as of June 30, 2009irpages.equitystory.com/download/companies/lloydfonds/Quarterly Rep… · H1-...

Q 2Interim Report as of June 30, 2009

H1 - 2009 H1 - 2008 Q2 - 2009 Q2 - 2008

€ millions

Equity placements 21.8 174.8 16.3 96.0

Equity placed in portfolio funds 3.3 4.8 1.6 2.3

Equity placed, cumulative 1,917 1,798

Number of subscribers, cumulative 51,804 45,669

Assets held in trust, cumulative 1,525 1,391

Fund perFormAnce

H1 - 2009 H1 - 2008 Q2 - 2009 Q2 - 2008

T€

Sales 8,293 28,221 4,774 16,871

Recurring income 5,236 5,079 2,615 2,672

EBIT -7,406 3,385 -5,196 5,177

Consolidated result for the period -8,740 3,601 -5,599 4,039

EBIT margin (%) -89.3 12.0 -108.8 30.7

Return on sales (%) -105.4 12.8 -117.3 23.9

Total equity and liabilities 94,267 112,375

Equity capital 56,345 66,280

Equity ratio (%) 59.8 59.0

Result per share (€) -0.69 0.28 -0.44 0.32

Average headcount 131 152 125 156

Personnel costs 5,083 7,893 2,429 4,354

Personnel cost ratio (%) 61.3 28.0 50.9 25.8

Employees (as of June 30) 123 160

Key perFormAnce indicATors (iFrs)

Ladies and gentlemen,dear shareholders,

After the difficult conditions in the first quarter, things

calmed down somewhat for the Lloyd Fonds Group in the

second quarter. Spurred by extensive sales activities, place-

ment figures recovered slightly, coming to € 17.9 million in the

second quarter, including a sum of € 1.6 million collected for

the Premium Portfolio series. Accordingly, the total volume

for the first half of the year stands at € 25.1 million, including

€ 3.3 million for the Premium Portfolio series. This figure is

not satisfactory even though we managed to increase place-

ment figures almost three-fold over the first quarter despite

the persistently muted conditions.

This favorable trend was materially underpinned by the swift

placement of our Holland II office real estate fund. The sub-

scription period of only four-and-a-half months for the German

portion demonstrates investors‘ relatively strong interest in

solid and transparent tangible assets.

Despite the slight improvement in placement figures, our

earnings situation in the first six months of 2009 remains

unsatisfactory and came under additional pressure from

a number of exceptionals in the period under review. As a

result, Lloyd Fonds sustained a loss of € 7.4 million at the EBIT

level and a consolidated net loss of € 8.7 million in the first

half of 2009. Adjusted for exceptionals, consolidated net loss

would have come to € 6.2 million.

This year, we want to increase placement volumes in the real

estate segment compared with the previous year (€ 34 mil-

lion). In doing so, we are concentrating on secure and

established markets in Western Europe and Canada. With the

three hotel funds which we have initiated to date, we have left

a lasting impression on this important segment of the market,

allowing Lloyd Fonds to position itself uniquely.

Thus, a special celebration during which we handed over the

new Hotel am Fleesensee to its operator TUI was recently

held. A 20-year contract has been signed with TUI, the largest

European holiday travel company, providing the fund with the

necessary security. The Hotel am Fleesensee real estate fund

was launched with an equity volume of around € 8 million and

has already achieved a subscription rate of 50%. We are con-

vinced that the fund will benefit from the current trend which

is seeing a growing number of people spending their holidays

in their home country.

In contrast to the real estate markets, the shipping segment is

still feeling the strain of the economic crisis, with container

business in particular remaining in free fall. That said, we are

seeing preliminary positive signals in the bulker segment,

where both freight rates and ship prices have been recovering

over the past two months.

At the end of May, Lloyd Treuhand, a wholly-owned Lloyd

Fonds subsidiary, celebrated its tenth anniversary. To date,

more than 51,000 customers have subscribed to Lloyd Fonds

funds. To mark this anniversary, our fund subscribers re-

ceived a special loyalty offer. In this connection, a subscriber

committee was also established with the aim of intensifying

the dialog between the Management Board and other senior

staff, on the one hand, and particularly active subscribers to

our funds, on the other. We see this as a valuable source of

suggestions, ideas and wishes which we will be incorporating

in our activities. The committee is to have 20 to 30 members

and, starting in autumn 2009, will meet twice a year.

LETTER FROM THE MANAGEMENT BOARD

lloyd fonds interim report q 11 – 2009

Letter from the Management Board 1

In the first half of the year, we achieved a further improve-

ment in the coverage of costs by recurring income, widening

this rate to 64.9% of our fixed costs, up from 53.2% in 2008. As

well as this, we have an ample equity ratio of 59.8%. We con-

stantly seek to optimize all cost factors and are additionally

aided by the fact that even in the absence of any new business

we earn trusteeship and management fee income of € 10 mil-

lion per year.

In the first half of the year, we worked closely with our ship-

ping partners and the ordering single-ship entities to reduce

our risk exposure the ships on order. As a result, it was pos-

sible to postpone many delivery dates by up to 24 months in

some cases. We also assume that several of the ships which

had been on order will now no longer be delivered. At the

same time, we are in constant contact with our banks in con-

nection with funding matters.

Let us now cast a glance at the near future. The analysts at Feri

Euro Ratings Service project placement volumes of € 4.5 billion

in the market for closed-end funds in 2009. ProCompare, an

institute which tracks the economic performance of closed-

end funds, is more optimistic, projecting as it does a figure of

€ 7.5 billion for 2009 and € 8.5 billion in 2010. The substantial

variance in these forecasts reflects the difficulty of forecasting

future market trends reliably. Still, we remain confident of

being able to steer Lloyd Fonds safely through these difficult

times. In this connection, a number of exciting new projects on

which we are currently working will be playing a crucial role.

In conclusion, we would like to thank our staff for their

ded ication and commitment during these trying times. Our

thanks also go out to our subscribers and shareholders as

well as our business and sales partners who have show their

confidence in us.

Lloyd Fonds is well positioned to return to its former earnings

strength once the market starts picking up again.

Yours sincerely,

Dr. Torsten Teichert Michael F. Seidel


2 Letter from the Management Board

LLOyD FONDs sTOck

Although fluctuation in the international equity markets gener-

ally subsided in the first half of the year, stock prices continued

to languish.

The German equity market has been moving upwards since the

beginning of 2009, rising from 4,856 points on the first trading

day of the year to over 5,300 at the end of July. At the end of

June it was trading at 4,808 points. Market observers interpret

this as evidence that the financial and economic crisis has now

bottomed out and that the markets are now already pricing in

an economic recovery.

This trend was also reflected in the SDAX, which is used as

the bench mark for Lloyd Fonds stock. After opening at 2,836

points on January 2, the SDAX gained 2.76% in the first half

of the year, closing at 2,904 points on June 30. At the end of

July, it had hit 3,000 points, showing that it, too, was moving

upwards.

Stock performance

Investors penalized listed investment fund initiators to an

above-average extent in response to negative sector and

company news in the first half of the year. The international

crisis afflicting the shipping industry played a key role in

this respect as it impaired sales of ship funds.

In this environment, Lloyd Fonds stock underpinned the

SDAX in the first six months of the year, trading at € 4.00

on January 2, 2009 and closing at € 2.33 on June 30, 2009.

On March 5, 2009, it hit its lowest price (€ 1.85) since the

Company went public in 2005. All told, the stock shed 41% of

its value in the year to the end of June accompanied by low

trading volumes. The second quarter was relatively stable,

with the stock declining by 2.9% from the beginning of April

to the end of June. After the end of the period under review,

the stock retreated again, standing at € 1.69 at the end of July.

