COMPANY REPORT 2015 CONSTRUCTION & REAL ESTATE BEVERAGES HOTELS SEAFOOD

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1 COMPANY REPORT 205 CONSTRUCTION & REAL ESTATE BEVERAGES HOTELS SEAFOOD

2 Key Figures 205 Schörghuber Stiftung & Co. Holding KG Group SHKG Group BHI KGaA Subgroup SHKG Group BHI KGaA Subgroup Balance sheet total in EUR 000 3,56,20 3,627,5 Sales revenue in EUR 000, of which 980, ,939 Construction & Real Estate division 60, ,574 Beverages division 632,760 63,566* Hotels division 240, ,993 Seafood division 57,538 62,623 Operating income (EBIT) in EUR ,506 42,637 70,380 7,04 Total profit in EUR ,26 3,920 97,720 83,862 EBITDA in EUR ,70 86,763 59,44 66,49 Equity ratio in % Number of employees, of which 3,459 4,27 Construction & Real Estate division** Beverages division 2,389 2,344 Hotels division,985 2,04 Seafood division, *The figures for the previous year were adjusted to reflect a change in allocation. **This includes the prefabricated homes segment with 0 (previous year: 43) employees.

3 Company Report Brief Portrait Contents Schörghuber Corporate Group Corporate Information Well positioned with a wide range of products and services The Schörghuber Corporate Group has enjoyed success in both the national and international markets for over 60 years. Founded in 954 as a property development company in Munich, the family-run company quickly established itself as a success ful construction and real estate company. In addition to the Construction & Real Estate division, the Group operates three other business divisions, Beverages, Hotels and Seafood, providing employment to approximately 5,600 people. The Schörghuber Corporate Group is characterized by a strong network of reputable companies. Bayerische Hausbau, which bundles the Group s various real estate and property development activities, is one of the largest integrated real estate companies in Germany. With a portfolio valued at approximately 2.5 billion euros, it holds a top position in the German real estate market. The Group s beverage shareholdings are bundled in Brau Holding International, a joint venture with the Dutch Heineken brewery group. With the Paulaner Brewery Group, the Kulmbacher Group and the Südwest Group housed under its roof, the enterprise is one of Germany s leading brewery groups, offering a wide range of different brands and traditional specialty beers. Arabella Hospitality bundles the hotel activities under its roof and operates, directly or indirectly, hotels in Germany, Switzerland and on the Balearic island of Mallorca. The hotels are managed under the renowned hotel brands St. Regis, The Luxury Collection, Westin, Sheraton, Four Points by Sheraton, Aloft and Arabella. The salmon farming and processing activities in Chile bundled under the roof of Productos del Mar Ventisqueros neatly round off the Schörghuber Corporate Group s international business as the fourth business division, Seafood. Management Bodies xecutive Board and Foundation Board 4 Foreword of the Executive Board 5 Business Divisions Construction & Real Estate Beverages Hotels Seafood Topic Page Josef Schörghuber Foundation for Munich Children

4 Management Bodies Executive Board and Foundation Board Foreword of the Executive Board Dear Readers, Executive Board Dr. jur. Klaus N. Naeve Alexandra Schörghuber Dr. Jürgen Büllesbach Christoph Michl Roland Tobias Foundation Board Chairman of the Executive Board Deputy Chairwoman of the Executive Board Member of the Executive Board Member of the Executive Board Member of the Executive Board The foundation board of Schörghuber Stiftung & Co. Holding KG is the supervisory body for the family business, and its rights and obligations are comparable with those of the supervisory board of a joint stock corporation. Alexandra Schörghuber Dr. Jobst Kayser-Eichberg Chairwoman of the Foundation Board Deputy Chairman of the Foundation Board Managing Partner / Chairman of the Supervisory Board of Sedlmayr Grund und Immobilien KGaA The year 205 was an eventful year and not only for the Schörghuber Corporate Group. The world we live in has become more complex and less secure: the solidarity pact worth billions that aims to prevent Greece from going bankrupt, repeated terrorist attacks carried out by the so-called Islamic State, the ongoing civil war in Syria and the flood of refugees it has to a great extent given rise to. All this has changed the way we relate to one another. Even in the politically turbulent year 205, the Schörghuber Corporate Group was able to stay on course and continue to consistently pursue its business strategy in all areas of business. The Construction & Real Estate division was particularly successful. The development project on what was previously the business premises of the Paulaner brewery at Munich's Nockherberg is proceeding as planned, and in Hamburg, the urban development competition for redevelopment of the site of the former Esso buildings was brought to a successful close. The construction of the new Paulaner brewery in Munich-Langwied was a milestone in the history of the Beverages division. The increased output capacity, the state-of-the-art, sustainable technology and the modern logistics facilities serve as a guarantee for the continued, and above all international, growth of one of Germany's most successful beer and export brands. In the Hotels division, two new Aloft-brand hotels in Munich and Stuttgart neatly round off our portfolio. The stylish hotel brand in the less expensive mid-range hotel segment has been very well received by our guests and is particularly popular with younger travelers. The business year in the Seafood division was, on the other hand, sobering. The division was hit hard by a fall in prices resulting from an oversupply of salmon on the world market. Despite this turn of events, we continue to focus on ensuring a high level of quality and optimized production processes and, with the certification of two of the facilities in Chile, have taken another step towards sustainable salmon farming. And last but not least, the Joseph Schörghuber Foundation for Munich Children is also able to look back on a highly successful jubilee year. Twenty years after it was founded, it made it possible for children from socially disadvantaged families in Munich to participate in activities organized during the school holidays and other recreational activities, thanks to donations totaling almost one million euros. Rupert Hackl Managing partner of Rupert Hackl Immoconsult GmbH We hope you enjoy reading this report. Nico Nusmeier CEO of Aujan Coca-Cola Beverages Company (ACCBC), Dubai (United Arab Emirates) Dr. Ingo Riedel Chairman of the Management Board of Riedel Holding GmbH & Co. KG Dr. Klaus N. Naeve Alexandra Schörghuber 4 5

