Page 44 - Annual Report 2019

Supervisory Board Report
Group Management Report
Consolidated Financial Statements
Annexes

(28) Remuneration of the Supervisory Board and Management Board
The provisions of Section 314 no. 6a HGB in conjunction with section 286(4) HGB apply with respect
to the nondisclosure of the total remuneration paid to members of the Management Board.

The remuneration of the Supervisory Board members amounts to EUR 89 thousand (prior year:
EUR 90 thousand).

Remuneration paid to former members of the Management Board and their survivors amounts to
EUR 305 thousand (prior year: EUR 332 thousand). Provisions totalling EUR 3,317 thousand (prior
year: EUR 3,309 thousand) have been recognised for pension obligations to former members of
the Management Board and their survivors.

(29) Consolidated cash flow statement
The cash and cash equivalents disclosed here comprise highly liquid funds. The consolidated cash
flow statement is compiled using the indirect method. Starting with the consolidated net income
for the year, we use significant non-cash expenses and income and changes in the net current
assets to determine the cash inflows from operating activities. The statement records cash outflows
from investment and financing activities as well.

(30) Contingent liabilities

2019 2018
Guarantee obligations 70 120
Based on past experience, we do not expect any claims arising from contingencies.

(31) Other financial commitments

The other financial commitments include EUR 5,062 thousand (prior year: EUR 5,513 thousand)
resulting from purchase commitments and leasing contracts.

(32) Derivative financial instruments
HOFTEX GROUP AG will only utilise derivative financial instruments that are clearly designated
as qualified hedging instruments and where the underlying transaction and the hedging instrument
are combined in a so-called net hedge (macro-hedge). For the purpose of hedging against the
interest rate risk on variable-interest long-term loans, the Company entered into two interest swaps
with a combined value of EUR 16,500 thousand to minimise the risk of future interest rate increases.
With a term of 24 months, the maturities of the interest rate hedges held on 31 December 2019
correspond to those of the underlying transactions and these have been combined with these
underlying transactions to create net hedges. Therefore, as of the balance sheet date, the Company
was not obliged to recognise provisions arising from the net hedges for these transactions; in other
words, the Company was able to avoid setting aside provisions for contingent losses on pending
transactions, corresponding to the negative fair values in the amount of EUR 171 thousand.

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