The shareholder structure remained unchanged during the

period under review.

open communicationS

It is precisely in times of crisis that transparency is more

important than ever. At our annual general meeting held on

June 4, 2009 in Hamburg attended by some 150 shareholders,

the Management Board elaborated on the Company‘s perform-

ance in 2008. All items on the agenda requiring shareholder

approval were passed with a high vote, thus testifying to

shareholders‘ confidence in the Lloyd Fonds Group‘s manage-

ment and strategy.

We conducted numerous activities in the first half of the year

in response to the heightened need for information in the mar-

ket. For this purpose, we took part in the DVFA conference and

the Close Brothers Seydler investor conference. In addition, we

kept analysts and investors continuously briefed on the Lloyd

Fonds Group‘s performance in telephone conferences, press

releases and numerous one-on-ones. Looking forward to the

third quarter, the Company will be attending the SRC investor

conference in September and the Deutsches Eigenkapitalforum

investor conference in November.

core data on Lloyd Fonds stock

Ticker symbolWkN 617487, IsIN DE0006174873, Reuters L10

Market Official trading in Frankfurt/Main

Market segment Prime standard index

subscribed capital € 12,7 million

Designated sponsors

DZ BANk AG, close Brothers seydler AG

Number of shares (June 30, 2009) 12,725,367

Market capitalization (June 30, 2009) € 29,650,105

jan. 2, 2009 June 30, 2009

20

40

60

80

100

120

Lloyd Fonds AG SDAX

Performance of the Lloyd Fonds stock

%


Lloyd Fonds stock 3

INTERIM MANAGEMENT REPORT OF THE LLOyD FONDs GROuP FOR THE FIRsT HALF-yEAR OF 2009

General economic environment characterized by uncertainty

In the first half of the year, a number of contradictory eco-

nomic indicators prompted most investors to adopt a cautious

and restrained stance. Whereas the IFO business confidence

index has risen slightly for the third consecutive time since

March, gross domestic product (GDP) has contracted by 3.8%

compared with the end of 2008.

However, sentiment brightened in the course of the second

quarter, with recent upbeat data from the industrial sector

encouraging researchers to assume that the German economy

contracted by only 0.5 percent or even less between April and

June. According to the German Federal Finance Ministry, the

outlook for Germany‘s economy has improved. There is much

evidence to suggest that the economy stabilized in the second

quarter.

Sentiment Still muted in the aSSet marketS

In the 4th quarter of 2008, there was already a year-on-year

decline in placement volumes from € 2.7 billion to € 2.1 bil-

lion. Feri Euro Rating Services AG calculates that placement

volumes in the 1st quarter of 2009 contracted by half again to

around € 1 billion. In this connection, it should be noted that

two exclusive real estate funds accounted for almost half of

the placement volumes.

Whereas placement volumes for real estate funds remained

more or less steady at the previous year‘s level in the 1st quar-

ter of 2009, ship fund placements evaporated almost complete-

ly, coming to only around € 100 million. At this stage, there are

still no clear signs of any recovery in placement figures. This

was confirmed by the Association of Closed-End Funds, which

reported on August 11, 2009 that there had been a further

decline in demand for closed-end funds to EUR 673 million on

the part of the Association members.

The downswing in the real economy, the persistent uncer-

tainty afflicting the international financial markets and the

pronounced restraint towards long-term investments have

been taking their toll on sales of closed-end funds for months.

Since the end of 2008, investors have been favoring short-

term liquid products yielding substantially lower returns.

Only certain offerings distributed via particular channels are

selling reasonably well at the moment.

buSineSS performance

In the first half of the year, Lloyd Fonds AG recorded aggre-

gate equity placements of € 25.1 million across all asset

classes – shipping, real estate, aircraft, traded endowment

policies and secondary market funds - including the Premium

Portfolio series. At around 61% or € 15.4 million, real estate

funds accounted for the bulk of this.

Launched in February, the Holland II office real estate fund

with an investment volume of € 40.9 million was subscribed

to in full by mid July, i.e. within only four-and-a-half months.

This real estate fund, which was primarily placed via strong

financial partners, shows that carefully and clearly structured

funds are currently sought-after investments. Given the

prevailing conditions, investors are particularly interested in

real estate funds made up of buildings in good locations with

investment-grade tenants and long-term leases. This approach

has also been adopted for our two hotel real estate funds,

which are currently in the subscription phase.

The Moderne Großstadthotels fund is investing in two new

hotel buildings operated in the renowned Motel One chain in

CBD locations in Berlin and Nuremberg. Firm leases covering

the forecast duration of the funds have been signed for the

two budget design hotels.

With the Hotel am Fleesensee fund, Lloyd Fonds is again plac-

ing store by the established German market with its moderate

buy-side prices. Located directly on the shore of the Fleesen-

see lake in Mecklenburg-West Pomerania, the 4-star wellness,

sports and resort hotel is the subject matter of a 20-year

contract with TUI AG . The fund has a total investment volume

of just under € 20 million, including equity of € 8 million. The

hotel was handed over to the operator TUI AG shortly after the

end of the period under review.


4 consolidated Interim Management Report

In order to be better prepared for any cash flow problems on

the part of ship funds, Lloyd Fonds has developed a model for

improving the liquidity problems of ship funds in distress.

It seeks to preserve subscribers‘ liquidity while easing the

pressure on the loan side. Last year, Lloyd Fonds AG‘s fund

management preemptively decided to cut or omit dividend

payments in order to preserve the liquidity of the fund com-

panies concerned.

These measures were first taken by the MS Emilia Schulte ship

fund in July as the ship had sustained a liquidity shortfall as a

result of serious engine damage and an expiring charter. The

follow-up charter was not sufficient to cover the running costs.

The fund management approached the creditor bank in No-

vember 2008 and, after intensive negotiations, a restructuring

model was adopted to address the current liquidity shortfall

and to overcome the difficult market conditions. Following

the successful implementation of the restructuring package,

the ship is to be sold at a later date once market conditions

improve.

As Lloyd Fonds has been unable to shield itself from the ailing

market for traded endowment policies, it decided in July 2009 to

cancel the subscription phase for Britische Kapital Leben VIII.

reSultS of operationS

In the second quarter of 2009, the persistent global financial

and economic crisis continued to leave traces on the Lloyd

Fonds Group’s results of operations. In particular, the con-

tinued low placement volumes as well as exceptionals such as

impairment losses and the recognition of provisions left traces

on earnings for the quarter. On the cost side, the success of

the reorganization activities performed in the previous year

was particularly reflected in a substantial decline in personnel

costs.

The Group’s results of operations for the first half and the

second quarter of 2009 broke down as follows:

H1-2009 H1-2008 Q2-2009 Q2-2008

t€

sales 8,293 28,221 4,774 16,871

cost of sales and changes in inventories -4,317 -16,989 -3,054 -10,100

Personnel costs -5,083 -7,893 -2,429 -4,354

Depreciation, amortization and impairment losses -1,724 -384 -1,451 -197

Other operating result -5,266 -4,720 -3,105 -2,604

share of profit of associates 691 5,150 69 5,561

Result from operating activities -7,406 3,385 -5,196 5,177

Net financial result -510 1,231 73 –

Result before income tax -7,916 4,616 -5,123 5,177

Income taxes -824 -1,015 -476 -1,138


The following changes arose in connection with sales:

H1-2009 H1-2008 Q2-2009 Q2-2008

t€

Placement of equity and placement guarantees 2,622 16,967 1,885 9,960

Project structuring 76 4,890 – 3,724

arrangement of financing 354 780 269 –

Trusteeship 3,698 3,332 1,835 1,720

Management fees 1,529 1,806 771 1,021

charter fees – 446 – 446

Others 14 – 14 –

Sales 8,293 28,221 4,774 16,871


consolidated Interim Management Report 5

Compared with the second quarter of the previous year, sales

dropped by T€ 12,097 to T€ 4,774. This was particularly due to

the low placement volumes. Equity placement figures including

for the portfolio fund rose from € 7.2 million in the first quarter

to €17.9 million in the second quarter of 2009, resulting in an

increase in equity placement and placement guarantee income

from T€ 737 to T€ 1,885. However, this is well short of the eq-

uity placement figures including for the portfolio fund recorded

in the second quarter of 2008 (€ 98.3 million). Accordingly,

placement income in the second quarter of 2009 was down

T€ 8,075 on the previous year.

