key factor in the marketing 

mix, as it has been for the past 15 years. With 2.4 million 

Cards issued in Germany alone and some eight million 

abroad, over 10 million customers now enjoy the benefits 

of this “ticket to the world of beauty.” And as the progressive 

rise in Card sales demonstrates, this payment facility 

is still very popular among customers. 

In logistics, the optimization of processes produced 

significant cuts in transport costs and new environmental 

benefits: an excellent example of synchronizing economic 

and ecological goals. The construction of the new 

central warehouse in Zossen outside Berlin reflects the 

strong growth of the exclusive and own brands Douglas 

carries. 

Among its charitable activities, Douglas has now 

been the lead sponsor of DKMS LIFE for several years; 

the organization provides support to women undergoing 

treatment for cancer. During 2010 alone, specially 

trained Douglas employees ran upwards of 200 

cosmetics seminars free of charge in clinics and therapy 


that the Douglas Cards issued 

to date would extend more than 

400 miles if laid out end to end? 

Divisions 


centers. In these seminars, 

the patients learn 

how to retain an attractive 

appearance despite their illness, 

hopefully boosting their confidence 

and helping them to enjoy life more. During 

2010 the Douglas teams also collected over EUR 160,000 

in stores to finance the valuable work performed by 

DKMS LIFE. 

Douglas will be focusing on two strategic challenges 

during the 2010/11 financial year: generating valueoriented 

growth in the fixed-location network on the 

one hand and expanding its online services on the other. 

“Multi-channel retailing” is the name of the game: by 

forging a professional and intelligent interface between 

the twin sales channels – fixed-location perfumeries and 

the online shop – Douglas can secure the loyalty of customers 

in every age and target group. One example: if a 

product is out of stock at a perfumery, the customer can 

order it from the online shop at a terminal – and have it 

conveniently delivered to his or her home. 

The first Douglas multi-channel perfumery, opened 

in Mainz during October 2010, demonstrates how this 

integration process works. This store with its futuristic 

design features state-of-the-art information and communication 

technology in addition to the traditionally comprehensive 

range of products. Using the store’s numerous 

computer terminals and touchscreens, customers 

can perform skin analyses, have their make-up designed 

by a “virtual visagiste,” post photos on Facebook after 

a make-up session, or choose a perfume that enhances 

their natural aura. Touchscreens in the window displays 

update passersby on the most popular fragrances. The 

mix of modern store design, youthful brands and varied 

promotions make this “beauty terminal” especially appealing 

to young customers. 

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80 Divisions 


Douglas in Figures 

Net sales in EUR m Stores Employees 

2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 

Germany 946.7 920.0 445 452 6,725 6,541 

Southern and Western Europe 607.0 613.9 427 440 4,492 4,551 

Central and Eastern Europe 315.8 307.1 328 317 3,575 3,436 

Total 1,869.5 1,841.0 1,200 1,209 14,792 14,528 

Sales adjusted by EUR 9.2 m (previous year: EUR 12.5 m) from the U.S. company sold in the interim. 

Southern and Western Europe: Denmark, France, Italy, Monaco, the Netherlands, Portugal, Spain, Switzerland 

Central and Eastern Europe: Austria, Bulgaria, Croatia, Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Slovenia, Turkey 


that the combined sales areas of all the Douglas 

perfumeries would cover almost 

three million square feet or 39 soccer fields? 

Since the fall of 2010 

Douglas has even boasted 

its own Smartphone 

app. It will direct shoppers 

to the nearest perfumery, 

display information on store 

events, ascertain what skin type they have, and download 

product recommendations and the latest special offers. 

An array of features on platforms such as Facebook 

and Youtube also intensify the interaction with younger 

customers who value Douglas as a beauty trendsetter. 

But despite the growing influence of the Internet, the 

fixed-location segment will remain the Douglas mainstay. 

Following a consolidation phase in 2009, Douglas is 

now looking ahead to renewed growth. It will be focusing 

on those countries where Douglas is already the market 

leader, or can aspire to be within the foreseeable future. 

Across Europe some 50 to 60 new perfumeries are 

due to open their doors, with numerous existing locations 

being updated to reflect their specific locations or 

target groups. Several new flagship stores are scheduled 

in major German cities such as Munich and Stuttgart. Farther 

afield, new stores are planned for top locations like 

Paris and Warsaw, where – with some 11,000 square feet 

of sales space – one of the largest perfumeries in eastern 

Europe will be welcoming its first customers. 

The Group’s exclusive and own brands are being 

regularly augmented with additional top-quality lines. 

In 2011 the innovative haircare and styling line “HerCut” 

will be among the new launches, while the latest scent 

from the luxury shoe brand “Jimmy Choo” and the association 

with Michael Förster and Walter Johnsen will 

add new highlights to the fragrance segment. These two 

passionate perfumers have already achieved international 

renown with numerous legendary scents. Now, under 

the label “Förster & Johnsen,” they have created “emotion 

fragrances” exclusively for Douglas: scents that capture 

feelings such as happiness, confidence, composure, 

courage, love and energy. The premium care cosmetics 

from the Swiss brand “Artemis” will also be bolstering 

Douglas care competence. These products will be sold 

exclusively at Douglas starting January 2011. 

Douglas is well equipped for the future – thanks to 

its focus on customer orientation, new and outstanding 

product ranges, state-of-the-art store designs, innovative 

technologies and first-class services. Thanks to attractive 

perfumeries that offer the perfect products for 

every target group, wherever the location. Thanks to 

professional visual merchandising that ensures marketing 

strategies are tailored to individual stores’ requirements. 

And above all thanks to the passion for creating 

unique shopping experiences that infuses its almost 

15,000 capable and dedicated employees. Day after day, 

at each store, in every country. This should ensure that 

Douglas can continue to extend its already healthy position 

in the European market on a sustained basis.

Stress-free shopping: Douglas – here in 

Apeldoorn, Holland – combines an upbeat, 

feel-good ambiance with attractive lines. 

Divisions 


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82 Divisions 


THE DOUGLAS PERFUMERIES TURN 100 

On May 20, 2010, Parfümerie Douglas celebrated its centenary 

at the famous Landing Stages in Hamburg. It was at 

this very location, back in the nineteenth century, that the 

history of today’s Douglas perfumeries began. It was here in 

Hamburg that John Sharp Douglas, an immigrant from Scotland, 

established his soap factory in 1821, revolutionizing the 

market with creations like coconut oil & soda soap! It was 

also here that the sisters Maria and Anna Carstens opened 

Reiner Unkel, Director of 

Perfumeries at DOUGLAS HOLDING 

(left) and Jochen Halfmann (General 

Manager, Douglas Germany) transported 

their guests back in time to 

the era of John Sharp Douglas. 

the first perfumery to bear the name Douglas in 1910. Prior 

to this they had signed a contract with the soap company 

“J. S. Douglas Söhne” which allowed them to name their 

shop – located on the city’s Neuer Wall street – “Parfümerie 

Douglas.” Five more perfumeries were subsequently added 

before all six were acquired by today’s company DOUGLAS 

HOLDING in 1969. The rest is history – and a success story of 

rare proportions ... 

1910 


1920 

2000 

1930 

1990 

1940 

1950 

1960 

1970 

1980 

The internationally acclaimed window dresser 

Douglas Little created a unique window display. 

It narrated the story of the soap and perfume factory 

“J. S. Douglas Söhne” and the opening of 

the first Douglas perfumery – providing lavish 

spectacles at both the Douglas flagship store on 

Hamburg’s Mönckebergstrasse and the oldest 

Douglas perfumery at the corner of Neuer Wall 

and Jungfernstieg.

Established the first-ever 

Douglas perfumery: the 

sisters Maria (left) and 

Anna Carstens. 

1930 

DOUGLAS HOLDING acquired the six Douglas 

perfumeries in Hamburg and simultaneously 

opened the first of its own. Customers 

thronged to all of the stores, as seen here 

at the new location in Braunschweig. 

1969 

In the 1930s Parfümerie 

Douglas – seen here: the 

venue at Neuer Wall – became 

one of the first to sell selective 

cosmetics. Carrying brands 

such as Elizabeth Arden and 

Elise Bock, it led its segment 

in Germany. 


Today Douglas has become synonymous with beauty and 

rewarding shopping experiences in Germany and 20 other 

countries across Europe. The spacious and contemporary 

perfumeries – shown here, the Tauentzienstrasse store 

in Berlin – attract customers who want to browse and shop 

in the best traditions of the Carstens sisters. 


1945 

Back for the jubilee: the fabled 

coconut oil soap – the product that 

made John Sharp Douglas famous. 

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Douglas scented soap from 

its “Delila Rose” line (1915). 

83 

As early as 1919, the area 

bounded by Jungfernstieg 

and Neuer Wall ranked 

among Hamburg’s most 

exclusive shopping districts, 

making it an ideal location 

for the first Douglas perfumery. 

On December 3, 1945, the Parfümerie 

Neuer Wall reopened its doors in 

Hamburg after the war. The customers 

could purchase cream and soap here – 

and take it home in their own containers.

84 Divisions 

Thalia · Books

Austria’s first multi-channel bookstore: Thalia at the “Varena” shopping center in Vöcklabruck. 

BOOKS, MEDIA AND MORE 

The shadow of digitalization is looming large over 

the bookselling industry, prompting major changes in 

purchasing behavior. While sales at traditional booksellers 

are stagnating in many places, online bookstores are 

enjoying a boom. The Thalia Group has responded by 

systematically developing its multi-channel strategy – 

with the highlight to date being the launch of its own 

eReader “OYO” in October 2010. However, the Group’s 

key success factor remains the exceptionally helpful 

5,000+ Thalia personnel who – by providing professional 

advice on literature and communicating the exciting 

potential of multi-channel bookselling – have successfully 

infected customers with their enthusiasm. 

Divisions 

Thalia · Books 

As a result, the Thalia Group once again defended 

its leading position in the book retailing markets in German-speaking 

Europe during the 2009/10 financial year: 

sales were up by 10.5 percent to approximately EUR 906 

million. Fully consolidated since December 2009, the online 

bookseller buch.de internetstores AG contributed 

an outstanding EUR 88 million to this figure. Turnover at 

the 289 Thalia bookstores in Germany, Austria and Switzerland 

remained steady at EUR 818 million. 

Total sales in Germany increased by 9.7 percent to 

almost EUR 690 million. Here too turnover of some EUR 

70 million from the online store buch.de proved a key 

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86 Divisions 


driver. By contrast, the 232 fixed-location bookstores in 

Germany saw sales decline by 1.4 percent to about EUR 

619 million, although they extended their position overall 

in a generally lackluster market environment. Thanks 

particularly to the additional revenues from buch.ch, 

turnover outside Germany was up by 13.1 percent to 

over EUR 216 million. But the fixed-location bookstores 

in Austria (33) and Switzerland (24) also posted a 3.8 

percent sales gain for a total topping EUR 198 million. 

In Austria Thalia clearly outperformed the market once 

again, cementing its status as the country’s most popular 

retail brand. In Switzerland Thalia successfully secured 

its leading position in a market where prices are 

not regulated. 

In Germany Thalia opened five new bookstores in 

the 2009/10 financial year; eleven unprofitable locations 

were closed. In October 2009 Thalia had launched a new 

era in shop design by opening its first multi-channel 

bookstore in the “Loop5” shopping mall in Weiterstadt. 

The venues which opened during 2010 – at Leverkusen’s 

“Rathaus-Galerie” (February), in the university town of 

Goettingen (March) and on Westenhellweg in Dortmund 

(May) – already represent the second generation 

of multi-channel bookstores. With every new location 

that it opens, Thalia is gathering useful experience on 

what customers like most – insights that are systematically 

incorporated into plans for the next new venue. 

Thalia also set new benchmarks in the fields of sales 

training, product displays, and merchandise configuration 

and management. In the area of shop design, emphasis 

was placed on investing venues with a local flavor. 

In Goettingen, for example, pillars recalling birch 

Colorful reading for budding bookworms – as here in Dortmund. 

Olaf Schwenk 

Head of Children’s Books, 

Augsburg 

The Books of Umber. 

Happenstance Found. 

(P. W. Catanese) 

“This marks the birth of an 

exciting new cult trilogy! 

Catanese’s great mixture: Hap, 

the boy without a past but with 

surprising gifts, his mysterious 

mentor Lord Umber, whales that 

piggy-back submarines, and a 

sinister character in pursuit. 

A magical world that is fatefully 

linked to the end of technological 

civilization.” 

trees allude to the city university’s science faculties. The 

Dortmund bookstore not only echoes the unique character 

of Germany’s traditional industrial hub but also features 

numerous regional works from the areas of literature, 

history and the arts. For Thalia Austria, the August 

2010 opening of its first multi-channel bookstore at the 

“Varena” shopping center in Vöcklabruck proved a major 

highlight. Thalia also launched Austria’s very first interactive 

theme world – covering some 6,500 square 

feet and dedicated exclusively to the delights of reading. 

In the area of marketing, the Group’s advertising during 

2010 produced a significant leap in brand awareness 

– as affirmed by the “2010 Brand and Advertising 

Tracking” study. It found that the Thalia brand’s aided 

recall score is 73 percent, while some 80 percent of customers 

are satisfied with their local Thalia bookstore. 

Other representative surveys among book buyers also 

showed that awareness of both the fixed-location stores 

and online shops is rising quickly. The sharp increase 

in awareness of the online shops was especially noteworthy. 

Over 50 percent of respondents who knew the 

Thalia brand are also familiar with thalia.de and thalia.at 

– a year ago the figure was appreciably lower. This surge 

was powered above all by the extreme dedication of the

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87 

Tradition meets innovation in an 

historical setting: Thalia at the former 

“Metropol” movie theater in Bonn.

88 Divisions 


Dr. Tobias Quast 

Store Manager, Bonn “Metropol” 

Michelle Möhle 

Store Manager, 

Göttingen 

“I really like the fact that 

we’re so innovative and 

respond so quickly to 

trends at Thalia – as we 

did with our OYO.” 

Sandra Kipper 

Bookseller, 

Saarbrücken 

“What I do is appreciated 

here. I’m given challenges 

and am encouraged to 

master them, and feel 

very happy in our team.” 

Thomas Horvath 

Store Manager, 

Vöcklabruck 

“Thanks to its interactive 

design, our new multichannel 

bookstore adds a 

brand new dimension to 

the reading experience.”

Thalia in Figures 

employees, who successfully instilled their passion for 

Thalia’s virtual world in their customers. Over and beyond 

this, the Thalia teams please customers with personal 

– and always up-to-date – book reviews in the online 

shop, as they do recounting their experiences at 

the “lit.COLOGNE,” Europe’s largest literature festival 

for which Thalia is the lead sponsor. 

In stores and online alike, customers and their wishes 

always come first at Thalia. The “2010 Retailer of the Year 

Award” supplies eloquent testimony to this absolute customer 

orientation, with Thalia topping its “Books and 

Magazines” category for the third year in succession. 

The jury particularly commended the attractive range 

of merchandise, the professional and friendly personnel, 

the service, and the inviting store ambiance. 

In the traditional bookselling segment, works such as 

“The Lost Symbol” by Dan Brown and “Limit” by Frank 

Schätzing ranked among 2010’s best-sellers. “Millennium 

Trilogy” by the Swedish author Stieg Larsson was 

the top-selling eBook. In the non-books segment, gifts 

– seasonal and otherwise – proved increasingly popular, 

as did reading accessories and trend items. With 

its rollout of “Thawis” during 2009/10, Thalia also laid 

the foundations for a standardized merchandise management 

system. “Thawis” is scheduled to replace the 

various existing systems with a single, highly efficient 

platform. 

Thalia rang in the 2010/11 financial year with a true 

showstopper. At the end of October 2010 the Group 

launched its own eReader “OYO.” The “OYO” – so to 

speak “Thalia for your pocket” – allows users to access 

books at all times, wherever they may be. It has capacity 

for some 1,000 eBooks – and purchasing them could 

scarcely be easier. The digital works are downloaded 

using the integrated WLAN function, with the device’s 

menu guiding customers directly to the Thalia eBookshop 

where they can buy, download and read digital 


Divisions 



Germany 689.7 628.7 232 238 3,890 3,886 

Austria 118.7 112.9 33 32 756 710 

Switzerland 97.4 78.1 24 24 540 555 

Total 905.8 819.7 289 294 5,186 5,151 

books. Thalia also initiated a unique partnership in Europe 

during the year: the “OYO Alliance,” a joint venture 

between four of the continent’s leading multi-channel 

booksellers. In addition to Thalia, “Chapitre.com” from 

France, “Selexyz” of the Netherlands and “Empik” from 

Poland will be selling the “OYO” in their domestic markets. 

With these initiatives Thalia is once again demonstrating 

its status as one of the industry’s innovation 

leaders and bolstering its market position as a multichannel 

vendor in the German-speaking countries. 

Simone Hehl 

Bookseller, Hürth 

The Hypnotist 

(Lars Kepler) 

“Would you allow someone to 

hypnotize you? A family is brutally 

murdered in a Stockholm 

suburb. The sole survivor, the 

15-year-old son, is seriously 

wounded and suffering from 

amnesia. For Detective Joona 

Linna, there is only one way to 

get a statement and save the 

boy’s sister who lives far away: 

the former hypnotist Erik Bark.” 

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90 Divisions 


Thalia demonstrates its local links with custom store designs, seen here in Goettingen. 

While digitalization is bound to continue, the bookstores 

remain the central pillar of the Thalia concept. All 

in all, Thalia is planning to add more than 10 retail stores 

to its network during the 2010/11 financial year. One impressive 

curtain-raiser was the November 2010 opening 

of the new multi-channel bookstore in the former 

“Metropol” movie theater in Bonn. The standout architectural 

features of this historical cinema were preserved 

during the construction work, investing this Thalia bookstore 

with a truly unique flair. 

All in all, the Thalia Group is well positioned to master 

the major challenges awaiting the book retailing industry. 

The “OYO” eReader has created a promising bridge 

between traditional and online bookselling. However, 

whether they are working in fixed-location stores, online 

sales or the Group’s Service Division, Thalia’s employees 

are its guarantors of success. Every single day, 

their knowledge and helpfulness enthuse our customers 

for the comprehensive and contemporary Thalia ranges. 

To maintain this momentum, Thalia attaches great importance 

to training – with the main focuses on “Active 

and Emotional Selling” and the various courses at the 

“Thalia Academy,” which was launched in 2008. These 

will enable Thalia to further extend its leading market 

position as a multi-channel bookseller in German-speaking 

Europe. 

Inga Pokora 

Deputy Store Manager, 

Frankfurt 

The Visual Miscellaneum 

(David McCandless) 

“David McCandless has a 

wonderful job: as an information 

designer. He illustrates 

exactly what this entails in his 

pictorial guide. So if you’re 

looking for an entity relationship 

diagram of the Middle 

East, an atlas of the www or 

a matrix of morality, this is 

where you’ll find it!”

Capturing the imaginations of Dortmund’s bibliophiles: 

the Thalia team at the opening of their store on 

Dortmund’s Westenhellweg in May 2010. 

Multi-channel: traditional and virtual bookselling 

form the twin prongs of Thalia’s strategy. 

Fun and excitement are guaranteed 

in the Thalia games shop. 

The best of many worlds – united 

in the 289 Thalia bookstores. 

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91

92 Divisions 

Christ · Jewelry

Pear shape 

Round brilliant shape 

Princess shape 

ENJOYING MOMENTS 

OF HAPPINESS 

Christ can look back on one of the most successful 

years in its history. The 204 jewelry stores generated 

turnover of EUR 310 million during the 2009/10 financial 

year. This represents an increase of 6.1 percent compared 

to the previous year. As a result Christ was able to 

further extend its good position on the German market. 

The more than 2,000 friendly and dedicated employees 

played a key role in this achievement. 

Ongoing improvements to the product ranges, store 

designs, service and marketing added further accents to 

the success. Christ opened nine new stores during the 

2009/10 financial year at a total investment of over EUR 

14 million. Moreover a further 18 venues were updated 

Divisions 

Christ · Jewelry 

and outfitted with a new, contemporary look. Sales areas 

were expanded at those locations where it was viable 

and appropriate. New features were also introduced, ensuring 

that the latest collections can be showcased to 

perfection. The additions also included shop-in-shops 

and atmospheric wedding ring lounges where couples 

can make their dream of a uniquely personal wedding 

ring come true. By using the Wedding Ring Configurator 

– now a fixture of every Christ store – customers can 

enter their individual wishes and preferences directly at 

a terminal. 

Within the stores, the various merchandise segments 

have their own dedicated sales areas. For example, com- 

Christ epitomizes modern design, appealing window displays and fashionable product ranges – as here on Frankfurt‘s Zeil boulevard. 

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94 Divisions 


Christ in Figures 

fortable seating arrangements now encourage customers 

to linger in the diamonds section, creating an environment 

of relaxed exclusivity where they can select from an 

exquisite range. The mood contrasts powerfully with the 

highly frequented section featuring fashion jewelry and 

the latest watch trends. Key-brand shop-in-shops dominate 

here and offer ample space for spotlighting brand 

philosophies. Within this setting, watch brands such as 

Armani and Fossil can be presented just as impactfully as 

the exclusive Jette Joop collections and popular fashion 

jewelry labels like Pandora, Thomas Sabo and Giorgio 

Martello with their rich array of chic charms. On the other 

hand, a tasteful ambiance with warm colors has been 

created for classic watches, and enhanced by selected 

shop-in-shop concepts offering brands such as Longines, 

Tag Heuer and Breitling. 

The marketing featuring the slogan “Moments of 

Happiness” forms the cornerstone of the entire Christ 

Marquise shape 

Emerald shape 



310.2 292.4 204 203 2,173 2,025 

presentation – and as such is the foundation for its progressive 

and successful emotionalization. The goals are 

to communicate how enjoyable and rewarding purchasing 

jewelry and watches can be, and to spark desires for 

and memories of unforgettable once-in-a-lifetime moments. 

Over 6,000 city light posters across Germany created 

a high profile for the new Christ “feel” during the 

past holiday season. 

The ongoing emotionalization of Christ will remain a 

focus of 2010/11 with the goal of further improving customer 

orientation. In this context the women and men 

working at Christ will play a crucial part. Ultimately their 

enthusiasm and expertise are what make shopping at 

Christ a truly unique moment of happiness for their clientele 

– day after day after day. It is partly for this reason 

that Christ devotes so much time and money to training 

its personnel. In August and September 2010 alone, 

119 young women and men began apprenticeships at 

Pleasant people: the Christ trio of Hakan Akyüz (deputy manager), Claudia Klee (store manager) and Leona Metschke in Frankfurt.

Nadia Iram 

Christ, Frankfurt (Zeil) 

Silvia Röth 

Regional Manager, Hessen 

“Meeting challenges as a 

team and making a real 

difference – that’s what 

motivates me every day.” 

Divisions 


Raimonda Rasimaite 

Christ, Frankfurt (Zeil) 

“It is always a fantastic 

feeling when that 

gleam comes into my 

customers’ eyes.” 

95

96 Divisions 


The sophisticated yet 

futuristic Christ store in the 

heart of Frankfurt.

