Annual Report 2012 - Fokker Technologies Reports... · 2009 2010 2011 2012 85 68 51 34 17 0 2009 2010 2011 2012 ... Fokker is typically involved throughout the program ... Bag Solution

Annual Report 2012

Annual report Fokker Technologies 2012 1

Key fi nancial fi gures 2

Profi le 3

Directors Report 14

Introduction and fi nancial performance

in 2012 14

Key developments 14

Financial result and position 15

Compliance, safety, health and

environment and quality 15

HRM policy 15

Diversity 15

Risk management 16

Forward looking statement 16

Report of the Supervisory Board 17

Introduction 17

Composition of the Supervisory Board 17

Composition of and consultation with

the Board of Management 17

The Fokker Technologies Group 19

Financial Statements 2012 21

Consolidated income statement 22

Consolidated statement of

comprehensive income 23

Consolidated statement of changes

in equity 24

Consolidated statement of fi nancial

position 25

Consolidated cash fl ow statement 26

Contents of notes to the fi nancial

statements 27

Explanatory notes to consolidated

fi nancial statements 28

Company income statement of

Fokker Technologies Group B.V. 65

Company balance sheet of


Explanatory notes to the company


Other information 68

Independent Auditor’s Report 68

Provisions of the articles of association

regarding profi t distribution 70

List of major consolidated operating

companies 2012 71

Contents

Annual report Fokker Technologies 20122

2012 2011 2010 2009

Fokker Technologies

Net turnover 769 685 616 602

Operational EBITDA */**/*** 76 74 77 66

Operational EBIT */**/*** 44 46 53 35

Operational result * 21 26 35 (1)

Order book at 31 December **** 884 886 805 840

Number of employees at 31 December 3,946 3,853 3,722 3,573

* Excluding the settlement of the pension recovery premiums.

** Operational EBIT(DA) is a non GAAP measure.

*** Unaudited.

**** Orders for the next 24 months.

Key fi nancial fi gures — Fokker Technologies Group B.V.(in EUR million, unless stated otherwise)

Net turnover

(in EUR million)

Operational EBITDA

(in EUR million)

Number of employees

800

640

480

320

160

02009 2010 2011 2012

85

68

51

34

17

02009 2010 2011 2012

5,000

4,000

3,000

2,000

1,000

02009 2010 2011 2012


Profi le

Fokker Technologies

Fokker Technologies is a leading global aerospace specialist that designs, develops and manufactures highly engineered

aircraft systems to aircraft manufacturers and provides through-life aircraft fl eet support services. Fokker’s main competitive

advantage is its engineering capabilities that are based on its heritage of complete aircraft manufacturing and its ability to

approach aircraft systems and equipment design from the perspective of an aircraft manufacturer, or integrator. Fokker

consistently invests in new distinctive technologies, products and programs. As a recognized innovation leader, the Company

is well represented as sole source supplier on several of the most technologically advanced aerospace and defense platforms.

As a sole source supplier, Fokker is typically involved throughout the program lifetime, which can last 20 to 40 years.

The Company operates through its principal units (Fokker Aerostructures, Fokker Elmo and Fokker Services), which have well-

defi ned and recognized specialties and capitalizes seamlessly on the deep involvement in a broad base of programs.

The widespread participation in development, manufacturing and sustainment of aircraft platforms across civil and defense

applications contributes strongly to customer intimacy, (joint) technology development and risk balance.


Profi le


Strong customer base

Fokker Technologies as a pure play aerospace specialist has a wide

range of relationships with the leading companies in the industry

across fi xed wing, helicopters and space. Key to our value proposition

is that Fokker Technologies supports customers in outperformance in

terms of availability, affordability and reduced capital intensity in both

the development and operation of aircraft. The customer base spans

Airbus, the Boeing company, Bombardier, Comac, Gulfstream

Aerospace Corporation, Lockheed Martin, Northrop Grumman, KLM,

Austrian Airlines and many other leading aerospace companies and

airlines.

Sustainable innovations

With a history of close cooperation with high graded knowledge

institutes in the Netherlands, partnerships are built with customers

and technology centers to advance on this joint innovation agenda.

Increasing awareness that the environment and materials have to be

treated differently and more carefully is leading to changing views on

the environment and sustainability among aircraft manufacturers and

suppliers. A number of developments by the Fokker companies

underline the irreversible trend towards greater sustainability. That with

the distinctive ability for advanced design and development of unique

integrated solutions that feature distinctive technologies for structures

and wiring systems, and in-service support of aircraft. Fokker’s main

advantage is its capability to approach aircraft systems design from

the perspective of an aircraft manufacturer and understanding the

aircraft and its operation as a whole.

Lightweight materials such as Glare and thermoplastics in

aerostructures, composites in landing gear, the unique WDMS for

the design, production and confi guration management of electrical

systems, the use of LED lighting in aircraft and the Electronic Flight

Bag Solution for the iPad are a perfect fi t with the ambition to reduce

the environmental footprint of the aerospace industry and at the same

time deliver highly advanced products that improve the competitive

position and performance of platforms that Fokker works on.

Global footprint

Headquartered in Papendrecht, the Netherlands, Fokker operates

facilities in the Netherlands, Romania, Turkey, Canada, Mexico,

the USA, Singapore and China. In April 2012 a new facility in

Chihuahua, Mexico has been opened for the production of

empennages for business jets. In February 2012 a new Regional

Aircraft Maintenance Facility in Singapore has been opened with the

full capabilities to support Fokker and ATR platforms, demonstrating

Fokker Technologies’ commitment to the Asia Pacifi c region.


Profi le

Fokker Aerostructures

Fokker Aerostructures is internationally recognized

as a specialist in the design, industrialisation and

manufacturing of lightweight aerostructures for the

aerospace and defense industry. The company has

a clear focus on three product groups: fuselages,

empennages and wing movables.

Fokker Aerostructures delivers structure assemblies to

all the leading aircraft manufacturers including Airbus,

Boeing, Cessna, Dassault, Gulfstream, Lockheed

Martin, NH Industries, and Raytheon.

Supported by proven methodologies, knowledge based

engineering tools and global supply chain management

expertise, products are designed and manufactured

with advanced technologies such as metal bonding and

optimum applications of lightweight, smart materials;

for example Glare® (glass fi ber reinforced aluminium)

and thermoplastic composites. Fokker is a frontrunner

in the use of advanced materials, which is a key factor

for weight reduction and effi ciency improvement.

Engineering and manufacturing teams in the

Netherlands, Romania, the USA and Mexico work

closely together with customer teams. This makes

the company a highly engaged specialist supplier,

at an early stage of the design phase. This favors

incorporating the most advanced structure assemblies.



Fokker Elmo

Fokker Elmo is recognized as a specialist in Electrical Wiring Interconnection Systems for aircraft and aircraft engines for the

aerospace and defense industry.

Fokker Elmo delivers wiring systems, electrical panels and boxes to all the leading aircraft and system manufacturers including

Airbus, AgustaWestland, Boeing, Bombardier, GKN, Hamilton Sundstrand, Honeywell, Lockheed Martin, Pratt & Whitney,

Raytheon and Rolls-Royce.

Profi le


As wiring is affected by almost any confi guration change of the aircraft, the effi cient management of complex and frequent

design changes into production is core to Fokker Elmo’s business. The design and manufacturing process of Fokker Elmo

enable our systems to be connected with those of our customers. Fokker Elmo’s proprietary Wiring Design and Manufacturing

System (WDMS) toolset integrates all aspects of wiring management including perfect confi guration management into one

powerful system. With WDMS Fokker Elmo offers its customers a single process across multiple sites, resulting in a consistent

quality product that supports all our customers’ needs over the entire life-cycle of their products.


Profi le

Fokker Services

Fokker Services is an independent specialist for Availability Services for selected platforms in the regional market and for

selected systems in the narrow and wide body market. Next to that it also provides Redelivery & Upgrade Services to support

lessors with the full range of asset integrity management when aircraft are changed over from one airline to a new one.

The combination of OEM (design) knowledge and independent after-sales support services makes Fokker Services a valuable

partner for the aerospace industry.

With its uniquely positioned FLY and availability programmes, Fokker Services supports airlines around the globe in all phases

in the life-cycle from start-up, to mature and phase-out operational and technical requirements. This entails that with the

extensive fl eet that Fokker Services supports, airlines get access to a vast amount of data that helps them improving

availability and reliability, and thereby reduce cost and capital. With a presence in the USA, Europe and Singapore Fokker

Services is located in close proximity to its customer base.

Fokker Services delivers its range of services to airlines and operators, such as KLM, Austrian Airlines, Ocean Air and Skywest

as well as a number of other airlines and operators.


Fokker Landing Gear*

Fokker Landing Gear is a specialist in the design, development and manufacturing of landing gear systems for small to mid-

size aircraft and helicopters. It has full life cycle capabilities including MRO and spares support and a good track record in

delivering weight- and cost-effi cient landing system designs.

Fokker Landing Gear delivers and supports landing gear systems to leading aircraft and system integrators including Boeing,

Lockheed Martin, NH Industries, and UTC Aerospace Systems.

For many years Fokker Landing Gears has been actively engaged in the development of technology for the application of

thick-walled Polymer Matrix Composites (PMC) for fl ight critical primary structural components for landing gears. As a leader

in this fi eld it underlines our innovation character in developing smart integrator solutions that provide better weight and

performance characteristics, but that are also more sustainable.

* Part of Fokker Aerostructures.


Global footprint

Profi le



Directors Report

* Operational EBIT is a non GAAP measure.

Strong revenue growth and progress in positioning as a super specialist

Introduction and fi nancial performance in 2012

Fokker Technologies is a Tier 1 super specialist in the Aerospace & Defence (A&D) business featuring distinctive technologies

and delivering smart integrator solutions based on a strong foundation in the Netherlands.

In August 2012, as part of the Stork Group refi nancing, stand-alone fi nancing for Fokker Technologies was arranged.

Together with the establishment of a Supervisory Board at Fokker Technologies level, whereby the Dutch Structuur Regime

has been applied. This is an important step for the future of Fokker Technologies outside the Stork Group.

In 2012 net revenue increased with 12% to EUR 769 million in 2012. Over the last two years revenue has grown by 25%,

whereby Fokker Services revenue remained fl at at around EUR 220 million during that period. The revenue of ‘design & build’

activities of Aerostructures, landing gear and wiring business units continued to benefi t from Fokker Technologies’ participation

in a broad portfolio of important aircraft programs. Despite the economic uncertainty, the outlook for new build commercial

aircraft remains very healthy, as demonstrated by record order books at both Airbus and Boeing. The defense budgets face

more uncertainty, however high technology programs continue to have strong support.

Operational EBIT* was EUR 44 million compared to EUR 46 million in 2011 and did not follow the same trend as revenue

growth. The mix of programs with several programs in the start of development or early phase of the learning curve drives

temporarily lower margins with return on sales in 2012 at 5.7%. Growth in ramp up of new programs, learning curve effects

and cost control are to step up the return on sales towards the companies mid-term objective of 10%.

During 2012 Fokker Technologies continued to make progress in the positioning as a Tier 1 super specialist. A good example

is the major step in the development of the Chinese market, building on the success of Fokker Services by signing the fi rst

contract for wiring support on the ARJ21 for Fokker Elmo. Hereby Fokker Technologies is recognized for the integrator

knowledge that the Fokker Technologies companies as former aircraft manufacturer still possess.

Key developments

Strong growth of new programs

Fokker Aerostructures, Fokker Elmo and Fokker Landing Gear revenues increased with 14% compared to 2011. This was

especially seen from the new programs such as G650 / A350 / SMS Dassault and Bombardier CSeries. As these programs

are either still in their design phase or in the early cycle of the learning curve this had a temporary negative impact on margins

and EBITDA. On the other hand the B747-8 program was fi nalized and was transferred to China as contractually agreed with

Boeing. This resulted in a drop in revenue compared to 2011 of almost EUR 40 million.

Fokker Technologies realized signifi cant improvement in streamlining working capital of stocks with lower stock levels whilst

revenue growth was 12%.

New production facilities in Singapore and Mexico started to show good increase in volume.

Robust Fokker fleet

Fokker Services net revenue was EUR 222 million in 2012. The non-Fokker revenue of Fokker Services is currently at 30%.

The Bombardier Dash-8 component support revenue continues to grow slowly, whereby most contracts are won in case of

repositioning of aircraft to new operators. Furthermore, the contract on the NH90 standard parts component support was

awarded, which contributes to building a position for rotorcrafts at Fokker Services.


In 2012 Fokker Services’ operational EBITDA improved by EUR 3 million to EUR 14 million. This should be seen in the context

of the gradually declining Fokker fl eet. In the mid-term some large operators are expected to phase out their Fokker fl eet,

which will migrate into smaller fl eets across the globe.

The focus of Fokker Services is on reshaping the organization to achieve a sustainable profi t margin on other non-Fokker

activities and platforms.

Financial result and position

Operational EBITDA of Fokker Technologies increased by 2.6% to EUR 76.1 million from EUR 74.1 million in 2011. The net

profi t of Fokker Technologies for 2012 amounts to EUR 10.3 million. In 2011 the net profi t was EUR 30.4 million, including an

exceptional income of EUR 18.5 million.

As per August 16, 2012, Fokker Technologies is fi nanced through a EUR 150 million senior debt facility and a EUR 50 million

Revolver facility. Prior to this date Fokker Technologies was fi nanced through a shareholder loan of Stork B.V. of EUR 127.5

million.

Compliance, safety, health, environment and quality

In 2010 a subsidiary has discovered a potential violation of certain US export regulations. Fokker Technologies is investigating

the matter in full cooperation with the related authorities. Pending this investigation and the outcome thereof, the fi nancial

implications of the related contingent liability cannot be accurately quantifi ed. As a result no provision for this matter has

been recorded. We are in constructive dialogue with the authorities to solve this issue. Compliance processes have been

upgraded across all companies, including the necessary adjustments in IT systems to prevent deliveries to embargoed

countries. Furthermore, the company made further improvements in relation to IT security.

For Fokker Technologies compliance, safety, health, environment and quality are core values and are promoted by

management, for example through mandatory guidelines. This is a license to operate in the highly regulated environment

Fokker Technologies operates in. Furthermore, increasing safety awareness and improving safety among employees are

subjects of continuous focus by means of thematic actions, instruction and training. Satisfactory progress has been made in

this essential area.

HRM policy

Fokker Technologies continues to value the importance of a skilled and ambitious workforce at all levels in the organization to

consistently deliver on Fokker Technologies’ pay-off ‘Aircrafting’. Fokker Technologies has its own program to train people,

develop leadership and incorporate change management skills in the organization. The ambition to grow in(to) new markets is

creating the need for new programs to facilitate the human capital and leadership requirements accompanying the

(international) growth and to continuously build the companies distinctive capabilities. Considering the specialist technological

and integrator knowledge required in many of Fokker Technologies’ activities, but in particular in the aerospace industry,

Fokker Technologies undertakes to be present at activities at universities and technical colleges as well as to support other

initiatives to increase the interest of young people in technology.