5 Business Division Construction & Real Estate Bayerische Hausbau is one of the largest integrated real estate companies in Germany. With a portfolio valued at approximately 2.5 billion euros, it holds a leading position in its core market, Munich, in particular. Approximately 200 employees make this success possible. Bayerische Hausbau bundles the Schörghuber Corporate Group s real estate and construction activities under its roof. The range of services it offers covers the business segments real estate and property development. This includes professional asset and portfolio management and management of the properties in the Group's own portfolio, as well as classic property development activities. Starting shot for,400 apartments in the Au district of Munich Planning for the development project at Nockherberg is progressing well. In July 205, the city council approved the development plan for the three subdivisions at Welfenstraße, Regerstraße and Falkenstraße. The relevant resolution was passed at the end of the year, after the planning documents were made available for examination. This creates the legal foundation for the construction of around,400 apartments in Munich-Au. Up to 3,500 people will find a new home on the 9-hectare site. The development of the Nockherberg site will create approximately 49,000 square meters of additional living space, making it one of the most important current urban development projects in Munich. It was made possible by the Paulaner brewery's decision to move its production facilities to Langwied. Green residential area: planning for the 9-hectare site at Nockherberg in Munich-Au 2 Intensive dialog: Numerous information events ensure the involvement of local residents in the planning process 2 Because of its size and central location, the project has been very much in the public eye from the outset. Bayerische Hausbau and the City of Munich took a new approach to public participation to ensure that due consideration was given to the concerns of the city's citizens. At an early stage, local residents were able to contribute not only their knowledge of the area but also their wishes and ideas to the planning process in a variety of workshops and information events. This approach was pursued further with another public event held in September 205. Representatives of Bayerische Hausbau and the City of Munich presented the current planning status and discussed various aspects with those attending the event. The concrete shape the buildings will take is currently being developed on the basis of the results of the two-stage urban development and landscaping competition. What the buildings in Welfenstraße, Regerstraße and Falkenstraße will look like in detail had not yet been determined by the end of 205. One thing is, however certain: There will be great diversity. The height and width of the buildings Milestones in Munich and Hamburg New living space at Nockherberg Completion of two widely acclaimed properties in top locations in Munich the Donisl at Weinstraße and the Aloft hotel at Bayerstraße 35, in the immediate vicinity of the main train station allowed Bayerische Hausbau to further expand its portfolio of properties in Munich. The portfolio's main emphasis, which over the years has evolved into a focus on prestigious locations in Munich, was further strengthened 205. The Munich metropolitan area currently accounts for 85 percent of the value of Bayerische Hausbau s property portfolio, with approximately 54 percent of this located in the city center. At its second key location, Hamburg, Bayerische Hausbau marked a milestone in the redevelopment of Spielbudenplatz with the successful completion of the urban development competition.,400 apartments 3,500 people 9 ha site 49,000 m² of floor space 6 7