Christ: more than ever before. Employees can also extend 

their skills at a special seminar tailored to the world 

of Christ. Purchasing operations at the Service headquarters 

in Hagen have been reorganized and all of the processes 

optimized. 

The same also applies to the repair services offered 

by the jewelry stores. Thanks to an IT-based tracking system, 

employees and customers alike now know the exact 

status of repairs at any time. A test with a workshop 

was well received by customers; thus the repair service 

is now due to be expanded beyond the 30 stores already 

participating. 

Between five and 10 new venues will be opening 

during the 2010/11 financial year, with another 25 existing 

locations being modernized and – where appropriate 

– enlarged. Simultaneously Christ will be testing 

additional sales concepts in both the mono- and multilabel 

segments. 

Heart shape 

Oval shape 

Divisions 


Christ is also responding to the increasing digitalization 

of society and the consequent growth of Internet 

shopping. At its online shop www.christ.de – which 

was completely revamped in the fall of 2010 – the Christ 

brand with its diverse range of jewelry and watches is 

now being presented to perfection on the Web as well. 

In the next phase, the strengths of the fixed-location 

stores are due to be linked to those of the online business. 

Wherever customers may wish to shop – on the 

Internet or at a Christ jewelry venue – they can always 

expect to experience the very same Christ philosophy: 

“Moments of Happiness.” 

Christ’s 2,100+ employees create moments of happiness for their customers – seen here, Serpil Celik from the Frankfurt (Zeil) store. 

97

98 Divisions 

AppelrathCüpper · Fashion

FASHIONS, 

TOP BRANDS, 

MULTI-CHANNEL Pants by 

Maison Scotch 

AppelrathCüpper performed well during the 

2009/10 financial year. While sales at the company’s 

14 womenswear stores declined by 5.3 percent to EUR 

124 million, turnover was down by just 1.2 percent 

(excluding the Berlin store, which was closed in January 

2009). Customers have been increasingly receptive 

AppelrathCüpper invites customers to shop the latest looks in style; seen here in Münster. 

Divisions 

AppelrathCüpper · Fashion 

Cardigan by 

Maison Scotch 

Bag by Liebeskind 

Shirt by Maison Scotch 

99

100 Divisions 


AppelrathCüpper in Figures 



124.1 131.0 14 14 751 757 

Helpful advice – Johanna Faust from AC Aachen. 

Blazer by Marc O’Polo 

Shirt by Marc O’Polo 

Jacket by Gaastra 

Skirt by LTB Jeans 

to the fashion company’s new identity: the private label 

“AC” offering a comprehensive selection of attractive, 

strong brands within a modern shop design. The realignment 

program has been implemented consistently 

ever since its initiation in 2008. 

The highlights of the year included the reopenings 

of the remodeled stores in Bonn and Münster during 

September 2010. Following comprehensive updating, 

these have now been synchronized with the new AC 

shop concept. It revolves around merchandise presentation 

featuring an array of “mix & match” sales areas 

which spotlight the individual brands while offering customers 

ample freedom to assemble their own outfits. 

AC is synonymous with top brand and fashion competence. 

The “Exquisit” segment – now enhanced by 

successful labels like Armani, Burberry, Boss and Marc 

Cain – is a case in point. Of the trend-oriented fashions, 

Marc O’Polo, Maison Scotch, Arqueonautas 

and Desigual all proved top sellers. At the same time, 

sophisticated premium labels such as Brax, Gerry 

Weber and Basler are also being developed. AC’s own 

brands such as Rena Marx form a further mainstay 

in the range, and their share of total merchandise is 

growing steadily. With its new accessories concept, which 

incorporates contemporary names such as Liebeskind 

and Chi Chi Fan, AppelrathCüpper has established an 

up-to-date image in this segment. 

In the area of marketing, AppelrathCüpper focuses 

on seasonal campaign concepts such as “Russian 

Romance” for the Fall/Winter 2010/11 collection and 

“Endless Summer” for Spring/Summer 2011. These 

themes thread through the entire marketing mix, appearing 

as supplements in daily newspapers, online advertising 

and multi-page spreads in national fashion magazines 

such as “Cosmopolitan,” “InStyle,” “Vogue” and “Joy.” 

The campaign visuals also feature in window displays 

and store decorations through the company’s visual

Whether her style is casual 

or classic chic – AC has a 

fashion fit for every woman. 

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101



Anita Stumpf 

AC Dortmund 

Elisabeth Balzereit 

Departmental Manager, 

AC Münster 

“We prefer working as 

a team – and achieving 

our goals by a joint 

effort.” 

Sadina Grgic 

Trainee, 

AC Münster 

“I love helping customers 

and working at a store 

that puts such a premium 

on service!”

merchandising program, enabling AppelrathCüpper 

to forge an impactful and clear-cut public profile. Following 

successful campaigns with models like Toni Garrn 

and Katrin Thormann, the French supermodel Constance 

Jablonski will be the face of AppelrathCüpper in 2011. 

The reliably good advice and excellent service people 

have come to expect from the helpful and capable AC 

employees is highly appreciated by customers, not least 

because honesty and professionalism are so important 

in the fashion world. With carefully tailored courses, a 

seminar for budding managers and an apprenticeship 

program that accepted a total of 38 new recruits in 

August and September 2010, AppelrathCüpper is laying 

the foundations for continued quality of advice and 

service. 

During the 2010/11 financial year, AppelrathCüpper 

will continue to hone its new brand image. Following 

the closure of the Solingen venue in January 2011, its 

network now comprises 13 stores. All of the other locations 

are being successively strengthened with the aim 

of establishing them among the leading stores at their 

respective locations. To this end, the medium- to upperlevel 

merchandise is being strategically modernized, 

augmented by innovative brand-names and collections, 

and supplemented by attractively priced lines. The key 

challenge here lies in retaining the loyalty of long-standing 

customers while turning the newly acquired youthful 

target groups into devoted AC “regulars.” 

With the online shop – launched at the redesigned 

website www.appelrath.com in September 2010 – the 

company is affirming the twin pillars of its multi-channel 

strategy: fixed-location and e-commerce sales. Customers 

are now able to order individual items or complete 

outfits online from any of the advertising campaigns, 

catalogs and promotions – allowing them to enjoy hallmark 

AppelrathCüpper service from the comfort of their 

own homes. The website also provides comprehensive 

information on the brands and services available from 

AC; trend-tracking customers can subscribe to a newsletter 

and keep on top of the latest looks. Thanks to the 

dynamic expansion of its online sales, AppelrathCüpper 

is in pole position to benefit from a revival in the fashion 

segment – and to regain its former dynamism. 

Divisions 


Friendly service is the AppelrathCüpper trademark – seen here 

Karina Wacker, Münster. 

Belt by Napapijri 

Chinos by 

Marc O’Polo 

Shirt 

by Donnell 



Hussel · Confectionery

During the 2009/10 financial year Hussel maintained 

a firm focus on investing in quality and innovation when 

it came to shop design, merchandising and service. 

Although the number of stores declined from 274 to 261, 

the company posted sales of just under EUR 100 million in 

Germany and Austria, all but matching the previous year’s 

figure. 

In Germany Hussel opened nine new confectioneries 

and updated a further 16 in line with its customers’ latest 

wishes. During the same period 22 venues were closed as 

ONLY THE FINEST 

Divisions 

Hussel · Confectionery 

part of the network optimization program, some of them 

due to expiring leases. While sales in Germany fell by a 

marginal 1.3 percent to EUR 95 million, Hussel maintained 

its leadership of the pure confectionery segment, partly 

because industry sales declined across the board due to 

weather conditions. In Austria turnover at the 14 (previous 

year: 16) confectionery shops was EUR 4.5 million, down 

7 percent on the year. 

The highlights of the 2009/10 financial year included 

the Hussel website relaunch and a new confectionery cum 




“Chocolate Bar” in Aschaffenburg. Dubbed the “Confectionery 

of the Future,” the pilot venue opened at the 

town’s “City Galerie” shopping center in June 2010, premiering 

a brand new look and novel product range. The 

store design includes a modern lounge area, surfaces in 

a velvety chocolate-colored finish, and suspended display 

tables. The merchandise extends to themed collections 

such as “Bestsellers,” “Tradition,” and “Chocolate Art” – 

along with the innovative line “Save the World” introducing 

sustainably cultivated and manufactured products. The 

first Hussel “Chocolate Bar” serving chocolate and coffee 

specialties numbers among the other store standouts. 

Hussel is also whetting customers’ appetites with a 

fresh logo in a fitting color: chocolate brown. The logo 

not only features in all of the newly opened and modernized 

confectionery shops. It also graces the new Internet 

presence at www.hussel.de: an eye-catching site with instant 

appeal and a logical, user-friendly structure. The “My 

Chocolate” concept represents another absolute premiere. 

Created exclusively for the Hussel online shop, this app allows 

customers to create their own chocolate – to match 

their own personal tastes. Needless to say, the online store 

also offers cherished Hussel classics such as truffles, cookies 

and marzipan, while dependable, professional delivery 

rounds out the store’s service package. 

Hussel will be rolling out this fresh, new and younger 

look at its remaining locations during the current 

2010/11 fiscal year. The promising shop concept piloted in 

The Hussel confectionery stores tempt passersby with tasty treats – as here in Aschaffenburg‘s “City Galerie.”

Impeccably showcased products: 

the new Hussel theme worlds, for 

example “Fruity & more.” 

Divisions 





Simone Schmalz 

Deputy Store Manager, 

Berlin-Köpenick 

“I really enjoy working 

in a team in which mutual 

support and ambition 

play such a big part.” 

Alessandro Delle-Grottaglie 

Hussel, 

Aschaffenburg 

“The great career 

prospects are what 

attracted me to Hussel.” 

Stefanie Wörder 

Store Manager, Remscheid

Hussel in Figures 

Aschaffenburg is also due to be tested at other venues. 

It is hoped that “Hussel refreshed” also appeals to a younger, 

“sweet-toothed” target group. Hussel is gearing up for 

the future with a policy of “attracting the young and keeping 

the regulars.” In the area of merchandising, the number 

of different articles will again be significantly reduced. 

At the same time, new brands will be added with the 

goal of establishing Hussel as a purveyor of exclusive confectionery. 

In just one example, Hussel will be extending 

its selection of sustainable, resource-saving products – in 

its “Organic Confectionery” line. 


Sparking new trends in shop design and product presentation: Hussel in the Bavarian city of Aschaffenburg. 

Divisions 



Germany 94.9 96.2 247 258 1,094 1,040 

Austria 4.5 4.8 14 16 47 57 

Total 99.4 101.0 261 274 1,141 1,097 

Hussel will continue to focus keenly on quality of 

service. To further boost its associates’ expertise, the company 

is offering a range of specialist sales training and 

other relevant courses to its staff. With high-quality products, 

first-class service and a fresh and up-to-date shop 

environment, Hussel is aiming to secure new customers 

while cementing its bonds with existing fans. 


110 Divisions 

Service Divisions and Companies 

SERVICE DIVISIONS AND COMPANIES 

The DOUGLAS Group employs some 1,200 women and men at its administrative headquarters in Hagen – in the 

holding company’s service divisions, the subsidiaries’ service centers and the independently managed service 

companies. Their functions and areas of responsibility are as follows: 

DOUGLAS HOLDING Service Divisions 

The Controlling department promotes the DOUGLAS Group’s 

value-oriented development by making contributions to the planning 

process, issuing monthly forecasts and providing financial oversight of 

the Group’s investment activities. 

The Finance section is charged with drawing up the Group’s annu- 

al accounts. It also ensures adherence to – and the implementation of 

– the International Financial Reporting Standards (IFRS), while securing 

the resources needed by the Group and the liquidity of its subsidiaries. 

The Investor Relations and Communication sections actively 

supply shareholders, the media and the financial markets with the 

accurate and up-to-date information that they require. 

Group Development advises the Executive Board and subsidiary 

managers on commercial strategy, methods of optimizing corporate 

processes, and marketing and merchandising concepts. 

Group Auditing & Risk Management assists the Executive Board 

by coordinating the DOUGLAS Group’s risk management functions 

and performing independent reviews of the internal controlling systems 

at all of the Group’s domestic and international divisions. 

Mergers & Acquisitions supports the Executive Board and subsidiary 

managements in the fields of investment and disinvestment. 

Human Resources & Administration coordinates core issues 

relating to personnel strategy and group-wide projects such as staff 

surveys and employee share issues. 

Legal & Corporate Affairs is responsible for all legal affairs – extending 

from acquisitions through to trademark law. 

The Taxes & Consulting unit provides comprehensive advice to 

consolidated companies on taxation matters. 

Service Centers 

The service centers of the subsidiaries pool functions such 

as marketing, purchasing, controlling and logistics to support the 

subsidiaries in their day-to-day operations. 

Service Companies 

DOUGLAS Corporate Service GmbH (DCS) is an in-house pro- 

vider of financial, accounting and payroll services to many of the 

Group’s companies. It is also responsible for the standardization 

of the Group’s financial accounts and their compliance with IFRS. It 

optimizes the systems used in finance and accounting, and manages 

their processes efficiently. 

DOUGLAS Informatik & Service GmbH (DIS) ensures the effec- 

tive use of information technology in the DOUGLAS Group’s business 

processes. Moreover it is responsible for tapping any potential syner- 

gies – particularly those in the areas of enterprise resource planning 

and information, finances and customer relationship management. 

It also operates the IT center and telecommunications systems and 

runs a service center providing computing support to Group stores 

around the world. 

DOUGLAS Immobilien GmbH & Co. KG acquires rental properties 

in Germany and beyond for the Group. It also manages and optimizes 

its real estate portfolio including the 2,000+ current property 

agreements. Finally it handles all financial transactions relevant 

to real estate and is responsible for project supervision on major 

investments. 

EKV Einkaufsverbund GMBH and EEG Energie-Einkaufsverbund 

GMBH generate cost benefits for the DOUGLAS Group by 

pooling orders for non-merchandise goods and negotiating service 

agreements for multiple divisions. Its activities are focused on utilities 

(in the German-speaking countries), telecommunications, office 

supplies and maintenance work. It also manages the office building 

at the Group’s service headquarters in Hagen. 

DOUGLAS Versicherungsvermittlung GmbH (DVV) is the 

Group’s go-to agency for all insurance issues. It negotiates all the 

policies for the German subsidiaries and handles any claims centrally. 

It also offers optional advisory services to the foreign subsidiaries. 

DOUGLAS Leasing GmbH manages the vehicle fleet with the 

purpose of optimizing costs and generating synergistic benefits for 

the Group.

FINANCIAL STATEMENTS CONTENTS 

112 Facts & figures 

113 Consolidated income statement 

114 Consolidated balance sheet 

115 Statement of changes in Group equity 

116 Segment reporting 

118 Consolidated Cash Flow statement 

119 Notes 

135 Notes to the income statement 

140 Notes to the balance sheet 

174 Auditor’s report 

Financial statements 

111 

Financial statements

112 Financial statements 

Facts & figures 

Consolidated income statement 

Consolidated balance sheet 

Statement of changes in Group equity 

Segment reporting 

Consolidated Cash Flow statement 

Notes 

Notes to the income statement 

Notes to the balance sheet 

Auditor’s report 

FACTS & FIGURES 




Sales EUR m 3,320.8 3,200.8 3.7 

National EUR m 2,168.2 2,071.5 4.7 

International EUR m 1,152.6 1,129.3 2.1 

EBITDA EUR m 286.9 255.0 12.5 

Margin in % 8.6 8.0 − 

EBT before closing costs 1) EUR m 131.2 127.6 2.8 


EBT EUR m 131.2 103.9 26.3 


Net income for the year EUR m 76.1 62.8 21.2 


Non-current assets EUR m 792.1 798.8 −0.8 

Current assets EUR m 886.8 889.8 −0.3 

Equity EUR m 764.8 710.9 7.6 

Non-current liabilities EUR m 113.8 129.7 −12.3 

Current liabilities EUR m 827.6 848.0 −2.4 

Balance sheet total EUR m 1,713.4 1,688.6 1.5 

Free Cash Flow EUR m 88.2 84.5 − 

Capital expenditure EUR m 117.5 112.3 4.6 

Working Capital EUR m 418.1 455.0 −8.1 

Net bank debt EUR m 124.0 165.3 −25.0 

1) 2008/09: closing costs of 23.7 EUR m

CONSOLIDATED INCOME STATEMENT 

for the period from October 1, 2009 to September 30, 2010 

Income statement 

Notes 10/01/2009 

to 09/30/2010 


10/01/2008 

to 09/30/2009 


1. Sales 6 3,320.8 3,200.8 

2. 

Cost of raw materials, consumables and supplies 

and merchandise 

−1,749.5 −1,683.5 

3. Gross profit from retail business 7 1,571.3 1,517.3 

4. Other operating income 8 211.7 207.5 

5. Personnel expenses 9 −720.3 −698.3 

6. Other operating expenses 10 −776.1 −772.0 

7. Income from other investments in associates 11 0.0 0.3 

8. Income from other investments 11 0.3 0.2 

9. EBITDA 286.9 255.0 

10. Amortization/depreciation 12 −145.2 −138.9 

11. EBIT 141.7 116.1 

12. Financial income 3.0 5.8 

13. Financial expenses −13.5 −18.0 

14. Financial results 13 −10.5 −12.2 

15. Earnings before taxes (EBT) 131.2 103.9 

16. Income taxes 15 −55.1 −41.1 

17. Net income for the year 76.1 62.8 

18. Profit attributable to non-controlling interests −0.2 0.0 

19. Profit attributable to the Group shareholders 75.9 62.8 

(in EUR) (in EUR) 