Diversity

The size and composition of the Board of Management and Supervisory Board positions are based on the national and

international profi le and strategy of the company. The expertise, experience and various competencies of the members of the

Board of Management and Supervisory Board should contribute to this profi le and strategy. The company aims to fi nd the

best people suited for the job in which it has no specifi c policy for diversity. The company does have females in senior

management position and its trainee program more and more shows an even split between males and females. Over time the

company expects this will be refl ected in the Board of Management and Supervisory Board positions.


Directors Report

Risk management

The Fokker Technologies’ internal risk management system is based on the COSO framework. The signifi cant risks to which

Fokker Technologies can be and/or is exposed, are identifi ed and assessed at unit level and are then, according to guidelines,

discussed and addressed at corporate level. This also applies to the exposure of Fokker Technologies from its use of fi nancial

instruments relating to credit risk, liquidity risk, market risk and capital management. Further details on the objectives, policies

and processes to measure and manage these risks are described in the disclosure notes to the fi nancial statements.

In relation to the fi nancial reporting risks management is of the opinion that the risk management and monitoring processes

provide an adequate degree of certainty and that the fi nancial reporting is free of material misstatements. The policy remains

focused on the constant assessment and improvement of the risk management system, with the aim of continuous

optimization of the reliability and effectiveness of these processes and way of working of all staff.

Forward looking statement

The next year is crucial in preparing Fokker Technologies for its next step. Management is of the opinion that consolidation of

A&D companies in Europe and abroad will gain traction in the next couple of years. Continuous streamlining of the operational

activities, including expanding the global operations and alliances, will allow the Fokker Technologies’ companies to

adequately deal with competitive and economic challenges, thereby positioning to stay in sync with the consolidation.

The main objectives for 2013 are to fi nalize the US compliance fi le, to improve the long term outlook of Fokker Services by

developing new revenue streams to focus on right sizing indirect cost and to continue to progress in our main new programs.

At the close of this management report we would like to thank all Fokker employees and associates for their continuous

commitment to excellence during the past year.

Papendrecht, The Netherlands, 23 April 2013

The Board of Management:

Sjoerd Vollebregt (Chairman and CEO)

Hans Büthker (COO)

Remco Smit (CFO)

From left to right: Remco Smit,

Sjoerd Vollebregt and Hans Büthker.

The executive board of Fokker Technologies is composed of the Board of Management and the presidents of Fokker Services

(Peter Somers) and Fokker Elmo (Jan Lagasse, who will be succeeded by Tim Hayter as per 1 July 2013. Jan Lagasse has taken on

the responsibility for M&A and special projects at Fokker Technologies). Hans Büthker is also president of Fokker Aerostructures.


Report of the Supervisory Board

Introduction

Mid 2012, the Stork group of companies was refi nanced resulting in separate fi nancing arrangements at the level of each of

Fokker Technologies and Stork Technical Services as the two main groups of Stork. Following the refi nancing, the existing

corporate governance structure of Stork BV was changed resulting in separate yet similar governance structures for each of

Fokker Technologies and Stork Technical Services. Both companies apply the Dutch structure regime and have their own two-

tier Board. The refi nancing and change in the governance structure are steps that were made to enable Fokker Technologies

and Stork Technical Services to each establish and grow their own distinct, international businesses. Stork BV will

consequently limit its role to that of shareholder of both companies.

Fokker Technologies Group B.V. is a limited liability company according to Dutch Law, with its corporate seat in Amsterdam,

the Netherlands. Since Fokker Technologies Group B.V. is not a listed company, the Netherlands Corporate Governance Code

is not applicable to Fokker Technologies Group B.V. Nonetheless, Fokker Technologies Groups’ corporate governance

practices are in conformity with most of the best practice provisions of the Code.

The Supervisory Board of Fokker Technologies was established on 28 December 2012 and convened for the fi rst time on

23 January 2013. The Supervisory Board therefore cannot now provide a report on the execution of supervisory tasks in 2012,

but would nonetheless like to report on its composition and consultation with management.

Composition of the Supervisory Board

Fokker Technologies’ new Supervisory Board consists of six members, fi ve of which are (former) members of the Stork

Supervisory Board thereby providing continuity in the supervision of Fokker Technologies. The Supervisory Board is chaired by

Mr. Jacques Schraven, who remains chairman of the Supervisory Board of the shareholder of Fokker Technologies, Stork BV.

Mr. Carel van den Driest has served on the Supervisory Board of Stork BV since 2006 and continues to serve on the

Supervisory Board of Stork Technical Services only. The company is grateful to Mr. van den Driest for his support to Fokker

Technologies. Mr. Hans Peter Ring, former CFO of EADS, has been appointed as new and sixth member of the Supervisory

Board. The composition of the Supervisory Board is as follows:

• Jacques Schraven, (chairman)

• N.I. Stoesser (vice-chairman)

• A.O. Thordarson

• R.G. Bruining

• P.F. Hartman

• H.P. Ring

The current composition of the Supervisory Board is in line with the profi le of the Supervisory Board and assures the required

mix of knowledge, skills and expertise relevant to the company.

Mr. Schraven, Mr. Hartman and Mr. Ring are independent members within the meaning of the Dutch Corporate Governance

Code. Mr. Hartman and Mr. Ring are appointed on the basis of the enforced recommendation right of the works council.

The Supervisory Board has installed an Audit & Compliance Committee, consisting of Mr. Stoesser (chairman) and

Mr. Schraven, and a Remuneration Committee, consisting of Mr. Hartman (chairman) and Mr. Stoesser.

Composition of and consultation with the Board of Management

The Board of Management of the company consists of three statutory directors and is composed as follows:

• Sj.S. Vollebregt, Chairman and CEO

• R. Smit, CFO

• H. Büthker, COO


Regular meetings of the Supervisory Board and its committees have been scheduled for 2013. The meetings of the

Supervisory Board will be held on a quarterly basis with in principle two additional meetings, one to specifi cally discuss the

annual report for the previous year and one to discuss the operational plan for the following year. Presidents of the respective

business units will be invited from time to time for a presentation on their respective business unit. Furthermore, human capital

and technology/R&D are topics that will each be specifi cally dealt with at a Supervisory Board meeting once a year.

In addition to the (regular) meetings specifi cally the chairman of the Supervisory Board and Mr. Stoesser as chairman of the

Audit & Compliance Committee maintain intensive contacts with the CEO and the CFO.

Signifi cant parts of the meetings of the Supervisory Board of Stork BV in 2012 were devoted to the refi nancing of Stork BV

which formed part of structuring an exit strategy for the private equity owner of Stork BV. In relation to Fokker Technologies,

the Supervisory Board also considered the operational plan of Fokker Technologies in its meeting of 16 December 2012 but

left the fi nal approval to the new Supervisory Board of Fokker Technologies which approved on the operational plan in its fi rst

meeting of 23 January, 2013.

Members of the Supervisory Board (at that time still the Supervisory Board of Stork B.V.) were present at the regularly

scheduled consultative meetings with the Central Works Council (also at that time of Stork B.V.) a well as at informal meetings

with the chairman, vice-chairman and secretary of the Central Works Council. Specifi cally the refi nancing of the Stork group

and the new corporate governance structure following the refi nancing were discussed. We like to thank the Group Workers

Council for their contribution.

The Supervisory Board is confi dent that the Company is well positioned to deliver on its objectives for the future.

The Supervisory Board would like to thank all employees of the Company for their contribution and continuing dedication in

2012, and would like to thank the investors for continuing to support further investments that enable the Company to further

enhance its capabilities and position in the market place.

Papendrecht, the Netherlands, 23 April 2013

The Supervisory Board


Fokker Technologies Group B.V.

Fokker Technologies Holding B.V.

FokkerAerostructures

FokkerLanding Gear

FokkerElmo

FokkerServices

The Fokker Technologies Group

The shares in the Fokker Technologies Group are directly held by Stork B.V. The shares in the Stork Group are indirectly held

by funds managed by amongst others Arle Capital Partners, Eyrir Invest and management participation funds. Stork Topco

B.V. is the ultimate Dutch holding company and head of the Dutch fi scal unity. Stork Topco B.V. and Stork Holding B.V. can

be classifi ed as the fi nancial holding companies of the Group.

Stork B.V. is the parent company of a number of operating companies. The Fokker Technologies Group structure is as follows:


* Not identical to legal structure.

Financial Statements 2012

Fokker Technologies

Group B.V.


2012 2011*

Revenue 3 768,999 684,681

Cost of sales 4 (630,705) (538,807)

Gross profi t 138,294 145,874

Selling expenses 4 (35,658) (35,554)

General administrative expenses 4 (81,193) (84,818)

(116,851) (120,372)

Operating result before pension and other effects 21,443 25,502

Other operating income 8 – 14,199

Pension recovery expense (general administrative expense) 24 – (35,007)

Effect of change in accounting principle to OCI 24 – 39,268

Operating result after pension and other effects 21,443 43,962

Financial income 9 226 2,242

Financial expenses 10 (16,595) (13,697)

Share of profi t of associates 14 4,556 966

Result before tax 9,630 33,473

Income tax 11 698 (3,068)

Profi t for the year 10,328 30,405

* The comparatives represent the Fokker Group companies prior to the fi nancial restructuring as explained in note 1.2.

Consolidated income statement(in EUR x 1,000)


2012 2011*

Profi t for the year 10,328 30,405

Other comprehensive income

Actuarial gains and losses 24 (2,179) (12,070)

Foreign currency translation differences for foreign operations 366 590

Effective portion of changes in fair value of cash fl ow hedges 4,793 (5,954)

Net change in fair value of cash fl ow hedges transferred to income

statement 26 4,992 6,984

Other comprehensive income (loss) for the period,

net after tax 7,972 (10,450)

Total comprehensive income for the period,

net after tax 18,300 19,955


Consolidated statement of comprehensive income(in EUR x 1,000)


Share

capital

Share

premium

Translation

reserve

Cashfl ow

hedge

reserve

Other

reserve Total

Balance as at 01-01-2011 18 131,461 4,804 (22,990) 33,941 147,234

Profi t for the year – – – – 30,405 30,405

Total comprehensive income / (loss) – – 590 1,030 (12,070) (10,450)

Other movements – – – – 149 149

Balance as at 31-12-2011* 18 131,461 5,394 (21,960) 52,425 167,338

Contribution** – 21,175 – – – 21,175

Profi t for the year – – – – 10,328 10,328

Total comprehensive income / (loss) – – 366 9,785 (2,179) 7,972

Other movements – – – – 25 25

Balance as at 31-12-2012 18 152,636 5,760 (12,175) 60,599 206,838


** The contribution is explained in note 19.

Consolidated statement of changes in equity(in EUR x 1,000)


2012 2011*

Non-current assets

Property, plant and equipment 12 101,788 103,406

Goodwill 13 98,590 98,590

Intangible assets 13 152,113 171,470

Investments in associates 14 37,175 31,460

Derivative fi nancial instruments 25 – 2,131

389,666 407,057

Current assets

Inventories 15 148,348 148,723

Construction contracts in progress – due from customers 16 95,601 77,341

Trade and other receivables 17 133,246 117,572

Cash and cash equivalents 18 25,349 17,873

402,544 361,509

Assets 792,210 768,566

Equity 19

Share capital 18 18

Share premium 152,636 131,461

Translation reserve 5,760 5,394

Cashfl ow hedge reserve (12,175) (21,960)

Other reserve 60,599 52,425

Total equity 206,838 167,338

Non-current liabilities

Long-term loans third parties 21 205,882 51,030

Long-term loans Stork Group companies 21 – 127,500

Employee benefi ts 24 26,017 32,625

Derivative fi nancial instruments 25 24,548 44,444

Deferred tax liabilities 20 20,102 18,482

276,549 274,081

Current liabilities

Construction contracts in progress – due to customers 16 106,623 120,268

Trade and other payables 22 168,697 172,299

Employee benefi ts 24 13,029 17,573

Current portion of long-term loans 21 1,412 1,187

Current tax payable 3,799 282

Provisions 23 15,263 15,538

308,823 327,147

Liabilities 792,210 768,566


Consolidated statement of fi nancial position(in EUR x 1,000)


2012 2011*

Cash fl ows from operating activities

Result before income tax 9,630 33,473

Adjustments for:

Depreciation and impairment of property, plant and equipment 16,629 15,414

Amortisation and impairment of intangible assets 23,275 21,819

Result from divestments of property, plant, equipment and others – (14,826)

Financial income and expenses (net) 11,813 10,285

Changes in provisions and employee benefi ts (11,428) (8,887)

Changes in working capital (excluding the effects of acquisition and exchange

differences on consolidation):

Inventories 375 (9,750)

Current receivables (15,675) 232

Current liabilities (36,261) (7,950)

Cash generated from operating activities (1,642) 39,810

Income tax paid (301) (357)

Interest paid (11,000) (10,964)

Financial instruments (7,430) (5,571)

Net cash generated from operating activities (20,373) 22,918

Cash fl ows from investing activities

Interest received 567 2,242

Dividends received 920 920

Proceeds from sale of property, plant and equipment 265 22,936

Acquisition of subsidiary, net of cash – (581)

Investments in property, plant and equipment (15,439) (25,739)

Investments in intangible assets (3,917) (16,024)

Net cash used in investing activities (17,604) (16,246)

Cash fl ows from fi nancing activities

Proceeds from long-term loans 151,695 10,538

Repayments of long-term loans (105,400) (22,841)

Net cash from/ (used in) fi nancing activities 46,295 (12,303)

Net (decrease)/increase in cash and cash equivalents 8,318 (5,631)

Cash and cash equivalents at opening balance 17,873 21,114

Net (decrease)/increase in cash and cash equivalents 8,318 (5,631)

Exchange rate and translation differences on cash held (842) 2,390

Cash and cash equivalents at 31 December 25,349 17,873


Consolidated cash fl ow statement(in EUR x 1,000)


Contents of notes to the fi nancial statements

Explanatory notes to the consolidated


1 General 28

1.1 General 28

1.2 Common control transaction 28

1.3 Statement of compliance 28

1.4 Basis of preparation 28

2 Signifi cant accounting policies 30

2.1 Consolidation principles 30

2.2 Foreign currency 31

2.3 Determination of fair values 32

2.4 Financial instruments 33

2.5 Revenue 34

2.6 Cost of sales 35

2.7 Leases 35

2.8 Financial income and expenses 36

2.9 Income tax 36

2.10 Property, plant and equipment 36

2.11 Intangible assets 37

2.12 Leased assets 38

2.13 Inventories 39

2.14 Construction contracts in progress 39

2.15 Impairment 39

2.16 Equity 40

2.17 Long-term loans 40

2.18 Provisions 40

2.19 Employee benefi ts 41

2.20 Cash fl ow statement 42

2.21 Discontinued operations and assets held for sale 42

3 Revenue 42

4 Expenses by nature 42

5 Employee benefi t expenses 43

6 Personnel 43

7 Remuneration of Management 43

8 Other operating income 43

9 Financial income 43

10 Financial expense 43

11 Income tax 44

12 Property, plant and equipment 45

13 Goodwill and Intangible assets 45

14 Investment in associates 46

15 Inventories 47

16 Construction contracts in progress 47

17 Trade and other receivables 48

18 Cash and cash equivalents 48

19 Equity 48

20 Deferred tax position 49

21 Long-term loans 50

22 Trade and other payables 51

23 Provisions 51

24 Employee benefi ts 52

25 Financial risk management 55

26 Currency management 57

27 Overview fi nancial instruments 60

28 Interest management 60

29 Contingent liabilities 62

30 Related parties 62

31 Capital commitments 62

32 Lease commitments 63

33 Other commitments 63

34 Estimates and judgments

by management 63

35 Events after the reporting period 64

Company income statement of


Company balance sheet of


Explanatory notes to the company


36 General 66

37 Principles for valuation and

determination of the result 66

38 Financial fi xed assets 66

39 Equity 67

40 Contingent liabilities 67

41 Events after the reporting period 67


1 General

1.1 General

Fokker Technologies Group B.V. (further referred to as ‘Fokker Technologies’ or ‘the Company’), a private company with

limited liability, was founded on 22 May 2012. Fokker Technologies has its statutory seat in Amsterdam, the Netherlands.