6 Business Division Construction & Real Estate Attractive eye-catcher next to the main train station Bayerische Hausbau has erected a new hotel building in Bayerstraße 35, in the immediate vicinity of Munich's main train station. In addition to the Aloft hotel that opened in September 205, the building is also home to a restaurant with seating for approximately 400 people both inside and outside. The Munich entrepreneurs Kathrin Wickenhäuser and Alexander Egger have created a new and inviting venue with their Münchner Stubn. Sophisticated Bavarian cuisine with a modern flair is the perfect complement to the culinary offerings near the main train station. All of the hotel's 84 rooms are located on the upper floors some are grouped around a quiet inner courtyard while others are located in an additional wing and face the interior of the block. Narrow window ledges highlight the horizontal edges of the facade elements, thus creating a unique and eye-catching relief. The facade, which was designed by the architectural firm Hild und K Architekten, is structured using large-size elements that are similar both in look and feel to natural sandstone. The site was previously occupied by a dilapidated administrative building dating back to the 950s. The new building once again closes the perimeter block development at the corner of Bayerstraße and Goethestraße. Anyone now leaving the train station through the south exit is met by the sight of the eight-story hotel and the restaurant. Great public interest: presentation of the urban development 2 in Regerstraße, for example, will vary, adding architectural highlights and delineating the individual buildings. This diversity will also be reflected in the design of the facades. A particularly striking feature of the design for Welfenstraße is the arched, projecting standard stories along the entire length of the building. In addition, stepped bay windows on the top floor will create a unique roof landscape. The colors selected for the new building will also provide a suitable counterbalance to the strong colors of the Weilerblock complex opposite. The urban design principle for the building in Falkenstraße is that of the city block, the scale of which uses the Untere Au for reference. At the southeast corner, the building opens onto the Auer Mühlbach, a small stream, and thus provides all the apartments that overlook the courtyard with a visual reference to the green expanse along the stream. The urban development on the Nockherberg site will make an important contribution to creating urgently needed living space in Munich. Thirty percent of the living space is earmarked for subsidized residential construction. It is also intended that company-owned rental apartments be provided. The plans include space for stores, bars, restaurants and other services as well as four daycare centers, thus creating an infrastructure that also offers added value to the surrounding area. In addition, Bayerische Hausbau plans to create large expanses of green with playgrounds for children on the site, which was previously used exclusively for industrial purposes and is completely sealed. A network of foot and cycle paths will not only expand the existing network but also create new routes. Demolition work will commence in the autumn of 206. It is expected that the first residents will be able to move into the buildings in Welfenstraße and Falkenstraße starting in 209. Part of the building in Regerstraße should be ready for occupation in All the work is scheduled to be completed by Attractive new building at the main train station: the modern facade of the Aloft hotel 8 9

7 Business Division Construction & Real Estate Unanimous jury decision regarding St. Pauli 2 3 The concept for redevelopment of the site on Spielbudenplatz is ready: The aim is to create a forward-looking part of St. Pauli on the approximately 6,200-square-meter site of the former Esso buildings. It will comprise a combination of residential and commercial space, as well as space for innovative and neighborhood-related use, which is typical for the area. In September 205, the jury voted unanimously in favor of the design created by the architectural firms NL Architects, Amsterdam, and BeL Sozietät für Architektur, Cologne. In the words of the jury, its "assertive urban planning and apt interpretation of the task at hand" makes it stand out. The decision was preceded by a uniquely intensive public participation process: On behalf of the Hamburg-Mitte district, PlanBude, an interdisciplinary team from the fields of architecture, urban planning, art, film, urbanism and district social work, collected and evaluated around 2,300 contributions from local St. Pauli residents over a period of six months. The results of this process nicknamed the "St. Pauli Code" provided the basis for the competition. The redevelopment will, above all, take account of the great need for inexpensive living space in St. Pauli. It is planned that approximately 4,800 square meters of residential space be created. Just under 60 percent of this is earmarked for state-subsidized apartments and building collectives and the remaining 40-plus percent for privately financed rental apartments. The commercial part of the development, which measures in the region of,350 square meters, will be divided between smallscale enterprises typical of St. Pauli, like clubs, bars, restaurants and local shops, and an individualized hotel concept. Another section offers in the region of 2,500 square meters of space for neighborhood-related and innovative use. This includes a 2 In the PlanBude: Visitors take their time filling out the questionnaires 3 Basis for the development plan: the winning design by NL Architects, Amsterdam, and BeL Sozietät für Architektur, Cologne Inform and discuss: The preliminary status of the architectural designs were presented at a public workshop in the St. Pauli stadium FabLab (fabrication laboratory), a neighborhood canteen, the Kogge Rock n Roll Hotel, the St. Pauli Museum, "subculture" rooms and space for neighborhood-specific social assistance. There will also be rooms for the Molotow music club and also in a two-story basement level on Spielbudenplatz a hall that will serve as a versatile venue for live music, theater and cinema. In a second competition phase, the five architectural firms NL Architects, Amsterdam, BeL Sozietät für Architektur, Cologne, Coido architects, Hamburg, feld72 Architekten ZT GmbH, Vienna, LACATON & VASSAL ARCHITECTES, Paris, and ifau und Jesko Fezer, Berlin, will work on the architecture in greater detail based on the results of the urban planning competition. The planning permission phase will be launched at the same time. The unanimous decision of the competition's jury affirms Bayerische Hausbau's consistent efforts, as a reliable partner to the city and the district, to find a joint solution that meets the special needs of the neighborhood and at the same time ensures an appropriate level of economic efficiency of the new buildings. 0