Earnings per share 24 1.93 1.60 

STATEMENT OF COMPREHENSIVE INCOME 

Statement of comprehensive income 

10/01/2009 to 

09/30/2010 


10/01/2008 to 

09/30/2009 


Net income for the year 76.1 62.8 

Foreign currency translation differences arising from translating 

the financial statements of a foreign operation 

1.8 −12.0 

Effective portion of net investment hedges 3.1 1.0 

Effective portion of Cash Flow hedges 0.3 −1.5 

Total comprehensive income 81.3 50.3 

Total comprehensive income attributable to Group shareholders 81.0 50.3 

Total comprehensive income attributable to non-controlling interests 0.3 0.0 








Notes 




113








Notes 




CONSOLIDATED BALANCE SHEET 

Assets 

Notes 09/30/2010 




A. Non-current assets 

I. Intangible assets 16 269.1 265.5 

II. Property, plant and equipment 16 470.6 478.6 

III. Tax receivables 15 8.0 7.7 

IV. Financial assets 20 5.1 5.8 

V. Investments in associates 0.0 7.9 

VI. Deferred tax assets 17 39.3 33.3 

792.1 798.8 

B. Current assets 

I. Inventories 18 647.2 667.1 

II. Trade accounts receivable 19 48.0 42.7 

III. Tax receivables 15 17.9 24.3 

IV. Financial assets 20 96.7 94.9 

V. Other assets 21 25.4 25.0 

VI. Cash and cash equivalents 22 51.6 35.8 

886.8 889.8 

C. Assets held for sale 23 34.5 0.0 

Equity and liabilities 

Notes 09/30/2010 


1,713.4 1,688.6 



A. Equity 24 

I. Capital stock 118.0 117.8 

II. Additional paid-in capital 220.2 218.9 

III. Retained earnings 411.7 374.0 

IV. Minority interests 14.9 0.2 

764.8 710.9 

B. Non-current liabilities 

I. Provisions for pensions 25 31.5 29.6 

II. Other non-current provisions 26 23.1 22.8 

III. Financial liabilities 27 41.6 65.1 

IV. Other liabilities 28 5.0 5.3 

V. Deferred tax liabilities 17 12.6 6.9 

113.8 129.7 

C. Current liabilities 

I. Current provisions 26 133.2 133.3 

II. Trade accounts payable 277.1 254.8 

III. Tax liabilities 55.4 50.6 

IV. Financial liabilities 27 239.8 296.2 

V. Other liabilities 28 122.1 113.1 

827.6 848.0 

D. Assets held for sale 23 7.2 0.0 

1,713.4 1,688.6

STATEMENT OF CHANGES IN GROUP EQUITY 


Capital stock 


Additional 

paid-in capital 


Other 

retained 

earnings 


Retained earnings 

Results from 

Cash Flow 

hedges 


Differences 

from currency 

translation 









Notes 




Minority 

interests 


115 

Total 


10/01/2008 117.7 217.8 361.1 0.1 0.1 0.2 697.0 

Currency translation −12.0 −12.0 

IAS 39 Hedge Accounting −1.5 1.0 −0.5 

Net income for the year 62.8 62.8 

Total comprehensive income 0.0 0.0 62.8 −1.5 −11.0 0.0 50.3 

Capital increase 0.1 1.1 1.2 

IAS 32 5.6 5.6 

Dividend −43.2 −43.2 

Transactions with shareholders 0.1 1.1 −37.6 0.0 0.0 0.0 −36.4 

09/30/2009 117.8 218.9 386.3 −1.4 −10.9 0.2 710.9 

10/01/2009 117.8 218.9 386.3 −1.4 −10.9 0.2 710.9 

Currency translation 1.7 0.1 1.8 

IAS 39 Hedge Accounting 0.3 3.1 3.4 

Net income for the year 75.9 0.2 76.1 

Total comprehensive income 0.0 0.0 75.9 0.3 4.8 0.3 81.3 

Capital increase 0.2 1.3 1.5 

IAS 32 0.0 

Dividend −43.3 −0.2 −43.5 

Transactions with shareholders 0.0 0.0 −43.3 0.0 0.0 −0.2 −42.0 

Change in scope of consolidation 14.6 14.6 

09/30/2010 118.0 220.2 418.9 −1.1 −6.1 14.9 764.8








Notes 




SEGMENT REPORTING 

Segmentation by divisions 

Segmentation by geographic region 

2009/10 


Perfumeries Books Jewelry Other 

2008/09 




2008/09 


Perfumeries Books Jewelry 


Sales (net) EUR m 1,878.7 1,853.5 905.8 819.7 310.2 292.4 

Intersegment sales EUR m 0.0 0.0 0.0 0.0 0.0 0.1 

Sales EUR m 1,878.7 1.853.5 905.8 819.7 310.2 292.5 

Earnings from investments in associates EUR m 0.0 0.0 0.0 0.3 0.0 0.0 

Earnings from other investments EUR m 0.0 0.0 0.0 0.0 0.0 0.0 

Reversal of impairments EUR m −2.0 −0.7 −0.3 −0.3 0.0 −0.1 

EBITDA EUR m 186.3 171.8 60.0 57.9 30.9 24.4 

EBITDA margin in % 9.9 9.3 6.6 7.1 9.9 8.3 

Scheduled amortization EUR m 62.3 66.1 27.8 25.1 7.6 7.2 

Impairments EUR m 24.1 22.2 0.7 0.1 3.9 0.1 

EBIT EUR m 99.9 83.5 31.5 32.7 19.4 17.1 

Interest expense EUR m 13.4 20.3 7.3 10.4 2.2 2.2 

Interest income EUR m 1.4 5.3 0.9 0.5 0.2 0.2 

EBT EUR m 87.9 68.5 25.1 22.8 17.4 15.1 

Capital expenditure EUR m 56.3 61.1 30.3 24.2 14.4 8.0 

Average annual number of employees (FTEs) 12,185 12,266 4,254 4,119 1,761 1,709 

Sales area 1,000 m2 279 274 243 240 21 20 

Number of stores (Sept. 30) 1,205 1,220 289 294 204 203 



2008/09 




2008/09 


Sales 

Germany 945.6 920.0 689.7 628.7 310.2 292.4 221.6 230.4 

International 933.1 933.5 216.1 191.0 0.0 0.0 4.5 4.8 

Non-current assets 

1,878.7 1,853.5 905.8 819.7 310.2 292.4 226.1 235.2 

Germany 111.3 110.7 211.0 184.3 29.9 27.3 121.3 123.4 


Capital expenditure 

345.9 389.5 241.3 210.1 29.9 27.3 122.6 125.1 

Germany 25.4 19.2 22.5 19.9 14.4 8.0 16.5 19.0 


56.3 61.1 30.3 24.2 14.4 8.0 16.5 19.0








Notes 




Fashion Confectionery Services Consolidation DOUGLAS Group 

2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 

124.1 131.0 99.4 101.0 2.6 3.2 0.0 0.0 3,320.8 3,200.8 

0.0 0.0 1.6 1.3 32.8 28.0 −34.4 −29.4 0.0 0.0 

124.1 131.0 101.0 102.3 35.4 31.2 −34.4 −29.4 3,320.8 3,200.8 

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 

0.0 0.0 0.2 0.1 0.1 0.1 0.0 0.0 0.3 0.2 

0.0 0.0 −0.2 0.0 0.0 0.0 0.0 0.0 −2.5 −1.1 

7.4 3.5 5.8 6.0 −3.5 −8.6 0.0 0.0 286.9 255.0 

6.0 2.7 5.7 5.9 − − 0.0 0.0 8.6 8.0 

6.1 6.6 2.8 2.7 9.7 8.5 0.0 0.0 116.3 116.2 

0.2 0.0 0.0 0.3 0.0 0.0 0.0 0.0 28.9 22.7 

1.1 −3.1 3.0 3.0 −13.2 −17.1 0.0 0.0 141.7 116.1 

1.2 1.8 0.2 0.4 9.0 11.0 −19.8 −28.1 13.5 18.0 

0.2 1.1 0.0 0.0 20.1 26.8 −19.8 −28.1 3.0 5.8 

0.1 −3.8 2.8 2.6 −2.1 −1.3 0.0 0.0 131.2 103.9 

1.8 5.0 3.4 3.8 11.3 10.2 0.0 0.0 117.5 112.3 

604 643 765 791 495 487 0 0 20,064 20,015 

37 37 15 16 0 0 0 0 595 587 

14 14 261 274 0 0 0 0 1,973 2,005 

117








Notes 




CONSOLIDATED CASH FLOW STATEMENT 


10/01/2009 to 



10/01/2008 to 



1. EBIT 141.7 116.1 

2. + Amortization/depreciation of non-current assets 145.2 138.9 

3. +/– Increase in provisions −0.7 20.7 

4. +/– Other non-cash income/expense −12.9 −4.4 

5. +/– Profit/loss on the disposal of non-current assets 2.4 0.0 

6. +/– 

Changes in inventories, trade receivables and other assets 

not classifiable to investing or financing activities 

2.1 7.2 

7. +/– 

Changes in trade payables and other liabilities not classifiable 

to investing or financing activities 

21.9 −8.9 

8. – Interest paid −5.6 −15.6 

9. + Interest received 1.2 3.6 

10. – Taxes paid −49.1 −65.9 

11. = Net Cash Flow from operating activities 246.2 191.7 

12. + 

Proceeds from the disposal of non-current assets 

and disposal of stores 

4.5 7.5 

13. – Investments in non-current assets −117.3 −111.3 

14. – 

Payments for acquisition and disposal of 

consolidated companies and other business units 

−45.2 −3.4 

15. = Net Cash Flow for investing activities −158.0 −107.2 

16. Free Cash Flow (sum of 11 and 15) 88.2 84.5 

17. + Receipts from appropriations to equity 0.6 0.6 

18. – Dividends paid to DOUGLAS shareholders −43.3 −43.2 

19. – Dividends paid to minority interests −0.2 0.0 

20. – Payments for the repayment of financial liabilities −87.1 −93.9 

21. + Proceeds from borrowings 61.1 35.7 

22. –/+ Other financial changes −3.2 0.7 

23. = Net Cash Flow for financing activities −72.1 −100.1 

24. = 

Net change in cash and cash equivalents 

(total of rows 11, 15 and 23) 

16.1 −15.6 

25. +/– 

Net change in cash and cash equivalents due 

to currency translation 

0.5 −0.9 

26. + Cash and cash equivalents at beginning of year 36.7 53.2 

27. = Cash and cash equivalents as of September 30, 2010 53.3 36.7 

28. – Thereof for assets held for sale 1.6 0.0 

29. = 

Cash and cash equivalents for continuing operations 

as of September 30, 2010 

51.7 36.7

NOTES TO THE CONSOLIDATED FINANCIAL 

STATEMENTS OF DOUGLAS HOLDING AG 

FOR THE FISCAL YEAR 2009/10 

1. General principles 

The consolidated financial statements of the retailing group DOUGLAS HOLDING AG, 

which is based in Hagen, Germany, and its subsidiaries as of September 30, 2010 have 

been prepared according to International Financial Reporting Standards (IFRS) of the 

International Accounting Standards Board (IASB), London, taking into account all mandatory 

standards and interpretations in effect at the closing date and as adopted by the 

European Union. 

The financial statements of the German and foreign subsidiaries included in the consolidated 

financial statements have been prepared in a uniform manner according to the 

classification, accounting and measurement principles stipulated by IFRS. Recognition 

and measurement rules which differ from the uniform group principles have been eliminated 

by preparing separate trade financial statements (HB II). 

All figures in the balance sheet and income statement are in millions of euros (EUR m). 

The prior year’s figures shown are fully comparable to those figures of the reporting 

year. 

2. New IASB accounting standards 

The consolidated financial statements of DOUGLAS HOLDING AG have been prepared 

taking into account all published standards and interpretations which have been 

adopted as part of the European Union (EU) endorsement process and for which application 

is mandatory for fiscal year 2009/10. Earlier application of the new standards in 

the accompanying consolidated financial statements was not conducted by the Group, 

except for the amendments to IAS 36 and IFRS 8 made as part of the Improvement Project 

for 2009. 

In comparison with the consolidated financial statements as of September 30, 2009, 

the following standards and interpretations have been revised and/or are mandatory for 

the first time: 

IFRS 1 “First Time Adoption of International Financial Reporting Standards” and 

IAS 27 “Consolidated and Separate Financial Statements” 

These amendments, which were issued in May 2008, contain rules with respect to acquisition 

costs incurred for joint ventures and associated companies and are be applied 

for annual periods beginning on or after January 1, 2009. The EU Commission recognized 

this amendment in January 2009 as part of the Endorsement proceedings. 








Notes 




119








Notes 




IFRS 2 “Share based-Payment – Vesting Conditions and Cancellations” 

These amendments issued in January 2008 mainly contain modifications to the definitions 

of exercise conditions and rules for the annulment of a plan by third parties. The 

revised standard is to be applied to annual periods beginning on or after January 1, 2009 

and has been recognized by the EU Commission as part of the Endorsement proceedings. 

IFRS 3 “Business Combinations” 

As part of the revisions made to IFRS 3, the rules for the accounting of business combinations 

were amended. The amended Standard gives companies an election to measure 

the shares of non-controlling shareholders at Fair Value or the allocable net assets. Depending 

on the method applied, the goodwill arising from the initial consolidation of the 

newly acquired business is recognized either fully or according to the allocable majority 

shareholder’s share. Moreover, the rules for step acquisition have been modified. These 

new regulations have already been applied for the purchase of the shares of buch.de internetstores 

AG. The revisions are to be applied to annual periods beginning on or after 

July 1, 2009. These revisions have been endorsed by the EU Commission as part of the Endorsement 

proceedings. 

IFRS 7 “Financial Instruments” 

As part of the revised standards, the IASB prescribes expanded disclosures for the measurement 

of financial instruments at Fair Value and for liquidity reserves. These revisions 

are to be applied for annual periods beginning on or after January 1, 2009. These revisions 

were endorsed by the EU Commission in November 2008. 

IFRS 8 “Operating Segments” 

On November 30, 2006, the IASB published IFRS 8, which is to replace the existing 

IAS 14 (Segment Reporting) for annual periods beginning on or after January 1, 2009. 

The standard was endorsed by the EU Commission on November 21, 2007 as part of the 

Endorsement proceedings. IFRS 8 follows the management approach, which means that 

segment reporting must be based on the information used internally by management. 

The DOUGLAS Group applied the rules under IFRS 8 for the first time in the fiscal year 

2009/10. Reaching beyond the current presentation of the segments, the Services division 

of the DOUGLAS Group is presented separately from the reconciliation column. The Segment 

Assets shown contain non-current assets that are neither attributable to tax positions 

or to financial assets. The relevant segment values for the 2008/09 fiscal year were 

accordingly adjusted to assure comparability. 

IAS 1 “Presentation of Financial Statements” – Revised Presentation 

The amendments made to IAS 1 in September 2007 relate to the renaming of certain 

sections of the IFRS financial statements and the presentation in the income statement and 

changes to equity statement. The revised standard is to be applied for annual periods beginning 

on or after January 1, 2009. This revised standard was endorsed by the EU Commission 

in December 2008 as part of the Endorsement proceedings. As a consequence of the amendments 

to IAS 1, the income statement was supplemented by a reconciliation for other comprehensive 

income. As part of this reconciliation, components shown directly to equity are listed 

and combined with the net income for the period to arrive at total comprehensive income.

IAS 23 “Borrowing Costs” 

In March 2007, IAS 23 was amended whereby borrowing costs that are directly attributable 

to the acquisition or production of a qualifying asset are now immediately expensed. 

The amended standard is to be applied for annual periods beginning on or after 

January 1, 2009. The amendment has been endorsed by the EU Commission as part of the 

Endorsement proceedings. 


The amendments to the standard clarify the issue regarding the measurement of 

shares in subsidiaries held for sale. These amendments relate to the accounting of subsidiaries, 

joint ventures and associated companies in the separate financial statements 

of a company. The amended standard is to be applied for annual periods beginning on 

or after July 1, 2009. The amendment has already been endorsed by the EU Commission. 

IAS 32 “Financial Instruments: Disclosure” and 

IAS 1 “Presentation of Financial Statements” 

According to these amendments of the standard, certain instruments issued by a company 

should be classified as equity although the instruments have the characteristics of a 

liability. The amended standard is to be applied for annual periods beginning on or after 

January 1, 2009. The amendment has already been endorsed by the EU Commission as 

part of the Endorsement proceedings. 

IAS 39 “Financial Instruments: Recognition and Measurement” 

As part of the amendments made to IAS 39, specific rules regarding the presentation 

of Fair Value hedges were revised. These amendments are to be applied for annual periods 

beginning on or after July 1, 2009. The EU Commission endorsed the amendments in 

September 2009 as part of the Endorsement proceedings. 

IFRIC 9 “Reassessment of Embedded Derivatives” and 


The amendments to this Standard relate to the reassessment of embedded derivatives 

in connection with hybrid financial instruments. These amendments are to be applied 

for annual periods beginning on or after July 1, 2009. The EU Commission endorsed the 

amendments in December 2009 as part of the Endorsement proceedings. 

IFRIC 12 “Service Concession Arrangements” 

IFRIC 12 regulates the financial reporting of rights and obligations under service arrangements 

and is to be applied for annual periods beginning on or after March 30, 2009. 

The EU Commission recognized this interpretation on March 25, 2009. 

IFRIC 16 “Hedges of a Net Investment in a Foreign Operation” 

IFRIC 16 relates to the issue of how risks arising from the hedging of foreign operations 

should be dealt with and where the hedging instrument is permitted to be held within the 

business group. This interpretation is to be applied for annual periods beginning on or after 

July 1, 2009. The EU Commission endorsed this IFRIC in June 2009. 








Notes 




121








Notes 




Since the new or revised standards and interpretations relevant to DOUGLAS HOLD- 

ING AG did not lead to a retrospective adjustment of prior year figures, the presentation 

of a third balance sheet column has been waived. 

In addition to the mandatory standards and interpretations to be adopted in the consolidated 

financial statements as of September 30, 2010, there are other new and/or revised 

standards and interpretations that are not yet applicable to annual periods beginning 

on October 1, 2009. 

IFRS 1 “First Time Adoption of International Financial Reporting Standards” 

For purposes of reducing costs and additional burdens, additional simplifications were 

agreed to for the first time adoption of this IFRS. The simplifications are to be applied for 

annual periods beginning on or after January 1, 2010. These revisions were recognized by 

the EU Commission in July 2010. 


IFRS 7 “Financial Instruments: Disclosures” 

The amendments made to IFRS 7 in connection with IFRS 1 provide simplifications for 

first time adoption with respect to the presentation of prior year comparative information 

for financial instruments. The simplifications are to be applied for annual periods beginning 

on or after July 1, 2010. These revisions have already been endorsed by the EU Commission. 



These amendments, which were issued in May 2008, contain rules with respect to acquisition 

costs incurred for joint ventures and associated companies and are to be applied 

for annual periods beginning on or after January 1, 2009. The EU Commission recognized 

these amendments in January 2009. 

IFRS 2 “Share based-Payment – Vesting Conditions and Cancellations” 

IFRS 2 has been modified for the presentation of share based-payment in the financial 

statements of subsidiaries. The amendments are to be applied for annual periods beginning 

on or after January 1, 2010. The EU Commission recognized this amendment as part 

of the Endorsement proceedings. 

IFRS 9 “Financial Instruments” 

IFRS 9 is the first standard that will replace IAS 39 in the future, as part of the new accounting 

rules for financial instruments. According to IFRS 9, financial instruments shall 

be generally classified into two categories and depending on this classification, will be 

measured either at amortized cost or Fair Value. IFRS 9 is to be applied for annual periods 

beginning on or after January 1, 2013. This amendment has not yet been recognized by 

the EU Commission as part of the Endorsement proceedings. 

IAS 24 “Related Party Disclosures” 

As part of the revisions made to IAS 24, the definition of related companies and persons 

has been modified. In addition, the disclosure requirements for companies in the

public sector have been expanded. These amendments are to be applied for annual periods 

beginning on or after January 1, 2011. The EU Commission already recognized these 

revisions in July 2010. 

IAS 32 “Financial Instruments: Presentation” 

As part of the amendments made to IAS 32, special requirements were established for puttable 

instruments. The amended IAS 32 is to be applied for annual periods beginning on or 

after February 1, 2010. The EU Commission recognized this amendment in December 2009. 

IFRIC 14 “IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements 

and their Interaction” 

As part of these amendments, unintended consequences incurred from the accounting 

advance payments related to minimum funding requirements have been eliminated. This 

amended interpretation is to be applied for annual periods beginning on or after January 

1, 2011. The EU Commission recognized this amendment in July 2010. 

IFRIC 15 “Agreements for the Construction of Real Estate” 

IFRIC 15 addresses the issue of revenue recognition for construction contracts and is to 

be applied for annual periods beginning on or after January 1, 2010. The EU Commission 

recognized this interpretation on July 22, 2009 as part of the Endorsement proceedings. 

IFRIC 17 “Distributions of Non-cash Assets to Owners” 

IFRIC 17 clarifies topics such as how companies should measure other assets as cash 

equivalents that have been transferred as dividends to the shareholders. This interpretation 

is to be applied for annual periods beginning on or after November 1, 2009. The 

EU Commission recognized this interpretation in November 2009 as part of the Endorsement 

proceedings. 

IFRIC 18 “Transfers of Assets from Customers” 

IFRIC 18 clarifies the accounting of agreements in which a company receives from a 

customer an item of property, plant and equipment that the company must then use either 

to connect the customer to a network or to provide the customer with ongoing access 

to a supply of goods or services (such as a supply of electricity, water or gas). This interpretation 

is to be applied for annual periods beginning on or after November 1, 2009. The 

EU Commission has not yet endorsed this interpretation in November 2009 as part of the 

Endorsement proceedings. 

IFRIC 19 “Extinguishing Financial Liabilities with Equity Instruments” 

This new interpretation presents detailed accounting treatment by an entity that issues 

equity instruments in order to settle, in full or in part, a financial liability in relation 

to the rules stipulated under IAS 39. This interpretation is to be applied for annual periods 

beginning on or after July 1, 2010. The EU Commission recognized this interpretation 

in July 2010. 

Furthermore, the IASB made minor changes to the standards shown below as part of 

the Annual Improvement Process for 2009. These changes are almost all to be applied for 








Notes 




123








Notes 




annual periods beginning on or after January 1, 2010. The changes resulting from the Improvement 

Process for 2009 have already been endorsed by the EU Commission. 


IAS 7 “Statements of Cash Flow” 

IAS 17 “Leases” 

IAS 36 “Impairment of Assets” 

IAS 38 “Intangible Assets” 


IFRS 2 “Share-based Payment” 

IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations” 

IFRS 8 “Operating Segments” 

IFRIC 9 “Reassessment of Embedded Derivatives” 

IFRIC 16 “Hedges of a Net Investment in a Foreign Operation” 

The IASB also made minor changes to the standards and interpretations shown below 

as part of the Annual Improvement Process for 2010; these have not yet been endorsed by 

the EU Commission. These changes are to be applied for annual periods beginning on or 

after January 1, 2011. 

IFRS 1 “First Time Adoption of International Financial Reporting Standards” 

IFRS 3 “Business Combinations” 

IFRS 7 “Financial Instruments: Disclosures” 



IAS 24 “Related Party Disclosures” 

IFRIC 13 “Customer Loyalty Programmes” 

With exception of the revised IAS 36 and IFRS 8, earlier application of the revisions to 

the standards and interpretations detailed above has not been chosen by the DOUGLAS 

Group and it does not believe these revisions will have a significant impact on the 

DOUGLAS Group’s net assets, financial position and results of operations. 

3. Consolidation principles 

Scope of consolidation 

All of the German and foreign companies over which DOUGLAS HOLDING AG has 

direct or indirect control are fully consolidated in the consolidated financial statements. 

Subsidiaries are included in the consolidated financial statements from the date on which 

control is transferred to the Group. They are deconsolidated on the date on which control 

ceases. 

Major associated companies over which DOUGLAS HOLDING AG exerts significant influence 

are carried in the consolidated financial statements At-equity. Associated companies 

of minor importance for the consolidated financial statements are measured at cost.

Group of Consolidated Companies 

Germany Other countries Total 

As of October 1, 2009 47 35 82 

Companies consolidated for the first time 1 2 3 

Merged companies 1 2 3 

As of September 30, 2010 47 35 82 

With effect from December 1, 2009, the Books division acquired a further 24.7 percent 

shareholding in buch.de internetstores AG, Münster, which operates diverse Internet domains 

for the selling of books and media products. Thus, the shareholding interest increased 

from 35.5 percent to a total of 60.2 percent of capital stock. Accordingly, buch.de 

internetstores AG and its subsidiary, buch.ch AG based in Winterthur/Switzerland, have 

been included in full for the first time in the consolidated financial statements. The remaining 

non-controlling minority share is recognized in DOUGLAS HOLDING AG’s consolidated 

financial statements in the amount of 5.7 million Euro, which corresponds to the 

allocable net assets including hidden reserves and liabilities attributable to the minority 

shareholder. Moreover, the remaining 0.5 percent interest in Thalia Bücher AG, based in 

Basel/Switzerland, was acquired with effect from December 17, 2009. 

In the Fashion division, the remaining 25.0 percent interest in Reiner Appelrath-Cüpper 

Nachfolge GmbH, Cologne, was acquired with effect from October 1, 2009. 

In total, 8.4 million Euro was paid for the purchase of shares in buch.de internetstores 

AG in the past fiscal year and a total of 24.5 million Euro was paid for the purchase of 

the aforementioned acquisition of the minority share. The purchase prices were settled 

in cash. 

The acquisition of the additional shareholding interests in buch.de internetstores AG 

resulted in the capitalization of Internet domain names totaling 26.0 million Euro in the 

fiscal year under review as well as repurchased rights in the amount of 1.1 million Euro. 

Deferred tax liabilities were incurred in the amount of 8.7 million Euro. Furthermore, 

goodwill was recognized in the amount of 0.2 million Euro in the balance sheet. Goodwill 

arises from assets that are not capable of being individually identified and separately recognized 

from the acquired company. As part of the first time full consolidation of buch. 

de internetstores AG, income was incurred in the amount of 6.1 million Euro due to the 

revaluation of old shares held in buch.de internetstores AG and has been reported under 

other operating income. 

During the period in which the buch.de internetstores AG belonged to the Group, sales 

totaling 88.0 million Euro and earnings totaling 0.8 million Euro were recorded. Since October 

1, 2009, buch.de internetstores AG generated sales of 104.1 million Euro and earnings 

of 0.9 million Euro. 

In the year under review, Buch Kaiser GmbH based in Karlsruhe was merged to Thalia 

Universitätsbuchhandlung GmbH with effect from October 1, 2009. In addition, Meissner 

Bücher AG based in Aarau/Switzerland, was merged to Thalia Bücher AG, Basel/Switzerland, 

with effect from July 1, 2010. 








Notes 




125








Notes 




As of March 31, 2010, the newly formed company, OOO Parfümerie International Company 

based in Moscow/Russia was included for the first time in the consolidated financial 

statements. The Estonian subsidiary, OU Douglas Estonia, was liquidated in February 2010 

and was removed from the scope of consolidation. 

Changes to the consolidated Group 

Additions 


Disposals 


Net amount 


Intangible assets 31.7 0.0 31.7 

Fixed assets 0.8 0.0 0.8 

Deferred Taxes 4.5 0.0 4.5 

Inventories and other assets 20.2 0.0 20.2 

Cash and cash equivalents 3.0 0.0 3.0 

Provisions 3.0 0.0 3.0 

Deferred Taxes 9.3 0.0 9.3 

Liabilities 8.5 0.0 8.5 

The gross value of the contractual receivables acquired amounted to 20.6 million Euro, 

with a Fair Value of 19.5 million Euro. An amount of 1.1 million Euro will most probably be 

uncollectible and was not recognized in the consolidated financial statement of DOUGLAS. 

As of the prior year’s balance sheet date, only a 35.5 percent stake was held in buch.de 

internetstores AG. Therefore, buch.de was included At-equity on the basis of the interim 

financial report as of September 30, 2009 in the consolidated financial statements on that 

date. Based on the share price as of September 30, 2009, there was an allocable Fair Value 

of 14.8 million Euro as of the prior year’s balance date. 

The equity method was not applied for six companies (including one foreign company) 

as these are of minor importance for the DOUGLAS Group’s net assets, financial position 

and result of operations. These are carried at cost. Due to the business volume, these 

companies do not prepare interim financial statements. Therefore, information on assets, 

liabilities and earnings does not exist as of the balance sheet date. These investments encompass 

companies whose services are used by the DOUGLAS Group in individual cases 

as well as a company with confectionery stores in Portugal. The Fair Value of these companies 

cannot be reliably measured. The balance sheet dates of these companies differ 

from the DOUGLAS Group’s balance sheet date. 

