Revenue is recognised if the risks and rewards associated with ownership of the products sold have been transferred to the buyer. For deliveries, revenue is therefore realised in accordance with the agreed terms of delivery; for services, it is realised when the service has been performed.

Revenue is shown broken down by division in the segment report. € 95.6 million is the result of the sale of goods including sales of parts, and € 16.8 million from the provision of services. The geographical composition of revenue in 2014 was Germany € 61.9 million, rest of Europe € 24.2 million, America € 15.4 million and Asia € 10.9 million.

The cost of sales comprises the cost of traded products and the cost price of merchandise sold. In accordance with IAS 2, it includes both costs which can be directly allocated, such as cost of materials and cost of labour, and also overheads, including pro rata depreciation and amortisation on property, plant and equipment used for production and on intangible assets. The amount for inventories recognised as an expense in the period under review broadly corresponds to the cost of materials. The costs of the field service and the expense arising in connection with warranty obligations are likewise reported under cost of sales. The other cost of sales mainly comprises translation costs and maintenance expense.

The distribution costs include costs for the Distribution Department and for in-house services, and also the costs of advertising and logistics. This item also includes sales-related expenditure for commissions and impairment of receivables.

The other distribution costs for the financial year consist primarily of entertainment expenses as well as repair and maintenance costs related to distribution activities.

The administrative expenses comprise personnel and material costs for management and administration, insofar as not charged to other cost centres as internal services.

In the 2014 financial year, the fees for the auditors recorded as an expense pursuant to Section 319 (1) first and second sentences of German Commercial Code amounted to € 245 thousand (2013: € 257 thousand).

The figures for the 2014 financial year include the fees and expenses of the auditors of the Consolidated Financial Statements, KPMG AG Wirtschaftsprüfungsgesellschaft, for the auditing of the Consolidated Financial Statements and the auditing of the annual financial statements of technotrans AG and KLH Kältetechnik GmbH.

No research costs were incurred. Development costs are charged as ongoing expenses until the criteria of IAS 38.57 are satisfied cumulatively. From that point on, development costs are recognised as an intangible asset (see Section 3 “Intangible Assets”).

The income unrelated to the accounting period comprises mainly cash receipts from previously impaired receivables, and the other operating income includes development cost contributions from customers. Exchange rate gains mainly constitute unrealised changes in the measurement of intragroup assets and liabilities.

The interest income relates predominantly to bank credit balances. Interest income of € 8 thousand (2013: € 10 thousand) from the compounding of the corporation tax credit balance has in addition been recognised. The interest expenses comprise mainly interest charged on the group’s financial liabilities. The interest expenses moreover include the gains attributable to the non-controlling interests in gds-Sprachenwelt GmbH (€ 66 thousand). Furthermore, interest expenses from the compounding of the conditional purchase price payments amounting to € 11 thousand (2013: € 6 thousand) are recognised within this item. In the previous year this item also included the compounding of the partial retirement obligations amounting to € 1 thousand. No borrowing costs were capitalised in the reporting period.

Income tax expense includes corporation income tax and trade earnings tax for the domestic companies, and also comparable taxes on income for the foreign businesses. Other operating taxes are included in other operating expenses.

The deferred tax is attributable to temporally divergent valuations in the companies’ tax balance sheets and the Consolidated Balance Sheet in accordance with the balance sheet liability method. The reported deferred tax assets also include tax relief claims where it is anticipated that existing tax loss carryforwards will be used in subsequent years. The deferred tax is calculated on the basis of the tax rates applicable or expected at the time of realisation in the individual countries concerned.

The applicable tax rate in Germany of 30.08 percent (2013: 30.17 percent) calculated for the year under review is based on a corporation tax rate of 15.0 percent, a solidarity surcharge of 5.5 percent and an effective trade earnings tax rate of 14.3 percent (2013: 14.3 percent).

The following capitalised deferred tax assets and liabilities relate to recognition and measurement differences for the individual items on the Balance Sheet and to loss carryforwards which can be used in future.

The deferred tax liabilities from non-current assets include € 650 thousand (2013: € 864 thousand) in deferred tax liabilities for the customer base capitalised in the 2013 financial year in the context of the business combination. The remaining deferred tax assets and deferred tax liabilities from non-current assets result largely from temporary differences in intangible assets acquired.

The deferred tax assets from inventories in essence stem from the elimination of intercompany profits. The deferred tax assets from liabilities include deferred tax assets from cash flow hedges.

There are tax loss carryforwards amounting to € 17,871 thousand for 2014. Deferred taxes amounting to € 820 thousand were recognised as an asset on an amount of € 2,557 thousand in agreement with IAS 12.34. No deferred tax assets were recognised on the remaining loss carryforwards of € 15,313 thousand and on deductible temporary differences of € 2,048 thousand. The loss carryforwards may be carried forward for 20 years in the USA (€ 9,316 thousand), for nine years in Japan (€ 173 thousand), for five years in China (€ 117 thousand) and for an unlimited period in other cases. In view of the uncertain earnings expectations of the companies in Asia, of technotrans america inc., technotrans américa latina ltda. and technotrans scandinavia AB, no or only pro rata deferred taxes were created on the loss carryforwards.

The following table reconciles the theoretical tax expense with the actual income tax expense.

Deferred tax amounting to € 23 thousand (2013: € -23 thousand) that was directly allocable to equity arose in the year under review only from the change in cash flow hedges. Exchange rate differences from net investments in a foreign business did not lead to any deferred tax in the 2014 financial year (2013: € 9 thousand).

The figure for basic earnings per share is obtained by dividing the share of earnings attributable to the shareholders of technotrans AG by the weighted average number of ordinary shares outstanding in the financial year:

In the 2014 financial year there were once again no stock options that would have had a dilutive effect on earnings per share pursuant to IAS 33.