Its headoffi ce is located in Papendrecht. Stork B.V. is the parent and London Acquisition Luxco S.a.r.l. the ultimate parent

company of Fokker Technologies Group B.V.

The consolidated fi nancial statements of the Company as at and for the year ended 31 December 2012 comprise the

Company and its subsidiaries (together referred to as the ‘Group’ and individually as ‘Group entities’) and the Group’s interest

in associates and jointly controlled entities. Fokker Technologies is primarily involved in the development and production of

structural components, electrical wiring systems and landing gears for aircrafts as well as being a supplier of spare parts,

maintenance repair support and engineering services.

1.2 Common control transaction

On 8 August 2012, Stork B.V. announced the refi nancing of its two businesses Fokker Technology Holding B.V. (‘FTH B.V.’)

and Stork Technical Services Holding B.V. (‘STSH B.V.’). Stork B.V. decided to change from a group-level fi nancing structure

to two separate fi nancing structures. The purpose of fi nancing Stork B.V. into two separate capital structures was to establish

and grow its two distinct, international businesses. On 16 August 2012, the refi nancing and related corporate reorganization

process was executed. On this date, FTH B.V. entered into a EUR 200 million syndicated loan facility, consisting of a EUR 150

million term loan and a EUR 50 million revolving facility. With the drawdown of the term loan, FTH B.V. settled its intercompany

debt with Stork B.V. and certain other intecompany paybles.

On this date Stork B.V. also transferred 100% of the shares in FTH B.V. against the book value as per 16 August 2012 to

Fokker Technologies Group B.V. The book value (and consequently share premium) of this transfer amounted to EUR 184,976.

Fokker Technologies Group B.V. consequently became the head of the Fokker Technologies Group. The direct parent and the

ultimate shareholder remain unchanged.

The economic entity to which the consolidated fi nancial statements relate is essentially unchanged compared to 2011, except

for adding a new head to the group. Consequently, the consolidated fi nancial statements of the previous year are unchanged

and continued in 2012 as if the same economic entity was in place. Relevant changes in the legal structure are disclosed

where required.

1.3 Statement of compliance

The consolidated fi nancial statements have been prepared in accordance with International Financial Reporting Standards

(IFRS), as adopted by the European Union and with Title 9 Book 2 of the Netherlands Civil Code. The consolidated fi nancial

statements were authorised for issue by the Directors on 23 April 2013.

1.4 Basis of preparation

a) Functional and presentation currency

The consolidated fi nancial statements are presented in Euros, rounded to the nearest thousand, unless explicitly stated

otherwise. The Euro is the functional and presentation currency of Fokker Technologies.

b) Basis of measurement

The consolidated fi nancial statements are prepared on historical cost basis, except that the following assets and liabilities are

stated at fair value: derivative fi nancial instruments, fi nancial instruments at fair value through profi t or loss, available-for-sale

fi nancial assets and plan assets associated with defi ned benefi t plans. Assets held for sale are stated at the lower of carrying

amount or fair value minus the cost to sell, except for inventories, fi nancial assets, deferred tax assets and employee benefi t

assets which continue to be measured in accordance with the Group’s accounting policies.

Explanatory notes to consolidated fi nancial statements


c) Use of estimates and judgements

The preparation of the consolidated fi nancial statements requires management to make judgements, estimates and

assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and

expenses. Actual results may differ from these estimates. The estimates and associated assumptions are based on historical

experience and other factors that are believed to be reasonable under the specifi c circumstances. Estimates and underlying

assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the

estimates are revised and in any future periods affected. Information about critical judgements in applying accounting policies

that have the most signifi cant effect on the amounts recognised in the consolidated fi nancial statements is included in note 34.

d) New and amended standards adopted by the Group

There are no IFRSs or IFRIC interpretations that are effective for the fi rst time for the fi nancial year beginning on or after

1 January 2012 that would be expected to have a material impact on the Group.

e) New standards, amendments and interpretations issued but not effective for the fi nancial year beginning

1 January 2012 and not yet adopted

IAS 19, ‘Employee benefi ts’ was amended in June 2011. The standard is effective for annual periods beginning on or after

1 January 2013. The amendments include the requirment that actuarial gains and losses are recognized in other

comprehensive income, thus removing the corridor method. In addition, the expected return on plan assets recognized in the

statement of income is calculated based on the rate used to discount the defi ned benefi t obligation, instead of applying an

expected rate of return on plan assets. Fokker Technologies does not expect the impact of the applicability of the new

standard to be signifi cant.

IFRS 9, ‘Financial instruments’, addresses the classifi cation, measurement and recognition of fi nancial assets and fi nancial

liabilities. IFRS 9 was issued in November 2009 and October 2010. It replaces the parts of IAS 39 that relate to the

classifi cation and measurement of fi nancial instruments. IFRS 9 requires fi nancial assets to be classifi ed into two measurement

categories: those measured as at fair value and those measured at amortised cost. The determination is made at initial

recognition. The classifi cation depends on the entity’s business model for managing its fi nancial instruments and the

contractual cash fl ow characteristics of the instrument. For fi nancial liabilities, the standard retains most of the IAS 39

requirements. The main change is that, in cases where the fair value option is taken for fi nancial liabilities, the part of a fair

value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the income statement,

unless this creates an accounting mismatch. Although the standard is not yet endorsed by the EU, the implementation date is

currently set at 1 January 2015, with early adoption permitted. Fokker Technologies is currently assessing the future impact of

IFRS 9 on the fi nancial statements.

IFRS 10, ‘Consolidated fi nancial statements’ builds on existing principles by identifying the concept of control as the

determining factor in whether an entity should be included within the consolidated fi nancial statements of the parent company.

The standard provides additional guidance to assist in the determination of control where this is diffi cult to assess.

IFRS 11, ‘Joint Arrangements’ explains the factors in determining the type of joint arrangements, which can be classifi ied as a

‘joint-operation’ in which parties have the rights to the assets and obligations for the liabilities, or a ‘joint venture’, in which

parties have rights to net assets. A ‘joint operation’ will be accounted for on the basis of the Company’s interest in those

individual assets and liabilities, while an interest in a ‘joint venture’ will follow the equity method for accounting.

IFRS 12, ‘Disclosures of interests in other entities’ includes the disclosure requirements for all forms of interests in other

entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles.

Implementation of IFRS 10, 11 and 12 is, under EU endorsement, postponed to fi nancial years starting on or after 1 January

2014 with early adoption permitted. Fokker Technologies Group is currently assessing the impact of these standards.



IFRS 13, ‘Fair value measurement’, aims to improve consistency and reduce complexity by providing a precise defi nition of fair

value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements,

which are largely aligned between IFRSs and US GAAP, do not extend the use of fair value accounting but provide guidance

on how it should be applied where its use is already required or permitted by other standards within IFRSs or US GAAP.

Implementation of the standard is 1 January 2013 with earlier adoption permitted. The Group is yet to assess IFRS13’s full

impact.

Other new, revised or amended IFRS accounting standards and IFRIC interpretations that are not yet effective are not

expected to have a signifi cant impact on the Group fi nancial statements.

2 Signifi cant accounting policies

The accounting policies set out below have been consistently applied by all subsidiaries and equity-accounted investees

to all periods presented in these consolidated fi nancials statements. Some comparative information is restated for comparison

purposes.

2.1 Consolidation principles

a) Business combinations

Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which

control is transferred to the Group. Control is the power to govern the fi nancial and operating policies of an entity so as to

obtain benefi ts from its activities. In assessing control, the Group takes into consideration potential voting rights that currently

are exercisable. The Group measures goodwill at the acquisition date as:

• the fair value of the consideration transferred; plus

• the recognised amount of any non-controlling interests in the acquiree; plus

• if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree; less

• the net recognised amount (generally fair value) of the identifi able assets acquired and liabilities assumed.

When the excess is negative, a bargain purchase gain is recognised immediately in profi t or loss. The consideration transferred

does not include amounts related to the settlement of pre-existing relationships. Such amounts generally are recognised in

profi t or loss.

Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection

with a business combination are expensed as incurred.

Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is

classifi ed as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes

in the fair value of the contingent consideration are recognised in profi t or loss.

b) Subsidiaries

Subsidiaries are entities controlled by Fokker Technologies. Control exists when Fokker Technologies has the power, directly

or indirectly, to govern the fi nancial and operating policies of an entity so as to obtain benefi ts from its activities. The fi nancial

statements of subsidiaries are included in the consolidated fi nancial statements from the date that control commences until

the date that control ceases.

c) Investments in associates and jointly controlled entities (equity accounted investees)

Associates are those entities in which Fokker Technologies has a signifi cant infl uence on the fi nancial and operational policy

but not control. Signifi cant infl uence is presumed to exist if Fokker Technologies holds between 20 and 50 per cent of the

voting power of another entity. Jointly controlled entities are those entities over which Fokker Technologies has joint control,

established by contractual agreement and requiring unanimous consent for strategic, fi nancial and operational decisions.

Investments in associates and jointly controlled entities are accounted for using the equity method and are initially recognised

at cost. The cost of the investment includes transaction costs.


The investment of Fokker Technologies includes goodwill as determined on acquisition, net of any cumulative impairment

losses. The consolidated fi nancial statements include the share of Fokker Technologies in the total result and the movements

in equity of equity accounted investees, after adjustments to align the accounting policies with the policies of Fokker

Technologies, from the date on which Fokker Technologies fi rst held a signifi cant infl uence until the date that signifi cant

infl uence or joint control ceases to exist.

When Fokker Technologies’ share of losses exceeds the carrying amount of the equity-accounted investee, the carrying

amount is reduced to nil and recognition of further losses is discontinued except to the extent that Fokker Technologies

has entered into an obligation or has made payments on behalf of the investee.

d) Jointly controlled operations

A jointly controlled operation is a joint venture in which each participant uses its own assets for the joint activities.

The consolidated fi nancial statements include the assets controlled by Fokker Technologies and the obligations which Fokker

Technologies enters into in carrying out the joint activity, as well as the costs incurred by Fokker Technologies and the share of

the income earned by Fokker Technologies in the joint operation.

e) Transactions eliminated on consolidation

Intragroup balances and transactions and any unrealised gains and losses on intragroup transactions or income and expenses

are eliminated in the preparation of the consolidated fi nancial statements. Unrealised profi ts from transactions with associates

and jointly controlled entities are eliminated to the extent of the interest held by Fokker Technologies in the entity. Unrealised

losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

f) Common control transactions

Business combinations arising from transfers of interests in entities that are under the control of the shareholder that controls

Fokker Technologies are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period

presented or, if later, at the date that common control was established; for this purpose comparatives are revised. The assets

and liabilities acquired are recognised at the carrying amounts recognised previously in the Group controlling shareholder’s

consolidated fi nancial statements. The components of equity of the acquired entities are added to the same components

within Group equity except that any share capital of the acquired entities is recognised as part of the share premium. Any cash

paid for the acquisition is recognised directly in equity.

2.2 Foreign currency

Foreign currency transactions and translation

Transactions in foreign currencies are translated into Euro at exchange rates at the date of the transactions. Monetary assets

and liabilities denominated in foreign currencies at the reporting date are retranslated into Euro at the exchange rates at that

date. The foreign currency gain or loss on monetary items is the difference between amortised cost in Euro at the beginning

of the year, adjusted for effective interest and payments during the year, and the amortised cost in foreign currency translated

at the exchange rate at the end of the year.

Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the

exchange rate at the date of the transaction.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to Euros

at the exchange rate at the date that the fair value was determined. Exchange rate differences arising on retranslation are

recognised in the income statement, except for a fi nancial liability designated as a hedge of the net investment in a foreign

operation to the extent that the hedge is effective, or qualifying cash fl ow hedges to the extent that the hedge is effective,

which are recognised directly in other comprehensive income.

The main currencies used by Fokker Technologies are the Euro and the US Dollar. A summary of the exchange rate applied in

the year under review and preceding year is included in note 26.



Translation of foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are

translated into Euro at the foreign exchange rates applying on the reporting date. The income and expenses from foreign

operations are translated into Euro at exchange rates effective at the dates of the transactions.

Foreign currency differences are recognised in other comprehensive income, and presented in the foreign currency translation

reserve (translation reserve) in equity. However, if the foreign operation is a non-wholly owned subsidiary, then the relevant

proportion of the translation difference is allocated to non-controlling interests. When a foreign operation is disposed of such

that control, signifi cant infl uence or joint control is lost, the cumulative amount in the translation reserve related to that foreign

operation is reclassifi ed to profi t or loss as part of the gain or loss on disposal. When the Group disposes of only part of its

interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative

amount is reattributed to non-controlling interests. When the Group disposes of only part of its investment in an associate or

joint venture that includes a foreign operation while retaining signifi cant infl uence or joint control, the relevant proportion of the

cumulative amount is reclassifi ed to profi t or loss.

When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the

foreseeable future, foreign currency gains and losses arising from such item are considered to form part of a net investment in

the foreign operation and are recognised in other comprehensive income, and presented in the translation reserve in equity.

Net investments in foreign activities

Exchange rate differences arising on the translation of a fi nancial liability designated as a hedge of a net investment in a foreign

operation are recognised in other comprehensive income to the extent that the hedge is effective, and are presented within

equity in translation reserve. To the extent that the hedge is ineffective, such differences are recognised in the income

statement. When the hedged part of a net investment is disposed of, the relevant amount in the translation reserve is

transferred to the income statement as part of the result on disposal.

2.3 Determination of fair values

Some of the Group’s accounting policies and disclosures require the determination of fair value, for both fi nancial and non-

fi nancial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the

following methods. When applicable, further information about the assumptions made in determining fair values is disclosed

in the notes specifi c to that asset or liability.

a) Trade and other receivables

The fair value of trade and other receivables, excluding construction work in progress, is estimated at the present value of

future cash fl ows, discounted at the market rate of interest at the reporting date. This fair value is determined for disclosure

purposes.

b) Derivatives

The fair value of forward exchange contracts is based on their quoted price, if available. If a quoted price is not available, then

fair value is estimated by discounting the difference between the contractual forward price and the current forward price for

the residual maturity of the contract using a credit-adjusted risk-free interest rate (based on inter-bank interest rates).

c) Non-derivative fi nancial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and

interest cash fl ows, discounted at the market rate of interest at the reporting date. For fi nance leases the market rate of

interest is determined by reference to similar lease agreements.


Fair value hierarchy

Fokker Technologies adopted the amendment to IFRS 7 for fi nancial instruments that are measured in the balance sheet at fair

value, being derivative fi nancial instruments. This requires disclosure of fair value measurements by level of fair value

measurement hierarchy. The fair values of Fokker Technologies derivative fi nancial instruments are measured using a level 2

valuation method. Level 2 fair values are based on inputs rather than quoted prices.