The following table provides an overview of the key financial data of the companies 

carried At-equity in the consolidated financial statements (all figures as of December 31):

At-equity consolidation 





Non-current assets 0.0 10.6 

Current assets 0.0 22.3 

Non-current liabilities 0.0 0.6 

Current liabilities 0.0 11.2 

Net assets 0.0 21.1 

2009 2008 

Income 16.4 73.1 

Expenses 16.4 72.2 

Net income 0.0 0.9 

Consolidation methods 

The financial statements of the companies included in consolidation have been prepared 

as of September 30, 2010. The individual financial statements are combined based 

on the following principles: 

Capital consolidation is conducted by offsetting acquisition costs against the Group’s 

interest in the consolidated subsidiary’s net assets at Fair Value on the acquisition date. 

Any positive differences that result are capitalized as goodwill and tested annually for 

impairment. Any negative differences are recognized in profit or loss. 

Any allocable net assets including hidden reserves and liabilities due to minority shareholders 

are carried as minority interests. 

Goodwill arising from new acquisitions after October 1, 2004 is not subject to scheduled 

amortization but subject to an annual impairment test. If there are indications of impairment, 

corresponding impairment tests are also conducted during the year. 

In preparing the opening IFRS balance sheet as of October 1, 2004, retrospective application 

of IFRS 3 was waived, and the simplification option offered under IFRS 1 was applied. 

As a result, the goodwill reported in the opening IFRS balance sheet remained offset 

against the revenue reserves as in the HGB (German Commercial Code) balance sheet. 

Receivables from and corresponding payables to consolidated companies are offset 

against each other. Material interim profits from intercompany goods and services within 

the Group were eliminated in the consolidated financial statements to the extent that 

these do not relate to sales realized with third parties. Sales and other income from intercompany 

deliveries of goods and services are offset against corresponding expenses. 

The share of profits or losses from associated companies is netted with the carrying 

amount of the respective participating interest in line with the equity method. Unrealized 

gains and losses between Group companies and associated companies are eliminated. 








Notes 




127








Notes 




4. Currency translation 

The financial statements of the subsidiaries are translated to the Group currency according 

to the functional currency concept. The functional currency of the subsidiaries is the 

respective national currency. The functional currency of the parent company is the euro. 

The assets and liabilities of foreign companies that do not participate in the European 

Monetary Union are translated to euros using the exchange rate on the balance sheet 

date. Income and expenses are converted at the average exchange rate for the period. The 

resulting currency translation differences are recognized directly in equity under the currency 

translation line item. 

The following exchange rates have been used for currency conversion for the foreign 

subsidiaries: 

Exchange rates 

Average exchange rate 

(in EUR) 

Closing rate 

(in EUR) 

2009/10 2008/09 09/30/2010 09/30/2009 

1 US dollar USD 0.737 0.739 0.732 0.682 

100 Swiss franc CHF 69.993 66.059 75.267 66.287 

100 Polish zloty PLN 24.673 23.602 25.042 23.642 

100 Hungarian Forint HUF 0.365 0.359 0.362 0.371 

100 Russian rouble RUB 2.455 2.368 2.395 2.272 

100 Danish crown DKK 13.434 13.426 13.419 13.433 

100 Turkish lira TRY 48.699 47.169 50.378 45.977 

100 Czech crown CZK 3.915 3.804 4.064 3.980 

100 Slowakian crown SKK 3.319 3.319 3.319 3.319 

100 Estonian kroon EEK 6.403 6.404 6.402 6.406 

100 Lithuanian litas LTL 28.885 28.772 28.950 28.936 

100 Latvia’s lats LVL 140.558 140.513 140.637 141.183 

100 Romanian leu RON 23.703 24.168 23.342 23.729 

100 Croatian kuna HRK 13.730 13.643 13.678 13.712 

100 Bulgarian lev BGN 51.072 51.063 51.117 51.078 

In the individual financial statements, assets and liabilities denominated in foreign 

currency are converted using the exchange rate on the date of acquisition. There is then 

an adjustment to the respective closing rate on each balance sheet date, which is recognized 

to profit or loss. 

In total, income from exchange rate differences totaling 2.1 million EUR (previous year: 

2.0 million EUR) and corresponding expenses totaling 2.4 million EUR (previous year: 4.2 

million EUR) were recorded to profit or loss.

5. Accounting and valuation principles 

Intangible assets 

Goodwill that arises as part of capital consolidation, and that represents the excess of 

the cost of the business combination over the company’s interest in the net Fair Value of 

the identifiable net assets of the subsidiary, is capitalized according to the requirements 

of IFRS 3 and subject to an annual impairment test and whenever there are triggering 

events indicating impairment. For the purposes of the impairment test, goodwill is allocated 

to the underlying cash generating units (CGU) that are expected to profit from synergies 

arising from the acquisition. The ceiling for the allocation is generally the respective 

operations of the subsidiaries as the operating segment in conformity with IFRS 8.5. 

If, within the scope of this impairment test, the company ascertains that the recoverable 

amount of the CGU is less than its carrying amount, the goodwill allocated to the CGU is 

written down and recognized to profit or loss. This continues to be recognized even if the 

reasons for impairment cease to exist in subsequent periods. 

Other intangible assets are carried at cost. Borrowing costs are not included when calculating 

acquisition costs, because there are no qualifying assets in the DOUGLAS Group. 

Intangible assets with finite useful lives are subject to scheduled straight line amortization 

over their useful life. If they have an indefinite useful life, these intangible assets are 

not subject to scheduled amortization. These assets are reviewed for impairment at least 

once a year. If the recoverable amount of the asset is less than its carrying amount, it is 

written down to its Fair Value. If the reasons for write-downs made in previous years no 

longer apply, the assets are written up. Intangible assets that are subject to scheduled 

amortization are only subject to an impairment test if there are triggering events indicating 

impairment. 

Property, plant and equipment 

If items of property, plant and equipment are used for longer than one year, these are 

carried at cost less scheduled straight-line depreciation. Investment subsidies received reduce 

that asset’s cost for which the subsidy was granted. As a rule, borrowing costs are not 

included when calculating acquisition costs for property, plant and equipment, but are 

immediately expensed to the income statement, because there are no qualifying assets in 

the DOUGLAS Group. In the year of purchase, property, plant and equipment are depreciated 

on a pro rata temporis basis. Where indications of impairment exist, impairment 

tests are conducted for the corresponding asset. Items of property, plant and equipment 

are derecognized when removed or further economic benefits are no longer expected from 

that asset’s use. The gain or loss from the disposal of the asset arises from the difference 

between its net realizable value and carrying amount. 

The amortization and depreciation periods for intangible assets and property, plant 

and equipment are determined based on their useful lives and are as follows: 








Notes 




129








Notes 




Useful lives 

Software 3−5 

Leasehold rights 5−15 

Customer bases 5−10 

Non-competition clauses 5 

Buildings 10−50 

Store fittings, office and operating equipment 3−10 

Leasing 

The economic ownership of a leased asset is classified to that contractual party who 

bears substantially all the risks and rewards incident to ownership of the leased asset. Material 

lease arrangements predominantly relate to the leasing of company stores within 

the DOUGLAS Group. Leases are recognized in the balance sheet according to the requirements 

of IAS 17. In order to ensure the greatest possible flexibility, the DOUGLAS Group 

generally aims to conclude rental agreements with a fixed rental period of no more than 

10 years and single or multiple exercisable options to extend the lease. In classifying lease 

agreements, consideration is given to the basic lease term and the exercise of any renewal 

options on the basis of knowledge acquired in the past, which means that these agreements 

regularly qualify as operating leases. 

If, in cases of exception, the economic ownership of leased assets can be allocated to 

the DOUGLAS Group, the leased assets are capitalized at the inception of the lease and 

subject to scheduled straight-line depreciation in subsequent periods. At the commencement 

of the lease, the leased asset is recognized at the Fair Value of the asset or, if lower, 

the present value of the minimum lease payments. On the other hand, the financial obligations 

that result from future lease payments are recognized as a liability in the same 

amount. Depreciation is conducted over the estimated useful life or the shorter lease term. 

This liability is amortized proportionately over the lease term according to the effective 

interest rate method plus accrued interest. 

Financial assets 

Financial assets, including interests in unconsolidated companies that are not measured 

using the equity method, other equity participations, loans, securities and contractual 

receivables are accounted for according to IAS 39. Depending on their classification, 

these are either measured at Fair Value (securities and financial assets from derivative 

financial instruments) or amortized cost (loans, trade receivables, and other contractual 

financial receivables). Financial assets are initially measured at Fair Value. 

Interests in companies in which the DOUGLAS Group has a significant influence are 

recognized in the balance sheet using the equity method at their allocable equity and reported 

as investments in associates. 

Financial assets are derecognized either upon settlement or when substantially all opportunities 

and risks are transferred. 

Years

Financial assets denominated in a foreign currency are translated to the functional 

currency at the date of acquisition. An adjustment is then made to the respective closing 

rate on each balance sheet date and recognized to profit or loss. Interest income and expense 

are matched to the period in the financial result. 

Deferred taxes 

Deferred taxes are identified using the liability method based on the requirements of 

IAS 12. Deferred taxes are thus recognized for temporary differences between the carrying 

amounts in the consolidated financial statements and the tax base to the extent that 

these differences will lead to tax refunds or charges in future. Deferred taxes are measured 

taking into account the tax rates and tax regulations that have been enacted on the balance 

sheet date or which are expected to be enacted when the differences are reversed. 

Deferred tax assets are only recognized to the extent that there is taxable income on the 

date the difference is reversed against which the difference can be offset. 

If the future tax advantage from loss carryforwards can be used with sufficient certainty 

in future periods, deferred tax assets are capitalized. Deferred tax assets and liabilities 

are netted to the extent that the tax claims and tax liabilities are for the same 

tax authority. 

Inventories 

As a rule, merchandise is recognized at the lower of cost and net realizable value. In 

individual areas, acquisition costs are identified using the retail method based on the selling 

price using reasonable valuation allowance deductions. The net realizable value is the 

estimated selling price in the ordinary course of business less the estimated costs necessary 

to make the sale. Selling as well as fashion and other risks were taken into account, 

to the extent needed, as part of measurement at the net realizable value. Raw materials, 

consumables and supplies are recognized at their acquisition costs. 

Receivables and other financial assets 

Trade accounts receivable and other financial assets are capitalized at amortized cost 

at the time of revenue recognition. Recognizable risks are taken into account via writedowns. 

A major portion of receivables that is more than 60 days overdue is transferred to 

a collection agency and written-down in this connection. Write-downs are in part conducted 

by using bad debt accounts. Receivables and other assets are generally derecognized 

when they are settled. 

Securities 

Securities are carried at their Fair Value according to the requirements of IAS 39. As 

a result, the Fair Value is adjusted and reflected directly in equity via a separate equity 

component, as securities have been classified to the “available for sale” category. Securities 

are generally initially recognized at the trade date. 

Cash and cash equivalents 

Cash and cash equivalents, which include money accounts and short term money deposits 

with banks, are stated at amortized cost. 








Notes 




131








Notes 




Provisions 

Provisions are accounted for according to the provisions of IAS 37. Provisions are recognized 

if there is a legal or constructive obligation to third parties arising from past events 

and the future cash outflow to fulfill this commitment can be reliably estimated. The carrying 

amount of the provision is based – for individual risks – on the best estimate of the 

settlement taking into account all recognizable risks, or – for a large population of risks 

– the amount computed according to the expected value method. Non-current provisions 

are discounted and carried on the balance sheet at their present value. As of September 30, 

2010, non-current provisions were discounted using an interest rate of 4.7 percent (previous 

year: 5.9 percent). The maturity of long-term human resources commitments is based 

on the date of dismissal of the employee or forecasted cash outflows. The maturity of longterm 

real estate commitments is based on the duration of the lease contract. 

Provisions for pensions are accounted for in line with the requirements of IAS 19. Actuarial 

calculations for provisions for defined benefit plans use the projected unit credit 

method. As part of this measurement, the pensions and entitlements known on the balance 

sheet date are taken into account as well as the increases in salaries and pensions 

to be expected in future. If changes to these calculation assumptions result in differences 

between the identified pension obligations and the actual present values of the entitlements, 

IAS 19 prescribes an option with respect to the recognition of actuarial gains or 

losses. Within the DOUGLAS Group this option is exercised as follows: the actuarial gains 

or losses are only recognized in income for the average future remaining period of service 

if these are outside a corridor of 10 percent of the amount of the benefit obligation. Assets 

(plan assets) and liabilities from pension plans are presented in a net amount. Plan assets 

are maintained in qualified policies that are pledged to the employee. The interest portion 

included in the pension expense is presented as interest expense within the financial result. 

Further obligations similar to provisions for pensions such as part-time work schemes 

and termination benefits are also disclosed according to the requirements of IAS 19. 

Financial liabilities 

According to IAS 39, financial liabilities are generally recognized at amortized cost 

on the balance sheet. Acquisition costs are stated at Fair Value. Transaction costs attributable 

to the acquisition are included in cost. If there is a difference between the amount 

paid and the amount to be paid upon final maturity, this difference is amortized over the 

term according to the effective interest rate method. Financial liabilities that arise from 

leases are carried as a liability at their present values. Income and expense from non-derivative 

financial liabilities arise from interest income or expense or from currency translation 

adjustments. Financial liabilities are recognized at the inception of the contract and 

are derecognized when the obligation is extinguished or expired (limitation of time). All 

trade accounts payable have a maturity of less than one year and are non-interest bearing. 

Liabilities arising from finance leases are reported under other liabilities. The election 

to initially recognize financial liabilities at Fair Value to profit or loss was not applied 

by the DOUGLAS Group. 

Accounting for derivative financial instruments and hedging relationships 

Derivative financial instruments are implemented to reduce Cash Flow fluctuations 

that result from interest rate risks. Derivative financial instruments are neither used nor

issued for speculative purposes. Derivative financial instruments are recognized at Fair 

Value, which corresponds to market value, both upon initial and subsequent measurement 

in accordance with IAS 39; and can result in a positive or negative figure. Gains and 

losses from Fair Value measurement, to the extent that these are designated derivative 

financial instruments qualifying as hedged items within the meaning of IAS 39, are recognized 

directly in equity under a separate equity item in line with the rules for hedge accounting. 

Derivative financial instruments that do not qualify as hedged items are measured 

at Fair Value and recognized in the income statement. Deferred taxes arising from 

the difference between the IFRS carrying amounts and the tax base are also recognized 

directly to equity under a separate equity item if the Fair Value differences were also recognized 

directly to equity. The amounts recorded under equity increase or reduce profit 

or loss as soon as the hedged Cash Flows from the underlying transaction are recognized 

in the income statement. 

The Fair Value of derivative financial instruments corresponds to the amount either 

paid or received by the group company upon termination of the financial instrument on 

the balance sheet date. The calculation of the Fair Value takes into account the interest 

rates and forward rates in effect as of the balance sheet date. The recordation of changes 

in the Fair Value depends on the application of the derivative financial instrument. 

Where the derivative financial instrument is not used in an effective hedging relationship, 

the change in Fair Value is immediately recognized to profit or loss. If, on the other 

hand, an effective hedging relationship exists, then it is recorded as such. The DOUGLAS 

Group implements derivative financial instruments as hedging instruments only as part 

of Cash Flow hedges. By way of such Cash Flow hedges and net investment hedges, the 

DOUGLAS Group hedges the exposure to future variability in Cash Flows attributable to 

risks associated with recognized assets and liabilities in the balance sheet. In addition, 

non-derivative financial liabilities as part of a net investment hedge are implemented 

to hedge against currency rate risks arising from net investments in non-Group foreign 

currencies. In the case of a Cash Flow hedge, the effective portion of the value change in 

the hedging instruments is recognized directly to equity until the result arising from the 

hedged items is recognized. On the contrary, the ineffective portion of the value change 

is immediately recognized in profit or loss. 

Revenue recognition 

As a rule, revenue is only recognized after performance is complete. Claims from customer 

loyalty programs are measured at the costs to be incurred herefrom and offset directly 

against sales. Sales revenues arising therefrom are first collected upon redemption 

of the bonus points. Such accruals are reversed or utilized in line with the way customers 

honor their gift vouchers and are also reported under sales revenue. Interest income and 

interest expense are recognized in the financial result on an accrual basis. 

Use of assumptions and estimates 

Assumptions have been made and estimates used in the preparation of these consolidated 

financial statements that impact the disclosure and amount of the assets and liabilities, 

income and expenses carried in these statements. These assumptions and estimates 

were used, in particular, in the determination of useful lives, assessing the impairment 

of goodwill, measuring provisions and estimating the probability that future tax refunds 

will be realized. In addition, assumptions and estimates are of significance in determin- 








Notes 




133








Notes 




47–49 

ing the Fair Values and acquisition costs associated with first time consolidation. Actual 

values may vary in individual cases from the assumptions and estimates made. Changes 

are recognized in income as soon as more detailed information is known. 

Capital Management 

The purpose of capital management is to maintain equity in conformity with IFRS. The 

goal of the DOUGLAS Group’s capital management is to assure that the Group can continue 

to meet its financial obligations and to sustain the business value on a long-term basis. 

Thus, the DOUGLAS Group aims at a Group equity ratio of more than 35 percent. The 

central control factor of the DOUGLAS Group is the DOUGLAS Value Added (DVA). This 

represents a control and management system in which all decision-making processes are 

reviewed in terms of their sustained contribution to value and measured in terms of DVA. 

Further information about the current development of the DVA can be found in the Management 

Report on page 47-49. 

The aim of the DOUGLAS Group’s capital management strategy is to ensure that all 

the Group companies have appropriate equity according to local needs, such that external 

capital requirements have always been met in the past fiscal year. 

Capital 


Equity EUR m 764.8 710.9 

Debt EUR m 949.6 977.7 

Net Debt EUR m 124.0 165.3 

Working Capital EUR m 418.1 455.0 

Equity ratio in % 44.6 42.1

NOTES TO THE INCOME STATEMENT 

6. Sales 

(Net) sales totaling 3,320.8 million Euro were recorded in the 2009/10 fiscal year. Of 

this amount, 34.7 percent was recorded outside of Germany following 35.3 percent in the 

2008/09 fiscal year. 

Sales 



2008/09 


Perfumeries 1,878.7 1,853.5 

International 932.0 933.5 

Books 905.8 819.7 


Jewelry 310.2 292.4 

Fashion 124.1 131.0 

Confectionery 99.4 101.0 


Services 2.6 3.2 

Total 3,320.8 3,200.8 

7. Gross profit from retail business 

Gross profit from retail business amounted to 1,571.3 million Euro in the 2009/10 fiscal 

year (previous year: 1,517.3 million Euro). The sales margin (ratio of gross profits to net 

sales) stood at 47.3 percent, which was just behind the prior year’s figure. 

8. Other operating income 

Other operating income 



2008/09 


Income from costs passed on to third parties 121,6 125.5 

Income from leasing and subleasing 17.4 17.8 

Income from reversal of provisions 16.9 11.9 

Income from customer card 9.3 9.3 

Income from commissions 4.7 8.5 

Income from casualty 1.4 5.4 

Income from disposal of non-current assets 0.6 5.2 

Income from currency translation 2.1 2.0 

Income from derecognition of liabilities 4.0 1.8 

Income from reversal of impairment 2.5 1.1 

Other non-operating income 8.9 1.9 

Refunds from sales taxes from prior years 3.5 0.0 

Other income 18.8 17.1 

Total 211.7 207.5 








Notes 




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Notes 




Income from costs passed on to third parties includes refunds for marketing costs and 

other costs charged further. Other on-operating income contains an amount of 6.1 million 

EUR due to the the revaluation of old shares held in buch.de internetstores AG. Furthermore 

other income includes, for example, income from pension plans. In fiscal Year 

2008/09 the line item for insurance casualty contained an amount of 1.2 million EUR paid 

for damaged tangible fixed assets. Income from leasing and subleasing mainly relates to 

stores leased that are not used by the company, but are subleased. 

9. Personnel expenses 

Personnel expenses 



2008/09 


Wages and salaries 595.6 578.6 

Social security, pension and other benefit costs 124.7 119.7 

Of which for pensions 5.4 4.3 

Total 720.3 698.3 

10. Other operating expenses 

Other operating expenses are broken down as follows: 

Other operating expenses 



2008/09 


Rent and energy costs 368.7 365.6 

Advertisement in newspapers 20.5 23.8 

Advertisement in other media 14.8 17.8 

Direct mailing and customer loyalty card 26.4 27.4 

Other marketing and advertisement costs 70.9 66.1 

Costs of transferring merchandise 57.1 47.4 

Other services 60.6 56.2 

Repair costs 15.7 16.2 

Credit card commission 11.8 11.4 

Office and postal costs 13.9 14.3 

Travel and vehicle costs 12.6 12.0 

Consumables and supplies 11.3 10.8 

Expenses from sublease 14.8 23.3 

IT costs 17.7 16.0 

Insurance premiums 4.6 4.4 

Fees and dues 13.0 11.1 

Other expenses 41.7 48.2 

Total 776.1 772.0

11. Investment result 

In the previous year, income from investments in associates amounted to 0.3 million 

EUR. In the 2009/10 fiscal year, there was no income from the measurement of associated 

companies, because of the acquisition of a majority shareholding interest in buch.de internetstores 

AG, Münster, which resulted in the full consolidation of the company. 

12. Amortization/depreciation 

Amortization/depreciation 



2008/09 


Scheduled amortization of intangible assets and depreciation of property, 

plant and equipment 

116.3 116.2 

Impairment losses on intangible assets and property, plant and equipment 28.9 22.7 

Total 145.2 138.9 

13. Financial result 

Financial result 



2008/09 


Interest from loans and receivables 3.0 3.2 

Income from financial instruments: Held-to-maturity 0.0 0.0 

Income from financial instruments: Trading 0.0 0.1 

Income from financial instruments: Available-for-sale 0.0 0.0 

Income from minority options 0.0 2.5 

Total financial income 3.0 5.8 

Interest expense for discounting non-current provisions −1.9 −1.8 

Financing expense for minority options −1.9 −6.0 

Expense for financial instruments: Trading −0.1 0.0 

Financial expense for financial assets at amortized cost −9.6 −10.2 

Total financial expense −13.5 −18.0 

Financial result −10.5 −12.2 

Financial income and expense arising from financial instruments are properly classified 

to the respective categories pursuant to IAS 39. In connection with the revolving credit 

facility, expenses totaling 0.5 million EUR were incurred during the fiscal year under review 

(previous year: 0.5 million EUR). In all, fees in the form of compensation incurred 

in conjunction with financial instruments amounted to 5.1 million EUR for the fiscal year 

2009/10 (previous year: 4.7 million EUR). The financial expenses for the minority options 

relate to the results of third-party shareholders whose interests are reported as payables, 

as these either have an option right or are minority interests in German partnerships. 