8 Business Division Beverages Brau Holding International is a joint venture between the Schörghuber Corporate Group (50. percent) and Heineken (49.9 percent). With 2 breweries in Southern Germany, the group is synonymous with a diverse beer culture, a long brewing tradition and beers of the highest quality. In an environment of fierce competition on the German beer market, Brau Holding International offers a home to the regional art of brewing. It comprises 50 percent of the Paulaner Brewery Group and 63.8 percent of the Kulmbacher Group, as well as the Südwest Group. The other 50 percent of the Paulaner Brewery Group is held by the Schörghuber Corporate Group. continued growth. In recent years, the brewery s traditional location at Munich s Nockherberg had been increasingly nearing maximum capacity, particularly with regard to logistics. The new premises were a project of enormous magnitude for the Paulaner brewery. Since the launch of construction in spring 204, a figure in the three-digit million range has been invested with the aim of erecting a functioning brewery on what was previously a cornfield in less than two years. Two thirds of the contracts were awarded to Bavarian companies. Growth through regional diversity Building project of enormous magnitude A trend towards regional brands and specialty beers has been emerging on the German beer market for some time. Brau Holding International is well positioned to accommodate this trend as last year's performance once again demonstrated. According to AC Nielsen, it was one of only two major German brewery groups to report a growth in sales revenue. Of the industry's Top Five, the brewery group enjoyed the largest increase in revenues. The reason behind this success is Brau Holding International's regional focus. Its portfolio includes not only the national Paulaner brand but also a number of regional brands that are strong enough to grow despite the declining market. 700 construction workers 3,000 precast concrete elements 4,000 t of steel 25 km of pipes 2,000,000 tiles 3 2 Instead of relying on growth measured in terms of hectoliters, the brewery group focuses on value-oriented growth and does so with great success. Thanks to a consistent pricing policy, it has increased revenue by a total of 50 million euros over the past five years. Last year alone, revenues increased by 3.5 percent to 633 million euros while sales remained the same. The group ended the year with a new record result, adjusted for non-recurring items, of more than 45 million euros (EBIT BNRI). Paulaner brewery launched in Munich-Langwied In 205, a monumental project was the center of focus at the venerable Paulaner brewery in Munich, namely the construction of new production and logistics facilities in Munich-Langwied. With its new production site in the northwestern part of Munich, it has laid the foundation for Paulaner: one of Germany's most successful beer and export brands 2 Strong regional brand: The specialty beers from Hacker-Pschorr contribute to the success of Brau Holding International 3 Milestone: The new premises in Munich-Langwied houses the production and logistics facilities 2 3

9 Business Division Beverages Highest possible standards with regard to energy and water consumption The new location combines traditional brewing methods with environmentally friendly, state-of-the-art technology. During the planning of the brewhouse, special attention was paid to making sure that the brewing lines were set up exactly as they had been at Nockherberg to ensure that the same traditional brewing methods could be used. This is a prerequisite for continuing to brew Paulaner beers of the usual high quality together with water from the same aquifer as at Nockherberg, the Paulaner yeast strains and the tried-and-tested malts and hop varieties. Although Paulaner already ranks among the breweries in the industry with the lowest water and energy consumption, it will be setting new standards in Langwied in the future. 2 Festive procession: The Paulaner brewmasters brought the yeast strains to the new brewery in a horse and cart 2 Starting shot for the new brewery: Roland Tobias, Heiner Müller, Alexandra Schörghuber, Dr. Stefan Schmale, Dr. Stefan Lustig, Andreas Steinfatt (from right to left) The brewery was put into operation as planned in late summer 205. The launch of operations was symbolized by the brewmasters and the original Paulaner yeast strains moving in a procession to the new brewery on 4 August. They traveled through the city in a traditional horse and cart, accompanied and photographed by thousands of Munich citizens. The procession made stops at a number of Paulaner restaurants and was welcomed to Langwied by hundreds of local residents. Two weeks later, the first batch of beer was brewed in the new brewhouse. Environmentally-friendly production The first bottles were filled on 5 September, four days before the start of Munich's Oktoberfest. Alexandra Schörghuber inaugurated the brewery together with Paulaner's managing directors, Roland Tobias and Dr. Stefan Lustig. The invited guests, including Lord Mayor Dieter Reiter and his deputy, Josef Schmid, were present when the bottles containing the first beers officially bottled in Langwied rolled off the bottling line. Operation has been gradually ramping up since the first bottling. Since then, a total of six bottling lines have been put into operation, one after the other, month by month. At the same time, production at the Nockherberg site was gradually scaled back, and the last beer was brewed there in the middle of November 205. The last bottling lines at Nockherberg were decommissioned in March 206; since then all brewing operations take place in Langwied. 25% of the heating energy required is supplied by biogas from the brewery's own waste water treatment facility 33% less energy and 4% less heat is needed by the new brewery for hl of beer compared with the production facilities at Nockherberg 60% of the energy needed is generated by on-site thermal power stations 4 5