Income from equity placements and placement guarantees

broke down by fund as follows: T€ 600 from Holland II, T€ 407

from Hotel am Fleesensee, T€ 386 from Hotelfonds Motel One,

T€ 256 from Best of Shipping II, T€ 75 from MS Bermuda and

T€ 67 from Premium Portfolio I. The remaining placement

income is spread across a further five funds currently available

for subscription.

There was also a marked decline in income from the arrange-

ment of finance and project structuring from T€ 3,724 to

T€ 269 in the second quarter particularly as a result of the

Lloyd Fonds Group’s restraint in initiating new investment

products. Income in the second quarter was chiefly derived

from the arrangement of finance for the Hotel am Fleesensee

(T€ 136) and Motel One (T€ 101) funds.

Income from trusteeship business increased by T€ 115 over the

second quarter of the previous year to T€ 1,835, reflecting the

steady increase in limited partnership capital being managed

by Lloyd Treuhand.

Management fees earned in the second quarter of 2009

comprise fees received for services to the open-end ship fund

totaling T€ 320 (comparison period T€ 460) as well as fees of

T€ 451 (comparison period T€ 561) for the management of the

current funds.

In the previous year, charter fees had been earned from the

temporary operation of MV Tiger Pearl.

At 36.0% in the second quarter of 2009, the gross profit margin

was down on the previous year (40.1%) primarily as a result

of heightened commission expense in connection with selling

activities as well as the recognition of provisions.

Compared with the second quarter of the previous year, person-

nel costs were trimmed by 44.2% from T€ 4,354 to T€ 2,429

thanks to the reorganizing performed in the previous year,

which resulted in a drop in the average headcount from 156 in

the second quarter of 2008 to 125 in the period under review.

In addition, staff provisions of T€ 490 were reversed in the

second quarter of 2009. At the same time, new provisioning

was down T€ 1,079 on the same period one year earlier.

Depreciation, amortization and impairment losses rose from

T€ 197 to T€ 1,451 in the period under review particularly as a

result of impairment losses of T€ 1,231 recognized on available-

for-sale financial assets.

Other operating loss widened from T€ 2,604 to T€ 3,105 pri-

marily as a result of losses from the sale of secondary-market

shares.

The share of profit of associates recorded for the year-ago

period includes prorata income from the sale of two 12,800 TEU

container ships. The absence of comparable income in the

second quarter of 2009 explains the decline in this item by

T€ 5,492 to T€ 69.

As a result, the Lloyd Fonds Group sustained a loss at the EBIT

level of T€ 5,196 in the second quarter (comparison period EBIT

of T€ 5,177). Including the net financial result of T€ 73 and tax

expense of T€ 476, which is primarily due to the profit earned

by Lloyd Treuhand GmbH, Lloyd Fonds sustained a consolidated

net loss of T€ 5,599 in the second quarter of 2009.

The exceptionals of a total of T€ 2,581 which exerted pressure

on the Lloyd Fonds Group’s bottom line in the second quarter

are analyzed in the following table:



H1 - 2009 Q2 - 2009

t€

Cost of sales -802 -802

Additional commission expense from sales and marketing activities -1,244 -1,244

Reversal of commission provisions recognized in the previous year 442 442

Personnel costs 638 360

Premature termination of the staff option program -130 -130

Reversal of provisions 768 490

Depreciation, amortization and impairment losses -1,282 -1,231

Impairment losses on shares in associates -1,282 -1,231

Other operating result -1,066 -893

Impairment losses on receivables -173 –

Provisions for voluntary compensation -500 -500

Losses from the disposal of shares in associates -445 -445

Reversal of provisions 52 52

Share of profit of associates 460 460

Remeasurement of the fair value of Fünfte LF Beteiligungsgesellschaft mbH & co. kG, Hamburg 460 460

Net financial result -526 -475

Interest expense from the renewal of placement guarantees -526 -475

-2,578 -2,581

net aSSetS

The Group’s net assets as of June 30, 2009 and December 31,

2008 are analyzed in the following table:

Assets June 30, 2009 Dec. 31, 2008

t€

Property, plant and equipment and intangible assets 2,946 3,365

Financial assets 37,644 47,603

Deferred income tax assets 2,310 2,371

Receivables and other assets 40,119 36,713

Derivative financial instruments 2,719 3,968

cash and cash equivalents 8,529 18,355

Total assets 94,267 112,375

Equity and liabilities H1 - 2009 Fy - 2008

t€

consolidated equity 56,345 66,280

Deferred income tax liabilities 51 294

Borrowings 15,058 22,685

Other liabilities 20,135 19,148



As of June 30, 2009, total assets stood at T€ 94,267 and were

thus down T€ 18,108 or 16.1% on the end of 2008.

On the assets side, there was in particular a decline in finan-

cial assets (down T€ 9,959), cash and cash equivalents (down

T€ 9,826), derivative financial instruments (down T€ 1,249)

and property, plant and equipment/intangible assets (down

T€ 419). This was offset by an increase of T€ 3,406 in receiva-

bles and other assets.

The drop in financial assets was primarily due to the disposal

of secondary-market shares of T€ 10,599 and impairment

losses of T€ 1,282. In addition, the carrying amounts of the

available-for-sale financial assets dropped by T€ 1,687 as a

result of changes from fair-value remeasurement recognized

within equity. The available-for-sale financial assets mostly

comprise shares held by Lloyd Fonds in its own funds. The

acquisition of further shares in Feedback AG, Hamburg

(T€ 1,040) and the investment in KALP GmbH, Böel (T€ 701)

as well as the acquisition of shares in a ship fund (T€ 1,801)

resulted in an increase in financial assets.

The decline in cash and cash equivalents reflects the sched-

uled repayment of two loans in a total amount of T€ 10,249.

Derivative financial instruments comprise reimbursement

claims under interest hedges which the Lloyd Fonds Group

transacted for various fund companies. This asset is matched

by liabilities in the same amount under derivative financial

instruments. The decline is due to the planned transfer of two

interest hedges to the respective fund companies.



As there were no material investments in property, plant and

equipment and intangible assets in the period under review,

the scheduled depreciation/amortization of T€ 442 was a

further contributory factor in this decline.

The increase in receivables and other assets is due to

outstanding payments of T€ 5,913 on the part of the Best of

Shipping II fund in connection with the transfer of secondary-

market shares and a rise of T€ 2,639 in trusteeship receiva-

bles and of T€ 573 in receivables from related parties. The

opposite effect was exerted by the reduction in receivables

from funds from the collection of equity of T€ 2,430 and the

decline of T€ 3,557 in other receivables and assets.

On the other side of the balance sheet, equity contracted by

T€ 9,935 to T€ 56,345 in the period under review primarily as

a result of the consolidated loss sustained in the first half of

2009 (T€ 8,740). In addition, equity was reduced by T€ 1,420

due to changes recognized in equity from remeasurement of

financial assets including deferred taxes. On the other hand,

the additions to the share premium in connection with the

staff participation program (T€ 233) caused equity to rise. As

equity dropped more slowly than total assets, the equity ratio

widened marginally from 59.0% to 59.8%.