Notes 




137








Notes 




14. Net results by valuation category 

Net results by valuation category – Fiscal year 2009/10 

Income/expense from 

Fair Value measurement 


Impairment 


Interest 

income 


Interest 

expense 


Net profit/loss 


Financial instruments: Held-for-trading 0.0 0.0 0.0 0.0 0.0 

Financial instruments: Held-to-maturity 0.0 0.0 0.0 0.0 0.0 

Available-for-sale financial assets 0.0 0.0 0.0 0.0 0.0 

Loans and receivables 0.0 −1.3 3.0 −9.6 −7.9 

Liabilities measured at Fair Value −0.1 0.0 0.0 0.0 −0.1 

Minority options 0.0 0.0 0.0 −1.9 −1.9 

Net profit by measurement category −0.1 −1.3 3.0 −11.5 −9.9 

Income/expenses, not included in 

the interest result 

Interest income/expenses of assets, 

which are not financial instruments 

0.0 1.3 0.0 0.0 1.3 

0.0 0.0 0.0 −1.9 −1.9 

Financial result −0.1 0.0 3.0 −13.4 −10.5 

Net results by valuation category – Fiscal year 2008/09 

Income/expense from 

Fair Value measurement 


Impairment 


Interest 

income 


Interest 

expense 


Net profit/loss 


Financial instruments: Held-for-trading 0.0 0.0 0.0 0.0 0.0 

Financial instruments: Held-to-maturity 0.0 0.0 0.0 0.0 0.0 

Available-for-sale financial assets 0.0 0.0 0.0 0.0 0.0 

Loans and receivables 0.0 −0.8 3.2 −10.2 −7.8 

Liabilities measured at Fair Value 0.1 0.0 0.0 0.0 0.1 

Minority options 0.0 0.0 2.5 −6.0 −3.5 

Net profit by measurement category 0.1 −0.8 5.7 −16.2 −11.2 

Income/expenses, not included in 

the interest result 

0.0 0.8 0.0 0.0 0.8 

Interest income/expenses of assets, 

which are not financial instruments 

0.0 0.0 0.0 −1.8 −1.8 

Financial result 0.1 0.0 5.7 −18.0 −12.2 

Interest arising from financial instruments is reported in the financial result and dividends 

under the investment result. Valuation allowances on trade accounts receivable classified 

to the loans and receivables category are shown under other operating expenses. In the 

fiscal year under review and in the previous year, neither income or expenses from financial 

instruments held-for-trading, held-to-maturity nor available-for-sale were incurred.

15. Income taxes 

Income taxes 



2008/09 


Income taxes 58.5 54.0 

National 41.1 41.4 


Deferred taxes −3.4 −12.9 

From temporary differences 4.7 −10.6 

From loss carryforwards −8.1 −2.3 

Total 55.1 41.1 

The statutory corporate income tax rate in Germany for the assessment period 2009/10 

totaled 15 percent. Including trade tax and the solidarity surcharge, this resulted in taxes 

totaling 32.0 percent. Deferred taxes for the German Group companies were also generally 

measured at 32.0 percent (previous year: 32.0 percent). For foreign companies, a countryspecific 

average tax rate is generally applied. 

In accordance with current tax provisions, the current imputed corporation tax credits 

as of December 31, 2006 were stated at Fair Value through profit and loss. As of September 

30, 2010 the corporate income tax credit amounted to 9.3 million EUR (previous year: 

8.4 million EUR). The corporate income credit is shown in the balance sheet under noncurrent 

tax receivables. 

An amount of -0.1 million EUR (previous year: 0.7 million EUR) was recognized directly 

to equity under a separate component of equity. 

No deferred tax assets were recognized for tax losses carried forward of individual 

Group companies totaling 24.5 million EUR (previous year: 27.9 million EUR). Of this 

amount, none was used in the fiscal year under review (previous year: nil). 

The reconciliation from the expected tax expense to the effective tax expense is as follows: 

Tax reconciliation 








Notes 





Earnings before taxes EUR m 131.2 103.9 

Consolidated income tax rate (national incl. trade tax) in % 32.0 32.0 

Expected tax expense EUR m 42.0 33.2 

Impact of different national tax rates EUR m −4.7 −4.3 

Non-period tax income/expense EUR m 8.5 1.0 

Tax-exempt income EUR m 0.0 −1.8 

Non-deductible tax operating expenses EUR m 1.7 3.0 

Financial expenses – minority options EUR m 0.6 1.1 

Unreported deferred tax assets due to operating losses EUR m 2.1 4.8 

Unreported deferred tax assets due to goodwill impairment EUR m 5.4 1.6 

Write-ups on deferred taxes/use of unrecognized loss carryforwards EUR m 0.0 0.0 

Trade tax (additions/deductions) EUR m 0.5 2.7 

Other EUR m −1.0 −0.2 

Effective tax expense EUR m 55.1 41.1 

139








Notes 




NOTES TO THE BALANCE SHEET 

16. Intangible assets and property, plant and equipment 

Intangible assets – Fiscal year 2009/10 

Leasehold interests 

and similar rights 

and assets 


Goodwill 


Advance 

payments for 

intangible assets 


Total 


Acquisition costs 

As of October 1, 2009 119.7 216.6 0.6 336.9 

Currency adjustments 0.4 0.3 0.0 0.7 

Changes due to business 

combinations 

29.3 0.4 1.0 30.7 

Additions 10.2 −0.3 0.8 10.7 

IAS 32 0.0 3.9 0.0 3.9 

Disposals −4.5 −1.9 −0.1 −6.5 

Reclassifications IFRS 5 −7.7 −3.7 0.0 −11.4 

Reclassifications 1.5 0.0 −1.5 0.0 

As of September 30, 2010 148.9 215.3 0.8 365.0 

Accumulated amortization 





1.6 0.0 0.0 1.6 

Additions 12.9 0.0 0.0 12.9 

IAS 36 3.8 16.5 0.0 20.3 

Write-ups −0.6 0.0 0.0 −0.6 

Disposals −3.4 −0.9 0.0 −4.3 


Reclassifications 0.0 0.0 0.0 0.0 


Net 


As of September 30, 2009 59.5 205.4 0.6 265.5

Intangible assets – Fiscal year 2008/09 

Leasehold interests 

and similar rights 

and assets 


Goodwill 


Advance 

payments for 

intangible assets 


Total 



As of October 1, 2008 108.7 214.7 5.9 329.3 

Currency adjustments 0.0 −0.6 0.0 −0.6 



0.3 1.7 0.0 2.0 

Additions 8.9 0.8 0.5 10.2 

IAS 32 0.0 2.2 0.0 2.2 

Disposals −6.6 −0.4 −0.5 −7.5 

Reclassifications 8.4 −1.8 −5.3 1.3 

As of September 30, 2009 119.7 216.6 0.6 336.9 

Accumulated amortization 





0.1 0.0 0.0 0.1 

Additions 10.5 0.0 0.0 10.5 

IAS 36 0.3 5.7 0.0 6.0 

Write-ups −1.3 0.0 0.0 −1.3 

Disposals −5.2 −0.2 0.0 −5.4 

Reclassifications 1.8 −1.8 0.0 0.0 


Net 


As of September 30, 2008 54.7 207.0 5.9 267.6 








Notes 




141








Notes 




Property, plant and equipment – Fiscal year 2009/10 

Land 

and buildings 


Other equipment, 

operating and 

office equpiment 


Payments on 

account and assets 

under construction 


Total 



As of October 1, 2009 639.5 774.4 7.9 1,421.8 

Currency adjustments 5.0 5.6 0.2 10.8 



0.0 2.4 0.0 2.4 

Additions 33.9 65.9 7.0 106.8 

Disposals −27.7 −52.7 0.1 −80.3 


Reclassifications −2.7 8.5 −5.8 0.0 

As of September 30, 2010 644.9 797.6 9.4 1,451.9 

Accumulated depreciation 





0.0 1.7 0.0 1.7 


IAS 36 5.3 3.3 0.0 8.6 

Write-ups −1.0 −1.9 0.0 −2.9 

Disposals −25.7 −50.3 0.0 −76.0 


Reclassifications −2.7 2.7 0.0 0.0 


Net 


As of September 30, 2009 264.8 205.9 7.9 478.6

Property, plant and equipment – Fiscal year 2008/09 

Land 

and buildings 


Other equipment, 

operating and 

office equpiment 


Payments on 

account and assets 

under construction 


Total 



As of October 1, 2008 613.4 747.5 14.5 1,375.4 

Currency adjustments −1.7 −4.6 0.0 −6.3 



0.0 0.4 0.0 0.4 

Additions 35.0 57.0 10.1 102.1 

Disposals −15.0 −32.8 −0.7 −48.5 

Reclassifications 7.8 6.9 −16.0 −1.3 

As of September 30, 2009 639.5 774.4 7.9 1,421.8 

Accumulated depreciation 

As of October 1, 2008 338.8 528.2 0.0 867.0 




0.0 0.3 0.0 0.3 


IAS 36 7.5 9.2 0.0 16.7 

Write-ups 0.0 −1.2 0.0 −1.2 

Disposals −13.1 −30.4 0.0 −43.5 

Reclassifications 0.0 0.0 0.0 0.0 


Net 


As of September 30, 2008 274.6 219.3 14.5 508.4 








Notes 




143








Notes 




A) Intangible assets and property, plant and equipment 

The capital expenditure of the 2009/10 fiscal year is broken down by divisions as follows: 

Capital expenditure 



2008/09 


Perfumeries 56.3 61.1 

Books 30.3 24.2 

Jewelry 14.4 8.0 

Fashion 1.8 5.0 

Confectionery 3.4 3.8 

DOUGLAS HOLDING AG, Services 11.3 10.2 

Total 117.5 112.3 

Of this total, 38.7 million EUR is attributable to foreign subsidiaries (fiscal year 2008/09: 

46.2 million EUR). 

The additions to intangible assets mostly relate to acquired Internet domains in connection 

with the business acquisition of buch.de internetstores AG. 

Capital expenditure in property, plant and equipment primarily relates to the opening 

and acquisition of 30 stores in Germany and 42 stores abroad. In addition, continual 

investments were made in designing and re-designing existing stores. 

Scheduled amortization/depreciation for the fiscal year totaled 116.3 million EUR (previous 

year: 116.2 million EUR). 

Impairment tests for property, plant and equipment and intangible assets at store level, 

as cash-generating units, led to write-downs totaling 12.4 million EUR in the fiscal year 

under review (previous year: 16.7 million EUR). Ongoing negative contributions towards 

profits and the intended closure of stores triggered the performance of impairment tests 

on the cash-generating units. 

In addition, write-ups amounted to 3.4 million EUR in fiscal year 2009/10 (previous 

year: 2.5 million EUR) and are shown under other operating income. In general, single 

cash-generating units are written-up due to increases in income following a previous 

write-down. 

As part of impairment testing, the carrying amount of the cash-generating unit is compared 

to its recoverable amount. The recoverable amount is calculated as being the value 

in use of the future Cash Flows based on internal forecasts. Sensitivity planning assumptions 

include sales growth, gross profit forecasts, estimates of replacement investments 

in the store network and the ratio of personnel expenses to sales on the basis individual 

stores. The forecasts are based on the fixed term of the respective lease agreements. The 

forecast term is between one and ten years. Calculations are based on an interest rate of 

10.75 percent before taxes.

Finance leases 

As of the balance sheet date only one subsidiary had finance leases. The leased assets 

mostly comprised of vehicles, which were shown with a carrying value of nil as of September 

30, 2010 (previous year: 0.1 million EUR). 

Operating leases 

Contracts qualifying as operating leases within the DOUGLAS Group mostly comprise 

store rental agreements. As a rule, these agreements are concluded for a basic rental period 

of 10 years and contain lease extension options. The operating leases shown do not 

include any lease extension options. The lease installments are based on both variable 

and fixed rental payments. The minimum lease payments from operating lease agreements 

amounted to 280.7 million EUR in the 2009/10 fiscal year (previous year: 281.1 million 

EUR). Contingent rent payments amounted to 3.0 million Euro. 

Operating leases 

Up to 1 year 


1 to 5 years 


More than 5 years 



Total 


2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 

Obligations from operating leases 275.1 245.8 671.6 565.9 250.2 214.0 1,196.9 1,025.7 

Income from subleases 9.6 15.8 25.2 42.8 12.9 23.8 47.7 82.4 

B) Goodwill 

Goodwill in the amount of 155.3 million EUR (previous year: 167.1 million EUR) is due 

to differences from capital consolidation and 34.7 million EUR (previous year: 38.3 million 

EUR) is due to goodwill arising from asset deals at the level of the individual financial 

statements. 

According to the amendments made to IFRS 8.5 in conjunction with IAS 36.80b, goodwill 

is to be reallocated to the operating segments. As a consequence, the goodwill of Douglas 

Iberia Holding S.A. in the amount of 13.9 million Euro was reallocated in the amount 

of 7.0 million Euro to Douglas Spain S.A. and 6.9 million Euro to Douglas Portugal Lda.. 

Secondly, the goodwill of S.I.A. Douglas Baltic in the amount of 7.0 million Euro was reallocated 

in the amount of 5.2 million Euro to the Latvian subsidiary and 1.8 million to 

the Lithuanian subsidiary. This reallocation of goodwill was conducted prospectively as 

per October 1, 2009. 

According to IAS 36, existing goodwill is subject to an impairment test at least once 

each year. Goodwill from company acquisitions is allocated at a legal-unit level, because 

it is monitored and controlled at that level. As is the case for impairment tests for tangible 

assets, the carrying amount of the cash-generating units is compared with the recoverable 

amount of the cash-generating units, with the recoverable amount in the DOUGLAS 

Group being defined as the value in use based on the discounted future Cash Flows from 

the internal forecast. Sensitivity planning assumptions include sales growth, gross profit 

forecasts, estimates of replacement investments in the store network and the ratio of personnel 

expenses to sales. The forecasts are based on both internal company estimates and 







Notes 




145








Notes 




experience values as well as external macroeconomic data. The forecasts are developed 

on the basis of actual past values and take into account an additional rise in profitability 

for individual foreign Perfumery companies from the increase in the share of private 

and exclusive labels. 

The forecasts are based on a detailed forecast period of ten years, which corresponds 

to the companies’ standardized forecasting system, and a subsequent constant perpetual 

annuity. The calculations are based on a risk-adjusted growth rate of between 0 and 1 percent 

(previous year: 0 to 2 percent) before adjustments for future market saturation effects 

depending on the expected ROCE. For discounting purposes, an interest rate is applied of 

between 7.5 and 11.0 percent before taxes (prior year: 9 to 13 percent). 

Material goodwill amounts exist for Douglas France, Thalia Holding and the Buch und 

Kunst Group. A write-down requirement for Thalia Holding and the Buch und Kunst Group 

following the change in key planning assumptions is not currently thought to be possible. 

Impairment testing applied to goodwill led to write-downs totaling 16.5 million EUR 

for the fiscal year under review (previous year: 5.7 million EUR). Of which, 7.0 million EUR 

relates to the operating segment in Spain, 4.6 million Euro to the operating segment in 

France, 3.1 million Euro to the operating segment in Croatia and 1.8 million Euro to the 

operating segment in Lithuania. The write-downs mainly arose from the economically 

strained situation in the aforementioned countries and to falling consumer spending. 

All goodwill of these cash-generating units are attributable to the Perfumeries Division. 

The write-downs arose on the basis of the budget forecasts for the coming years as part 

of the impairment testing. The total impairment needs for this cash-generating unit was 

deducted from the existing goodwill amount. The ramaining amounts equal the value in 

use per cash-generating unit. 

In addition to the impairment tests, a sensitivity analysis was performed. Based on a 

lower growth rate of 0.5 percent and a declining gross profit ratio by 0.5 percentage points, 

an additional write-down amount would arise in the amount of 16.7 million Euro and 11.5 

million Euro, respectively, for Douglas France. In respect of Croatia and Lithuania and 

based on the same sensitivity parameters, a write-down amount of 2.6 and 1.4 million 

Euro, respectively, and 0.0 million Euro and 0.0 million Euro for Lithuania would arise. 

Location advantages associated with the leasehold interests that were purchased from 

the prior tenant are capitalized under intangible assets with indefinite useful lives. The 

useful life of these assets is independent of the term of the rental agreement. In addition, 

the Internet domains of buch.de internetstores AG and buch.ch AG have been capitalized. 

Material items of goodwill and intangible assets with indefinite lives existed as of the 

balance sheet date for the following cash-generating units:

Carrying amounts of goodwill and intangible assets with indefinite lives 

as of the balance sheet date for the following cash generating units 

Company Goodwill: Individual 

financial 

statements 



Goodwill: 

capital 

consolidation 



with indefinite 

useful lives 


Goodwill: Individual 

financial 

statements 


Goodwill: 

capital 

consolidation 




with indefinite 

useful lives 


Parfümerie Douglas Deutschland 

GmbH, Hagen 

5.2 6.5 5.2 6.6 

HELA Kosmetik Handels GmbH & Co. 

Parfümerie KG, Hagen 

4.1 4.1 

Parfümerie Douglas Ges.m.b.H., 

Vienna 

2.4 2.4 

Parfumerie Douglas France S.A., Lille 21.1 26.6 11.9 22.4 30.4 13.7 

Douglas Spain S.A., Madrid 0.0 13.9 

Profumerie Douglas S.P.A., Bologna 4.8 4.8 

Douglas Portugal Lda., Lisbon 6.9 

OOO Douglas Rivoli, Moscow 2.0 

S.I.A. Douglas Baltic, Riga 7.3 

S.I.A. Douglas Latvia, Riga 5.2 

Parfümerie Douglas Bulgarien ood, 

Sofia 

6.4 7.7 

IRIS d.d., Zagreb 8.0 12.5 

Thalia Holding GmbH, Hamburg 42.9 38.4 

Thalia Universitätsbuchhandlung 

GmbH, Hagen 

5.8 3.2 5.9 0.7 

Reinhold Gondrom GmbH & Co. KG, 

Kaiserslautern 

0.5 14.0 0.5 14.0 

Buch und Kunst Gruppe, Dresden 19.5 20.0 

Grüttefien GmbH, Varel 4.5 2.7 

buch.de internetstores AG, Münster 0.2 19.2 

buch.ch AG, Winterthur 6.8 

Buch Kaiser GmbH, Karlsruhe 0.0 2.5 

Other 2.1 2.5 2.3 1.5 

Total 34.7 155.3 40.3 38.3 167.1 16.1 

17. Deferred taxes 

Deferred taxes were calculated on the differences between the IFRS carrying amount 

and the tax base and can be broken down to the individual balance sheet items as follows: 







Notes 




147








Notes 




Deferred taxes 

Asset 



Liability 


Asset 


Liability 


Intangible assets 3.0 10.4 4.6 1.0 

Property, plant and equipment 9.9 9.4 9.4 9.5 

Inventories 5.5 0.7 5.9 0.8 

Financial assets 1.0 1.7 0.4 1.6 

Other assets 0.2 0.0 0.1 0.0 

Provisions 13.8 0.0 13.0 0.0 

Financial liabilities 5.3 1.2 3.8 1.5 

Other liabilities 0.0 4.5 0.3 4.5 

Additional paid-in capital 0.0 0.3 0.0 0.3 

Tax loss carryforwards 16.2 0.0 8.1 0.0 

Total 54.9 28.2 45.6 19.2 

Offsetting −15.6 −15.6 −12.3 −12.3 

Carrying amount 39.3 12.6 33.3 6.9 

Deferred tax assets on loss carryforwards were recognized for companies with budget 

forecasts triggering substantial indications for impairment. 

Based on a lower sales growth rate of 0.5 percent and a declining gross profit ratio of 

0.5 percentage points, a write-down amount of 0.4 million Euro and 0.0 million Euro respectively 

would arise for Douglas Spain S.A.. 

18. Inventories 

Inventories 





Finished goods and merchandise 635.3 655.3 

Raw materials, consumables and supplies 9.4 11.3 

Advances to suppliers for merchandise 2.5 0.5 

Total 647.2 667.1 

In the fiscal year under review, inventories were written down to the net realizable 

value in the amount of 22.7 million EUR (previous year: 22.7 million EUR). 

19. Trade accounts receivable 

Trade accounts receivable primarily include settlement receivables from credit card 

organizations as well as from Douglas Card customers. Of this amount, 1.3 million EUR 

(previous year: 0.9 million EUR) was written down due to an allowance for uncollectible

accounts. The write-downs on trade accounts receivable are shown under other operating 

expenses. They are payable immediately. These receivables do not bear interest and are 

therefore not exposed to any interest rate risk. The carrying amounts of the receivables 

are basically equivalent to their Fair Values. The maximum default risk corresponded to 

the carrying value as of the balance sheet date. 

20. Financial assets 

Financial assets 


With a remaining term of 

Up to 1 year 


More than 1 year 



With a remaining term of 

Up to 1 year 


More than 1 year 


Bonuses 72.1 65.1 

Other equity participations 2.4 2.5 

Other loans and advances 2.6 3.0 

Securities 0.1 0.9 

Derivative financial instruments 0.0 0.0 

Other financial assets 24.5 0.1 28.9 0.3 

Total 96.7 5.1 94.9 5.8 

Other equity participations are investments in equity instruments of unlisted companies 

and are carried at cost. Their Fair Values cannot be reliably measured because no 

market values for these instruments exist. Due to different balance sheet dates, no current 

financial information is available. Furthermore, it is not possible to state a range of 

estimated values. 

Other loans were issued with a fixed interest rate of 6.8 percent and a term until 

November 30, 2010 as well as loans with variable interest rates. 

Securities are designated as “available-for-sale” and therefore carried at Fair Value. 

Changes in Fair Value are recognized directly to equity as a separate component. 

Other financial assets include receivables from associates, in which other investments 

are held, in the amount of 0.3 million EUR (previous year: 0.8 million EUR). Furthermore, 

the item contains balances owed in supplier accounts of 6.9 million EUR (previous year: 

4.9 million EUR) and receivables from rental agreements of 7.0 million EUR (previous year: 

5.4 million EUR). In addition, a short-term loan of 8.6 million EUR is reported under other 

financial assets with a floating rate based on EURIBOR plus a margin. All other financial 

assets are non-interest bearing financial instruments. The carrying amounts of other financial 

assets are basically equivalent to their Fair Values. 

There are no restrictions to the disposal rights for the receivables and other assets carried 

on the balance sheet. 

The maximum default risk corresponds to the carrying value as of the balance sheet 

date. 








Notes 




149








Notes 




Analysis of financial assets not impaired 

Past due < 30 days 


Past due > 30 days 


Trade accounts receivable 

09/30/2010 45.8 2.2 


Other receivables 

40.7 2.0 

09/30/2010 3.2 99.7 

09/30/2009 5.4 95.3 

Other receivables with an amount of 99,7 million EUR (previous year: 95,3 million EUR) 

are not due yet. 

With respect to receivables that are neither impaired nor past due, there were no indications 

of uncollectibility from the debtor as of the balance sheet date. In total, there was 

no amount recorded for direct write-downs of receivables for which previous write-downs 

were not recognized (previous year: 0.1 million EUR). Cash receipts relating to receivables 

fully written-off in prior periods were not recognized in the fiscal year under review nor 

in the previous year. 

Write-downs on capitalized financial instruments 

Loans and receivables 



As of October 1 4.2 3.7 

Additions 3.1 1.0 

Reversal −1.1 −0.2 

Utilization −0.7 −0.3 

Currency translation adjustments 0.0 0.0 

Changes in the consolidated group 1.1 0.0 

As of September 30 6.6 4.2 

Impairment losses were not recognized on other financial assets neither in the fiscal 

year under review nor in the previous fiscal year. 