10 Business Division Beverages Despite relocating its brewery facilities to Langwied, Paulaner will continue to maintain a presence in Munich-Au. The brewery's headquarters will remain at the site where the brewery was originally founded. The newly constructed administrative building incorporates the old listed Zacherl building and the vaulted cellar that goes with it in a contemporary new edifice. By the end of 205, construction of the building shell in Ohlmüllerstraße had largely been completed. The topping-out ceremony for the brewery's new headquarters was held in January 206, and employees are scheduled to move into the building in December 206. Stimulus for growth in the domestic market The Paulaner brewery can also look back on a successful year on the market. Despite a slight decrease in domestic sales and slower growth abroad compared to the previous year, the group was able to increase revenues by almost five percent. In addition, numerous measures intended to stimulate future growth were taken. The brand identity of the alcohol-free wheat beers was, for example, revamped with new labels, their own TV ad and their own website with the aim of further expanding the market share in the alcohol-free beer segment. By repositioning alcohol-free wheat beer as the "ideal thirst-quencher for active recreation", Paulaner is placing a sure bet, since the demand for and acceptance of alcohol-free wheat beer as a refreshing drink and natural alternative to sweet juice spritzers and soft drinks has been increasing steadily for years. Another segment with growth potential is the segment involving smaller packaging units with four to six bottles. Paulaner launched an innovation onto the market during the course of relocating the brewery to Langwied: the so-called "neck-through baskets". The new packaging unit's compact and closed design prevents it from ripping unintentionally and the bottles from falling out while at the same time ensuring a high level of stability. In addition, the pull-out handle makes the container easy to carry and ensures safe handling. The new packaging units thus offer advantages to both retailers and consumers and provide Paulaner with a unique selling point in the market. Broad-based country portfolio increases foreign business Brau Holding International increased foreign sales by almost one percent compared to the previous year. Paulaner's broad regional spread worked to the brewery advantage in this context: Although there was a downturn in countries that had until recently been considered growth drivers, like China and Russia for example, due to their difficult economic situations, this was more than offset by strong growth in other countries, for example in Italy and also in parts of Asia. Paulaner has made massive investments in the future with the aim of further expanding its foreign business. An increase in the size of the sales team in the USA and the founding of an office in China laid the foundation for more intensive cultivation of two of the brewery's key sales markets. One of the aims of extending the sponsoring partnership with the football club FC Bayern is to exploit the international renown of the FC Bayern brand to attract new consumers worldwide to the Paulaner brand. Paulaner has also entered a new field of play: The brewery became the official beer partner to FC Bayern's basketball team in autumn 205. The year 205 saw the opening of another five brewhouses under the Paulaner brand and now also the Hacker-Pschorr brand. This means that there are currently 37 brewhouses worldwide, with 28 in Asia alone. The success enjoyed by the brewhouse in Peking proves that this is by no means a fleeting trend. The brewery-cum-restaurant was opened in 992 as the first Paulaner brewhouse outside of Germany and in June 205 celebrated the brewing of its 5,000th batch of beer. Of all the regional brands and specialty beers, it was first and foremost Mönchshof that reported exceptional increases. The brand, which belongs to the Kulmbacher brewery, profited in particular from the double-digit growth of Mönchshof Natur-Radler, a naturally cloudy shandy, which was introduced four years ago and has now passed the 00,000-hectoliter mark. The alcohol-free beer Mönchshof Naturtrüb s Alkoholfrei also contributed to the brand's growth. The Fürstenberg brand from Donaueschingen once again performed very well, as did Munich's swing-top-bottle brand, Hacker-Pschorr. 2 3 Regional strengths pay off Internationally successful gastronomy concept: Paulaner brewhouse in Singapore 2 Good reason to celebrate: The 5,000th batch of beer was brewed in Peking 3 Popular and sought after: Mönchshof Natur-Radler contributed to the brand's good performance Brau Holding International's strong position in the market is based not only on the Paulaner brand but also on a strong portfolio of regional brands, which likewise performed well last year. 6 7