2.4 Financial instruments

a) Offsetting

Financial assets and liabilities are offset and the net amount is presented in the statement of fi nancial position when, and only

when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and

settle the liability simultaneously.

b) Non-derivative fi nancial assets

Non-derivative fi nancial assets comprise of trade and other receivables as well as cash and cash equivalents.

Loans and receivables are fi nancial assets with fi xed or determinable payments that are not quoted in an active market. Such

assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition

loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses.

Fokker Technologies initially recognizes loans and receivables on the date that they originated. Derecognition of a fi nancial

asset takes place when the contractual rights to the cash fl ows from the assets expire, or it transfers the rights to receive the

contractual cash fl ows on the fi nancial assets in a transaction in which substantially all the risks and rewards of ownership of

the fi nancial asset are transferred. Any interest in transferred fi nancial assets that is created or retained by Fokker Technologies

is recognised as a separate asset or liability.

Trade and other receivables

Trade and other receivables are recognised initially at fair value plus any directly attributable transaction costs and are

subsequently valued at amortised cost, less any provisions considered necessary for doubtful debtors.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. These are used together with bank overdrafts

to manage the short-term commitments.

c) Non-derivative fi nancial liabilities

The non-derivative fi nancial liabilities comprise loans and borrowings, bank overdrafts and trade payables.

Fokker Technologies initially recognizes fi nancial liabilities on trade date, which is the date that Fokker Technologies becomes

a party to the contractual provisions of the instrument. Derecognition takes place when its contractual obligations are

discharged, cancelled or expired.

The non-derivative fi nancial liabilities are initially recognised at fair value plus any directly attributable transaction cost.

Subsequent to initial recognition these fi nancial liabilities are measured at amortised cost using the effective interest method.

d) Derivative fi nancial instruments, including hedge accounting

The Group holds derivative fi nancial instruments to hedge its foreign currency exposure and exposure to interest rate risk.

On initial designation of the derivative as a hedging instrument, Fokker Technologies formally documents the relationship

between the hedging instrument and hedged item, including the risk management objectives and strategy in undertaking the

hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging



relationship. Fokker Technologies makes an assessment, both at the inception of the hedge relationship as well as on an

on-going basis, of whether the hedging instruments are expected to be highly effective in offsetting the changes in the fair

value or cash fl ows of the respective hedged items attributable to the hedged risk, and whether the actual results of each

hedge are within a range of 80% – 125%. For a cash fl ow hedge of a forecast transaction, the transaction should be highly

probable to occur and should present an exposure to variations in cash fl ows that ultimately could affect reported profi t or

loss.

Derivative fi nancial instruments are initially recognised at fair value, attributable transaction costs are recognised in the income

statement as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are

accounted for as described below.

Cash fl ow hedges

When a derivative is designated as a hedge instrument in a hedge of the variability in cash fl ows attributable to a particular risk

associated with a recognised asset or liability or a highly probable forecast transaction that could affect profi t or loss, the

effective portion of the changes in fair value of the derivative is recognised in other comprehensive income and presented in

the hedging reserve in equity.

When the hedged item is a non-fi nancial asset, the amount accumulated in equity is included in the carrying amount of the

asset when the asset is recognised. In other cases, the amount accumulated in equity is reclassifi ed to profi t or loss in the

same period and under the same line item in the income statement that the hedged item affects profi t or loss.

Any ineffective portion of the changes in fair value of the derivative is recognised immediately in profi t or loss. If the hedging

instrument no longer meets the criteria for hedge accounting, expires or is sold, the cumulative gain or loss remains in equity

when the hedged transaction is still expected to occur. The amount accumulated in equity is reclassifi ed to profi t or loss in

the same period that the hedged item affects profi t or loss. If the hedging instrument no longer meets the criteria for hedge

accounting, expires or is sold, terminated or exercised, or the designation is revoked, then hedge accounting is discontinued

prospectively. If the forecast transaction is no longer expected to occur, then the balance in equity is reclassifi ed to profi t or loss.

Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and

risks of the host contract and the embedded derivative are not closely related, a separate instrument with the same terms as

the embedded derivative would meet the defi nition of a derivative, and the combined instrument is not measured at fair value

through profi t or loss.

Other non-trading derivatives

When a derivative is not designated in a qualifying hedge relationship, all changes in its fair value are recognised in profi t or

loss.

2.5 Revenue

Revenue from goods sold

Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received

or receivable, net of returns, trade discounts and volume rebates. Revenue is recognised when persuasive evidence exists,

usually in the form of an executed sales agreement, that the signifi cant risks and rewards of ownership have been transferred

to the customer, recovery of the consideration is probable, the associated costs and possible return of goods can be

estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be

measured reliably. If it is probable that discounts will be granted and the amount can be measured reliably, then the discount

is recognised as a reduction of revenue as the sales are recognised.


Revenue from services rendered

Revenue from services rendered is recognised in profi t or loss in proportion to the stage of completion of the transaction at

the reporting date. The stage of completion is assessed by reference to surveys of work performed. When the services under

a single arrangement are rendered in different reporting periods, the consideration is allocated on a relative fair value basis

between the services.

Revenue arising from construction contracts

Contract revenue includes the initial amount agreed in the contract plus any variations in contract work, claims and incentive

payments, to the extent that it is probable that they will result in revenue and can be measured reliably. As soon as the

outcome of a construction contract can be estimated reliably, contract revenue is recognised in profi t or loss in proportion

to the stage of completion of the contract. Contract expenses are recognised as incurred unless they create an asset related

to future contract activity.

The stage of completion is assessed by reference of cost incurred compared to total expected costs. When the outcome of

a construction contract cannot be estimated reliably, contract revenue is recognised only to the extent of contract costs

incurred that are likely to be recoverable. An expected loss on a contract is recognised immediately in profi t or loss.

Government grants

Grants received from the government are recognised at their fair value where there is a reasonable assurance that the grant

will be received and the Group will comply with all attached conditions.

Government grants relating to costs are deferred and recognised in the income statement over the period necessary to match

them with the costs that they are intended to compensate.

2.6 Cost of sales

Cost of sales include the direct attributable costs of producing the goods and services sold.

2.7 Leases

Lease payments

Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the

lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

Minimum lease payments made under fi nance leases are apportioned between the fi nance expense and the reduction of the

outstanding liability. The fi nance expense is allocated to each period during the lease term so as to produce a constant

periodic rate of interest on the remaining balance of the liability.

Determining whether an arrangement contains a lease

At inception of an arrangement, the Group determines whether such an arrangement is or contains a lease. This will be the

case if the following two criteria are met:

• the fulfi lment of the arrangement is dependent on the use of a specifi c asset or assets; and

• the arrangement contains a right to use the asset(s).

At inception or on reassessment of the arrangement, the Group separates payments and other consideration required by

such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the

Group concludes for a fi nance lease that it is impracticable to separate the payments reliably, then an asset and a liability

are recognised at an amount equal to the fair value of the underlying asset. Subsequently the liability is reduced as payments

are made and an imputed fi nance cost on the liability is recognised using the Group’s incremental borrowing rate.



2.8 Financial income and expenses

Finance income comprises interest income on funds invested, dividend income and the unwinding of the discount on

receivables. Interest income is recognised in profi t or loss as it accrues, using the effective interest method. Dividend income

is recognised in profi t or loss on the date that Fokker Technologies right to receive payment is established.

Finance costs comprise interest expense on borrowings, commitment fees and unwinding of provisions. Borrowing costs that

are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profi t or loss

using the effective interest method.

2.9 Income tax

Income tax comprises both current and deferred tax. Income tax is recognised in profi t or loss, except to the extent that it

relates to a business combination or items recognised directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable profi t or loss for the year, using tax rates enacted or

substantively enacted at the reporting date, and any adjustment to tax payable/receivable in respect of previous years.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for

fi nancial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:

• temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination

and that affects neither accounting nor taxable profi t or loss;

• temporary differences related to investments in subsidiaries and jointly controlled entities to the extent that it is probable

that they will not reverse in the foreseeable future; and

• taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using

tax rates enacted or substantively enacted at the reporting date.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that

it is probable that future taxable profi ts will be available against which they can be utilised. Deferred tax assets are reviewed at

each reporting date and are reduced to the extent that it is no longer probable that the related tax benefi t will be realised.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and

they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to

settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

2.10 Property, plant and equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment

losses.

Costs includes expenditure that is directly attributable to the acquisition of the asset. The costs of self-constructed assets

include:

• the costs of material and direct labour;

• any other directly attributable costs to bringing the assets to a working condition for their intended use;

• when the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling

and removing the items and restoring the site on which they are located; and

• capitalised borrowing costs.


Cost also includes transfers from equity of any gain or loss on qualifying cash fl ow hedges of foreign currency purchases of

property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised

as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items

(major components) of property, plant and equipment.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the net proceeds from

disposal with the carrying amount of property, plant and equipment, and are recognised in profi t or loss under other operating

income.

Subsequent expenditure is capitalised only when it is probable that the future economic benefi ts associated with the

expenditure will fl ow to the Group. On-going repairs and maintenance is expensed as incurred.

Items of property, plant and equipment are depreciated on a straight-line basis in profi t or loss over the estimated useful lives

of each component and taking into account any residual value. Leased assets are depreciated over the shorter of the lease

term and their useful lives unless it is reasonably certain that Fokker Technologies will obtain ownership by the end of the lease

term. Land is not depreciated.

Property, plant and equipment included as a result of a business combination are initially recognised at fair value, which is

based on the market value. The market value of property is the estimated value on the value date for which an immovable

property can be traded between an informed buyer and a seller in an objective business transaction in which both parties

acted carefully and without compulsion.

Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use, or in

respect of internally constructed assets, from the date that the asset is completed and ready for use.

The estimated useful lives for each asset category are:

Buildings 25 – 30 years

Machines and equipment 5 – 15 years

Other productive assets 3 – 11 years

Assets not used in production 10 – 30 years

Depreciation methods, residual values and useful lives are reviewed at each reporting date and adjusted if appropriate.

2.11 Intangible assets

Goodwill

Goodwill that arises on the acquisition of subsidiaries is presented with intangible assets. For the measurement of goodwill

at initial recognition, see note 2.1.a.

Subsequent measurement

Goodwill is measured at cost less accumulated impairment losses. In respect of equity-accounted investees, the carrying

amount of goodwill is included in the carrying amount of the investment, and any impairment loss is allocated to the carrying

amount of the equity-accounted investee as a whole.



Development costs

Costs incurred for research activities carried out with the aim of gaining new scientifi c or technical knowledge and

understanding are charged to profi t or loss as incurred.

Development activities involve a plan or design for the production of new or signifi cantly improved products and processes.

Development costs are capitalised only if the product or process is technically and commercially feasible, future economic

benefi ts are probable and Fokker Technologies intends to and has suffi cient resources to complete the development and to

use or sell the assets.

The capitalised costs comprise material costs, direct labour costs and indirect costs directly attributable to preparing the asset

for its intended use and capitalised borrowing costs. The other development costs are charged to profi t or loss as incurred.

Current development costs mainly relate to aerospace production programs.

The capitalised development costs are measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets from acquisitions

Intangible assets acquired as part of a business combination are initially recognised at fair value. The fair value of acquired

patents and trademarks is determined using the discounted estimated royalties avoided by the ownership of said patent or

trademark. The fair value of other intangible assets acquired as part of a business combination is based on the discounted

cash fl ow from the use and fi nal sale of the assets. Intangible assets from acquisitions are included in the column Other in

note 13.

Other intangible assets

Other intangible assets acquired by Fokker Technologies are measured at cost less accumulated amortisation and

accumulated impairment losses.

Amortisation

Except for goodwill, capitalised development costs and intangibles with an indefi nite life, intangible assets are amortised on

a straight line basis to profi t or loss over their estimated useful lives. The amortisation of capitalised development costs related

to Fokker Technologies programmes takes place per sale of an aircraft component and is based on the total estimated

number of aircraft components that will be sold. Amortisation of other intangible assets starts as soon as the assets are ready

for use.

The estimated useful lives are as follows:

Patents and trademarks 10 – 30 years

Capitalised development costs 3 – 15 years

Other intangible fi xed assets 10 – 20 years

Amortisation methods, residual values and useful lives are reviewed at each reporting date and adjusted if appropriate.

Impairment losses are recognised in profi t or loss.

2.12 Leased assets

Leases in which Fokker Technologies assumes substantially all the risks and rewards of ownership are classifi ed as fi nance

leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present

value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the

accounting policy applicable to that asset.

Other leases are operating leases and the leased assets are not recognised in the statement of fi nancial position.


2.13 Inventories

Inventories are measured at the lower of cost or net realisable value.

The cost of inventories is based on the fi rst-in fi rst-out principle, and includes expenditure incurred in acquiring the inventories,

production or conversion costs, and other costs incurred in bringing them to their existing location and condition.

Manufactured inventories include an appropriate share of production overheads based on normal operating capacity.

Net realisable value is the estimated sale price in the ordinary course of business, less the estimated costs of completion and

selling expenses.

2.14 Construction contracts in progress

Construction contracts in progress represents the gross unbilled amount expected to be collected from customers for

contract work performed to date. It is measured at cost plus profi t recognised to date less progress billings and recognised

losses.

Cost includes all expenditure related directly to specifi c projects and an allocation of fi xed and variable overheads incurred in

the Group’s contract activities based on normal operating capacity.

Construction contracts in progress is presented as part of current assets in the statement of fi nancial position for all contracts

in which costs incurred plus recognised profi ts exceed progress billings. If progress billings exceed costs incurred plus

recognised profi ts, then the difference is presented as current liabilities in the statement of fi nancial position.

The stage of completion is assessed by reference to surveys of work performed. When the outcome of a construction

contract cannot be estimated reliably, contract revenue is recognised only to the extent of contracts costs incurred that

are likely to be recoverable. An expected loss on a contract is recognised immediately in profi t or loss.

2.15 Impairment

Non-derivative fi nancial assets

Each reporting date is determined whether there is objective evidence that a fi nancial asset is impaired. A fi nancial asset is

impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition

of the asset, and that loss event(s) had an impact on the estimated future cash fl ows of that asset that can be estimated

reliably. Objective evidence that fi nancial assets are impaired includes default or delinquency by a debtor, restructuring of an

amount due to Fokker Technologies on terms that would not be considered otherwise and indications that a debtor or issuer

will enter bankruptcy.

The Group considers evidence of impairment for fi nancial assets measured at amortised cost at both a specifi c asset and

collective level. All individually signifi cant assets are assessed for specifi c impairment. Those found not to be specifi cally

impaired are then collectively assessed for any impairment that has been incurred but not yet identifi ed. Assets that are not

individually signifi cant are collectively assessed for impairment by grouping together assets with similar risk characteristics.

In assessing collective impairment, the Group uses historical trends of the probability of default, the timing of recoveries and

the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are

such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect

of a fi nancial asset measured at amortised cost is calculated as the difference between its carrying amount and the present

value of the estimated future cash fl ows discounted at the asset’s original effective interest rate. Losses are recognised in profi t

or loss and refl ected in an allowance account against loans and receivables. Interest on the impaired asset continues to be

recognised. When an event occurring after the impairment was recognised causes the amount of impairment loss to

decrease, the decrease in impairment loss is reversed through profi t or loss.