The decline of T€ 7,672 in borrowings is primarily due to the

aforementioned repayment of two loans. The opposite effect

arose from the increase in current bank borrowings.

Other liabilities climbed primarily as a result of provisions of

a total of T€ 1,073 for increased sales commission and the cost

of the premature termination of a fund investing in traded UK

endowment policies.

Net working capital, defined as current assets less cash and

cash equivalents and interest-free current liabilities, stands

at T€ 24,029 as of the end of the quarter (December 31, 2008:

T€ 33,594).

financial condition

The Group’s financial condition in the first half of 2009 com-

pared with the same period of 2008 is set out below:

H1 - 2009 H1 - 2008

t€

consolidated result for the period before share of profit of associates, interest and income taxes -8,020 -1,442

Non-cash income and expenses 2,731 -719

cash changes in working capital 2,122 -23,769

Dividends and profit distributions received 544 281

Net interest and income taxes -1,903 -3,736

Cash flow from operating activities -4,526 -29,385

cash flow from investing activities 2,287 -17,169

cash flow from financing activities -7,607 7,684

Non-cash changes in cash and cash equivalents 2 3,378

Net decrease in cash and cash equivalents -9,844 -35,492

cash and cash equivalents at the beginning of the period 17,645 48,013

Foreign currency translation differences 19 -1

Cash and cash equivalents at the end of the period 7,820 12,520

The net cash outflow of T€ 4,526 from operating activities in

the first half of the year was primarily due to the consolidated

loss before the share of profit of associates, interest and taxes

(T€ 8,020). On the other hand, the cash decline of T€ 2,122 in

working capital, which was attributable to the drop of T€ 2,403

in receivables from issuing business among other things, had

a favorable effect on cash flow from operating activities. Non-

cash income and expenses in an amount of T€ 2,731 include



depreciation, amortization and impairment expense on non-

current assets and financial assets (T€ 1,724) as well as losses

from the sale of non-current assets (T€ 387), impairments of

receivables (T€ 272) and staff expense under the staff option

program (T€ 233).

Net cash inflow from investing activities (T€ 2,287) includes

payments made for the acquisition of shares in associates

of T€ 2,139. On the other hand, payments of T€ 4,470 were

received from the sale of financial assets.

The net cash outflow from financing activities is due to the

aforementioned repayment of loans (see section on net assets).

The non-cash change in cash and cash equivalents stems

from the effects of currency translation of bank balances with

restricted drawing rights used as short-term collateral for

financing advance payments.

Allowing for the aforementioned changes and the currency

translation differences, free cash and cash equivalents con-

tracted from T€ 17,645 to T€ 7,820 in the first half of 2009.

employeeS

As of June 30, 2009, the Lloyd Fonds Group had 123 perman-

ent employees (not including the members of the Management

Board, employees on extended child-care leave, trainees and

temporary staff), down from 156 on December 31, 2008. In

July, there was a further cut of 7 in the headcount. Staff layoffs

for operational reasons were started in the fourth quarter of

2008 as part of the reorganisation plans.

Generally speaking, it is planned to lower the sum total of fixed

salaries, bonuses and social security for 2009 by € 1.5 million

on the previous year. This will be lower than the figure of

€ 12.6 million recorded in 2007.

riSkS

Lloyd Fonds AG’s business performance may be impaired

by uncertainties impacting the results of its operations, its

financial condition and its net assets. Compared with the end

of the previous year, there has been no material change in

the Company’s risk profile. Risks continue to arise from the

limited forward visibility in the real economy and the capital

markets together with the extreme drop in demand for closed-

end funds.

Using its risk management system, the Lloyd Fonds Group is

regularly monitoring the value of its financial assets against

the backdrop of these sustained difficult conditions. Detailed

information on its risk exposure and the financial effects can

be found on page 65 et seq. of the annual report for 2008.

In the first half of 2009, Lloyd Fonds managed to significantly

reduce its contingent liabilities from € 397.9 million as of

December 31, 2008 to € 299.8 million as of June 30, 2009.

This already includes the compensation claims under joint

and several liability towards Lloyd Fonds AG. Full placement

of Holland II contributed to this reduction. In addition, there

was a decline in contingent liabilities arising from the ship

pipeline comprising independent single-ship entities (SPVs) in

which Lloyd Fonds and shipping company holds shares. These

single-ship entities have successfully postponed the delivery

dates for nine ships, while four bulkers will presumably

no longer reach delivery. As of June 30, 2009, our pipeline

comprised a total of 29 ships, an increase of 3 compared with

December 31, 2008. This was due to the discontinuation of

Flottenfonds XII.

We are engaged in intensive consultations with the creditor

banks in connection with risk-mitigation efforts.



eventS occurrinG after June 30, 2009

Michael F. Seidel was appointed to the Supervisory Board

of Feedback AG on July 31, 2009 and subsequently elected

chairman. In this connection, Feedback AG enlarged its

Supervisory Board to six members, amending its articles of

incorporation accordingly. With a share of around 30% of its

capital, Lloyd Fonds has been the largest shareholder of this

Hamburg-based financial services company since the begin-

ning of 2008. Feedback AG is listed in the Entry Standard of

the Frankfurt Stock Exchange.

There were no reportable events occurring after the balance

sheet date liable to materially influence Lloyd Fonds AG’s

results of operations, financial condition and net assets.

outlook for the Global economy

According to the latest forecast issued by the International

Monetary Fund (IMF), the global economy is slowly emerging

from the severe recession. The IMF writes that the global econ-

omy is currently stable thanks to extensive macroeconomic

and financial stimulus. It projects global economic contraction

of 1.4% this year.

but sees a return to growth of 2.5% next year. At 1.9%, the

IMF’s forecast had been somewhat more cautious in April. It

has also revised its forecast for growth in China upwards, now

projecting expansion of 7.5% in this country this year and as

much as 8.5% in 2010.

Sector performance

We assume that the persistent crisis will continue to take its toll

on demand for close-end funds over the next few months.

In a recent study of the market, Feri EuroRating Services

projects equity placement volumes of around € 4.5 million for

2009 on the basis of a flat second quarter and an upward trend

in the 2nd half of the year. At the beginning of the year it had

forecast placement volumes of € 10 billion for this year. This

drastic decline shows once more how difficult it is to forecast

the market for closed-end funds at the moment. This figure

will be primarily underpinned by real estate funds, which are

expected to attract equity placements of up to € 2 billion, as well

as aircraft and new energy funds.

Real estate funds are benefiting from many investors’ height-

ened interest in security. The outlook for shipping is viewed less

optimistically, with placement volumes expected to drop below

€ 1 billion.

Turning to 2010, the Feri study forecasts placement volumes

across all asset classes of up to € 6 billion, stating that a recov-

ery to up to € 8 billion is possible in 2011 once economic growth

resumes. ProCompare is somewhat more optimistic, estimating

placement volumes of € 10 billion in 2011 and € 11 billion in

2012. Not least of all, this trend will be underpinned by the

return to growth in global trade and, along with it, the recovery

in the ship markets.

outlook for the company

Despite the current favorable indicators coming from the global

economy as well as improved placement figures, the Lloyd

Fonds Group sees only a slow return of investment confidence.

The difficult market conditions are likely to persist, particularly

in Germany, with the shipping markets in particular remaining

in the grips of the economic crisis for some time to come. We

are more optimistic about real estate and assume that this asset

class will attract greater equity placements in 2009 than it did

in 2008 (€ 34 million).