11 Business Division Beverages Brewery and tavern tradition at the heart of the city: the new Hacker-Pschorr Donisl Hacker-Pschorr opened the new Donisl restaurant in December 205. Munich's oldest operating restaurant is managed by the Reindl family and offers a contemporary interpretation of traditional Bavarian dining culture. The building was erected by Bayerische Hausbau, which completed construction of the new showcase property in Munich's city center in just under two years. The entire old building, with the exception of the front facade, was torn down practically by hand, piece by piece. A contemporary new building, which picks up on traditional forms and reinterprets them, has been created in its place. The concept developed by the architectural firm Hild und K Architekten makes reference, typologically speaking, to old Munich's arcaded courtyards. In the middle stands a light-filled courtyard, edged by columns, with cozy seating areas, boasting a variety of designs, nestled in its barrel vaults. A glass roof affords a view of the towers of Munich's Frauenkirche (Church of Our Lady), and on a fine day, the roof can be opened. The facade facing Weinstraße, including the characteristic frescoes by Max Lacher and the sculpture of a lion by Marlene Neubauer-Woerner, was preserved and restored, allowing the new building to blend seamlessly with its surroundings as before. but also a piece of history. The restaurant was opened in 75 by Max List from Ramersdorf as a beer tavern on the marketplace and in 760 was given the name it carries today, which is derived from the name of the leaseholder at the time, Dionysius Haertl. In 885, the brewery owner Georg Pschorr acquired the building. Since that time, the restaurant has belonged to the Hacker brewery, which merged with the Pschorr brewery in 972, creating Hacker-Pschorr. Back then, the brewery's head office was situated in Hackengasse, just a stone's throw away, and Joseph Pschorr himself lived close to the Donisl, where the Town Hall is located today. At the heart of the Donisl lies Munich's beer culture. In the tradition of a true Bavarian brewery, Hacker-Pschorr brews 2 different varieties of beer and offers beer aficionados and beer lovers the perfect beer to suit any taste or accompany any meal. On the ground floor, Hacker-Pschorr's Edelhell lager beer is served with a flourish from a traditional wooden barrel: Upon entering the restaurant, the eye is immediately drawn to the artfully designed bar, where the barkeeper taps the barrels and draws the beer. The beer is moved from the cellar to the large main bar using an elevator developed especially for barrels. Directly behind the bar is a cabinet in which the personal beer mugs belonging to the Donisl's "regulars" are kept. The Donisl proved extremely popular with guests even before the official reopening on 7 December 205. Young and old, locals and guests from around the world everyone feels at home here. Suppliers from the surrounding area deliver fresh produce daily, which master chef Bernhard M. Maier and his team use to create a variety of Munich specialties. The menu neatly combines rediscovered methods of preparing food, such simmering in broth, with classics dishes such as baked calf's head or veal shank with crispy crackling. The restaurant offers seating for approximately 620 in the indoor and outdoor areas. The Donisl is not only something that is very dear to Bayerische Hausbau and Hacker-Pschorr's heart but also a particularly successful joint project conducted by the two business divisions. Built and operated with great care and attention, it is a piece of authentic Munich tavern tradition and thus part of Munich's vibrant city center. 2 Built and operated with great care and attention The Donisl restaurant combines authentic materials and traditional craftsmanship. High-quality building materials from the region that have been meticulously crafted can be found throughout the Donisl from the forged window grilles to the floors made of oak planks and Wachenzell dolomite, a local natural stone from the southern Franconian Jura, to the wall paneling, benches and tables made of solid pear- and maplewood. For the Hacker-Pschorr brewery, the Donisl is not merely an important showpiece and ideal showcase for the brand, Painstakingly restored: the historic facade of the venerable Donisl restaurant 2 Tradition and modernity: the new concept for the interior with arcades and niches 8 9