Non-fi nancial assets

The carrying amounts of non-fi nancial assets, other than inventories and deferred tax assets, are reviewed at each reporting

date to determine whether there is any indication of impairment. If such indication exists, the asset’s recoverable amount

is estimated. For goodwill and intangible assets that have an indefi nite life, the recoverable amount is estimated each year

at the same time. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds

its estimated recoverable amount.

The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its value in use and its fair value less costs

to sell. In assessing value in use, the estimated future cash fl ows are discounted, using a cash generating unit specifi c

discount rate, to their present value using a pre-tax discount rate that refl ects current market assessments of the time value

of money and the risks specifi c to the asset or CGU. For the purpose of impairment testing, assets are grouped together into

the smallest group of assets that generates cash infl ows from continuing use that are largely independent of the cash infl ows

of other assets or CGUs. CGUs to which goodwill has been allocated are aggregated so that the level at which impairment

testing is performed refl ects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired

in a business combination is allocated to groups of CGUs that are expected to benefi t from the synergies of the combination.

Impairment losses are recognised in profi t or loss.

Impairment losses recognised in respect of cash-generating units are allocated fi rst to reduce the carrying amount of goodwill

(if applicable) allocated to the cash-generating units and then to reduce the carrying amounts of other assets in the unit on

a pro rata basis.

Impairment losses are not reversed in relation to goodwill. For other assets, impairment losses are only reversed to the extent

that the carrying amount of the asset does not exceed the carrying amount after deduction of depreciation or amortisation

in a situation in which no impairment loss would have been recognised.

2.16 Equity

Ordinary shares

Ordinary shares are classifi ed as equity. Incremental costs directly attributable to the issue of ordinary shares and share

options are recognised as a deduction from equity, net of any tax effects.

Share premium

Share premium is classifi ed as equity. The share premium account is the capital that a company raises upon issuing shares

that is in excess of the face value of the shares.

Dividend

Dividends are recognised as liabilities in the period in which these are declared.

2.17 Long-term loans

Long-term loans are recognised initially at fair value, less attributable transaction costs. Subsequent to initial recognition,

interest bearing loans are valued at amortised cost using the effective interest method.

2.18 Provisions

Provisions are recognised for present legal or constructive obligations, as a result of a past event, that can be estimated

reliably and where it is probable that an outfl ow of economic benefi ts will be required to settle the obligation. If the effect

is material, provisions are determined by discounting the expected future cash fl ows at a pre-tax rate that refl ects current

market assessments of the time value of money and, where appropriate, the risks specifi c to the liability. The unwinding of

the discount is recognised as fi nance cost.


Restructuring

A provision for restructuring is recognised when Fokker Technologies has approved a detailed and formal restructuring plan,

and the restructuring either has commenced or has been announced. Future operating losses are not provided for.

Onerous contracts

A provision for onerous contracts is recognised when the expected benefi ts to be derived by Fokker Technologies from

a contract are lower than the unavoidable costs of meeting its obligations under the contract. If material, the provision

is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost

of continuing with the contract. Before a provision is established, Fokker Technologies recognises any impairment loss on

the assets associated with that contract.

2.19 Employee benefi ts

Fokker Technologies has several pension plans in place in accordance with local rules and conditions. The pension plans

comprise both defi ned benefi t plans as well as defi ned contribution plans. In general, these plans are funded by payments

to insurance companies or to funds administered by third parties. For the majority of its employees, Fokker Technologies has

pension plans in which the liabilities to employees are based primarily on the number of years of service and the salary levels.

Defi ned contribution plans

A defi ned contribution plan is a plan to provide benefi ts after retirement in which an entity makes fi xed contributions to

a separate entity, and legally has no constructive obligation to make further contributions. Obligations relating to defi ned

contribution pension plans are charged to the income statement as employee remuneration expenses when the contributions

are payable. Contributions paid in advance are presented as assets to the extent that cash repayment or a reduction in future

contributions is available.

The main pension obligations are administered in the multi-employer of the ‘Stichting Pensioenfonds voor de Metalektro’

(PME), which classifi es as a defi ned benefi t plan. As insuffi cient information is available to apply defi ned benefi t accounting for

this plan, the plan is accounted for as a defi ned contribution plan.

Defi ned benefi t plans

A defi ned benefi t plan is a post-employment benefi t plan other than a defi ned contribution plan. Fokker Technologies’ net

obligation in respect of defi ned benefi t plans is calculated separately for each plan by estimating the amount of future benefi t

that employees have earned in return for their service in the current and prior periods; that benefi t is discounted to determine

its present value. Any unrecognised past service costs and the fair value of any plan assets are deducted. The discount rate

is the yield at the reporting date on AA credit-rated bonds that have maturity dates approximating the terms of Fokker

Technologies’ obligations and that are denominated in the currency in which the benefi ts are expected to be paid.

The calculation is performed annually by a qualifi ed actuary using the projected unit credit method. When the calculation

results in a benefi t to Fokker Technologies, the recognised asset is limited to the total of any unrecognised past service costs

and the present value of economic benefi ts available in the form of any future refunds from the plan or reductions in future

contributions to the plan. In order to calculate the present value of economic benefi ts, consideration is given to any minimum

funding requirements that apply to any plan. An economic benefi t is available to the Group if it is realisable during the life of

the plan, or on settlement of the plan liabilities. When the benefi ts of a plan are improved, the portion of the increased benefi t

related to past service by employees is recognised in profi t or loss on a straight-line basis over the average period until the

benefi ts become vested. To the extent that the benefi ts vest immediately, the expense is recognised immediately in profi t or

loss.

Actuarial gains and losses arising from defi ned benefi t plans are immediately recognised in other comprehensive income in

the period in which they arise and all expenses related to defi ned benefi t plans are recognised in profi t or loss in the period in

which they arise.



The Group recognises gains and losses on the settlement of a defi ned benefi t plan when the settlement occurs. The gain or

loss on settlement comprises any resulting change in the fair value of plan assets, any change in the present value of the

defi ned benefi t obligation, any related actuarial gains and losses and past service cost that had not previously been

recognised.

2.20 Cash fl ow statement

The consolidated statement of cash fl ows is prepared using the indirect method. The cash fl ow statement distinguishes

between operating, investing and fi nancing activities. Cash fl ow in foreign currencies are converted at exchange rate at the

dates of the transactions. Currency exchange differences on cash held are separately shown. Payments and receipts of

corporate taxes are included as cash fl ow from operating activities and interest paid is shown as cash fl ow from operating

activities. Cash fl ows as a result from acquisition/divestment of fi nancial interest in subsidiaries and equity accounted investees

are included as cash fl ow from investing activities, taking into account the available cash in these interests. Dividends paid are

part of the cash fl ow from fi nancing activities.

2.21 Discontinued operations and assets held for sale

Non-current assets that are expected to be recovered primarily through sale rather than through continuing use are classifi ed

as held for sale. A discontinued operation is a component of an entity that either has been disposed of, or that is classifi ed as

held for sale, and represents a separate major line of business or geographical area of operations, or is a subsidiary acquired

exclusively with a view to resale.

Non-current assets held for sale and discontinued operations are measured at the lower of carrying amount or fair value less

cost to sell. Any gain or loss from discontinued operations, together with the results of these operations until the date of

disposal, is reported separately as result on discontinued operations. The fi nancial information of discontinued operations

is excluded from the respective captions in the fi nancial statements and related notes for all years presented.

Classifi cation as a discontinued operation occurs on disposal or when the operation meets the criteria to be classifi ed as held

for sale, if earlier. When an operation is classifi ed as a discontinued operation, the comparative statement of comprehensive

income is re-presented as if the operation had been discontinued from the start of the comparative year.

3 Revenue

2012 2011

Revenue from sale of goods and rendering of services 223,788 204,387

Revenue from construction contracts 545,211 480,294

768,999 684,681

4 Expenses by nature

The cost of sales, selling expenses and general administrative expenses can be split by nature as follows:

2012 2011*

Employee benefi t expenses 5, 24 224,412 212,558

Materials and production costs 334,902 272,299

Externally hired personnel 62,796 49,580

Depreciation and amortization expenses 39,904 37,233

Other 85,542 73,308

747,556 644,980

Expenses for research and development were EUR 5,680 (2011: EUR 4,450).

* Restated for comparison purposes.


5 Employee benefi t expenses

Total salaries, social security contributions and pension expenses can be split as follows:

2012 2011

Salaries 179,569 166,665

Social security contributions 23,488 21,794

Pension premiums and other post-retirement expenses 21,355 24,099

224,412 212,558

Of which in the Netherlands 204,033 193,921

The pension and other post-retirement expenses exclude the items recorded in other comprehensive income.

6 Personnel

The average number of employees of Fokker Technologies is 3,946 (2011: 3,853).

7 Remuneration of Management

2012 2011

Salaries* 1,239 1,007

Profi t sharing and bonus payments** 394 187

Post-employment benefi ts*** 41 69

1,674 1,263

* Includes crisis levy for an amount of EUR 180 thousand in 2012.

** Proposed for fi nancial year 2012 (subject to approval).

*** Severance payments, pension expenses etc.

8 Other operating income

In December 2011 Fokker Aerostructures entered into a sale and (operating) leaseback transaction with respect to land

owned in the Netherlands for an amount of EUR 21.9 million. After deduction of the carrying value of EUR 7.1 million and

related expenses, a net gain from the sale and leaseback of EUR 14.2 million is recorded in 2011.

9 Financial income

2012 2011

Interest income from banks 161 2,234

Other interest income 65 8

226 2,242

10 Financial expense

2012 2011*

Interest expenses on long-term debts third parties 9,284 2,596

Interest expenses government loans 2,324 1,987

Interest expenses on long-term debts parent 4,945 8,351

Financial expenses 3 204

Exchange rate differences 39 559

16,595 13,697

* Restated for comparison purposes.



11 Income tax

Recognised in the income statement

2012 2011

Current income tax charge to be paid and/or settled (943) (7,606)

Corrections for previous years – (2,681)

(943) (10,287)

Deferred income tax

Origination and reversal of temporary differences 1,641 7,219

1,641 7,219

Total income tax in the income statement 698 (3,068)

Allocation of income tax

Income tax on result of subsidiaries 698 (3,068)

698 (3,068)

Fokker Technologies Group B.V. is part of the Dutch fi scal unity of Stork Topco B.V. (which is not part of Fokker Technologies)

for corporation tax purposes. The fi scal unity is in a loss making position and as such no current tax is recognised with regard

to the Dutch Fokker Technologies entities. Deferred tax positions relating to temporary differences of the Dutch Fokker

Technologies entities are recognised in the Fokker Technologies Group, except for the unrecognised tax losses carried

forward, which are accounted for at Stork Topco B.V. The change in the recognised deferred taxes of the Dutch Fokker

Technologies entities is settled directly in the current account with Stork B.V. and therefore not recognised in the income tax

line in the consolidated income statement of Fokker Technologies. Consequently the line income tax in the consolidated

income statement solely concerns the current and deferred tax regarding the foreign Fokker Technologies subsidiaries.

As such the numerical tax reconciliation of Fokker Technologies as stated below relates only to the foreign income tax.

The Company made an accounting policy choice for measuring the current and deferred taxes of the Dutch Fokker

Technologies entities to be recognised in the fi nancial statements of Fokker Technologies.

Reconciliation of effective tax

2012 2011

Result before tax in the income statement 9,630 33,473

minus: Share of profi t of associates 4,556 966

Result before tax for income tax purposes 5,074 32,507

Weighted average legal corporation tax rate* 698 1,580

Non-deductible costs – –

Current year losses not resulting in a deferred tax asset – (1,967)

Correction for previous years – (2,681)

Effective tax 698 (3,068)

The amounts recognised in other comprehensive income are net of tax using the Dutch tax rate of 25.0% in 2012 (2011:

25.0%) as these amounts only relate to Dutch taxation and these deferred taxes are also settled directly in the current account

with Stork B.V.

* The results from dutch entities are levied against 0% as explained above.


12 Property, plant and equipment

Land and

buildings

Machines and

equipment

Other

productive

assets

Under

construction

Not used in

the production

process Total

Historic costs 115,321 130,463 42,113 11,027 14 298,938

Depreciation and impairment losses (70,726) (96,458) (28,337) (6) (5) (195,532)

Carrying amount as at 31-12-2011 44,595 34,005 13,776 11,021 9 103,406

Investments 1,504 3,766 3,672 6,457 – 15,399

Disposals (56) (123) (80) 3 (9) (265)

Depreciation (3,957) (6,983) (5,689) – – (16,629)

Impairment – – – – – –

Exchange rate differences (75) (47) (11) – – (133)

Other movements 39 (46) 17 – – 10

Completed property, plant and equipment 3,170 586 664 (4,420) – –

Carrying amount as at 31-12-2012 45,220 31,158 12,349 13,061 – 101,788

Historic costs 120,543 132,545 45,110 13,064 1 311,263

Depreciation and impairment losses (75,323) (101,387) (32,761) (3) (1) (209,475)

Carrying amount as at 31-12-2012 45,220 31,158 12,349 13,061 – 101,788

Security

Fokker Technologies has pledged certain assets on behalf of the syndicate credit facility of Fokker Technologies. See note 21.

Leased building

Fokker Technologies leases a building under a fi nance lease agreement. The leased building secures lease obligations.

At 31 December 2012, the net carrying amount of the leased asset was EUR 2.8 million (2011: EUR 2.8 million). During the

year, Fokker Technologies acquired no leased assets.

13 Goodwill and Intangible assets

Develop-

ment costs

Customer

relationships Trade names Other Sub total Goodwill Total

Historic costs 179,395 25,400 33,512 49,588 287,895 98,590 386,485

Amortisation and impairment losses (79,428) (18,900) (6,702) (11,395) (116,425) – (116,425)

Carrying amount as at 31-12-2011 99,967 6,500 26,810 38,193 171,470 98,590 270,060

Investments 3,917 – – – 3,917 – 3,917

Amortisation and impairment losses (15,195) (2,800) (1,675) (3,604) (23,274) – (23.274)


Historic costs 183,312 25,400 33,512 49,588 291,812 98,590 390,402

Amortisation and impairment losses (94,623) (21,700) (8,377) (14,999) (139,699) – (139,699)




Amortisation and impairment losses

The amortisation is shown under the following items in the income statement:

2012 2011

Cost of sales (15,195) (12,298)

General administrative expenses (8,079) (9,521)

(23,274) (21,819)

Impairment testing for cash-generating units containing goodwill

For the purpose of impairment testing, goodwill is allocated to cash-generating units which represent the lowest level within

the Group at which the goodwill is monitored for internal management purposes.

The recoverable amounts of the cash-generating units that carry goodwill are determined based on calculations of value in

use. Value in use was determined by discounting the expected future cash fl ows from the continuing use of the units. Unless

indicated otherwise, value in use in 2012 was determined similarly as in 2011. The calculation of the value in use was based

on the following key assumptions:

• The period for the discounted cash fl ow calculations is fi ve years, with a fi nal value based on a perpetual cash fl ow with

a growth rate (positive or negative) in line with the business model of the specifi c cash generating units.

