Earnings position

Selected items in the Group profit and loss statement:

  2009 2008
  EUR m EUR m
Revenue 306.3 315.5
Result from disposals before expenses 15.9 17.4
Expenses related to goods and services received – 134.8 – 139.1
Personnel expenses including nursing and residential care homes – 40.2 – 43.5
Other operating expenses/earnings – 13.8 – 19.7
Adjusted operating result 133.5 130.6
Depreciation, amortisation and impairment losses – 2.8 – 1.8
Restructuring costs – 7.8 – 24.1
Adjustment of the market values of the investment properties 0.0 – 276.5
Financial earnings – 119.6 – 156.9
Profit before tax 3.4 – 328.8
Income taxes – 16.6 56.5
Discontinued business divisions 0.0 16.4
Group profit or loss – 13.3 – 255.9

The Group profit and loss 2009 is affected by the one-time restructuring and integration costs (EUR 14.0 million), as in the previous year. In addition, a one-off effect result from the adjustment of market values (EUR 1.2 million). The profit before tax adjusted for these items looks as follows compared to the previous year:

  2009 2008
  EUR m EUR m
Profit before tax 3.4 – 328.8
Restructuring and reorganisation expenses 7.8 24.1
Profit from fair value adjustment of investment properties 0.0 276.5
Result from the market value adjustment of derivative financial instruments 1.2 32.2
Costs from extraordinary repayments of loans 6.2 0.0
Special payout DB 14 0.0 5.7
Adjusted profit before tax 18.5 9.7

The adjusted profit before tax improved by EUR 8.8 million. This development is essentially due to an optimised return and cost structure of the segments and lower interest expenses.

Regarding the operative developments, we refer to the chapter Segment profit or loss, where we give a detailed insight into the profit development of the individual segments.

The restructuring costs of altogether EUR 7.8 million are essentially due to the staff reduction measures (EUR 3.6 million) and the commissioning of SAP (EUR 2.0 million).

The financial earnings comprise the following:

  2009 2008
  EUR m EUR m
Current interest expenses 97.8 107.3
Accrued interest on liabilities and pensions 15.3 14.3
Costs from extraordinary repayments of loans 6.2 0.0
Special payout DB 14 0.0 5.7
Market value adjustment of the derivative financial instruments 1.2 32.2
Subtotal 120.5 159.5
Interest income – 0.9 – 2.5
Financial earnings 119.6 157.0

The debt relief of the Group resulted in the first significant savings of approximately EUR 10.0 million in the interest expenses.

Accrued interests that do not affect liquidity apply to low-interest loans with EUR 6.5 million, liabilities from taxes (EK 02: EUR 3.3 million), sale options of limited partners (DB 14: EUR 2.2), provisions for pensions (EUR 2.2 million), and the accrued interest of the convertible bond (EUR 1.1 million).

The income tax essentially includes expenses not affecting liquidity (EUR 14.8 million), of which deferred taxes in the amount of EUR 11.1 million.

My Annual Report

Improvement of the adjusted profit before tax by EUR 8.8 million

Significant reduction of the debt position