As this also has an impact on our net assets, financial position and results of operations due to Mr Ledermann's post-retirement benefits, it is necessary to communicate this news in the form of an ad hoc announcement. For edding Aktiengesellschaft and the edding Group, based on the figures as at the last balance sheet date, the effects are as follows, whereby, where applicable, the first amount stated relates to the consolidated financial statements and the second amount to the individual financial statements of edding AG.
Assets and results of operations
The pension provision for Mr Ledermann, which is now to be released, amounted to EUR 6.0 million (IFRS) or EUR 5.7 million (German GAAP) on the last balance sheet date on 31 December 2020. While in the consolidated financial statements the provision is reversed outside the consolidated income statement as "actuarial profit", in the individual financial statements it is reversed with an impact on profit. On the basis of the figures as at 31 December 2020, the effect on the consolidated financial statements, taking deferred taxes into account, is EUR 4.2 million, while in the individual financial statements the positive effect on earnings after taxes is also EUR 4.2 million. The net pension expenses including interest effects in the 2020 financial year amounted to less than EUR 0.1 million (IFRS) or EUR 0.9 million (German GAAP).
Current pension payments, which cease immediately, amounted to EUR 1.1 million in the past financial year 2020.
About Volker Detlef Ledermann: In 1960, Volker D. Ledermann founded edding together with his school friend Carl-Wilhelm Edding and shaped the company's fortunes until well after it went public in 1986. With his courage to break new ground and his sense of responsibility for people and the environment, Ledermann defined the corporate culture of edding as a family business in the long term. He was a member of the Management Board until 1995 and then Chairman of the Supervisory Board until 2005. Since his son Per Ledermann succeeded him as a member of the Management Board in 2005, he has withdrawn from active business, but has always been on hand to advise the new Management Board with his experience. He has left his mark on the company to this day and we will always honour his memory. Volker Ledermann's philosophy was always that corporate responsibility must not end at the balance sheet; this will continue to be our guiding principle in the future.
About edding AG: The company was founded in 1960 and generated consolidated sales of EUR 125.7 million in 2020 with an average of 679 employees. Under the edding and Legamaster brands, the edding Group develops products and services that help people in their private and professional lives to express themselves and achieve their goals. edding has over six decades of expertise in the development, production and international distribution of products that bring colour adequately to surfaces for creative and work-related purposes. The range extends from markers to sprays, nail polish and tattoo inks. edding's edding's solutions for professional users in business as well as education environment support digitalisation, enable new forms of collaboration and increase the communication capabilities of people and organisations. As an international brand, edding is a daily part of many people's lives and is always aware of its responsibility to act fairly and sustainably.
Explanation of EBIT as an alternative performance indicator: EBIT is the abbreviation for “earnings before interest and taxes”. Total output less cost of materials, personnel expenses and depreciation and amortisation (including rights of use within the meaning of IFRS 16), plus other operating income and less other operating expenses. EBIT is the most important key figure for profitability management in the edding Group. No adjustment has been made for any extraordinary income or expenses.
Ahrensburg, 7 December 2021
The Management Board