In the face of the complexity and inconsistency of the economic

indicators, the forecasts of the past few months have frequently

proved to be incorrect. For this reason, we have again dis-

pensed with specific guidance for the Company over the next

few months. However, positive trends could materialize in the

second half of the year.

Lloyd Fonds AG constantly scans the markets for interesting

new assets in the real estate and transportation segments. In

the shipping segment, we are working on innovative new fund

models which will be launched in the near future. For example,

an option to return fund shares (offering guarantee) seeks to

address investors’ heightened need for security.

As early as in the autumn, we will be launching in Best of

Shipping II Plus, a new product which grants subscribers

the right to return their shares if the three relevant shipping

indices – Baltic Dry Index, Baltic Tanker Index and ConTex –

unexpectedly do not recover over the next two years. These

indices are selected on the basis of the target markets for Best

of Shipping II and thus track trends in the bulker, tanker and

container shipping markets. This new fund variation aims to

encourage subscribers to return to long-term investments.

Moreover, we will be continuing the successful Holland real

estate fund series in response to heightened subscriber interest

in real estate.

Lloyd Fonds remains equipped to weather a faltering market

recovery. The Group not only improved fix cost coverage

from 53.2% in 2008 to 65.3% in the first half of 2009 but also

continues to have a comfortable equity ratio of 59.8%. We are

constantly seeking to optimize all cost factors At the same time,

Lloyd Fonds also benefits from the recurring trusteeship and

management fee income of around € 19 million.

opportunitieS

Against the backdrop of the current economic and financial

situation as well as the expected outlook for the sector, the

Lloyd Fonds Group faces not only risks but also a number of

opportunities.

Closed-end funds offer direct access to tangible assets. Once

the global economy starts to recover, sales of closed-end funds

should pick up substantially. Moreover, Lloyd Fonds AG as-

sumes that shipping markets will stabilize in the medium term

and that there will be no sustained contraction in global trading,

something which will additionally heighten the appeal of ship

fund investments.

Opportunities will also arise from the foreseeable regulation

of the investment fund industry. As a leading listed fund initi-

ator, Lloyd Fonds is well positioned to satisfy the mounting

regulatory requirements and to benefit from expected market

consolidation.

Further and more detailed information on the outlook for

economic conditions as a whole and with respect to the oppor-

tunities for the Company can be found in Lloyd Fonds AG’s most

recent annual report. This and also other information on Lloyd

Fonds stock is available at www.lloydfonds.de.



conSolidated Statement of comprehenSive incomefor the period from January 1 to June 30, 2009 and for the

period from April 1 to June 30, 2009

consolidated income statement Note H1-2009 H1-2008 Q2-2009 Q2-2008

t€

Sales 5.1 8,293 28,221 4,774 16,871

changes in inventories -183 314 -183 214

cost of sales 5.2 -4,134 -17,303 -2,871 -10,314

Personnel costs 5.3 -5,083 -7,893 -2,429 -4,354

Depreciation, amortization and impairment losses 5.4 -1,724 -384 -1,451 -197

Other operating result 5.5 -5,266 -4,720 -3,105 -2,604

share of profit of associates 5.6 691 5,150 69 5,561

Result from operating activities -7,406 3,385 -5,196 5,177

Finance income 5.7 2,144 2,289 1,578 439

Finance costs 5.7 -2,654 -1,058 -1,505 -439

Result before tax -7,916 4,616 -5,123 5,177

Income taxes 5.8 -824 -1,015 -476 -1,138


Earnings per share (€)

– basic 5.9 -0.69 0.28 -0.44 0.32

– diluted 5.9 -0.69 0.28 -0.44 0.32

consolidated statement of recognized income and expense H1-2009 H1-2008 Q2-2009 Q2-2008

t€


components of result recognized directly within equity

Available-for-sale financial assets -1,687 165 -320 264

Deferred income taxes attributable to these 267 -26 50 -26

Investments in associates -5 – -356 –

currency translation differences -3 -1 -24 -1

Result after taxes recognized directly within equity -1,428 138 -650 237

Total result recognized within equity -10,168 3,739 -6,249 4,276

The notes on pages 16–23 are an integral part of this interim

financial report.

INTERIM FINANcIAL sTATEMENTs (IFRs) As OF JuNE 30, 2009


12 consolidated Interim Financial statements (IFRs)

conSolidated balance Sheetas of June 30, 2009 in comparison to December 31, 2008

Note June 30, 2009 Dec. 31, 2008

t€

Assets

Non-current assets

Property, plant and equipment 1,401 1,599

Intangible assets 1,545 1,766

Investments in associates 6.1 29,421 26,053

Available-for-sale financial assets 6.2 4,838 6,177

Deferred income tax assets 2,310 2,371

39,515 37,966

current assets

Trade and other receivables 6.3 32,185 29,545

Receivables from related parties 5,419 4,846

Inventories 562 745

Available-for-sale financial assets 6.2 3,385 15,373


current income tax assets 1,953 1,577

cash and cash equivalents 6.4 8,529 18,355

54,752 74,409

Total assets 94,267 112,375

Equity

share capital 6.5 12,725 12,725

Additional paid-in-capital 6.5 45,432 45,199

Retained earnings and other reserves 6.5 -1,812 8,356

Total equity 56,345 66,280

Liabilities

Non-current liabilities

Trade payables 619 656

Borrowings 6.6 – 73

Deferred income tax liabilities 51 294

670 1,023

current liabilities

Trade payables and other liabilities 9,466 8,874

Amounts due to related parties 8,083 8,638

Borrowings 6.6 15,058 22,612

Other provisions 1,096 23


current income tax liabilities 871 957

37,252 45,072

Total liabilities 37,922 46,095



financial report.


consolidated Interim Financial statements (IFRs) 13

conSolidated caSh flow Statement for the period from January 1 to June 30, 2009

Note H1-2009 H1-2008

t€

Cash flow from operating activities

consolidated result for the period before share of profit of associates, interest and income taxes 7.1 -8,020 -1,442

Depreciation, amortization and impairment losses from non-current assets 1,724 384

Loss from the disposal of non-current assets 387 1

Other non-cash income and expenses 7.2 437 -790

changes in inventories 183 -314

changes in trade and other receivables and derivative financial instruments 2,020 -30,702

changes in receivables from related parties -525 4,603

changes in trade payables and other liabilites -693 2,708

changes in amounts due to related parties 248 -144

changes in other provisions 1,072 -234

Interest received 230 1,379

Interest paid -930 -579

Dividends and profit distributions received 544 281

Income taxes paid -1,704 -4,712

Income tax refunds received 501 176

Net cash used in operating activities -4,526 -29,385

Cash flow from investing activities

Purchases of:

Intangible assets and property, plant and equipment -44 -531

Available-for-sale financial assets and investments in associates -2,139 -25,962

Proceeds from the disposal of:

Intangible assets and property, plant and equipment – 17

Available-for-sale financial assets and investments in associates 4,470 9,307

Net cash generated from / used in investing acitivities 2,287 -17,169

Cashflow from financing acitvities

Dividend paid to the equity holders of the Parent company – -16,543

Proceeds from borrowings 2,690 24,227

Repayment of borrowings -10,297 -

Net cash used in / generated from financiang activities -7,607 7,684

Non-cash change in cash and cash equivalents 2 3,378

Net decrease in cash and cash equivalents -9,844 -35,492

cash and cash equivalents at January 1 17,645 48,013

Foreign-currency translation differences 19 -1

Cash and cash equivalents at June 30 7.3 7,820 12,520


financial report.



conSolidated Statement of chanGeS in equityfor the period from January 1 to June 30, 2009

Other equity components

subscribedcapital

Additional paid-in capital

Retained earnings

Available-for-sale

financial assets

Investments in associ-

ates

currency translation differences Total equity

t€

Amount at January 1, 2008 12,725 45,144 27,956 352 - - 86,177

Total result recorded within consolidated equity - - 3,601 139 - -1 3,739

Dividends paid for 2007 -16,543 -16,543

Equity component of convertible bond - -37 - - - - -37

Amount at June 30, 2008 12,725 45,107 15,014 491 – -1 73,336

Amount at January 1, 2009 12,725 45,199 6,825 1,338 202 -9 66,280

Total result recorded within consolidated equity - - -8,740 -1,420 -5 -3 -10,168

Equity component of convertible bond - 233 - - - - 233

Amount at June 30, 2009 12,725 45,432 -1,915 -82 197 -12 56,345


financial report.