• Cash fl ows in the fi rst fi ve years of the forecast are based on the base case prepared for the refi nancing of the company in

2012. The anticipated annual revenue growth for the following years has been based on average growth levels ranging

from 0 to 3%.

• The discount rate (pre-tax) used in the calculation amounted to 11.4% (2011: 10.7%).

For all cash generating units the recoverable amounts exceeded the carrying amounts and as a consequence no impairment

losses were recognised in 2012 (2011: nil). As at 31 December 2012, no cumulative impairment losses have been recognised

(2011: none).

14 Investment in associates

The investments mainly concerns Société Anonyme Belge de Constructions Aéronautiques (S.A.B.C.A.), Brussels for 43.6%

and Business Park Aviolanda B.V. for 20% and several associated participating interests that are not individually signifi cant.

Total

Carrying amount as at 01-01-2012 31,460

Share of profi t of associates 4,556

Contribution of investment 2,081

Impairments –

Dividends received (920)

Acquisition –

Other movements (2)

Carrying amount as at 31-12-2012 37,175


The table below shows the summarised fi nancial data of the signifi cant associates, based on the latest available information.

For S.A.B.C.A. N.V. the 2012 fi gures are based on the December 2012 fi nancial fi gures, For Business Park Aviolanda B.V. the

2012 fi gures are based on the latest available information, namely 30 June 2012.

2012 (millions of euros) Assets Liabilities Turnover

Profi ts/

(Loss)

S.A.B.C.A. N.V. 347.9 237.7 175.8 10.9

Business Park Aviolanda B.V. 25.5 15.1 1.8 (0.9)

2011 (millions of euros) Assets Liabilities Turnover

Profi ts/

(Loss)

S.A.B.C.A. N.V. 350.8 251.3 159.1 12.3

15 Inventories

2012 2011

Raw materials and consumables 39,895 38,894

Semi-fi nished products 61,602 62,862

Trading inventories and fi nished products 46,851 46,967

148,348 148,723

The trading inventories and fi nished products are shown net of an obsolete inventory provision amounting to EUR 16.6 million

(2011: EUR 15.5 million).

16 Construction contracts in progress

2012 2011

Due from customers, recognised under current assets 95,601 77,341

Due to customers, recognised under current liabilities (106,623) (120,268)

(11,022) (42,927)

Direct costs of current projects 485,621 409,720

Profi ts minus losses taken on these projects 43,947 43,079

Billed on current projects (516,970) (466,549)

12,598 (13,750)

Provisions for foreseeable losses on current projects (23,620) (29,177)

(11,022) (42,927)

The provision for loss orders regarding major Fokker Technologies programmes is calculated at actual exchange rates.

For programmes where cash fl ow hedge accounting is applied an amount equal to the exchange rate difference is

reclassifi ed from the cash fl ow hedge reserve to provisions for foreseeable losses on current projects.



17 Trade and other receivables

2012 2011

Debtors 107,587 98,507

Prepaid costs 5,832 5,475

Accrued interest – 17

Amounts due from parent company 1,650 –

Other receivables 18,177 13,573

133,246 117,572

Debtors

2012 2011

Gross trade receivables 98,555 88,392

Receivables from associates 10,774 15,984

109,329 104,376

Provision for doubtful debtors (1,742) (5,869)

107,587 98,507

Reference is made to note 25 and note 26 for detailed information on the credit and currency risks, and impairment losses

related to trade receivables.

18 Cash and cash equivalents

2012 2011

Cash and banks 25,349 17,873

All cash is at free disposal of the company, within the confi nes of the syndicated credit facility.

19 Equity

The summary of movements in equity is presented in the Consolidated statement of changes in equity.

Share capital

The authorised share capital comprises of 90,000 ordinary shares of EUR 1.–. Per 31 December 2012 18,000 ordinary shares

were issued and fully paid.

Share premium

The share premium is exempted from tax in the Netherlands and freely available for payment to shareholders. A contribution to

share premium was made in 2012, which comprised the participation in Business Park Aviolanda and the redemption of

certain intercompany loans.

Reserve for development costs

A legal reserve is held for capitalised development costs.

Translation reserve

The translation reserve comprises all differences in foreign currency arising as a result of the translation of the fi nancial

statements of subsidiaries with a functional currency other than the euro.

Cash fl ow hedge reserve

Fokker Technologies applies cash fl ow hedge accounting for a large proportion of the currency forward contracts and interest


rate swaps concluded with banks. The currency forward contracts are primarily euro/US dollar contracts. The cash fl ow hedge

reserve comprises the effective part of the changes in value of the fi nancial instruments for which cash fl ow hedge accounting

is applied. In addition, the cash fl ow hedge reserve is reduced by a correction made for hedged Fokker Technologies

programmes that would become wholly or partly loss-making on the basis of calculations at the current exchange rate, as

described in note 16. The cash fl ow hedge reserve is also reduced by the inclusion of a deferred tax position.

Dividend proposal

The directors proposed to make no dividend payment for 2012.

20 Deferred tax position

Opening

balance as at

01-01-2012

2012 movements

recognised via

Balance

as at

31-12-2012

Income

statement Equity

Property, plant and equipment (1,829) (418) – (2,247)

Intangible fi xed assets (37,577) 4,189 – (33,388)

Inventories (1,624) (101) – (1,725)

Debts 1,201 970 – 2,171

Provisions: –

• employee benefi ts 12,233 (3,034) – 9,199

• guarantees 1,821 9 – 1,830

• others (27) 27 – –

Interest rate swap – – 301 301

Foreign currency forwards and swaps 7,320 – (3,563) 3,757

Deferred tax assets / (liabilities) (18,482) 1,642 (3,262) (20,102)

The deferred tax position in the consolidated balance sheet consists of the deferred tax positions of each company that is

individually liable for taxation (as an independent tax payer or as part of a consolidated tax group). The deferred tax assets

and liabilities are attributable to the following categories:

2012 2011

Assets Liabilities Balance Assets Liabilities Balance

Property, plant and equipment – (2,247) (2,247) – (1,829) (1,829)

Intangible fi xed assets – (33,388) (33,388) – (37,577) (37,577)

Inventories – (1,725) (1,725) – (1,624) (1,624)

Debts 2,171 – 2,171 1,201 – 1,201

Provisions:

• employee benefi ts 9,199 – 9,199 12,233 – 12,233

• guarantees 1,830 – 1,830 1,821 – 1,821

• others – – – (27) – (27)

Interest rate swap 301 – 301

Foreign currency forwards and swaps 3,757 – 3,757 7,320 – 7,320

Gross tax assets / (liabilities) 17,258 (37,360) (20,102) 22,548 (41,030) (18,482)

Balance of tax assets and liabilities (17,258) 17,258 – (22,548) 22,548 –

Net tax assets / (liabilities) – (20,102) (20,102) – (18,482) (18,482)



Unrecognised deferred tax assets

Carry forward tax losses in the Netherlands have not been accounted for by Fokker Technologies as they are accounted for by

Stork Topco B.V. as head of the Dutch fi scal unity for corporate income tax purposes to which Fokker Technologies belongs.

Deferred tax assets have not been recognised for certain foreign subsidiaries as it is not probable that future taxable profi ts will

be available against which the Group can utilise these benefi ts. These amounts are presented below:

2012 2011

Tax losses not recognised (gross) – –

Duration unlimited – –

Duration > 10 years 10,094 8,868

Duration 5 > 10 years – 336

Duration 1 > 4 years – –

Duration < 1 year – –

10,094 9,204

21 Long-term loans

Currency Nominal interest rate

Year of

maturity

Debt

31-12-2012

Debt

31-12-2011

Long-term loans:

• Senior term loan Stork B.V. EUR 5.50% 2012 – 127,500

• Senior term loan bank syndicate EUR Euribor + 8.00%/ + 6.00% 2017 150,000 –

• Revolving credit facility EUR Euribor + 6.50%/ +4.50% 2017 5,000 –

• Loans provided by Agentschap NL EUR Average interest 4.65% 62,168 49,467

• Other loans EUR 2,769 2,750

219,937 179,717

Capitalised fi nance costs (12,643) –

Repayments due within one year (1,412) (1,187)

205,882 178,530

Of which with a remaining term of more than fi ve years 25,872 40,052

The loans provided by Agentschap NL have no fi xed term. The repayment of these loans depends on the success of the

program that is being funded.

Syndicate credit facilities

On 6 August 2012 credit facilities have been arranged with a syndicate of credit institutions. On 16 August 2012 Fokker

Technologies fi rst drew on these facilities. The credit facilities comprise of a EUR 150 million term loan and a EUR 50 million

revolving credit facility. The credit facilities are secured by bank accounts, IP, receivables and movable assets of the major

operating companies and have an original term of fi ve years.

All syndicated facilities have a fl oating interest rate basis. Part of the fl oating interest rate exposure of the syndicate facilities

has been hedged and converted into fi xed rates (please refer to note 28).

The term loan is fully drawn. The revolving facility was drawn for an amount of EUR 5 million at year end.


In respect of the syndicated credit facility, Fokker Technologies has to comply with four fi nancial covenants on a quarterly or

semi-annual basis. The fi nancial covenants are:

• cash fl ow cover, defi ned as consolidated cash fl ow divided by total net debt service;

• leverage, defi ned as total net debt divided by consolidated EBITDA;

• capital expenditure, defi ned as a fi xed amount per annum not to be exceeded;

• minimum liquidity, defi ned as available cash, cash equivalents and undrawn revolving facility.

Fokker Technologies has complied with its coventants for 2012.

22 Trade and other payables

2012 2011

Trade creditors 85,494 71,889

Amounts due to parent company and related parties – 13,581

Other taxes and social insurance contributions 7,695 7,074

Pensions 433 3,089

Prepayments received 2,813 1,374

Accrued interest 665 –

Other liabilities 71,597 75,292

168,697 172,299

23 Provisions

Balance at

01-01-2012

Addition

charged to

income

statement

Release

amount

credited to

income

statement Movements*

Balance at

31-12-2012

Reorganisation provision 4,333 196 – (3,073) 1,456

Environmental provision 360 – – (18) 342

Warranties 9,539 9,972 (4,346) (2,276) 12,889

Liabilities relating to employees 1,306 – (136) (593) 576

15,538 10,168 (4,482) (5,972) 15,263

Of which short-term 3,610 3,546

Provisions with a remaining term longer than fi ve years – –

* Movements relates to deductions for the use for the intended purpose and unwinding of discounts.

Reorganisation provision

This provision is formed on the basis of several plans agreed by management with individual employees. The provision

is expected to be used during the next two years.

Environmental provision

The provision is to cover the estimated payments in relation to environmentally benefi cial measures and noise nuisance

reduction as well as other factors. The estimated payments are based on research reports. The provision is expected to

be used within one to three years based on a detailed plan.



Warranties

The provision for warranties is to cover warranties issued contractually on products and services supplied and covers

the best estimate for possible costs arising from not meeting agreed quality requirements under normal conditions of use.

The provision is based on estimates derived from historic warranty data relating to comparable products and services. In

general the liabilities are expected to arise in the next two years, with the exception of a number of major aircraft programmes.

Liabilities relating to employees

This provision relates to other employee benefi ts based on agreed compensation schemes as well as other factors, some

of which have a longer term. These are not included in the employee benefi ts provision (refer to note 24 below).

24 Employee benefi ts

(in EUR x million)

General

Fokker Technologies has several pension plans in accordance with local rules and conditions. The majority of these plans are

in the Netherlands. Based on IAS 19, the most signifi cant of these plans are classifi ed as defi ned contribution plans, following

the transfer of the pension obligations to the Stiching Pensioenfonds voor de Metalelektro (PME). Several other plans are

classifi ed as defi ned benefi t plans. In general, these plans are funded by payments to insurance companies or to funds

administered by third parties. For the majority of its employees, Fokker Technologies has pension plans in which the liabilities

to employees are based primarily on the number of years of service and the salary levels.

The Netherlands

Stichting Pensioenfonds voor de Metalelektro (PME)

In October 2011, the Dutch Stork operating companies, the Stichting Pensioenfonds Stork and the industry pension fund

Stichting Pensioenfonds voor de Metalelektro reached an agreement on the transfer of all pension and most of the early

retirement commitments from Stichting Pensioenfonds Stork to PME per 1 January 2012. After the transfer, the only remaining

liability of the Dutch Stork operating companies with respect to early retirement plans consists of early retirement rights

granted in excess of the basic rights as defi ned in the Central Labour Agreement of the Dutch metal industry.

The total cost for the Dutch Fokker Technologies operating companies as a result of the above agreements is EUR 55.5 million

on a discounted basis. In 2011 and 2012 an amount of EUR 25.4 million has been paid to Stichting Pensioenfonds Stork and

PME. The remaining amount of EUR 28.0 million is included in the employee benefi ts liability and is payable to PME over the

next 3 years, with EUR 13.0 million (on a discounted basis) becoming due in 2013.

Other plans

The other defi ned benefi t plans in the Netherlands concern an early retirement plan (‘VPL’) arrangement, a SUM plan and a

jubilee scheme. Additionally there are several smaller arrangements which are classifi ed as defi ned contribution plans.

The early retirement plan (‘VPL’) is the main remaining defi ned benefi t plan after the settlement of the pension plan in

May 2011, as described above. Since the early retirement plan is unfunded a provision under IAS 19 is required. After the

transfer to PME, the remaining unfunded defi ned benefi t obligation in relation to the scheme in excess of the basic rights as

defi ned in the Central Labour Agreement amounts to EUR 9.6 million, which has been provided for as at 31 December 2012.


Employee benefi ts obligation

The breakdown of the employee benefi ts obligation as per 31 December 2012 and 31 December 2011:

The Netherlands

2012 2011

Defi ned benefi t obligation (11.1) (7.9)

Plan assets – –

Net position (11.1) (7.9)

The effect of limiting the asset* – –

Subtotal – balance liability (11.1) (7.9)

Other liabilities relating to pensions (28.0) (42.3)

Pension liabilities (39.1) (50.2)

* A net pension asset will be recognised for the fi rst time when economic benefi ts become available.

Defi ned benefi t obligation

The Netherlands

2012 2011

Opening balance as per 1 January 7.9 994.5

Service costs including participant contributions 0.5 11.3

Interest costs 0.4 19.5

Plan participants contributions – –

Actuarial gains and losses 2.5 11.5

Benefi ts paid (0.2) (18.7)

Settlements – (1,010.1)

Balance as at 31 December 11.1 7.9

Plan assets

The Netherlands

2012 2011

Opening balance as per 1 January – 970.3

Expected returns on plan assets – 23.7

Employer’s contribution 0.2 13.0

Plan participants contributions – 5.3

Actuarial gains and losses – (5.0)

Benefi ts paid (0.2) (18.7)

Settlements – (988.6)

Balance as at 31 December – –



The net period pension costs of the above pension plans:

The Netherlands

2012 2011

Service costs 0.5 6.0

Interest costs 0.4 19.5

Expected returns on plan assets – (23.7)

Actuarial gains and losses 0.3 0.4

The effect of settlement – (21.6)

Pension expense 1.2 (19.4)

The pension contribution expected to be paid by Fokker Technologies for the defi ned benefi t plans in 2013 is EUR 0.8 million

(2012: EUR 0.8 million).