21. Other assets 

Other assets primarily include deferred expenses. 

22. Cash and cash equivalents 

The largest item of cash and cash equivalents is bank balances. It also includes checks 

and cash in hand. The Cash Flow statement provides a detailed analysis of the movement 

in cash and cash equivalents. The maximum default risk corresponds to the carrying value 

as of the balance sheet date.

23. Assets and liabilities held for sale 

This item contains the following major group of the Russian subsidiaries, OOO Douglas 

Rivoli and OOO Parfümerie International Company, each based in Moscow/Russia, 

and Douglas Rivoli Holding B.V., based in Nijmegen/The Netherlands. 

The aforementioned companies were sold on December 30, 2010. The assets and liabilities 

held for sale are fully attributable to the Perfumeries Division. 

Assets and liabilities held for sale 


Intangible assets 4.3 

Property, plant and equipment 5.8 

Inventories 18.0 

Cash and cash equivalents 1.7 

Other assets 4.7 

Financial assets 6.7 

Provisions 0.5 

24. Equity 

Capital stock 

Issued capital totaled 117,962,676.00 EUR on the balance sheet date and comprises 

39,320,892 no-par value shares. The shares have a theoretical par value of 3.00 EUR 

each. The no-par value bearer shares carry full voting and dividend rights for fiscal year 

2009/10, and are admitted to trading on the official markets of four German stock exchanges. 

Capital stock is entirely paid-in. 

Issued capital changed as follows during the year under review: 

Changes in issued capital 

Issued capital 

As of October 1, 2009 

EUR m 117.8 

Shares 39,279,312 

Issue of employee shares 

EUR m 0.2 

Shares 41,580 

As of September 30, 2010 

EUR m 118.0 

Shares 39,320,892 








Notes 




151








Notes 




The Shareholders’ Meeting on March 24, 2010 authorized the Executive Board pursuant 

to Section 71 (1) No. 8 of the German Stock Corporation Act (AktG), with the approval 

of the Supervisory Board, to acquire own shares of up to 10 percent of the share capital up 

to September 23, 2011. This authorization has not been acted on. 

Earnings per share are calculated by dividing net income by the average number 

of shares outstanding in the year under review. These increased in fiscal year 2009/10 

through the issue of 39,315,424 employee shares (previous year: 39,273,539). 

Authorized capital I 

By way of a shareholders’ resolution dated March 12, 2008, the Executive Board was 

authorized, with the approval of the Supervisory Board, to increase the company’s share 

capital by up to 25.0 million EUR in the period up to March 11, 2013 by issuing single or 

multiple new, no-par value bearer shares against cash or non-cash contributions. 

In so doing, the shareholders are to be granted subscription rights for cash capital increases. 

However, the Executive Board is authorized, with the approval of the Supervisory 

Board, to exclude fractions from the shareholders’ subscription rights. In the case of noncash 

capital increases, the Executive Board is authorized, with the approval of the Supervisory 

Board, to exclude shareholders’ subscription amounts up to a nominal amount of 

12.5 million EUR in total for the purpose of acquiring companies or participating interests 

in companies. The Executive Board is also authorized, with the approval of the Supervisory 

Board, to define the conditions for issuing shares and the further details for implementing 

capital increases from authorized capital. Authorized capital I has not been utilized to date. 

Authorized capital II 

By way of a resolution of the Shareholders´ Meeting dated March 12, 2008, the Executive 

Board was authorized, with the approval of the Supervisory Board, to increase the company’s 

share capital by up to 1.5 million EUR in the period up to March 11, 2013 by issuing new, 

no-par value bearer shares against cash contributions on one or several occasions. 

In so doing, the Executive Board can, with the approval of the Supervisory Board, exclude 

shareholders’ subscription rights in order to issue the new no-par value shares to employees 

of the company or of an associated company. The Executive Board, with the approval 

of the Supervisory Board, decides on the issue of new no-par value shares and the 

conditions of the issue. Including the 41,580 shares issued to employees during the year under 

review (is equivalent to capital stock of 124,740.00 EUR), authorized capital II has to date been 

utilized in the amount of 0.3 million EUR. A further 56,330 employee shares were issued in 

November 2010 at a price of 20.00 EUR. These carry dividend rights for the year under review. 

Additional paid-in capital 

Additional paid-in capital comprises of the excess paid by shareholders over the par 

value price of capital stock. Premiums from the capital increase for employee shares in the 

amount of 1.1 million EUR were added to the additional paid-in capital. 

As part of the employee shares option program, employees are permitted to purchase 

a specific number of DOUGLAS HOLDING AG shares once a year at a subscription price. 

Employees are permitted to order the shares on a predetermined date in the first quarter

of the fiscal year, which are then issued by DOUGLAS HOLDING AG. The employee shares 

option program is measured at Fair Value. The Fair Value is based on the stock price, which 

amounted to 36.83 EUR as of the balance sheet date (previous year: 31.25 EUR). The benefit 

of 0.8 million EUR granted to employees for the difference between the issue price and 

stock price is recognized under personnel expenses in the 2009/10 fiscal year. In addition, 

the transaction costs incurred in this connection in the amount of 0.1 million EUR are offset 

directly against the additional paid-in capital. 







Other revenue reserves 409.7 377.5 

Statutory reserve 0.3 0.3 

Reserve for the valuation of minority options (IAS 32) 8.6 8.6 

Reserve for the valuation of hedging instruments −1.5 −2.0 

Reserve pursuant to deferred tax directly charged to equity 0.4 0.6 

Reserve for currency translation differences −5.8 −11.0 

Total 411.7 374.0 

The retained earnings reflect the valuation effects recognized directly to equity and 

the resulting deferred taxes from the valuation of derivative financial instruments that are 

used for hedging and that qualify as hedging instruments within the meaning of IAS 39. 

In the fiscal year under review, an amount from the valuation of Cash Flow hedges of 0.4 

million EUR (previous year: decrease of 2.2 million EUR) increased the retained earnings. 

Correspondingly, deferred taxes as of the balance sheet date decreased by 0.1 million EUR 

(previous year: increase 0.6 million EUR) and were also recognized directly to equity. Valuation 

fluctuations in derivative financial instruments for which no hedging relationship 

exist are recognized immediately to the income statement. In the fiscal year under review, 

such hedging instruments did not exist in the DOUGLAS Group. In the 2008/09 fiscal year, 

an amount of 0.1 million Euro was recognized under the financial result. 

Minority interests 

The shares in consolidated companies attributable to other shareholders are reported 

under this item. As a result of the provisions of IAS 32, interests of shareholders, who have 

an option to sell or an opportunity for termination with compensation at present values 

that were included in the opening balance sheet had to be reclassified as financial liabilities 

and carried at Fair Value. The remaining amounts are therefore mainly attributable 

to the first time fully consolidated company, buch.de internetstores AG, Münster, in the 

amount of 14.7 million Euro and to Douglas Expansion, Clermont-Ferrand/France in the 

amount of 0.2 million Euro. 

Profit appropriation 

The distribution of dividends by DOUGLAS HOLDING AG is determined by the company’s 

HGB financial statements. 








Notes 




153








Notes 




Pursuant to a resolution of the Shareholders´ Meeting on March 24, 2010, a dividend 

of 1.10 EUR per share, or a total amount of 43.3 million EUR was distributed to the shareholders 

from the net retained earnings of 44.0 million EUR from the fiscal year 2008/09. 

The remaining amount of 0.7 million EUR was carried forward. 

The Executive Board will propose to the Shareholders’ Meeting to pay from the reported 

retained earnings of DOUGLAS HOLDING AG totaling 44.0 million EUR for the 

fiscal year 2009/10, a dividend of 1.10 EUR per no-par value share with dividend rights, 

or a total amount of 43.3 million EUR. The remaining amount of 0.7 million EUR is to be 

carried forward. 

25. Provisions for pensions 

Provisions for pensions are formed for commitments arising from pension entitlements 

and ongoing payments to employees and former employees and their surviving dependents. 

The pension entitlements usually relate to a payment for contractually agreed oldage 

pension as a monthly amount. These commitments are accounted for according to 

the requirements of IAS 19. The measurement for German subsidiaries is valued based on 

actuarial reports pursuant to the following parameters: 

Calculation parameters 





Interest rate 4.70 5.90 

Pension-benefit increase rate during expectancy period 2.5 2.5 

Increase in consumer price index 1.5 2.0 

The expected return on plan assets is between two and four percent. 

The interest rates for the foreign subsidiaries are between 2.75 percent to 4.10 percent, 

with a pension-benefit rate during the expectancy period of between 1.2 percent and 2.0 

percent and an increase in consumer price index of 0.5 percent to 2.5 percent. 

Dr. Heubeck’s 2005 “Mortality Tables,” or comparable country-specific mortality 

tables, were used as a basis for the biometric parameters. 

The actuarial gains and losses were recorded based on the 10 percent corridor method. 

According to this method, actuarial gains and losses are only recognized in income if they 

exceed 10 percent of the amount of the commitment. The amount which exceeds the corridor 

is then distributed over the average remaining working lives of the employees participating 

in that pension plan. 

Company pensions in the DOUGLAS Group are based primarily on defined benefit 

plans. 

The perfumery, Douglas Nederland B.V. takes part in a multi-employer-plan which basically 

must be qualified as a defined benefit plan. But due to the unavailability of the nec-

essary information, this plan is qualified as a defined contribution plan. The recognized 

expense due to this plan amounts to 1.8 million EUR for the 2009/10 fiscal year (previous 

year: 1.3 million EUR). Payments of about the same amount are expected for the coming 

fiscal year. 

Reconciliation Defined Benefit Obligation (DBO) 

Unfunded 

obligation 



Funded 

obligation 


Unfunded 

obligation 


Funded 

obligation 


DBO 27.0 30.2 24.7 24.0 

Actuarial gains/losses – not included – 0.3 0.3 2.2 1.2 

Fair Value of plan assets 0.0 26.3 0.0 22.5 

Liability 27.3 4.2 26.9 2.7 

DBO reconciliation 

Unfunded 

obligation 



Funded 

obligation 


Unfunded 

obligation 


Funded 

obligation 


DBO as of October 1 24.7 24.0 25.8 24.5 

Actuarial gains/losses 2.0 1.2 −1.3 −1.2 

Service cost 0.2 2.6 0.3 0.2 

Interest cost 1.4 1.1 1.4 0.6 

Past service costs 0.0 0.0 0.0 −0.3 

Curtailments/settlements 0.2 0.0 0.0 0.0 

Insurance premium 0.0 0.0 0.0 0.0 

Contributions 0.0 −0.2 0.0 0.2 

Pension payments −1.6 −0.1 −1.5 0.0 

Currency translation adjustments 0.1 1.6 0.0 0.0 

Changes in the consolidated group 0.0 0.0 0.0 0.0 

DBO as of September 30 27.0 30.2 24.7 24.0 

Pension expenses 

Unfunded 

obligation 



Funded 

obligation 


Unfunded 

obligation 


Funded 

obligation 


Service cost 0.2 2.6 0.3 0.2 

Interest cost 1.4 1.1 1.4 0.6 

Amortization of actuarial gains/losses 0.1 0.0 0.1 0.0 

Expected return on plan assets 0.0 0.3 0.0 0.1 

Past service costs 0.2 0.0 0.0 0.0 

Gains/losses from 

curtailments/settlements 

0.0 0.0 0.0 0.0 

Period pension expense 1.9 3.4 1.8 0.7 








Notes 




155








Notes 




Pension payments in the amount of 1.8 million EUR are expected for the 2010/11 fiscal 

year. 

Development of plan assets 



2008/09 


Plan assets as of October 1 22.5 20.3 

Expected return on plan assets 0.5 0.1 

Actuarial gains/losses 2.4 0.0 

Contributions 1.7 2.3 

Currency translation adjustments 0.1 0.0 

Costs 0.0 0.0 

Payments −0.9 −0.2 

Changes in the consolidated group 0.0 0.0 

Plan assets as of September 30 26.3 22.5 

The table below depicts the development of the financing status over the past fiscal 

years arising from the net present value between the defined benefit obligations and the 

Fair Value of plan assets. 

Funded status 





09/30/2008 


09/30/2007 


09/30/2006 


DBO 57.2 48.7 50.3 35.1 39.1 

Plan assets 26.3 22.5 20.3 8.1 9.1 

Net −30.9 −26.2 −30.0 −27.0 −30.0 

26. Provisions 

Statement of changes in non-current provisions 

Human resources 

commitments 


Provision for 

purchase price 

annuities 


Real estate 

commitments 


Other 

provistions 


Total 


10/01/2009 16.3 0.7 5.3 0.5 22.8 

Utilization −0.9 0.0 −0.8 0.0 −1.7 

Reversal −0.2 0.0 −1.0 0.0 −1.2 

Additions 2.6 0.0 0.3 0.1 3.0 

Reclassifications 0.1 0.0 0.1 0.0 0.2 

Change to the 

consolidated group 

0.0 0.0 0.0 0.0 0.0 

Currency translation 0.0 0.0 0.0 0.0 0.0 

09/30/2010 17.9 0.7 3.9 0.6 23.1

Statement of changes in current provisions 

Human resources 

commitments 


Real estate 

commitments 


Other 

provistions 


Total 


10/01/2009 66.6 15.4 51.3 133.3 

Utilization −54.0 −8.3 −37.7 −100.0 

Reversal −5.1 −1.9 −7.9 −14.9 

Additions 62.2 6.7 43.2 112.1 

Reclassifications −0.5 −0.1 −0.2 −0.8 

Change to the 

consolidated group 

0.2 0.0 2.5 2.7 

Currency translation 0.3 0.3 0.2 0.8 

09/30/2010 69.7 12.1 51.4 133.2 

Other current provisions are comprised as follows: 

Other current provisions 





Deliveries and services not yet invoiced 31.2 34.7 

Litigation costs 2.9 2.4 

Supervisory Board remuneration 0.8 0.8 

Onerous contracts 1.0 0.8 

Costs for annual financial statements 0.6 0.6 

Customer bonus programs 0.0 0.1 

Interest 0.1 0.0 

Other 14.8 11.9 

Total 51.4 51.3 








Notes 




157








Notes 




27. Financial liabilities 




Remaining 

term up 

to 1 year 



term between 

1 and 5 years 



term more 

than 5 years 





term up 

to 1 year 



term between 

1 and 5 years 



term more 

than 5 years 


Liabilities to banks 175.6 141.6 34.0 201.1 144.8 41.6 14.7 

Advance payments received 1.3 1.3 1.1 1.1 

Bills accepted 0.1 0.1 1.0 1.0 

Liabilities to affiliated companies 0.0 0.0 11.7 11.7 

Derivative financial instruments 1.7 1.7 2.0 2.0 

Financial liabilities from the 

valuation of options from 

minority interests 

89.1 81.6 5.6 1.9 110.8 102.0 6.2 2.6 

Other liabilities 13.5 13.5 33.6 33.6 

Total 281.3 239.8 39.6 1.9 361.3 296.2 47.8 17.3 

Financial liabilities from valuation of options from minority interests are related to 

minority interests with cancellation and rights of disposal. As of October 1, 2009, one of 

these options was exercised in the Fashion division. 

During the fiscal year, income from the derecognition of trade accounts payable was 

recognized in the amount of 0.1 million EUR (previous year: none). None of the liabilities 

were secured by pledged rights or similar rights. 

28. Other liabilities 

Other liabilities include liabilities from gift vouchers not yet redeemed and deferred 

income. 

29. Notes to the Cash Flow statement 

In compliance with the requirements of IAS 7, the Cash Flow statement is categorized 

into Cash Flows from operating, investing and financing activities. The effects of changes 

to the group of consolidated companies have been eliminated; their impact on cash and 

cash equivalents is shown separately – as is the impact of changes in currency exchange 

rates. The cash and cash equivalents relating to the Russian companies held for sale are 

shown separately.

Cash and cash equivalents are comprised as follows: 

Cash and cash equivalents 





Marketable securities 0.1 0.9 

Cash and cash equivalents 51.6 35.8 

Total 51.7 36.7 

The effect of the sale and purchase of consolidated companies is presented under the 

notes regarding consolidation. 

30. Notes on segment reporting 

In the 2009/10 fiscal year, segment reporting has been prepared for the first time in 

line with the provisions of IFRS 8. The preceding year’s figures have been adjusted accordingly 

to assure comparability. 

The segments comply with the DOUGLAS Group’s internal reporting and controlling 

structure. Internal reporting and controlling is generally performed according to the individual 

geographic companies of the corporate divisions. The operative business segments 

are combined into reporting segments in the segment reporting, which correspond to the 

individual corporate divisions of DOUGLAS HOLDING AG. Due to the first time adoption 

of IFRS 8, the Services division is also shown separately from the reconciliation column, 

although this segment is not predominantly geared for generating external sales. 

Alongside the information about the individual business segments, additional information 

is given about geographical regions. As part of this presentation, a distinction is 

generally made between Germany and all other countries. 

The earnings of the operative business segments are determined in compliance with 

the accounting and valuation methods applied to the consolidated financial statements. 

Transfers between segments are at the same prices that would apply between third parties 

(arm’s length transactions). 

Perfumeries 

The largest reporting segment is the Perfumeries division with a total of 1,205 Douglas 

Perfumeries, which are the market leaders in Europe, standing for expertise in the areas of 

perfumes, cosmetics and skin care. The Douglas Perfumeries are present in 20 countries. 

Books 

The 289 Thalia bookstores combine stationary and online bookselling services and are 

the market leaders in German-speaking countries. In the 2009/10 fiscal year, a non-cash 

income amount was incurred in the amount of 6.1 million Euro as part of the first time 

full consolidation of buch.de internetstores AG. 








Notes 




159








Notes 




Jewelry 

The 204 Christ jewelry stores lead the market in Germany in the mid to upper price 

range for jewelry and watches. 

Fashion 

The 14 AppelrathCüpper fashion stores are held in high esteem as an expert premium 

seller of high quality women’s clothing. 

Confectionery 

The confectionery division leads the market in the German confectionery sector with 

261 Hussel shops and is also present on the Austrian market. 

Segment revenues 

External sales represent the sales of the business segments generated from Group third 

parties. Intersegment sales represent sales from other business segments of the DOUG- 

LAS Group. 

Segment earnings 

In addition to earnings before taxes (EBT), the key performance indicators, EBITDA 

and EBIT, are also provided for the individual segments. 

Segment investments 

Investments shown under segment reporting relate to additions made to intangible assets 

and property, plant and equipment. 

Segment assets 

Segment assets generally comprise of non-current assets. As a rule, segment assets do 

not include non-current financial assets and tax positions.

31. Fair Values of financial instruments 

Fair Values 09/30/2010 

Carrying 

amount 


Amortized 

cost 


Fair Value 

through profit 

or loss 


Fair Value changes 

recognized 

directly in equity 



Fair Value 


Assets 


Loans and advances 2.6 2.6 2.6 

Trade accounts receivable 48.0 48.0 48.0 

Other financial assets 

Financial instruments: Held-for-trading 

51.2 51.2 51.2 

Derivative financial instruments 

Financial instruments: Available-for-sale 

0.0 0.0 

Equity participations 2.4 2.4 2.4 

Securities 0.1 0.1 0.1 




Other financial liabilities 

1.7 0.1 1.6 1.7 

Trade accounts payable 277.1 277.1 277.1 

Financial liabilities from the valuation 

of options from minority interests 

89.1 89.1 

Liabilities due to banks 175.6 175.6 177.2 

Other financial liabilities 15.2 15.2 15.2 

Fair Values 09/30/2009 


amount 


Amortized 

cost 


Fair Value 

through profit 

or loss 








Notes 




Fair Value changes 

recognized 

directly in equity 


Fair Value 


Assets 


Loans and advances 3.0 3.0 3.0 

Trade accounts receivable 42.7 42.7 42.7 

Other financial assets 


95.6 95.6 95.6 


Financial instruments: Available-for-sale 

0.0 0.0 

Equity participations 1.2 1.2 1.2 

Securities 0.9 0.9 0.9 




Other financial liabilities 

2.0 2.0 2.0 

Trade accounts payable 254.8 254.8 254.8 

Financial liabilities from the valuation 

of options from minority interests 

110.8 110.8 

Liabilities due to banks 201.1 201.1 201.8 

Other financial liabilities 47.3 47.3 47.3 

161








Notes 




Liquidity risks 

Liability 

32. Management of financial risks 

The financial management of the DOUGLAS HOLDING AG is responsible for the 

DOUGLAS Group’s financing and supports decision-makers in the German and foreign 

Group companies in respect of all financial issues. 

The uniform presence of the DOUGLAS Group facilitates better conditions on the 

financial markets, and the bundling of the financing volumes of all domestic Group companies 

allows optimal use of the resources available as part of a cash management system. 

The financial risks relevant to the DOUGLAS Group, such as liquidity risks, the risk of 

interest rate changes, default risks and risks from Cash Flow fluctuations are adequately 

controlled and monitored by the financial management of the DOUGLAS HOLDING AG. 

Liquidity risk 

The DOUGLAS Group’s non-current financing is secured not only by its solid equity 

but also through the bank loans at its disposal. This is backed by the ongoing, stable Cash 

Flows of the operating Group companies. 

Through the revolving credit facility raised in the amount of 500.0 million EUR undertaken 

in the 2006/07 fiscal year, the DOUGLAS Group’s provision of credit is assured for a 

period at the minimum for the next two years. 

All of the German subsidiaries of the DOUGLAS Group are linked into a cash management 

system (cash pooling). By combining financing volumes, short-term liquidity surpluses 

of individual Group companies can be used to finance the cash requirements of other 

Group companies. This leads to a reduction in borrowing and an optimizing of cash investments, 

thus having a positive impact on the Group’s net interest result. 


amount 


Payment due 

within the 

next 30 days 


Redemption 

Payment due 

within 

30 to 90 days 


Interest Redemption 

Payment due 

within 

90 to 360 days 



Payment due 

over a period of 

1 to 5 years 



Liabilities to banks 175.6 129.6 1.1 10.9 1.6 34.0 3.1 

Trade accounts payable 277.1 153.3 111.8 12.0 

Financial liabilities from the 

valuation of options from 

minority interests 

Payment due 

after more than 

5 years 



89.1 81.6 5.6 1.9 

Derivative financial instruments 1.7 0.1 0.2 0.8 0.8 

Advance payments received 1.3 1.3 

Liabilities on bills accepted 

and drawn 

0.1 0.1 

Other financial liabilities 13.5 13.5 

Interest

All financial liabilities existing as of September 30, 2010 and for which payments were 

already contractually agreed were included. Plan payments for future liabilities were not 

taken into account. Floating interest rate payments were determined on the basis of the 

interest rates known as of September 30, 2010. Financial liabilities cancellable at all times 

are always classified to the earliest time slot. Amounts denominated in foreign currencies 

are translated to the euro currency using the average closing rate. 

Payments arising from the interest rate swaps are made at the respective interest adjustment 

dates, so that the swaps’ impact on liquidity is spread over their maturities up 

to the year 2012. In particular, a withdrawal in the amount of 25.0 million EUR from the 

revolving credit line is hedged by means of an interest rate swap. Since this deals with 

monthly payments, this amount is shown in full under current liabilities due to banks with 

a liquidity of up to 30 days. The DOUGLAS Group’s financing strategy aims to utilize the 

hedged amount of 25.0 million EUR over the entire hedging term. 