NOTEs TO THE INTERIM FINANcIAL sTATEMENTs As OF JuNE 30, 2009

1 Summary of SiGnificant accountinG policieS

These interim financial statements as of June 30, 2009 have

been prepared in accordance with the International Financial

Reporting Standards (IFRS) adopted and published by the

International Accounting Standards Board (IASB), as endorsed

by the European Union as of June 30, 2009. As a matter of

principle, Lloyd Fonds early adopts all standards and interpre-

tations.

The following new or modified standards and interpretations

were endorsed by the EU Commission in the second quarter

of 2009.

IFRS 3 “Business Combinations” and IAS 27

“Consolidated and Separate Financial Statements”

IFRIC 16 “Hedges of a net investment in a foreign

operation”

The early adoption of these standards and interpretations

is currently not exerting any influence on the Lloyd Fonds

Group’s net assets, financial condition or results of operations.

In the second quarter of 2009, the IASB published the follow-

ing new interpretations and revisions to existing IFRS stand-

ards, which must be applied for the first time in accounting

periods beginning on or after January 1, 2009 but which are

not early-adopted as they have not yet been endorsed by the

EU Commission:

Amendments to IFRS 2 “Share-based Payments”, IFRIC 2

“Scope of IFRS 2”, IFRIC 11 “Group and Treasury Share

Transactions”: They were published by the IASB on June 18,

2009 and must be applied for the first time in accounting

periods commencing on or after January 1, 2010.

“Improvements to IFRS”: Published by the IASB on April

16, 2009, they comprise 15 non-urgent but necessary

amendments to 12 existing standards in connection with

the Annual Improvements Process.

There were no changes in any of the other accounting policies

described in the notes to the consolidated financial statements

as of December 31, 2008. Accordingly, these interim financial

statements must be read in the light of the disclosures made

in the consolidated financial statements for 2008 and the

interim financial statements for the first quarter of 2009.

In accordance with the IFRS rules (IAS 34 “Interim Financial

Reporting”), these interim financial statements have been

prepared in condensed form compared with the consolidated

financial statements as of December 31, 2008.

2 companieS conSolidated

Open Waters Pacific Fighter Pte. Ltd., Singapore, was decon-

solidated in the second quarter of 2009. This did not exert any

material influence on the Group’s net assets, financial position

or results of operations. The companies consolidated now

comprise the Parent Company as well as 20 subsidiaries.

3 capital manaGement

In difficult economic times, the Lloyd Fonds Group attaches par-

ticular importance to capital management. This initially entails

sustained efforts to ensure adequate equity resources and, on

the basis of successful business operations, the generation of a

reasonable return on capital employed. In this connection, top

priority is given to the Group’s credit rating. A strong equity

basis is of crucial importance for obtaining project and bridge

finance from creditor banks for our products.

In the first half of 2009, extensive measures were taken to

reduce operating costs, including the optimization of processes,

the elimination of duplicate activities, staff layoffs and a fun-

damental review of all cost items. In addition, the dividend for

2008 was omitted.

As of June 30, 2009, equity capital stood at T€ 56,345, down

from T€ 66,280 at the end of 2008. The equity ratio widened

slightly from 59.0% to 59.8% due to the lower volume of total

assets.



4 SeGment information

Segment profit/loss for the first half and the second quarter of

2009 breaks down as follows:

H1-2009Trans-

portation Real EstateOther

AssetsFund

management TrusteeshipAll other

segments Total

t€

External sales 652 2,058 204 1,539 3,698 21 8,172

Other operating income 70 4 85 9 197 135 500

cost of materials -1,170 -2,172 -873 -510 -454 -693 -5,872

Personnel expenses -1,211 -924 -25 -570 -638 -1,715 -5,083

Other operating expenses -688 -199 -20 -147 -439 -2,577 -4,070

share of profit of associates 805 – 301 525 23 -1,080 574

Depreciation and amortisation -831 – – -19 -79 -795 -1,724

EBIT -2,373 -1,233 -328 827 2,308 -6,704 -7,503

Net financial result -164 1 -468 -258 -12 488 -413

Result before income tax -2,537 -1,232 -796 569 2,296 -6,216 -7,916

Q2-2009Trans-

portation Real EstateOther

AssetsFund

management TrusteeshipAll other

segments Total

t€

External sales 430 1,612 88 774 1,842 21 4,767

Internal sales – – – – – -7 -7

Other operating income -32 2 85 6 135 40 236

cost of materials -872 -1,721 -708 -254 -255 -323 -4,133

Personnel expenses -588 -483 11 -290 -306 -773 -2,429

Other operating expenses -453 -165 -1 -74 -196 -1,339 -2,228

share of profit of associates 723 – – 106 – -877 -48

Depreciation and amortisation -441 – – -9 -21 -980 -1,451

EBIT -1,233 -755 -525 259 1,199 -4,238 -5,293

Net financial result -180 – -417 454 -40 353 170

Result before income tax -1,413 -755 -942 713 1,159 -3,885 -5,123

Segment reporting has been based on the guidance contained

in IFRS 8 “Operating Segments” since the beginning of 2009.

In contrast to IAS 14 “Segment Reporting”, which had previ-

ously been applied, IFRS 8 stipulates the use of the “manage-

ment approach”, i.e. the reportable segments are identified

and presented on the basis of the entity’s internal reporting

system. As part of efforts to reorganize the Lloyd Fonds Group,

internal reporting was completely revamped at the end of last


year and adjusted to match the new organizational structure.

As a result, no comparative data for the previous year is avail-

able.

Lloyd Fonds’ internal reporting system does not include any

provision for breaking down assets and liabilities by segment

as management does not consider this data to be relevant for

managing the Group. Accordingly, these disclosures have been

dispensed with.


5 noteS on the conSolidated income Statement

5.1 SaleS

Sales break down as follows:

H1-2009 H1-2008 Q2-2009 Q2-2008

t€

Placement of equity and placement guarantees 2,622 16,967 1,885 9,960

Project structuring 76 4,890 – 3,724

Arrangement of financing 354 780 269 –

Trusteeship 3,698 3,332 1,835 1,720

Management fees 1,529 1,806 771 1,021

charter fees – 446 – 446

Others 14 – 14 –

8,293 28,221 4,774 16,871

The decline in sales is chiefly due to the lower placement vol-

umes as well as the absence of income from project structuring

and the arrangement of finance. Reference should be made to

the section on revenues in the management report for further

information on the breakdown of and changes in sales.

5.2 coSt of SaleS

The cost of sales breaks down as follows:

H1-2009 H1-2008 Q2-2009 Q2-2008

t€

commission 3,043 16,053 2,335 9,570

cost of other services bought 1,091 1,139 536 633

ship operating costs - 111 - 111

4,134 17,303 2,871 10,314

Commission was paid in connection with the placement of

equity. The cost of other services bought primarily relates to

management services utilized and fund-related marketing and

retailing costs, e.g. prospectus printing costs.