Cumulative actuarial losses in other comprehensive income amount to EUR 57,113 (2011: 54,934).

The weighted average assumptions on which the calculation of the pension obligations is based are as follows:

The Netherlands

2012 2011

Pension obligation as at 31 December:

Discount rate used 3.3 4.4

Future salary increases 3.0 3.0

Future pension increases 2.0 1.0

The mortality table used for the Netherlands is based on the Prognosis table 2012-2062 of the ‘Actuarieel Genootschap’

(2010: Prognosis table 2010-2060 of the ‘Actuarieel Genootschap’ with an additional correction of 7%).

The assumptions for the expected return on plan assets have been reached on the basis of assessment of the historic returns

of the various categories in which the investments are made. The historic returns on these asset categories are weighted on

the basis of the expected long-term allocation of the plan assets.

Historical summary

2012 2011

Cash value of the obligations related to defi ned benefi t plans (11.1) (7.9)

Fair value of the plan assets – –

Net assets/(obligations) (11.1) (7.9)

Experience adjustments incurred on obligations of the plan 0.2 (51.8)

Experience adjustments incurred on plan assets – 5.0


25 Financial risk management

Financial risk management

Fokker Technologies has exposure to the following risks from its use of fi nancial instruments:

• market risk

• credit risk

• liquidity risk

• capital management

This note presents information about the exposure of Fokker Technologies to each of the above risks including the objectives,

policies and processes to measure and manage risk. Further quantitative disclosures are included in the notes to the

consolidated fi nancial statements.

Risk management framework

Management has overall responsibility for the establishment and oversight of the risk management framework.

Risk management policies are established and monitored on a consistent and regular basis. Risk management is fi rmly

embedded in the normal course of business. Management oversees the adequacy and functioning of the entire system of risk

management and internal control.

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and commodity prices will

affect Fokker Technologies’ income or the value of its holdings of fi nancial instruments.

The objective of the market risk management of Fokker Technologies is to manage and control market risk exposure within

acceptable parameters.

Credit risk

Credit risk is the risk of fi nancial loss if a customer or counterparty to a fi nancial instrument fails to meet its contractual

obligations, and arises principally from accounts receivable from customers and the fair value of derivative fi nancial

instruments.

Fokker Technologies’ exposure to credit risk is limited to the balance sheet items receivables from associates, derivative

fi nancial instruments, trade and other receivables and cash and cash equivalents.

Fokker Technologies follows an active policy to minimise credit risks. The ways in which this is achieved include the

recruitment and training of professional credit managers, the use of sales information systems, strict internal guidelines,

the consultation of external sources, requesting security for payment or prepayment and concluding credit-risk insurances.

There is no concentration of credit risks for signifi cant amounts at debtors. Fokker Technologies does not purchase credit

derivatives to hedge the credit risk on customers.

The maximum exposure to credit risk at the reporting date is the carrying amount of each class of fi nancial assets mentioned

below:

Carrying amounts

2012 2011

Trade and other receivables, including construction contracts in progress 228,847 194,913

Cash and cash equivalents 25,349 17,873



As at 31 December 2012, trade and other receivable amounts to EUR 133 million (2011: EUR 118 million). This amount

includes a bad debt provision of EUR 1.7 million (2011: EUR 5.9 million).

Fokker Technologies does not purchase credit derivatives to hedge the credit risk on customers. Fokker Technologies

concludes credit risk insurances.

Allowance for impairment represents the estimate of incurred losses in respect of trade and other receivables. The main

components of the allowance are a specifi c loss component that relates to individually signifi cant exposures and a collective

loss component for similar assets in respect of losses that have been incurred but not yet identifi ed. The collective loss

allowance is determined based on historical data.

Fokker Technologies limits its exposure to credit risk for cash and cash equivalents by where possible only holding cash with

counterparties (banks) that have a credit rating of at least single A-.

Impairment losses

The allowance for impairment represents the estimate of incurred losses in respect of trade and other receivables. The main

components of the allowance are a specifi c loss component that relates to individually signifi cant exposures and a collective

loss component for similar assets in respect of losses that have been incurred but not yet identifi ed. The collective loss

allowance is determined based on historical data of payment statistics for similar fi nancial assets.

The ageing of trade receivables as at the reporting date is as follows:

2012 2011

Not yet due 74,642 59,681

Due 0 – 30 days 10,252 14,124

Due 31 – 60 days 2,855 1,597

Due 61 – 120 days 4,564 3,862

Due more than 120 days 6,242 9,128

98,555 88,392

As of 31 December 2012, trade receivables of EUR 22.2 million (2010: 22.8 million) were past due but not impaired, these

receivables relate to independent customers for whom there is no recent history of write off or indications of insolvency.

Liquidity risk

Liquidity risk is the risk that Fokker Technologies will encounter diffi culty in meeting the obligations regarding fi nancial liabilities

that are settled by delivering cash or another fi nancial asset.

Fokker Technologies’ approach is to ensure, as far as possible, that it will always have suffi cient liquidity to meet its liabilities

when due, both under normal and stressed conditions, without incurring unacceptable losses or risking damage to Fokker

Technologies’ reputation.

Fokker Technologies ensures by working capital management and other procedures that it has suffi cient cash on demand to

meet expected operational expenses for a certain period, including the servicing of fi nancial obligations. In addition, through

the syndicate credit facility Fokker Technologies has secured credit lines to cover for any temporary shortfall of available cash.


The following are the contractual maturities (including interest payments) of fi nancial liabilities.

31-12-2012

Carrying

amount

Contractual

cash fl ows

6 months

or less 6-12 months 1-2 years 2-5 years

More than

5 years

Non-derivative fi nancial liabilities

Long-term debt 205,882 (283,052) (12,002) (7,475) (15,985) (219,564) (28,026)

Trade and other payables 168,697 (168,697) (168,697) – – – –

374,579 (451,749) (180,699) (7,475) (15,985) (219,564) (28,026)

Derivative fi nancial assets/

(liabilities)

Interest rate swaps (1,204)

Fixed (2,957) (239) (241) (621) (1,856) –

Floating 3,287 172 455 765 1,895 –

Forward foreign exchange contracts (23,344)

Outfl ow (1,025,715) (275,182) (153,676) (268,857) (317,504) (10,496)

Infl ow 1,002,280 269,546 150,347 261,970 310,274 10,143

(24,548) (23,105) (5,703) (3,115) (6,743) (7,191) (353)

31-12-2011

Carrying

amount

Contractual

cash fl ows

6 months

or less 6-12 months 1-2 years 2-5 years

More than

5 years

Non-derivative fi nancial liabilities

Long-term debt 179,717 (230,424) (4,248) (6,206) (9,210) (151,555) (59,205)

Trade and other payables 172,299 (172,299) (172,299) – – – –

352,016 (402,723) (176,547) (6,206) (9,210) (151,555) (59,205)

Derivative fi nancial liabilities

Forward foreign exchange contracts

(hedge accounting) (44,444)

Outfl ow (808,275) (128,334) (131,067) (181,123) (350,945) (16,806)

Infl ow 782,679 121,486 123,452 166,975 326,056 44,710

(44,444) (25,596) (6,848) (7,615) (14,148) (24,889) 27,904

Financial liabilities more than 5 years relates to government loans including accumulated interest.

It is not expected that the cash fl ows included in the maturity analysis could occur signifi cantly earlier, or at signifi cantly

different amounts. The gross infl ows/(outfl ows) disclosed in the table above with respect to derivative fi nancial liabilities

represent the contractual undiscounted cash fl ows relating to derivative fi nancial liabilities held for risk management purposes

and which are usually not closed out prior to contractual maturity.

26 Currency management

Currency risk

Fokker Technologies uses derivatives in order to manage currency risks. Generally, Fokker Technologies seeks to apply hedge

accounting or make use of natural hedges in order to minimise the effects of foreign currency fl uctuations in the income

statement.

Derivatives used are forward exchange contracts and are entered into with a limited number of counterparties with credit

ratings of at least A- or equivalent.



Foreign currency hedging operations are governed by internal policies and rules approved and monitored by Management.

The business is exposed to currency risk whenever it has expected cashfl ows in currencies other than its functional currency.

Cash infl ows and outfl ows of the business are offset if they are denominated in the same currency.

The main exposures being hedged are directly related to individual programs and are US dollar denominated. Currency risks in

the tender stage are managed through tender conditions and are not hedged by derivatives. After signing of a contract, the

currency exposure is hedged in accordance with Fokker Technologies’ FX Hedging policy.

With respect to currency risk exposure, Fokker Technologies distinguishes the currency exposure directly and indirectly related

to individual programs. Please fi nd below a further explanation of the categories:

Currency exposure directly related to individual programs

More than 90% of the FX derivatives Fokker Technologies enters into are directly related to individual programs. The main

exposure is on the US dollar position and due to the size and the long-term nature of the contracts the US Dollar exposure is

signifi cant for Fokker Technologies in total.

The FX hedging policy of Fokker Technologies aims to hedge substantially all of the estimated expected cash fl ows, although

market or other factors, such as the (long) term nature of forecasted cashfl ows, might lead to a decision not to fully hedge.

Fokker Technologies has applied a structural and consistent method for all programs to estimate the expected cash fl ows.

Based on these projected cash fl ows, Fokker Technologies enters into FX derivatives to mitigate the risk.

Please fi nd below the best estimate of the expected FX cash fl ows per 31 December 2012 for the period 2013 till 2022.

Dollar – net forecast transaction exposure in USD million

2013 2014 2015 2016 2017 2018-2022 Total

272 243 233 185 189 588 1,710

Of the total expected cash fl ow for the 10 year period as shown above per 31 December 2012 of USD 1,710 million (2011:

USD 1,497 million), 51% was hedged by FX derivatives (2011: 69%). At the end of 2012, Fokker Technologies hedged some

90% of the expected cash fl ows up to and including 2016, with forward exchange contracts. For this purpose Fokker

Technologies has substantial credit facilities with three banks for forward exchange contract transactions with terms up to fi ve

years.

For these derivatives cash fl ow hedge accounting is applied to mitigate the impact of exchange rate fl uctuations on

operational result. Please fi nd below a movement table of the derivatives and accordingly the cash fl ow hedge reserve.

The policy of Fokker Technologies is to link the term of the foreign currency contracts with the expected cash fl ows. If this is

not possible a roll-over strategy is applied.

Derivatives individual programs

(in EUR x million)

Fair value

Notional (in

USD million)

Derivatives as per 1 January 2012 (44.4) 1,042.7

movement 2012 20.1 (170.0)

Derivatives as per 31 December 2012 (24.3) 872.7


Movements in cash fl ow hedge reserve

Foreign

exchange

2012

Interest rate

swaps

2012 Total

Foreign

exchange

2011

Interest rate

swaps

2011 Total

Gross cash fl ow hedge reserve opening balance 29,280 – 29,280 27,347 – 27,347

Increase through effective hedge (7,594) 1,204 (6,390) (7,377) – (7,377)

Recycling to income statement (5,303) – (5,303) 9,312 – 9,312

Ineffectiveness (1,354) – (1,354) (2) – (2)

Gross cash fl ow hedge reserve ending

balance 15,029 1,204 16,233 29,280 – 29,280

Cash fl ow hedge provision – – – – – –

Cash fl ow hedge deferred tax position (3,757) (301) (4,058) (7,320) – (7,320)

Net cash fl ow hedge reserve ending balance 11,272 903 12,175 21,960 – 21,960

Currency management for other activities

Fokker Technologies’ treasury policy extends also to procedures for exposures not directly related to individual programs.

No cash fl ow hedge accounting is applied on these derivaties and as a result the fair value changes of these derivatives

are recognised in the income statement. As per 31 December 2012, the fair value of these derivatives amounted to

EUR 0.9 million (2011: EUR 2.1 million).

Derivatives – other

(in EUR x million)

Fair value

Notional

in EUR

Derivatives as per 1 January 2012 2.1 50.8

Fair value movement 2012 (1.2) 1.7

Derivatives as per 31 December 2012 0.9 52.5

The exposure mainly consists of contracts for GBP 14.8 million and USD 27.4 million (2011: GBP 14.6 million and

USD 25.1 million). The other derivatives have a term of up to one year.

The following exchange rate applied during the year:

Average rate Year-end

2012 2011 2012 2011

EUR-USD 1.29 1.39 1.32 1.29

Sensitivity analysis

A 10% appreciation of the US Dollar and related currencies in relation to the Euro would have had a very limited effect on

Fokker Technologies’ 2012 result as almost all cash fl ows subject to currency risks were covered by forward foreign exchange

contracts, on which hedge accounting is applied.

The effect on equity (which has been fully accounted for in the cash fl ow hedge reserve) would have been an increase of

EUR 73 million. A 10% depreciation of the US Dollar against the Euro would have had the equal but opposite effect.



27 Overview fi nancial instruments

Overview derivative fi nancial instruments

(in EUR x million)

31-12-2012 31-12-2011

Carrying

amount Fair value

Carrying

amount Fair value

Forward exchange contracts:

• Individual programs (24.3) (24.3) (44.4) (44.4)

• Other 0.9 0.9 2.1 2.1

• Interest rate swaps (1.2) (1.2) – –

(24.6) (24.6) (42.3) (42.3)

The fair values used are calculated based on data from external sources (Bloomberg).

Overview non-derivatives fi nancial instruments

(in EUR x million)

31-12-2012 31-12-2011

Carrying

amount Fair value

Carrying

amount Fair value

Trade and other receivables 133 133 118 118

Cash and cash equivalents 25 25 18 18

Trade and other payables (168) (168) (172) (172)

Long-term debts (206) (206) (179) (179)

(216) (216) (215) (215)

28 Interest management

Interest rate risk

Fokker Technologies has an external exposure to changes in interest rates on certain fi nancial assets and liabilities. Fokker

Technologies has entered in interest rate swaps as hedges of the variability in cash fl ows attributable to interest rate risk of a

large part of the syndicated term loan.

Fokker Technologies is exposed to fl oating interest rate risk, mainly resulting from the syndicated credit facilities (please refer to

note 21). Fokker Technologies’ policy in respect of interest rate risk is to protect at least 2/3 of the aggregate of outstanding

senior debt (excluding any outstanding debt under the revolving credit facility) from interest rate risk, amongst others by means

of interest rate swaps.

On 31 December 2012, the notional values of the interest rate swaps amount to EUR 125 million till 2014 and EUR 100 million

till 2016 (2011: nil).

Swaps have rates for the fi xed leg ranging from 0.38% to 1.06%.

Cashfl ow hedge accounting is applied on these interest rate swaps, the movement in the cash fl ow hedge reserve is

presented in note 26.

interest rate risk profi le

At the reporting date the interest rate profi le of Fokker Technologies’ interest-bearing fi nancial instruments were as follows:


Fixed rate instruments

(in millions of EUR)

2012 2011

Financial liabilities (65) (180)

Interest rate swaps - notional amounts (125) –

(190) (180)

Variable rate instruments

2012 2011

Financial liabilities (155) –

Interest rate swaps - notional amounts 125 –

(30) –

A change of 100 basis points in interest rates constantly applied during the reporting period would have increased (decreased)

equity and income statement by the amounts shown below (after tax). This analysis assumes all other variables remain

constant and excludes any possible change in fair value of derivatives at period-end because of a change in interest rates.