12 Business Division Hotels As the central holding company for the Hotels division, Arabella Hospitality assumes responsibility for the 2 hotels in Germany, Switzerland and on the Balearic island of Mallorca. The Group's long-standing partner Starwood Hotels & Resorts Worldwide has taken over operational management of the majority of the existing hotel portfolio, while Arabella Hospitality concentrates on the development and asset management of the hotel properties. The hotels carry the renowned brand names St. Regis, The Luxury Collection, Westin, Sheraton, Four Points by Sheraton, Aloft and Arabella. Aloft brand launches in Germany In September 205, Arabella Hospitality and Starwood Hotels & Resorts Worldwide hit the mark with the opening of two new hotels in Germany: The Aloft hotels in Munich and Stuttgart are the first hotels from the trendy US brand to open in Germany and since being launched have become hugely popular. 2 Trendy city hotels offer a vibrant social scene Their city center locations, unconventional, contemporary service and hip design make the hotels particularly attractive to younger travelers. Aloft Munich is situated directly opposite the city's main train station, just a stone's throw from the pedestrian zone and its countless shopping options. Theresien wiese, the official grounds of Munich's renowned Oktoberfest, is also within easy walking distance. The trendy city hotel offers modern rooms with an urban design and is a valuable addition to Munich's hotel landscape, especially in the mid-price segment. Aloft Stuttgart is part of the city's new Milaneo mixed-use development, which comprises stores, bars and restaurants, as well as apartments and office space, and is located close to the center of Stuttgart and the main train station. Located at the heart the Europaviertel (European Quarter), Aloft Stuttgart offers its guests a panoramic view of the Killesberg urban park. The hotel s diverse program of live music and other events livens up the Europaviertel, making it Stuttgart's hottest place to meet and mingle. 3 Perfect combination of music and technology Relaxing to hot new music: the bar in the Aloft Stuttgart 2 Hip design and high-tech: the re:mix lounge in the lobby It is the local music scenes in particular that find an attractive partner in the Aloft hotels. The reason being Aloft's signature W XYZ bars, where some of the hottest emerging artists, bands and DJs regularly play. There is no charge for admission. The re:mix lounge in the lobby, which is open to the public, features a billiard table and In-Touch terminals, which guests can use to find out more about the city's local hot spots. In addition to their signature music program, Aloft hotels are also characterized by the forward-looking integration of technology. Keys are a thing of the past: The SPG Keyless program allows guests to unlock their rooms using their smartphone or Apple Watch. They can also use the app created for Starwood's Preferred Guest (SPG) loyalty program to check in. The re:fuel grab 'n' go pantry concept is truly cutting edge: The 24/7 mini-supermarket offers a selection of warm and cold dishes made using primarily regional products. The so-called "Tactic Rooms" offer dynamic meeting space for business travelers. They come 3 Mid-range design hotel: the Aloft Munich equipped with large LED screens, high-speed Wi-Fi and game consoles. Mid-range hotels as the market of the future 84 rooms in Munich, 65 rooms in Stuttgart: The two Aloftbrand hotels allow Arabella Hospitality to expand its portfolio of mid-range hotels, which are particularly attractive to price-conscious, younger travelers who appreciate the trendy design of the city hotels with their affordable amenities. It is not only in the luxury hotel segment but also the mid-range hotel segment in particular that Arabella Hospitality sees the best opportunities for growth in the medium and long terms. 20 2

13 Business Division Seafood Ventisqueros is the operative management company for the Seafood division and a member of the Global Salmon Initiative (GSI). Its mission is to produce high-quality salmon in as sustainable a manner as possible. The company is one of Chile's top ten salmon producers and sells its fresh and frozen products primarily in Brazil, Japan, Russia, the USA and, since the end of 205, in Europe. Ventisqueros' global markets Main markets 82% Secondary markets 8% Food safety and sustainability take priority Canada Russia 2 Salmon enjoys an extremely good reputation as a foodstuff. It is not only rich in healthy omega-3 fatty acids but also tasty and can be prepared in a large variety of ways. This holds true for both wild and farmed salmon. At the same time, there is a growing consumer awareness for the sustainable, resource-conserving production of food. Certification marks and seals of quality, which vouch for high food safety standards, are intended to provide guidance when shopping. One certification mark that not only takes the quality of the food into account but also closely examines sustainability aspects along the entire value-added chain is the ASC consumer label. It is based on the strict guidelines developed by the Aquaculture Stewardship Councils (ASC) together with the World Wildlife Fund (WWF) the standards by which the members of the Global Salmon Initiative (GSI), and thus also Ventisqueros, are measured. The fact that the company was awarded an ASC certificate for not just one but two saltwater facilities used to farm Pacific salmon (Coho) in the year under review was therefore a major achievement. The next challenge to be mastered is certification of the facilities used for farming Atlantic salmon. USA Mexico Columbia Chile Argentina Brazil Europe China Singapore Japan South Korea Thailand Vietnam Malaysia Exploiting opportunities Perfect conditions for farming salmon: Atlantic salmon, Pacific salmon and salmon trout from Chile 2 Top notch quality: state-of-the-art aquaculture production facilities Initial projections indicate that the revenues generated in 205 by Chile's salmon industry decreased by approximately 20 percent compared with the previous year, although the harvest was roughly the same. Losses on the US market as well as the weak economy in both Brazil and Russia made things difficult for the industry. It is therefore vital that Ventisqueros further safeguard itself against market volatility. One means of doing this is to continually expand its customer base. In the year under review, for example, Ventisqueros started to also market its products in Europe through a cooperation with a Belgian importer. In addition, the company remains committed to actively helping shape the consolidation of Chile's salmon farming activities