5.3 perSonnel coStS

Personnel costs break down as follows:

H1-2009 H1-2008 Q2-2009 Q2-2008

t€

Wages and salaries 4,296 7,295 1,955 4,104

Employee participation program 233 -37 181 -107

social security 547 631 288 355

Post-retirement benefit costs 7 4 5 2

5,083 7,893 2,429 4,354

The reduction of 44.2% in personnel costs in the second quarter

from T€ 4,354 to T€ 2,429 is due to the decline in the average

head count from 156 to 125 as well as the drop in personnel

provisions by T€ 1,569.

5.4 depreciation, amortization and impairment loSSeS

Depreciation, amortization and impairment losses break down

as follows:

H1-2009 H1-2008 Q2-2009 Q2-2008

t€

Depreciation and amortization

Property, plant and equipment 196 189 96 98

Intangible assets 246 195 124 99

442 384 220 197

Impairment losses

Available-for-sale financial assets 1,282 - 1,231 -

Depreciation, amortization and impairment losses 1,724 384 1,451 197



The impairment losses recognized on available-for-sale finan-

cial assets primarily relate to the impairment of T€ 854 on the

remaining holdings of secondary-market shares and of T€ 380

on a share in a private equity fund.

5.5 other operatinG reSult

Other operating result breaks down as follows:

H1-2009 H1-2008 Q2-2009 Q2-2008

t€

Other operating income

Damages 56 42 50 1

Remuneration in kind 95 77 46 43

Income from recharged expenses 23 247 15 192

Rentals 10 – 6 –

Derecognition of liabilities – 12 – –

Income from the sale of equity investments 64 65 – 65

Other income 126 173 91 99

374 616 208 400

Other operating expenses

Financial statement, legal and consulting costs -1,023 -917 -623 -519

Loss from the sale of equity investments -451 – -445 –

Retailing support and subscriber relations -676 -1,290 -382 -746

Rentals, ancillary rental costs and cost of premises -691 -694 -348 -353

Office supplies, IT costs and communications -544 -553 -293 -296

Motor vehicle and travel costs -389 -596 -199 -338

Other personnel costs -274 -280 -161 -140

Non-deductible input tax -240 -347 -129 -220

Impairments on receivables and unrecoverable receivables -399 -1 -44 -1

Insurance and contributions -84 -197 -36 -86

Other expenses -869 -461 -653 -305

-5,640 -5,336 -3,313 -3,004

Other operating result -5,266 -4,720 -3,105 -2,604

5.6 Share of profit of aSSociateS

The share of profit of associates breaks down as follows:

H1-2009 H1-2008 Q2-2009 Q2-2008

t€

Fünfte LF Immobiliengesell-schaft mbH & co. kG, Hamburg 272 -298 319 -68

Feedback AG, Hamburg -90 223 48 195

Interim profits from the sale of sea ships – 5,350 – 5,350

TVO Income Portfolio L.P., El Paso, usA -59 -407 -478 72

Others 568 282 180 12

691 5,150 69 5,561

The remeasurement of the repayment obligation to the limited

partners as a result of an amended dividend distribution

forecast resulted in a net profit of T€ 319 for the quarter at

the level of Fünfte LF Immobiliengesellschaft mbH & Co. KG,

Hamburg.

The net loss from TVO Income Portfolio L.P., USA, of T€ 478 in

the second quarter (previous year net profit of T€ 72) is prima-

rily due to the effects of the currency translation of US dollars.

This investment is financed by means of a loan denominated in

US dollars. Currency translation gains (previous year currency

translation losses) in connection with this loan are reported

within net financial result (see Note 5.7).

5.7 net financial reSult

Net financial result, which comprises interest income net of

interest expense as well as gains net of losses from foreign

currency translation, breaks down as follows:

H1-2009 H1-2008 Q2-2009 Q2-2008

t€

Net interest result -587 908 -554 79

Net currency translation gains/losses 77 323 627 -79

-510 1,231 73 –



The net financial expense recorded in the second quarter was

primarily due to interest expense of T€ 475 arising in connec-

tion with the renewal of placement guarantees.

Net currency translation gains were dominated by the report-

ing-date measurement of the US-$ loan to finance TVO Income

Portfolio L.P., United States (see Note 5.6).

5.8 income taxeS

Income taxes comprises income taxes paid or owed as well as

deferred income taxes. Taxes comprise corporate tax plus the

solidarity surcharge and trade tax.

Income taxes break down as follows:

H1-2009 H1-2008 Q2-2009 Q2-2008

t€

current taxes -740 -768 -455 -1,063

Deferred taxes -84 -247 -21 -75

-824 -1,015 -476 -1,138

5.9 earninGS per Share

Basic

Basic earnings per share are calculated by dividing profit or

loss attributable to the ordinary equity holders by the average

number of ordinary shares outstanding during the period

under review:

H1-2009 H1-2008 Q2-2009 Q2-2008

Result attributable to equtiy holders in Parent company (T€) -8,740 3,601 -5,599 4,039

Average number of shares issued (in thousands) 12,725 12,725 12,725 12,725

Basic earnings per share -0.69 0.28 -0.44 0.32

Diluted

Diluted earnings per share are calculated by adding all conver-

sion rights to the average number of ordinary shares outstand-

ing. It is assumed that the convertible bond will be converted

into shares and that the net profit will be adjusted to allow for

interest expense and the tax effect. With respect to the conver-

sion rights, the number of shares which it was possible to

acquire at their fair value is calculated. The number of shares

thus calculated is compared with the number which would

have arisen had the conversion rights been exercised.

With the termination of the staff option program, employees

no longer held any conversion rights as of the balance sheet

date.

Q1-2009 Q1-2008 Q1-2009 Q1-2008

Result attributable to equity holders in Parent company (T€) -8,740 3,601 -5,599 4,039

Interest expense on convertible bond (T€) 3 8 2 4

Result for determining di-luted earnings per share (T€) -8,737 3,609 -5,597 4,043

Weighted average number of shares issued (in thousands) 12,725 12,725 12,725 12,725

Adjustments for assumed conversion of convertible bonds (in thousands) – 17 – 14

Wheigted average number of shares for diluted earnings per share (in thousands) 12,725 12,742 12,725 12,739

Diluted earnings per share -0.69 0.28 -0.44 0.32



6 noteS on the conSolidated balance Sheet

This section describes selected changes in the items of the

balance sheet.

6.1 inveStmentS in aSSociateS

The increase of T€ 3,368 in investments in associates com-

pared with December 31, 2008 is chiefly due to the purchase

of further shares in Feedback AG, Hamburg, (T€ 1,040) and

the acquisition of a stake in KALP GmbH, Böel (T€ 701) as

well as the acquisition of shares in a ship fund (T€ 1,801) by

TradeOn AG.

6.2 available-for-Sale financial aSSetS

The available-for-sale financial assets dropped by T€ 13,327

compared with December 31, 2008 primarily due to the

transfer of secondary markets shares valued at T€ 10,599

and impairment losses of T€ 1,282. In addition, the carrying

amounts dropped by T€ 1,687 as a result of fair-value remeas-

urement.

6.3 trade and other receivableS

Trade and other receivables break down as follows:

Juni 30, 2009 Dec. 31, 2008

t€

Receivables from issuing business 17,435 19,865

Receivables from transfer of secondary market shares 5,913 –

Receivables from trusteeship 4,527 1,888

Receivables from the sale of investments in ship companies 3,424 3,349

Other receivables and other assets 886 4,443

32,185 29,545

The receivables from the transfer of secondary market shares

relate to the “Best of Shipping II” fund.

The drop in other receivables and assets is attributable, among

other things, to a decline of T€ 956 in input tax refund claims.