The analysis is performed on the same basis for 2011.

31 December 2012 (in millions of euros)

Income

statement

100 bp

increase

Income

statement

100 bp

decrease

Equity

100 bp

increase

Equity

100 bp

decrease

Variable rate instruments (0.8) 0.8 (0.8) 0.8

Net interest rate swaps fl oating to fi xed 0.6 (0.6) 0.6 (0.6)

Sensitivity (net) (0.2) 0.2 (0.2) 0.2

31 December 2011 (in millions of euros)

Variable rate instruments – – – –

Net interest rate swaps fl oating to fi xed – – – –

– – – –

Capital management

There were no major changes in Fokker Technologies’ approach to capital management during the year. Management’s policy

is to maintain a strong capital base so as to maintain investor, creditor and market confi dence and to sustain future

development of business and acquisitions. Capital is herein defi ned as equity attributable to equity holders of Fokker

Technologies (total equity minus non-controlling interests).

Fokker Technologies is not subject to externally imposed capital requirements other than the legal reserves explained in

note 19 and the fi nancial covenants related to syndicate credit facilitities as explained in note 21.



29 Contingent liabilities

Guarantees issued

At 31 December 2012 guarantees issued to third parties totalled EUR 21.0 million (2011: EUR 3.6 million). Of this amount

EUR 11 million relates to bankguarantees. The remainder relates to corporate guarantees.

Fokker Technologies is part of the Dutch tax fi scal unity for corporate income tax purposes headed by Stork Topco B.V. Each

of the companies included in a Dutch tax fi scal unity is individually and severally liable for all (Dutch corporate income) tax

liabilities of the companies included in the fi scal unity.

Contingencies

In 2010 a subsidiary has discovered a potential violation of certain US export regulations. Fokker Technologies is

investigating the matter in full cooperation with the related authorities. Pending this investigation and the outcome thereof,

the fi nancial implications of the related contingent liability cannot be accurately quantifi ed. As a result no provision for this

matter has been recorded.

Fokker Technologies and its consolidated companies are involved in a number of (potential) legal actions. Based on

currently available information and legal opinions, management believes that the outcomes of these legal actions, except

for the matter discussed above, will either have no signifi cant adverse effect on the fi nancial position of Fokker

Technologies, or that any possible adverse effects are adequately refl ected in provisions and disclosed in the fi nancial

statements.

30 Related parties

The ultimate parent company of Fokker Technologies Group B.V. is London Acquisition Luxco S.a.r.l., with its statutory seat in

Luxembourg. Stork Topco B.V. is the head of the Dutch tax fi scal unity for corporate income tax purposes. According to the

standard conditions, each of the companies is liable for corporate income tax payable of all the companies included in the

legal entity.

The shares in the Fokker Technologies Group are indirectly held by funds managed by Arle, Eyrir Invest and management

participation funds. Certain senior staff members of Fokker Technologies participate.

Loans for a total of EUR 218 thousand (2011; nil) have been granted to certain senior staff members of Fokker Technologies.

The Dutch subsidiairies of Fokker Technologies Group B.V. pledged most of their assets in the Netherlands to secure the

syndicated credit facilities granted to Fokker Technologies Group B.V.

Relationships between related parties exist between Fokker Technologies, Stork B.V., Stork Holding B.V. and its subsidiaries,

associates and joint ventures (see note 14), the Stork Pension Fund (see note 24) and the directors and higher management

of the company.

All transactions and outstanding balances with related parties are in the ordinary course of business and priced at

arm’s length basis.

31 Capital commitments

Investment commitments relating to assets on order are EUR 0.5 million (2011 EUR 0.4 million).


32 Lease commitments

Commitments relating to rental (mainly buildings) and operational leasing contracts (mainly cars) are EUR 117.8 million

(2011: EUR 120.9 million).

2012 2011

Shorter than 1 year 10.9 10.5

Between 1 and 5 years 33.7 33.9

Longer than 5 years 73.2 76.5

117.8 120.9

The leases typically run for a period of ten to thirty years, with an option to renew the lease after that date.

During the year ended 31 December 2012 an amount of EUR 10.5 million was recognised as an expense in the income

statement in respect of operating leases (2011: EUR 7.9 million).

33 Other commitments

Fokker Technologies Group B.V. participates in one joint venture, namely the NH90 Helicopter joint venture with Eurocopter

and Augusta, in which it has accepted individual liability for the obligations entered into by the joint venture. For this purpose

Fokker Technologies has issued corporate guarantees (see note 29).

34 Estimates and judgments by management

The Directors have discussed the development and selection of, and gaining information about, the critical principles for

fi nancial reporting and estimates, as well as the application of these principles and estimates. Primary sources of uncertainties

in estimates relate to:

Impairment testing

Note 2.15 contains information about the assumptions and the corresponding risk factors relating to impairment of goodwill

and intangible fi xed assets resulting from business combinations. Note 2.4 gives an analysis of the fi nancial instruments,

as well as of the risks relating to changes in currency values.

Recoverability of development costs

The most important part of development costs consists of non-recurring costs for aircraft programmes within Fokker

Technologies. The recoverability of the carrying amount is assessed periodically on the basis of expected cash fl ows based

on market and customer estimates of quantities sold. These estimates are based on management’s best estimate.

The carrying amount of development costs is included in note 13.

Assumptions concerning pensions

Note 24 contains information concerning the valuation of pension obligations. A decline in the long-term market interest rate

and therefore the applied discount rate would mean an increase in the obligations and could result in actuarial gains and

losses. Due to the transfer of the pension obligations to PME the risk related to pension obligations has been signifi cantly

reduced for Fokker Technologies.

Assumptions work in progress

Note 16 contains information concerning the valuation of work in progress. Assumptions are based on management’s best

estimate related to results on completion of work in progress.



Assumptions concerning the valuation of the deferred tax position

Note 2.9 provides information about the assumptions and the corresponding risk factors in relation to the valuation of the

deferred tax position.

35 Events after the reporting period

No events with a signifi cant impact on the fi nancial statements as at 31 December 2012 have occurred.


Company income statement of Fokker Technologies Group B.V. (in EUR x 1,000)

22-5-2012 to 31-12-2012

Income from subsidiaries after taxes* 1,157

Other results after tax –

Net result 1,157

* Relates to the period 16-8-2012 to 31-12-2012.

Company balance sheet of Fokker Technologies Group B.V. (in EUR x 1,000)

After appropriation of profi t 2012 22 May 2012

Non-current assets

Financial fi xed assets 38 206,820

206,820

Current assets

Cash and cash equivalents 18 18

18 18

Assets 206,838 18

Equity 39

Share capital 39 18 18

Share premium 39 122,832 –

Legal reserve 39 90,885 –

Other reserve 39 (6,897) –

206,838 18

Liabilities 206,838 18


36 General

The company fi nancial statements are part of the 2012 fi nancial statements of Fokker Technologies Group B.V. For the

company income statement of Fokker Technologies Group B.V., use is made of the exemption pursuant to Section 2:402 of

Book 2 of the Netherlands Civil Code.

Fokker Technologies Group B.V. has been incorporated on 22 May 2012. On 16 August 2012 the shares of Fokker

Technologies Holding B.V. were transferred to Fokker Technologies Group B.V. by Stork B.V.

37 Principles for valuation and determination of the result

For setting the principles for the recognition and measurement of assets and liabilities and determination of the result for its

company fi nancial statements, Fokker Technologies Group B.V. makes use of the option provided in Section 2:362 (8) of

the Netherlands Civil Code. This means that the principles for the recognition and measurement of assets and liabilities and

determination of the result for the company fi nancial statements of Fokker Technologies Group B.V. are the same as those

for the consolidated fi nancial statements. In this context, investments in companies in which signifi cant control is exercised are

measured according to the net asset value method. The consolidated fi nancial statements are prepared according to the

standards set by the International Accounting Standards Board (IASB) and adopted by the European Union and with Title 9

Book 2 of the Netherlands Civil Code. For a description of these accounting principles, reference is made to the accounting

principles with the consolidated fi nancial statements.

The share in the result of enterprises in which the company has holdings comprises the share of Fokker Technologies Group

B.V. in the result of these participating interests. Results on transactions in which transfer of assets and liabilities has occurred

between Fokker Technologies Group B.V. and its participating interests, and mutually between participating interests with each

other, are not recognised insofar as these can be considered as not realised.

38 Financial fi xed assets

Interest in

group

companies Total

Carrying amount as at 22-05-2012 – –

Transfer of shares 16 August 2012 184,976 184,976

Result of subsidiairies 1,157 1,157

Other comprehensive income 20,680 20,680

Other 7 7

Carrying amount as at 31-12-2012 206,820 206,820

Fokker Technologies Group B.V. has (directly or indirectly) capital interests in the group companies presented on page 71.

The results of subsidiairies represents the result as from the date of the transfer of the shares.

Explanatory notes to the company fi nancial statements


39 Equity

The movement of equity in the Fokker Technologies Group B.V. company fi nancial statements is presented below. For details

of the components of equity reference is made to note 19.

Share

capital

Share

premium

Legal

reserve

Retaimed

earnings Total

Balance as at 22-05-2012 – – – – –

Incorporation on 22 May 2012 18 – – – 18

Contribution in kind – 21,175 – – 21,175

Transfer of FTH to FTG – 101,657 62,126 – 163,783

Profi t 16-8-2012 to 31-12-2012 – – – 1,157 1,157

Total comprehensive income 16-8-2012 to 31-12-2012 – – 22,859 (2,179) 20,680

Movement legal reserve 16-8-2012 to 31-12-2012 – – 5,900 (5,900) –

Other movements – – – 25 25

Balance as at 31-12-2012 18 122,832 90,885 (6,897) 206,838

The legal reserve represents the aggregate of legal reserves (reserves for translation, investments in subsidiairies and cashfl ow

hedge) of the subsidiaries of Fokker Technologies.

40 Contingent liabilities

Fokker Technologies is part of the Dutch tax fi scal unity for corporate income tax purposes headed by Stork Topco B.V. Each

of the companies included in a Dutch tax fi scal unity is individually and severally liable for all (Dutch corporate income) tax

liabilities of the companies included in the fi scal unity.

At 31 December 2012 no guarantees have been issued to third parties.

For most the Dutch companies listed on page 71, declarations in accordance with article 403 of the Dutch civil code have

been issued by Fokker Technologies Group B.V. and as a consequence Fokker Technologies Group B.V. is jointly and severally

liable for all debts of these subsidiairies.

41 Events after the reporting period

No events with a signifi cant impact on the fi nancial statements as at 31 December 2012 have occurred.

Papendrecht, 23 April 2013

Directors

Sjoerd Vollebregt (Chairman and CEO)

Hans Büthker (COO)

Remco Smit (CFO)


Independent Auditor’s Report

To the general meeting of shareholders of Fokker Technologies Group B.V.

Report on the fi nancial statements

We have audited the accompanying fi nancial statements 2012 of Fokker Technologies Group B.V., Amsterdam. The fi nancial

statements include the consolidated fi nancial statements and the company fi nancial statements. The consolidated fi nancial

statements comprise the consolidated statement of fi nancial position as at 31 December 2012, consolidated income

statement, the consolidated statements of comprehensive income, changes in equity and cash fl ow for the year then ended,

and notes, comprising a summary of the signifi cant accounting policies and other explanatory information. The company

fi nancial statements comprise the company balance sheet as at 31 December 2012, the company income statement for the

period 22 May – 31 December 2012 and the notes, comprising a summary of the accounting policies and other explanatory

information.

Management’s responsibility

Management is responsible for the preparation and fair presentation of the fi nancial statements in accordance with

International Financial Reporting Standards as adopted by the European Union and with Part 9 of Book 2 of the Netherlands

Civil Code, and for the preparation of the Directors report in accordance with Part 9 of Book 2 of the Netherlands Civil Code.

Furthermore, management is responsible for such internal control as it determines is necessary to enable the preparation of

the fi nancial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in

accordance with Dutch law, including the Dutch Standards on Auditing. This requires that we comply with ethical requirements

and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial

statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material

misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design

audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used

and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the

fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

Opinion with respect to the consolidated fi nancial statements

In our opinion, the consolidated fi nancial statements give a true and fair view of the fi nancial position of Fokker Technologies

Group B.V. as at 31 December 2012 and of its result and its cash fl ows for the year then ended in accordance with

International Financial Reporting Standards as adopted by the European Union and with Part 9 of Book 2 of the Netherlands

Civil Code.

Opinion with respect to the company fi nancial statements

In our opinion, the company fi nancial statements give a true and fair view of the fi nancial position of Fokker Technologies

Group B.V. as at 31 December 2012 and of its result for the period 22 May - 31 December in accordance with Part 9 of Book

2 of the Netherlands Civil Code.

Other information


Report on other legal and regulatory requirements

Pursuant to the legal requirements under Section 2:393 sub 5 at e and f of the Netherlands Civil Code, we have no

defi ciencies to report as a result of our examination whether the Directors report, to the extent we can assess, has been

prepared in accordance with Part 9 of Book 2 of this Code, and if the information as required under Section 2:392 sub 1

at b - h has been annexed. Further, we report that the Directors report, to the extent we can assess, is consistent with the

fi nancial statements as required by Section 2:391 sub 4 of the Netherlands Civil Code.

Rotterdam, 23 April 2013

KPMG Accountants N.V.

J.B.L. Verhoeff RA


Provisions of the articles of association regarding profi t distribution (article 14)

1. At the expense of the profi t a reserve will be made as the Directors will determine subject to the approval of the

Supervisory Board,

if any.

2. The then remaining profi t will be at the disposal of the General Meeting of Shareholders.

3. Resolutions to discontinue the reserves formed by virtue of paragraph 1 in part of in full can only be passed by the

General Meeting of Shareholders on a proposal of the Directors with the approval of the Supervisory Board, if any.

4. Distribution of profi ts to the shareholders and others entitled to distribution of profi ts may be made only insofar in

accordance with the law.

5. Subject to due observance of the provision of paragraph 4 the company may pay an interim dividend or make

distributions at the expense of any reserve.

Other information


Fokker Technologies

Fokker Technologies Holding B.V., Papendrecht, (NL)*

Fokker Aerostructures B.V., Papendrecht, Hoogeveen (NL)*

Fokker Elmo B.V., Hoogerheide (NL)*

Fokker Elmo Electrical Systems Co Ltd., Langfang (CN)

Fokker Elmo Aerospace Industries LLC, Izmir (TR)

Fokker Landing Gear B.V., Helmond (NL)*

Fokker Services B.V., Hoofddorp (NL)

Fokker Aircraft Services B.V., Hoogerheide (NL)

Fokker Services Asia Pte. Ltd., Singapore (SG)

Fokker Services Inc., Atlanta (US)

Aerotron AirPower Inc., LaGrange (US)

* For these entities use has been made of the exemption provided by Section 2:403, Part IX, Book of the Netherlands Civil Code.

List of major consolidated operating companies 2012(100% owned, unless otherwise stated)


Colophon

Publication: Fokker Technologies Group B.V.

Concept and realisation: C&F Report Amsterdam B.V.

Fokker TechnologiesIndustrieweg 43351 LB Papendrecht Postbus 1, 3350 AA Papendrecht T: +31 (0)78 – 641 9911 E: [email protected] www.fokker.com

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