14 Topic Page Josef Schörghuber Foundation for Munich Children Something new in the jubilee year The foundation needs approximately 400,000 euros per year to grant all the requests that they receive. These come, for example, from families in Munich who want to make it possible for their children to participate in an activity organized during the school holidays, from schools in the city that are planning a class trip or, as from 205, also from disadvantaged families who urgently need to spend some quality time together. Until now, it had not been possible for the foundation to provide the latter kind of support. Thanks to a donation from the Schörghuber Corporate Group, which went hand-in-hand with a corresponding amendment to the foundation's charter, the basis for expanding this support has been created. Record amount in jubilee year: Patron Alexandra Schörghuber presents check to Munich's lord mayor, Dieter Reiter Milestones 995 On 26 July, the Munich City Council approves the charter of the Josef Schörghuber Foundation for Munich Children. The foundation was initiated by the person whose name it carries, the businessman Josef Schörghuber. 20th anniversary of the Josef Schörghuber Foundation for Munich Children The Josef Schörghuber Foundation for Munich Children is part of the Schörghuber Corporate Group s philanthropic efforts. It was founded on 26 July 995 at the initiative of Josef Schörghuber, who provided an initial endowment of three million deutsche marks. The foundation is administrated by Munich's social welfare department (Sozialreferat). It focuses primarily on the individual sponsorship of children and families in need. Personal commitment "If someone has the opportunity to do something for others, they should make the most of it." This quote, taken from an interview given by Alexandra Schörghuber in 205 on the occasion of the 20th anniversary of the Josef Schörghuber Foundation for Munich Children, is an apt characterization of the Schörghuber Corporate Group's pragmatic approach to social responsibility. One example: When the Executive Board decided in mid-204 to discontinue financial support to the Haus der Kunst museum, it decided at the same time that the previously budgeted sponsoring payment in the amount of half a million euros should instead be given to the Josef Schörghuber Foundation for Munich Children. After all, actions speak louder than words. Giving lighthearted moments to children and adolescents No child in Munich should have to forgo holidays spent together with their peers for financial reasons. That is the guiding principle of the foundation, which is very dear to Alexandra Schörghuber's heart. As patron, it is important to her that she inspires enthusiasm for the foundation in as many people as possible, and she does so with great success. Over the years, the fact that the foundation offers an opportunity to make a difference locally, combined with the knowledge that every donation is used towards a holiday activity, without any deduction made for administrative costs, has gained the foundation a great many and above all loyal donors. Thanks to their support, the Josef Schörghuber Foundation for Munich Children makes it possible, every year, for thousands of children and adolescents to participate in recreational activities and activities organized during the school holidays more than 88,000 to date. Over the past 20 years, in excess of three million euros in funding have been provided for this purpose. 998 For the first time, the Schörghuber Corporate Group produces and sells Christmas cards for the benefit of the foundation. Half of the proceeds from the sale the cards are donated to the foundation. In the 5 years that follow, approximately a quarter of a million euros is raised From this point on, the donations collected during the course of the ArabellaClassics oldtimer rally go to the foundation. The amount collected that year: 38,600 euros. Ten years later this amount has increased by an impressive 200,000 euros Six committed prominent Munich figures launch the Charity Golf Cup for the Benefit of the Josef Schörghuber Foundation for Munich Children. Along with ArabellaClassics, this charity tournament, which collects almost 80,000 euros in donations annually, becomes the foundation's second most important source of donations. 205 Thanks to a donation of 500,000 euros from the Schörghuber Corporate Group, the foundation is able to expand the purpose stated in its charter. In certain individual cases, it will in the future make it possible for the parents of children in need to accompany their offspring when they participate in recreational and other activities. Growth in donations since 2005 in euros 55,000 90,000 25, ,000 36, , , , ,000 44, ,

15 Published by Schörghuber Stiftung & Co. Holding KG Communications & Marketing Denninger Straße 65 D-8925 München Phone Fax Design/layout acm Werbeagentur Munich Photographs p. 5 Gisela Schregle p. 6 Image : Formstadt Architekten GmbH p. Image 2: PlanBude/Margit Czenki p. Image 3: NL Architects und BeL Sozietät für Architektur ID-Nr.: The identification number can be used at to verify certification of this print project. 26