Interest rate risks 

The interest rate risk is the result of fluctuations in interest rates on the money and 

capital markets and market-related fluctuations of exchange rates. 

In order to minimize the DOUGLAS Group’s risks associated with interest rate fluctuations 

when refinancing, long-term loans were taken out at fixed and variable interest rates 

by concluding interest rate swaps. The drawings on the revolving credit facility are made 

on the basis of current money market rates and are therefore subject to interest risks. An 

amount of 25.0 million EUR from the revolving credit facility was hedged through interest 

rate swaps in the 2007/08 fiscal year. 

The following interest rate swaps were in use on the balance sheet date to reduce risk. 

The Fair Value is determined on the basis of the market value of the interest rate hedging 

instruments. 

Interest rate swaps 

Reference 

amount 



Fair Values: 

financial assets 


Fair Values: 

financial liabilities 


Reference 

amount 


Fair Values: 

financial assets 



Fair Values: 

financial liabilities 


Interest rate swaps 28.0 0.0 1.6 31.0 0.0 2.0 

Of which within Cash Flow hedges 28.0 0.0 1.6 31.0 0.0 2.0 

For purposes of quantifying the interest rate risk, a sensitivity analysis has been performed 

in accordance with IFRS 7. As part of this analysis, the impact from changes in the 

market rate of interest on the interest income and interest expense has been presented. The 

sensitivity analysis is based on the following parameters: non-derivative financial instruments 

with fixed interest are subject to interest rate risks, which would impact the income 

statement or equity, only when measured at Fair Value. If such financial instruments are 

measured at cost, there is no risk arising from changes in the market rates of interest. Financial 

instruments with floating rates are generally exposed to risks from changes in market 

rates of interest if they are not designated as a hedged item as part of a Cash Flow hedge. 







Notes 




163








Notes 




A relative increase in the average interest rate by 50 base points would lead to an increase 

in the interest expense for the liabilities with variable rates by 0.1 million EUR (previous 

year: 0.1 million EUR). A drop in the interest rate by the same base points, would have 

a contrary effect of 0.0 million EUR (previous year: 0.1 million EUR). 

Based on an interest rate increase of 50 base points with respect to the valuation of financial 

instruments with a hedge relationship and therefore subject to hedge accounting 

rules as stated under IAS 39, a change in equity would arise in the amount of 0.5 million EUR 

(previous year: 0.5 million EUR). According to a corresponding reduction in the interest rate, 

equity would change by –0.5 million EUR (previous year: –0.4 million Euro). 

Currency risks 

The operative companies of the DOUGLAS Group largely conduct their activities in the 

respective functional currency. That is why currency risks within the DOUGLAS Group are 

minimal since approximately 89 percent of the Group’s sales were effected in euros in fiscal 

year 2009/10, and merchandise was purchased almost exclusively in euros. Differences 

arising from the translation of foreign currencies to the parent’s currency did not impact 

the preparation of the consolidated financial statements. 

Currency rate risks involving net investments in the Swiss subsidiaries are hedged via 

Swiss Franc drawings from the revolving credit facility (net investment hedge). Drawings from 

the syndicated credit facility amounted to 35.0 million CHF as per the balance sheet date. 

In order to hedge the residual currency risks, DOUGLAS HOLDING AG’s financial management 

regularly reviews the DOUGLAS Group’s currency items and analyzes the pros and 

cons of implementing derivative financial instruments. 

Within the scope of IFRS 7, a sensitivity analysis was conducted for foreign currency risks. 

As part of this analysis, the effects from foreign currency positions, which are measured at 

the closing date rate pursuant to IAS 21, are included. In the event that foreign currency positions 

should have an equity characteristic, the foreign currency differences are recognized 

directly to equity. 

With respect to the currency risks, the sensitivity analysis is presented as follows: the effects 

from foreign currency exchange rate fluctuations in financial instruments denominated 

in foreign currency but not designated as hedged items as part of foreign currency hedging 

transactions have been included in the sensitivity analysis. In all, the DOUGLAS Group 

would be exposed to a net risk of 0.1 million EUR (previous year: 0.7 million EUR) based on 

an appreciation in value of the euro currency of 5 percent and – 0.1 million EUR (previous 

year: –2.3 million EUR) based on a devaluation of 5 percent. The largest amounts encompass 

the Russian Rouble (+/– 0.2 million EUR) and the Polish Zloty (+/– 0.2 million EUR). 

Default risks 

A default risk could exist if a banking partner should default, in particular for the inability 

to make payments on monetary deposits or for positive market values for derivatives. 

The DOUGLAS Group counters this risk in the financial statements by exclusively investing 

in monetary deposits and entering into financial instruments with first-rated banks. At the 

same time, the volume is also distributed amongst several contracting parties in order to 

avoid a concentration of risks. Due to the worldwide difficult economic situation, larger monetary 

deposits are avoided or only entered into with first-rated German banks.


In the 2006/07 fiscal year, DOUGLAS HOLDING AG entered into a revolving credit facility 

up to a maximum amount of 500 million EUR from an international banking syndicate. 

The residual term of this revolving credit facility is two years. Withdrawals are charged at 

EURIBOR + 25 base points, whereby the margin is fixed for the term. The commitment commission 

for the unutilized portion of the facility is 30 percent of the margin. As of the balance 

sheet date, this facility had been utilized in the amount of 91.3 million EUR. The aim 

of this revolving credit facility is to reduce cash and cash equivalents as well as to create 

flexible financing possibilities. The unused portion of the revolving credit facility is not subject 

to any restrictions. 

Besides DOUGLAS HOLDING AG, another lending company, Douglas Finance B.V. located 

in the Netherlands, also became a borrower. This financing company serves the purpose 

of providing financing to the foreign subsidiaries of the DOUGLAS Group. Due to the raising 

and drawings of the revolving credit facility by DOUGLAS HOLDING AG and Douglas 

Finance B.V. and further submission to the companies of the DOUGLAS Group, the utilization 

of the bilateral credit lines by the companies was in part reduced. Withdrawals from 

the bilateral credit lines amounted to 37.2 million EUR (previous year: 45.5 million EUR) 

and under the revolving credit facility to 91.3 million EUR (previous year: 84.2 million EUR). 

Liabilities to banks (without current accounts and revolving credit facility) 

as of September 30, 2010 

Original amount 

(in million currency units) 

Nominal amount 


Carrying amounts 


Fair Values 


EUR 105.7 105.7 46.6 48.2 

CHF 13.6 10.2 0.5 0.5 

Liabilities to banks (without current accounts and revolving credit facility) 

as of September 30, 2009 

Original amount 

(in million currency units) 

Nominal amount 


Carrying amounts 


Fair Values 


EUR 125.3 125.3 69.9 70.6 

CHF 13.6 9.0 1.5 1.5 

33. Liabilities to minority interests 

There are commitments to minority shareholders of various subsidiaries to acquire 

their shares. In addition, two partnerships hold termination rights which would result in 

compensation at present values. 

According to IAS 32, these liabilities are to be recognized as financial liabilities at Fair 

Value. Therefore the individual commitments were measured in accordance with the respective 

contractual agreements. 

This amounts to a commitment totaling 90.1 million EUR as of the balance sheet date 

compared to 110.8 million EUR last year. 








Notes 




165








Notes 




As a consequence of the acquisition of the remaining shares in Reiner Appelrath-Cüpper 

Nachf. GmbH, Cologne, in the year under review, liabilities decreased. On the other side, 

valuation-related adjustments in the amount of 3.6 million EUR increased the extent of commitments 

(previous year: -3.3 million EUR). Proportionate earnings and disbursements in 

the year under review in the amount of 1.5 million EUR also reduced these commitments. 

34. Other explanatory notes 

Other financial commitments 

Purchase commitments for approved capital expenditure for property, plant and 

equipment totaled around 39.0 million EUR (previous year: 25.5 million EUR). Contingent 

liabilities in the amount of 0.6 million EUR exist for one foreign subsidiary. Contingent 

assets from eco-tax refunds amounted to 3.1 million Euro. 

Average number of employees 

The average number of persons employed was: 

Average number of employees 


Salaried employees and wage earners 22,820 22,681 

Apprentices 1,586 1,676 

Total 24,406 24,357 

Shareholdings 

The list of shareholdings provides an overview of the key companies included in the 

consolidated financial statements and of other participating interests held by the DOUG- 

LAS Group. A complete list of shareholdings is submitted to the online version of the 

German Federal Gazette (“Bundesanzeiger”). 

Related companies and related persons 

The DOUGLAS Group had the following relationships with related parties in the 

fiscal years 2009/10 and 2008/09, respectively, from delivery and supply relationships 

concluded in the past: 

Related companies and related persons 

Deliveries and services 

received 


Deliveries and services 

provided 



Related companies 0.5 3.4 1.2 6.8 

Related persons 4.5 6.9 0.0 0.0 

Total 5.0 10.3 1.2 6.8

There were no receivables from related companies/parties on the balance sheet date 

(09/30/09: 0.2 million EUR), the corresponding liabilities totaled 0.6 million EUR (09/30/09: 

12.6 million EUR). Deliveries and supplies incurred in connection with buch.de internetstores 

AG are contained in the figures shown up through December 1, 2009. Since December 

1, 2009, buch.de internetstores AG was fully consolidated in the consolidated financial 

statements. Business relationships with related persons are effected under the same 

conditions as with third parties (arm’s length transaction). 

Executive bodies 

The following table shows the total remuneration of the Executive Board of the DOUG- 

LAS HOLDING AG: 



Fixed 

(in EUR ‘000) 


Variable 


Total 


Dr. Henning Kreke, President and CEO 536.5 824.5 1,361.0 

Dr. Burkhard Bamberger 457.1 412.2 869.3 

Anke Giesen 332.5 258.4 590.9 

Total 1,326.1 1,495.1 2,821.2 

The total remuneration of the Executive Board in fiscal year 2008/09 amounted to 

2,512.6 thousand EUR. The provisions for pensions for members of the Executive Board 

totaled 1,418 thousand EUR compared to 1,245 thousand EUR last year. Provisions in the 

amount of 1,495 thousand EUR were formed as of September 30, 2010 for the variable salary 

components of members of the Executive Board (previous year: 1,210 thousand EUR). 

The variable components of remuneration are determined on a performance-based calculation. 

Share-priced-oriented models, e.g. stock options, do not exist. 

Pension commitments for members of the Executive Board provide a retirement pension 

after the attainment of a fixed retirement age as well as benefits for their surviving 

dependants. The amount of monthly benefits to be granted is based on a non-income-related 

fixed amount totaling 6,135.50 EUR for Dr. Henning Kreke and 3,000.00 EUR for Dr. 

Bamberger. This amount increases by 5.0 percent for each pensionable year of service depending 

on the general development of the cost of living. Furthermore, the amounts are 

adjusted index-based for the development in the cost of living. Additional commitments 

like severance payments, bridge money and leave benefits etc. do not exist. 

Remuneration totaling 903 thousand EUR (previous year: 902 thousand EUR) was paid 

to former members of the Executive Board and their surviving dependants. The pension 

provisions for former members of the Executive Board and their surviving dependants totaled 

13,061 thousand EUR following 12,022 thousand EUR the year before. 

Total remuneration for other key executives within the DOUGLAS Group amounted 

to 5,393 thousand EUR in fiscal year 2009/10 (previous year: 4,945 thousand EUR). Provisions 

for pensions for these management members totaled 350 thousand EUR compared 








Notes 




167








Notes 




to 593 thousand EUR in the previous year; provisions totaling 2,499 thousand EUR have 

been recognized for variable salary components as of September 30, 2010 (previous year: 

3,621 thousand EUR). 


The total remuneration paid to the Supervisory Board of DOUGLAS HOLDING AG is 

as follows: 


Fixed 

(in EUR 

‘000) 


Variable 


‘000) 

Total 


‘000) 

Fixed 


‘000) 

Variable 


‘000) 

Total 


‘000) 

Dr. Dr. h.c. Jörn Kreke, Chairman 80.8 23.2 104.0 81.6 26.4 108.0 

Margarete Pinkowski, Vice-Chairwoman 55.4 17.4 72.8 55.8 19.8 75.6 

Detlef Bierbaum 40.4 11.6 52.0 40.8 13.2 54.0 

Ulrike Grabe 30.0 11.6 41.6 30.0 13.2 43.2 

Isabelle Harth 30.0 11.6 41.6 30.0 13.2 43.2 

Solveig Hasse 30.0 11.6 41.6 30.0 13.2 43.2 

Henning R. Kreke 30.0 11.6 41.6 30.0 13.2 43.2 

Petra Lügger 30.0 11.6 41.6 30.0 13.2 43.2 

Bernd M. Michael 30.0 11.6 41.6 30.0 13.2 43.2 

Dr. h.c. August Oetker 40.4 11.6 52.0 40.8 13.2 54.0 

Johann Rösch (from April 28, 2010) 15.0 5.8 20.8 0.0 0.0 0.0 

Dr. Ernst F. Schröder 50.8 11.6 62.4 51.6 13.2 64.8 

Malene Volkers (until March 24, 2010) 15.0 5.8 20.8 30.0 13.2 43.2 

Dr. Ulrich Wolters 40.4 11.6 52.0 40.8 13.2 54.0 

Prof. Dr. Mark Wössner 30.0 11.6 41.6 30.0 13.2 43.2 

Christine Wrobel 30.0 11.6 41.6 30.0 13.2 43.2 

Sabine Zimmer 30.0 11.6 41.6 30.0 13.2 43.2 

Total 608.2 203.0 811.2 611.4 231.0 842.4 

Provisions totaling 811 thousand EUR (fiscal year 2008/09: 842 thousand EUR) were 

formed for remuneration for the Supervisory Board; of this amount, 608 thousand EUR 

are fixed and 203 thousand EUR are variable components. 

The variable component of the Supervisory Boards’ remuneration is based on earnings 

per share. Share-price oriented models, e.g., stock options, do not exist. 

Transactions pursuant to section 15 a of the German WpHG (securities trading act) 

Mr Henning R. Kreke, member of the Supervisory Board, sold a total of 50,000 DOUG- 

LAS shares at prices ranging between 31.40 and 34.95 EUR per share during the fiscal year 

under review.

Expenses for auditor’s fees 

In accordance with section 285 No. 17 HGB, the fees of the auditors, Susat & Partner oHG, 

for preparing the consolidated financial statements for the fiscal year ended are as follows: 

Expenses for auditor’s fees 



2008/09 


Audit of the financial statements 0.8 0.8 

Other confirmation and valuation services 0.0 0.0 

Tax advice 0.0 0.0 

Other services 0.1 0.1 

Total 0.9 0.9 

Declaration of compliance pursuant to section 161 of the German AktG 

The DOUGLAS HOLDING AG issued an updated declaration of compliance in accordance 

with section 161 of the German Stock Corporation Law (AktG) in December 2010. 

This can be read at www.douglas-holding.com. 

Options according to section 264 (3) and 264 b HGB 

In application of sections 264 (3) and 264 b HGB, the following German subsidiaries 

have refrained from disclosing their annual financial statements. 

Options according to section 264 (3) and 264 b HGB 

Perfumeries Douglas Cosmetics GmbH Düsseldorf 

Perfumeries Douglas Einkaufs- und Service Gesellschaft mbH & Co. KG Zossen 

Perfumeries HELA Kosmetik Handels GmbH & Co. Parfümerie KG Hagen 

Perfumeries Parfümerie Douglas International GmbH Hagen 

Perfumeries Parfümerie Douglas GmbH Hagen 

Perfumeries Parfümerie Douglas Deutschland GmbH Hagen 

Books Buch & Medien GmbH Hagen 

Books Thalia Holding GmbH Hamburg 

Books Kober & Thalia Buchhandelsgruppe GmbH & Co. KG Mannheim 

Books Reinhold Gondrom GmbH & Co. KG Kaiserslautern 

Books Thalia Buchhandlung Erich Könnecke GmbH & Co. KG Boysen & Maasch Hamburg 

Books Thalia Medienservice GmbH Hagen 

Books Thalia Universitätsbuchhandlung GmbH Hagen 

Jewelry Christ Juweliere und Uhrmacher seit 1863 GmbH Hagen 

Fashion inter-moda GmbH Hagen 

Confectionery Cerrini Confiserie GmbH Hagen 

Confectionery Hussel Geschenkstudio GmbH Hagen 

Confectionery Hussel Süßwarenfachgeschäfte GmbH Hagen 

Services Douglas Corporate Service GmbH Hagen 

Services Douglas GmbH & Co. Objekt Zeil KG Pullach i. Isartal 

Services Douglas Immobilien GmbH & Co. KG Hagen 

Services Douglas Informatik & Service GmbH Hagen 

Services Douglas Versicherungsvermittlung GmbH Hagen 

Services Douglas Grundstücks- und Verwaltungsgesellschaft mbH & Co. KG Zossen 








Notes 




169








Notes 




Significant shareholdings 

No. Name and registered office Group interest 


1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

12. 

13. 

14. 

15. 

16. 

17. 

18. 

19. 

20. 

21. 

22. 

23. 

Equity 

(in EUR ‘000 or in ‘000 

foreign currency) 

Net revenues 



Employees 

DOUGLAS HOLDING AG 776.491 0 100 

Perfumeries 

Parfümerie Douglas GmbH, 

Hagen 

Parfümerie Douglas Deutschland GmbH, 

Hagen 

HELA Kosmetik Handels GmbH & Co. Parfümerie KG, 

Hagen 

Parfümerie Douglas International GmbH, 

Hagen 

Parfümerie Douglas Ges.m.b.H., 

Vienna/Austria 

Parfumerie Douglas Nederland B.V., 

Nijmegen/The Netherlands 

Parfumerie Douglas France S.A., 

Lille/France 

Profumerie Douglas S.P.A., 

Bologna/Italy 

Parfümerie Douglas S.A., 

Baar/Switzerland 

Douglas Spain S.A., 

Madrid/Spain 

Douglas Portugal Lda., 

Lisbon/Portugal 

Douglas Ungarn Kft., 

Budapest/Hungary 

Douglas Polska SP.z.o.o., 

Warsaw/Poland 

Parfumerie Douglas Monaco S.A.M., 

Monaco/Monaco 

OOO Douglas Rivoli, 

Moscow/Russia 

Parfumerija Douglas d.o.o., 

Maribor/Slovenia 

Parfumerie Douglas s.r.o., 

Prague/Czech Republic 

Parfümerie Douglas Limited Sirketi, 

Istanbul/Turkey 

SIA “Douglas Latvia,” 

Riga/Latvia 

UAB “Douglas Lithuania,” 

Vilnius/Lithuania 

Parf. Douglas S.R.L., 

Bucharest/Romania 

Parfumerie Douglas 

Bulgaria ood, Sofia/Bulgaria 

IRIS dd, 

Zagreb/Croatia 

100 288,282 54,779 250 

100 39,874 875,414 6,243 

100 566 20,980 99 

100 247,068 0 39 

100 24,929 70,437 559 

100 35,294 177,242 1,371 

100 24,547 130,945 988 

100 36,618 161,238 1,085 

CHF 100 8,214 50,706 196 

100 −9,053 71,863 640 

100 11,978 25,458 195 

HUF 100 2,529,693 5,330,873 232 

PLN 100 68,432 349,130 1,026 

100 1,727 2,897 12 

RUB 100 764,698 2,312,406 626 

100 264 1,891 22 

CZK 100 −60,165 293,156 120 

TRY 100 10,974 18,439 91 

LVL 51 1,389 8,793 217 

LTL 51 20,442 40,706 197 

RON 100 3,546 27,633 72 

BGN 51 9,046 19,605 138 

HRK 51 26,737 144,426 274

Significant shareholdings 

No. Name and registered office Group interest 


24. 

25. 

26. 

27. 

28. 

29. 

30. 

31. 

32. 

33. 

34. 

35. 

36. 

37. 

38. 

39. 

40. 

Books 

Thalia Holding GmbH, 

Hamburg 

Thalia Universitätsbuchhandlung GmbH, 

Hagen 

Thalia Buchh. Erich Könnecke GmbH & Co. KG, 

Hamburg 

Kober & Thalia Buchhandelsgruppe GmbH & Co. KG, 

Mannheim 

Reinhold Gondrom GmbH & Co. KG, 

Kaiserslautern 

Grüttefien GmbH, 

Varel 

Buch und Kunst GmbH & Co. KG, 

Dresden 

G.D. Baedeker GmbH, 

Dresden 

Thalia Buch & Medien GmbH, 

Linz/Austria 

Thalia Bücher AG, 

Basel/Switzerland 

ZAP*Zur Alten Post AG, 

Brig/Switzerland 

buch.de internetstores AG, 

Münster 

buch.ch AG, 

Winterthur/Switzerland 

Jewelry 

Christ Juweliere und Uhrmacher seit 1863 GmbH, 

Hagen 

Fashion 

Reiner Appelrath-Cüpper Nachf. GmbH, 

Cologne 

Confectionery 

Hussel Süßwarenfachgeschäfte GmbH, 

Hagen 

Cerrini Confiserie GmbH, 

Hagen 

Equity 



Net revenues 










Notes 




Employees 

75 69,498 159,002 184 

100 21,024 274,006 1,528 

100 7,937 143,882 857 

75 267 19,202 107 

100 5,551 66,233 420 

50 5,373 27,145 198 

100 2,167 59,846 380 

100 5,930 5,913 38 

100 21,631 118,460 756 


CHF 67 1,844 11,428 50 

60 16,020 57,944 99 


100 51,969 310,217 2,173 

100 9,927 124,105 751 

100 3,856 89,323 981 

100 26 11,709 105 

171








Notes 




HONORARY CHAIRMAN 

Dr. Dr. h.c. Guido Sandler 

SUPERVISORY BOARD 

Dr. Dr. h.c. Jörn Kreke 

Chairman 

Merchant, Hagen 

a) Deutsche EuroShop AG, Hamburg 

Capital Stage AG, Hamburg 

b) Kalorimeta AG & Co. KG, Hamburg 

Urbana Energietechnik AG & Co. KG, Hamburg 

Margarete Pinkowski* 

Vice-Chairwoman 

Commercial employee, Hagen 

Parfümerie Douglas GmbH, Hagen 

Detlef Bierbaum 

Banker, Cologne 

a) Sal. Oppenheim jr. & Cie. AG, Vienna/Austria 

IVG Immobilien AG, Bonn (Chairman) 

IVG Institutional Funds GmbH, Wiesbaden (Chairman) 

General Reinsurance AG, Cologne 

LVM Landwirtschaftlicher Versicherungsverein, Münster a.G. 

LVM Lebensversicherungs-AG, Münster 

LVM Pensionsfonds-AG, Münster 

Monega KAG mbH, Cologne (Vice-Chairman) 

Oppenheim Kapitalanlagegesellschaft mbH, Cologne (Vice-Chairman) 

b) CA Immobilien Anlagen AG, Vienna/Austria 

Dundee Real Estate Investment Trust, Toronto/Canada 

Integrated Asset Management plc, London/Great Britain 

Lloyd George Management Ltd., British Virgin Islands 

Oppenheim Asset Management Services S.á.r.l., Luxembourg 

(Vice-Chairman) 

Tertia Handelsbeteiligungsges. mbH, Düsseldorf 

The Central European and Russia Fund, Inc., New York/U.S.A. 