In addition, the purchase price for the acquisition of the shares

in a ship fund referred to in Note 6.1 was netted with a current

loan receivable from the seller.

6.4 caSh and caSh equivalentS

The changes in cash and cash equivalents are analyzed in the

consolidated cash flow statement. Reference should be made to

Note 7.3 for the breakdown.

6.5 equity

The composition of and changes in the Group’s equity are

analyzed in the consolidated statement of changes in equity.

As part of the 2005 employee participation program, Lloyd

Fonds AG issued several installments of partial debentures

entitling their holders to convert them into Lloyd Fonds AG

stock. In a letter dated April 15, 2009, Lloyd Fonds submitted

to its employees an offer to buy back the issued partial bonds

at their nominal value and to assume all rights and obligations

arising from them. At its meeting of April 15, 2009, the Super-

visory Board additionally passed a resolution to terminate the

employee participation program in full in the course of 2009

provided that all employees concerned accept Lloyd Fonds’

offer. As of the balance sheet date, all employees had sold back

their partial bonds to Lloyd Fonds.

6.6 borrowinGS

The reduction in borrowings by T€ 7,627 to T€ 15,058 is chief-

ly due to the scheduled repayment of loans (T€ 10,249). The

opposite effect arose from the utilization of current overdraft

facilities (T€ 2,690).



7.3 compoSition of caSh and caSh equivalentS

For the purposes of the cash flow statement, cash and cash

equivalents break down as follows:

H1-2009 H1-2008

t€

cash at banks 8,525 12,515

cash at banks with limited drawing rights -709 -

cash in hand 4 5

7,820 12,520

The bank balances with limited drawing rights relate to term

deposits which have been pledged as collateral for finance for

advance payments for future fund companies.

8 other diScloSureS

8.1 continGencieS

Contingencies comprise placement guarantees for equity to

be placed, guarantees for advance and equity bridge finance,

bank guarantees, guarantees for interest and currency hedges

and increased liable amount. Fixed-liability guarantees are

recognized only in an amount reflecting the outstanding

value of the principal debt. Including the settlement claims

under joint and severable obligations towards third parties

of T€ 227,089 (December 31, 2008: T€ 217,631), contingencies

come to a total of T€ 299,797 as of June 30, 2009 (December 31,

2008: T€ 397,854).

7 noteS on the conSolidated caSh flow Statement

7.1 reconciliation with reSult for the period

For the purposes of the cash flow statement, result for the

period before the share of profit of associates, interest and

income taxes is calculated as follows:

Note H1-2009 H1-2008

t€

Result from operating activities -7,406 3,385

share of profit in associates 5.6 -691 -5,150

Net currency translation gains/losses 5.7 77 323

-8,020 -1,442

7.2 other non-caSh tranSactionS

Other non-cash income and expenses break down as follows:

Note H1-2009 H1-2008

t€

unrealized currency translation gains/losses -68 -682

Derecognized liabilities 5.5 – -12

Additions to and reversals of provisions – -59

Impairments on receivable 272 –

Personnel expenses attributable to convertible bond 5.3 233 -37

437 -790



8.2 operatinG leaSe commitmentS

The Group leases office space, motor vehicles and copiers

under operating leases. Commitments break down as follows:

Juni 30, 2009 Dec. 31, 2008

t€

Office space 6,452 6,968

Vehicles and copiers 313 391

6,765 7,359

The obligations particularly relate to the rental of office space.

As part of trust business, shares of T€ 1,524,670 (December 31,

2008: T€ 1,543,446) are managed on the Company’s own

behalf but for the account of various trustors. In addition,

trust accounts of T€ 28,901 (December 31, 2008: T€ 7,472) are

maintained on the Company’s own behalf but for the account

of various trustors.

8.3 related-party tranSactionS

In the second quarter of 2009, there were no material transac-

tions with related parties.

8.4 eventS after the balance Sheet date

After the end of the period under review, Michael F. Seidel

was appointed to the Supervisory Board of Feedback AG on

July 31, 2009 and subsequently elected chairman. There were

no reportable events occurring after the period under review

liable to materially influence Lloyd Fonds AG’s results of

operations, financial condition and net assets.

9 reSponSibility Statement

“To the best of our knowledge, and in accordance with the

applicable reporting principles for interim financial reporting,

the interim consolidated financial statements give a true and

fair view of the assets, liabilities, financial position and profit

or loss of the Group, and the interim management report of the

Group includes a fair review of the development and perform-

ance of the business and the position of the Group, together

with a description of the principal opportunities and risks

associated with the expected development of the Group for the

remaining months of the financial year.”

Hamburg, August 12, 2009

The Management Board

Dr. Torsten Teichert Michael F. Seidel



cERTIFIcATE OF REVIEW

to lloyd fondS aG, hamburG

We have reviewed the abridged interim consolidated financial

statements, comprising the abridged balance sheet, the

abridged statement of comprehensive income, the abridged

cash flow statement, the abridged statement of changes in

equity and selected notes to the abridged interim consoli-

dated financial statements of Lloyd Fonds AG, Hamburg, for

the period from January 1 to June 30, 2009. The preparation

of the abridged interim consolidated financial statements in

accordance with the IFRS stipulations for interim financial

reporting to be applied in the EU is the responsibility of the

Company’s Management Board. Our duty is to issue a certifi-

cate on the abridged interim consolidated financial statements

on the basis of our review.

We performed our review of the abridged interim consolidated

financial statements pursuant to the German principles for

the review of financial statements as promulgated by Institut

der Wirtschaftsprüfer (IDW). These principles require that we

plan and perform the review such that after critical appraisal

it is possible to exclude with reasonable certainty that the

abridged interim consolidated financial statements do not

materially conform to the IFRS stipulations on interim finan-

cial reporting as they are to be applied in the EU. This type

of review is primarily confined to questioning the Company’s

employees and conducting analytic assessments and therefore

does not achieve the level of certainty afforded by an audit of

the financial statements. As we were not instructed to conduct

an audit, we are unable to issue an auditor’s report.

On the basis of our review, we confirm that we are aware of

no circumstances or factors leading us to assume that the

abridged interim consolidated financial statements were not

compiled in material conformity to the IFRS stipulations on

interim financial reporting as they are to be applied in the EU.

This certificate is issued on the basis of the agreement

entered into with the Company subject to the General Engage-

ment Terms for Wirtschaftsprüfer and Wirtschaftsprüfungs-

gesellschaften dated January 1, 2002 including with respect to

third parties.

Hamburg, August 12, 2009

PricewaterhouseCoopers AG

Wirtschaftsprüfungsgesellschaft

Claus Brandt ppa. Michael Kapitza

Wirtschaftsprüfer Wirtschaftsprüfer(German Public Auditor) (German Public Auditor)


24 certificate of review

ediTor

Lloyd Fonds AG

Amelungstrasse 8–10

20354 Hamburg

conTAcT

Carolin von Below

Investor Relations

Tel.: +49 (0)40 325678-0

Fax: +49 (0)40 325678-99

E-Mail: [email protected]

consuLTinG And desiGn

Kirchhoff Consult AG, Hamburg

www.kirchhoff.de

This english language version of the interim report is a convenience

translation. In the event of any debt, the German version is to apply.

FinAnciAL cALendAr

2009

2009 Financial Services Forum, Frankfurt/Main September 7

Investor conference at 2009 Deutsches Eigenkapitalforum, Frankfurt/Main November 9

Interim Report Q3 November 12

All dates are provisional only and subject to change without notice.

Lloyd Fonds AG · Amelungstraße 8–10 · 20354 Hamburg · Tel. +49 (0)40 325678 - 0 · Fax +49 (0)40 325678 - 99 · www.lloydfonds.de

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