The European Equity Fund, Inc., New York/U.S.A. 

Ulrike Grabe* 

Head of section, Münster 

Parfümerie Douglas Deutschland GmbH, Hagen 

Isabelle Harth* 

Secretary, Munich 

Parfümerie Douglas Deutschland GmbH, Hagen 

Solveig Hasse* 

Bookseller, Hamburg 

Thalia Buchhandlung Erich Könnecke GmbH & Co. KG 

Boysen & Maasch, Hamburg 

a) Membership of supervisory board required by law 

b) Membership of comparable advisory bodies 

* Employee representative 

Henning R. Kreke 

Merchant, Schwaig/Nuremberg 

Petra Lügger* 

Administration, Münster 

Thalia Universitätsbuchhandlung GmbH, Hagen 

Bernd M. Michael 

Merchant, Düsseldorf 

a) Loyalty Partner Holding GmbH, Munich 

12snap AG, Munich (Chairman) 

b) Duisport AG, Duisburg (Advisory Board) 

Board of Directors WE Marketing Company Limited, Hong Kong 

Dr. h.c. August Oetker 

Chairman of Advisory Board of Dr. August Oetker KG, Bielefeld 

a) Damm S. A., Barcelona/Spain 

B. Braun AG, Melsungen 

Ebro Foods S.A., Madrid/Spain (since June 1, 2010) 

b) Dr. August Oetker KG, Bielefeld (Advisory Board) 

Johann Rösch* (since April 28, 2010) 

Trade union secretary, Nuremberg 

ver.di Bundesverwaltung, Berlin 

Dr. Ernst F. Schröder 

General Partner at Dr. August Oetker KG, Bielefeld 

a) Gerry Weber International AG, Halle (Chairman) 

S. A. S. Chateau du Domaine St. Martin, Vence/France 

(Chairman) 

S. A. S. Hôtel du Cap Eden Roc, Antibes/France (Chairman) 

S. A. S. Hôtel Le Bristol, Paris/France (Chairman) 

Damm S.A., Barcelona/Spain 

b) Bankhaus Lampe KG, Düsseldorf (Chairman) 

Malene Volkers* (until March 24, 2010) 

Trade union secretary, Berlin 

ver.di Bundesverwaltung, Berlin 

a) Danzas Deutschland Holding, Frankfurt/Main 

Dr. Ulrich Wolters 

Corporate consultant, Mülheim a. d. Ruhr 

a) Bunzl PLC, London/Great Britain 

Lenze SE, Hameln (Chairman) 

Preventicum GmbH, Essen (Chairman) 

Novotergum AG, Mülheim a. d. Ruhr 

b) Heinrich Deichmann-Schuhe GmbH & Co. KG, Essen

Prof. Dr. Mark Wössner 

Entrepreneur, Member of Supervisory Boards, Munich 

a) AEG Power Solutions BV, AH Zwanenburg/The Netherlands 

(Vice-Chairman) 

Heidelberger Druckmaschinen AG, Heidelberg (Chairman) 

Loewe AG, Kronach (Vice-Chairman) 

b) Berger Lahnstein Middelhoff & Partners LLP. London/ 

Great Britain 

Germany 1 Acquisition Limited, Guernsey/Great Britain 

Christine Wrobel * 

Deputy Director of Logistics, Hemer 

Christ Juweliere und Uhrmacher seit 1863 GmbH, Hagen 

Sabine Zimmer* 

Trade union secretary, Berlin 

ver.di, District Berlin, Berlin 

a) real,- SB Warenhaus-GmbH, Mönchengladbach 

EXECUTIVE BOARD 

Dr. Henning Kreke (President and CEO) 

Dr. Burkhard Bamberger 

Anke Giesen 

DIVISION DIRECTORS 

Michael Busch 

Manfred Kroneder 

Reiner Unkel 

SUPERVISORY BOARD 

COMMITTEES 

Executive Committee 

Dr. Jörn Kreke (Chairman) 

Margarete Pinkowski (Vice-Chairwoman) 

Dr. h.c. August Oetker (Assessor) 

Arbitration Committee 



Margarete Pinkowski 

Petra Lügger 

Audit & Finance Committee 

Dr. Ernst F. Schröder (Chairman) 

Detlef Bierbaum 

Dr. Ulrich Wolters 

Nomination Committee 



Dr. Ernst F. Schröder 

Dr. Henning Kreke Dr. Burkhard Bamberger Anke Giesen 


The consolidated financial statements will be approved by a circular 

resolution of the Superviory Board of DOUGLAS HOLDING AG. 

Responsibility Statement 

To the best of our knowledge, and in accordance with the applicable 

reporting principles, the consolidated financial statements give a true 

and fair view of the assets, liabilities, financial position and profit or loss 

of the Group, and the Group management report 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. 

Hagen, December 30, 2010 


The Executive Board 







Notes 




173








Notes 




AUDITOR’S REPORT 

We have audited the consolidated financial statements 

prepared by DOUGLAS HOLDING AG, Hagen, 

comprising the balance sheet, the income statement, 

statement of changes in equity, Cash Flow statement 

and the notes to the consolidated financial statements, 

together with the group management report 

for the business year from October 1, 2009 to September 

30, 2010. The preparation of the consolidated financial 

statements and the group management report 

in accordance with IFRS, as adopted by the EU, and 

the additional requirements of German commercial 

law pursuant to § 315a paragraph 1 HGB are the responsibility 

of the parent company’s Board of Management. 

Our responsibility is to express an opinion 

on the consolidated financial statements and on the 

group management report based on our audit. 

We conducted our audit of the consolidated financial 

statements in accordance with § 317 HGB and German 

generally accepted standards for the audit of financial 

statements promulgated by the Institut der 

Wirtschaftsprüfer [Institute of Public Auditors in Germany] 

(IDW). Those standards require that we plan 

and perform the audit such that misstatements materially 

affecting the presentation of the net assets, financial 

position and results of operations in the consolidated 

financial statements in accordance with the 

applicable financial reporting framework and in the 

group management report are detected with reasonable 

assurance. Knowledge of the business activities 

and the economic and legal environment of the Group 

and expectations as to possible misstatements are taken 

into account in the determination of audit procedures. 

The effectiveness of the accounting-related internal 

control system and the evidence supporting the 

disclosures in the consolidated financial statements 

and group management report are examined primarily 

on a test basis within the framework of the audit. 

The audit includes assessing the annual financial 

statements of those entities included in consolidation, 

the determination of entities to be included in consolidation, 

the accounting and consolidation principles 

used and significant estimates made by the Company’s 

Board of Management, as well as evaluating 

the overall presentation of the consolidated financial 

statements and the group management report. We believe 

that our audit provides a reasonable basis for 

our opinion. 

Our audit has not led to any reservations. 

In our opinion, based on the findings of our audit, 

the consolidated financial statements comply with 

IFRS as adopted by the EU, the additional requirements 

of German commercial law pursuant to § 315a 

paragraph 1 HGB, and give a true and fair view of 

the net assets, financial position and results of operations 

of the Group in accordance with these requirements. 

The group management report is consistent 

with the consolidated financial statements and as a 

whole provides a suitable view of the Group’s position 

and suitably presents the opportunities and risks of 

future development. 

Hamburg, January 5, 2011 

Susat & Partner oHG 

Wirtschaftsprüfungsgesellschaft 

Driesch Schulz-Danso 

German Accountant German Accountant

FURTHER INFORMATION CONTENTS 

176 Overview of the past several years 

178 Glossar y 

180 Financial calendar 

180 Credits 

Further information 

175 

Further information

176 Further information 

Overview 

Glossary 

Financial calendar/Credits 

Overview of the past several years 

IFRS HGB 

2009/10 2008/09 2007/08 1) 2006/07 2005/06 2004/05 2004/05 2003/04 

2003 

abbrev. 2002 2001 

Sales EUR m 3,320.8 3,200.8 3,130.4 3,000.6 2,680.0 2,417.6 2,418.7 2,288.4 1,442.6 2,234.3 2,190.2 

National EUR m 2,168.2 2,071.5 2,032.9 2,032.6 1,815.3 1,724.3 1,724.3 1,596.8 1,016.9 1,655.0 1,667.1 

International EUR m 1,152.6 1,129.3 1,097.5 968.0 864.7 693.3 694.4 691.6 425.7 579.3 523.1 

EBITDA EUR m 286.9 255.0 276.9 266.0 242.9 228.6 219.5 213.1 81.3 206.4 222.5 

EBITDA margin in % 8.6 8.0 8.8 8.9 9.1 9.5 9.1 9.3 5.6 9.2 10.2 

EBIT EUR m 141.7 116.1 159.9 157.2 142.1 136.1 122.4 112.2 7.0 105.9 125.2 

EBIT margin in % 4.3 3.6 5.1 5.2 5.3 5.6 5.1 4.9 0.5 4.7 5.7 

EBT EUR m 131.2 103.9 149.3 143.1 129.4 119.4 119.5 110.3 3.6 95.1 118.3 

EBT margin in % 4.0 3.2 4.8 4.8 4.8 4.9 4.9 4.8 0.2 4.3 5.4 

Net income for the year EUR m 76.1 62.8 97.1 88.4 76.0 57.3 74.5 64.5 −11.4 58.9 81.5 

Non-current assets2) EUR m 792.1 798.8 808.4 734.9 636.4 540.7 501.9 437.4 420.1 435.2 447.7 

Current assets3) EUR m 886.8 889.8 935.4 993.2 957.9 873.2 868.0 779.9 759.9 895.8 839.4 

Working Capital4) EUR m 418.1 455.0 459.8 400.0 381.4 343.6 574.4 504.3 487.5 507.6 479.6 

Equity EUR m 764.8 710.9 697.0 639.2 591.0 537.8 602.1 564.5 531.2 582.3 571.3 

Equity ratio in % 44.6 42.1 39.9 36.9 37.1 38.0 43.3 45.9 44.5 43.4 44.0 

Non-current liabilities 5) EUR m 113.8 129.7 148.1 294.0 278.2 212.7 214.1 152.6 169.1 173.4 164.4 

Current liabilities 6) EUR m 827.6 848.0 898.7 794.9 725.1 663.4 573.4 509.4 487.3 576.6 557.4 

Net-debt7) EUR m 124.0 165.3 220.6 206.8 145.2 74.0 74.0 40.6 80.7 4.5 74.3 

Total assets EUR m 1,713.4 1,688.6 1,743.8 1,728.1 1,594.3 1,413.9 1,391.7 1,229.9 1,194.5 1,341.1 1,298.6 

Cash Flow from 

operative activities 

EUR m 246.2 191.7 208.4 195.7 151.1 158.3 178.7 170.2 37.6 202.3 162.3 


investing activities 

EUR m −158.0 −107.2 −168.3 −201.6 −168.2 −133.5 −140.8 −100.4 −70.0 −98.2 −134.0 

Free Cash Flow EUR m 88.2 84.5 40.1 −5.9 −17.1 24.8 37.9 69.7 −32.4 104.1 28.3 


financing activities 

EUR m −72.1 −100.1 −154.6 −52.9 12.4 35.2 21.2 −42.9 −43.3 −40.7 −60.5 

Capital expenditure EUR m 117.5 112.3 155.5 155.8 141.2 121.6 120.9 118.3 65.5 98.1 144.7 

Amortization/depreciation EUR m 145.2 138.9 117.0 108.8 100.8 92.5 97.1 101.1 74.6 105.5 97.7 

Number of shares m shares 39.3 39.3 39.2 39.2 39.2 39.1 39.1 39.1 39.0 39.0 39.0 

Market capitalization EUR m 1,447.4 1,228.1 1,263.8 1,717.4 1,445.0 1,236.2 1,236.2 929.9 951.8 656.5 1,207.5

Overview of the past several years 

IFRS HGB 

2009/10 2008/09 2007/08 1) 2006/07 2005/06 2004/05 2004/05 2003/04 


177 

2003 

abbrev. 2002 2001 

Per no-par value share 

Share price – end 

of fiscal year 

EUR 36.83 31.25 32.24 43.81 36.90 31.60 31.60 23.80 24.40 16.83 31.00 

EBITDA EUR 7.30 6.49 7.06 6.79 6.23 5.90 5.62 5.50 2.08 5.29 5.71 

Earnings8) EUR 1.93 1.60 2.47 2.25 1.94 1.47 1.56 1.53 −0.69 1.48 1.80 

Dividend EUR 1.10 1.10 1.10 1.10 1.10 1.00 1.00 1.00 0.75 0.90 0.90 

Dividend yield in % 3.0 3.5 3.4 2.5 3.0 3.2 3.2 4.2 3.1 5.3 2.9 

Employees 24,655 24,190 24,521 23,265 21,002 19,588 19,588 18,698 18,039 18,967 18,698 

National 15,164 14,761 15,110 14,746 13,521 12,952 12,952 12,333 12,071 13,391 13,808 

International 9,491 9,429 9,411 8,519 7,481 6,636 6,636 6,365 5,968 5,576 4,890 

Stores 1,973 2,005 1,966 1,840 1,549 1,599 1,599 1,573 1,558 1,574 1,544 

National 1,142 1,165 1,169 1,155 995 1,102 1,102 1,084 1,105 1,153 1,173 

International 831 840 797 685 554 497 497 489 453 421 371 

Sales space 1,000 m2 596.6 590.6 574.1 528.5 458.8 407.3 407.3 358.5 331.2 328.4 316.8 

National 1,000 m2 384.6 381.1 378.6 354.1 308.9 271.2 271.2 237.8 221.3 225.6 247.4 

International 1,000 m2 212.0 209.5 195.5 174.4 149.9 136.1 136.1 120.7 109.9 102.8 69.4 

1) Restatement of figures due to change in accounting for customer loyalty programs according to IFRIC 13 

2) HGB: Fixed assets 

3) HGB: Current assets 

4) IFRS: Inventory and trade accounts receivable less trade accounts payable; 

HGB: Current assets less current liabilities 

5) HGB: Non-current provisions (for pensions, purchase price annuities, severance pay, anniversary payments, 

provisions for onerous contracts from tenancies and interest rate swaps) plus non-current liabilities 

6) HGB: Total of provisions and liabilities less non-current portion 

7) Cash and cash equivalents less liabilities to banks 

8) HGB: DVFA/SG earnings 

Overview 

Glossary 

Financial calendar/Credits


Overview 

Glossary 


GLOSSARY 

Actuarial gains/losses 

Impact of changes in actuarial parameters when calculating pension 

obligations. 

Associated companies 

Companies over which the investor has significant influence (interest 

between twenty and fifty percent held) and is neither a subsidiary nor 

an interest in a joint venture. 

At-equity 

Valuation of interests in associated companies with their prorated stockholders’ 

equity and profits for the year. 

Available-for-sale securities 

Securities which are neither held for trading, i.e. to generate shortterm 

profits, nor held until a specific maturity. 

CAPM (Capital Asset Pricing Model) 

A capital market-oriented model used to calculate a company’s cost 

of capital. 

Cash Flow 

An indicator used in the analysis of balance sheets to show a company’s 

financial strength. The Cash Flow designates the changes to liquid 

funds resulting from operational activities and other factors within 

a given period. 

Cash Flow hedge 

Used to hedge against risks from Cash Flow fluctuations as a result of 

changes in interest rates. 

Cash Flow statement 

Presentation of an organization’s liquidity during the course of a fiscal 

year, reflecting the origins of funds and the effects of allocating 

resources. 

Cash-generating unit 

Smallest unit of assets which generates cash flows in a company, 

whereby these cash flows are mostly independent of cash flows for 

other assets or groups of assets. 

Cash-Management-System 

Computer-aided system for the optimum management of funds in the 

Group in respect to liquidity and profitability. 

Comprehensive income 

Comprehensive income is the change in equity, which comprises of 

the profit and loss for the period in the income statement plus components 

of earnings recognized directly to equity. 

Consolidation 

Aggregation of the financial statements from all the companies within 

a Group to produce the consolidated financial statement. 


Term used to denote responsible corporate management and controlling 

that is aimed at generating sustained added value. 

DBO (Defined Benefit Obligation) 

Compulsory amount for the company resulting from a defined benefit 

plan. 

Defined contribution plan 

Plan for the provision of payments after the end of the employment 

relationship, in which the company pays defined contributions to an 

independent pension fund, and itself has neither a legal nor a de facto 

obligation to make payments over and above these amounts. 


Financial products for which valuation is based on the performance of 

the underlying instrument. 

Dividend yield 

Interest paid on the capital invested in shares; calculated by dividing 

the dividend by the stock’s price at a specific date. 

DVA (DOUGLAS Value Added) 

DVA is a management control concept based on EVA® (-> EVA®) that 

has been specially tailored to the DOUGLAS Group’s requirements. 

EBIT 

Earnings before Interest and Taxes. 

EBIT margin 

Ratio of EBIT to sales. 

EBITDA 

Earnings before Interest, Taxes, Depreciation and Amortization 

EBITDA margin 

Ratio of EDITDA to sales. 

EBT 

Earnings before taxes 

EBT margin 

Ratio of EBT to sales. 

Endorsement process 

When the IASB passes an accounting standard, it is subjected to a formal 

recognition process by the EU. Standards that are recognized by 

the EU Commission in this process can be used by companies preparing 

their accounts using IFRS based on the EU directive. 

Eurozone 

The member states of European Union that have adopted the euro as 

their currency. During the period under review, the Eurozone comprised 

sixteen countries: Austria, Belgium, Cyprus, Finland, France, 

Germany, Greece, Ireland, Italy, Luxembourg, Malta, Portugal, Slovakia, 

Slovenia, Spain and the Netherlands. 

EVA® (Economic Value Added) 

EVA® is a concept developed by the corporate consultants Stern Stewart 

& Co. to promote value-oriented management control.

Fair Value 

Amount at which an asset would be transferred in an arm’s-length transaction. 

Finance lease 

Lease in which the main opportunities and risks associated with ownership 

of an asset are transferred to the user of that asset, irrespective 

of the actual transfer of legal title. 

Free Cash Flow 

Operating Cash Flow minus Cash Flow from investment activities. The 

Free Cash Flow is available for dividend payments to shareholders, and 

to pay interest. 

Free float 

The percentage of share capital that is not held by long-term investors 

and can therefore be freely traded on the market (free float). 

Full consolidation 

Method to prepare consolidated financial statements, in which all assets 

and liabilities as well as income and expense items are included in 

the consolidated financial statements regardless of the shareholding 

interest held in the respective subsidiary. 

Functional currency 

The currency used in the primary economic environment of a company’s 

operations. 

Goodwill 

Positive differential between a company’s purchase price and its net 

assets (assets minus debts). 

Hedge accounting 

Accounting treatment of hedge transactions. 

IFRIC (International Financial Reporting Interpretations Committee 

– formerly SIC) 

Concrete interpretations of individual IFRSs. 

IFRS/IAS (International Financial Reporting Standards – formerly IAS) 

Accounting standards issued by an international committee (International 

Accounting Standards Committee) with the aim of creating transparent 

accounting that is comparable worldwide. 

Impairment 

Reduction in value that is performed as soon as the carrying amount 

of an asset is greater than its recoverable amount, i.e., the higher value 

which would result from either its sale or its continued use. 

Like-for-like sales 

Sales relative to space; only includes sales from those branches operating 

during the year under review and the year being compared. Does 

not include stores whose sales area varied by at least 20 percent during 

the period under review. 

Market capitalization 

The market price of a listed company; calculated by multiplying the 

current share price by the number of shares issued. 


MDAX 

Share index containing the fifty largest German and non-German companies 

within the DAX index (measured in terms of their trading volume 

and market capitalization). 

Multi-channel 

Integration of stationary and online distribution. 

Net realizable value 

Value that would be realized from sale in normal business less the estimated 

production and marketing costs which are still due. 

Operating lease 

Leasing for items where the main opportunities and risks associated 

with the leased item remain with the lessor. 

Past service cost 

Increase in the present value of a defined benefit pension commitment 

which is due to the work performed by the employees during 

the period under review. 

Plan assets 

Assets which are held in long-term funds or qualified insurance policies 

to fulfill payments to employees. 

Sale-and-Lease-Back-Transaction 

Sale of an item with simultaneous further use of the item by the seller. 

Short reporting period 

A reporting period that is shorter than twelve months. 

Overview 

Glossary 


Temporary differences 

Differences between the carrying amount of an asset and its tax base. 

Value added 

The additional increase in value generated in a company by operations, 

over and beyond that generated by the services obtained from thirdparty 

providers for this purpose. 

179


Overview 

Glossary 


Financial calendar 

January 12, 2011 

Press Conference on annual results, Düsseldorf 

Publication of the Annual Report for the fiscal year 2009/10 (10/01/2009 – 09/30/2010) 

January 13, 2011 Analysts’ Conference, Frankfurt/Main 

February 9, 2011 Interim Report Q1 2010/11 

March 23, 2011 Annual Shareholders’ Meeting, Hagen 

March 24, 2011 Dividend Distribution 

May 11, 2011 Mid-year Report H1 2010/11 

August 10, 2011 Interim Report 9M 2010/11 

October 10, 2011 Trading Statement for the fiscal year 2010/11 (10/01/2010 – 09/30/2011) 

Contact 

Communication 

Phone (+49) 23 31/690-466 

Fax (+49) 23 31/690-690 

pr@douglas-holding.com 

Investor Relations 

Phone (+49) 23 31/690-5301 

Fax (+49) 23 31/690-8760 

ir-info@douglas-holding.com 

Credits 

Publisher 


Kabeler Straße 4 

58099 Hagen, Germany 

Phone (+49) 23 31/690-0 

Fax (+49) 23 31/690-271 

info@douglas-holding.com 

Concept/Editing 

DOUGLAS HOLDING AG, Hagen 

Design 

ensemble»design, Soest 

Cover photography 

Thomas Grimm, Werl 

Lithography 

dateam, Dortmund 

Printing 

bellmann druck gmbh, Hagen 

English 

Business translations, Wülfrath 

Gilbert & Bartlett GbR, Hamburg 

The Annual Report is published in German (original 

version) and English (non-binding translation) 

and is subject to German law. 

On request we will be pleased to send you the annual 

financial statements for DOUGLAS HOLDING AG 

as well. 

Further information and the latest corporate communications 

can be found on our website at 

www.douglas-holding.com. 

Forward-looking statements: This annual report 

contains statements that refer to future developments. 

Such statements constitute assessments that have 

been taken in the light of the information available. 

Should the assumptions on which they are based not 

prove accurate, or should – as specified in the section 

entitled Risk Management – risks occur, the actual results 

may differ from those anticipated. 

Copyright © 2011 

DOUGLAS HOLDING AG, Hagen, Germany 

The paper used for this Annual Report was produced 

from cellulose sourced from certified forestry 

companies that operate responsibly and comply with 

the regulations of the Forest Stewardship Council. Cert 

no. FSC mix. Cred. GFA-COC-001203.


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Annual Report 2009/10

Annual Report 2009/10 Excellence in Retailing - Douglas Holding

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