ANNUAL
REPORT
2003/2004
ANNUAL REPORT
Expansion – Our Corporate Strategy
Better, Bigger, Further
Energie AG: Number One
Infrastructure Group in Upper Austria
Within only a few years, Energie AG Oberoesterreich mastered its transition from an electricity
supplier with 112 years of corporate tradition
into the leading infrastructure group in Upper
Austria. During the year under review, the
central issues were to establish the Group in its
new position, as well as to move strongly in the
direction of the Czech Republic and Hungary on
an expansion course. The core business sectors
of Energie AG are now energy (electricity, gas,
heating), water and waste disposal. As a result,
we can offer infrastructure services of top quality
from one source.
A high level of professionalism and flexibility,
as well as motivated staff members ensure
our economic success, of which the Group can
once again be proud in terms of the 2003/2004
business year. Again, Energie AG set several
milestones and gave impressive proof of being
one of the top players in its sectors.
THE GROUP AT ONE GLANCE
Leaner, More Stable, More Efficient
2003/2004
2002/2003
2001/2002
Group sales
Total
in EUR mill.
695.2
601.3
544.6
Energy
in EUR mill.
566.7
525.8
498.8
Water
in EUR mill.
32.2
—
—
Waste disposal
in EUR mill.
96.3
75.5
45.8
79.6
48.6
45.3
70.4
48.3
40.8
Result of operations
Total
Energy
in EUR mill.
Water
in EUR mill.
1.2
—
—
Waste disposal
in EUR mill.
8.5
1.3
5.9
Net income for the year
in EUR mill.
80.5
54.9
24.2
Cash flow from operating activities
in EUR mill.
165.4
141.2
55.6
Total
3,138
2,287
2,029
Energy
1,755
—
—
Water
851
—
—
Waste disposal
532
—
—
Staff (average for the year)
Energy
Total for electricity supplies
in GWh
8,324
7,962
7,480
Electricity sales
in GWh
7,870
7,523
7,081
41
39
39
Power plants
Water
Potable water
in m3 mill.
45.4
—
—
Waste water
in m3 mill.
34.6
—
—
Waste disposal
Thermal disposal
in thousand tons
365.0
291.3
—
Total for disposals
in thousand tons
1,121.0
762.0
—
ANNUAL REPORT
Our Mission
Our mission is to be the market leader or
the prime challenger in our core business
sectors, i.e. energy, water and waste disposal.
We reach this goal primarily by offering highquality and customer-oriented services, which
our competent staff members provide in
our specialized business units and subsidiary
companies in Austria and abroad.
Energie AG Oberoesterreich: The Number One.
With our innovative and environmentally
friendly products and services we enable our
customers to have a better quality of life,
more security and success.
In our core business sectors – energy, water
and waste disposal – we are the leading
infrastructure group in Upper Austria. Our
markets are in Austria, southern Germany,
the Czech Republic, Hungary and Slovakia.
The close cooperation within the Group and
with our partners is an essential potential for
our economic success. Success-oriented action
makes us an attractive partner for our owners
and capital providers.
Our Vision
2003/2004
The Group
06
08
09
10
11
16
Introduction by the
Board of Management
Corporate Bodies
Report of the Supervisory Board
Overview of Holdings
The Group and its Environment
Highlights of the 2003/2004
Business Year
The Group’s Business Sectors
20
20
29
32
34
37
41
41
41
The Energy Segment
The Electricity Sectors
The Heating Sector
The Gas Sector
The Water Segment
The Waste Disposal Segment
Others
Telecommunications
Housing
Group Status Report
44
44
49
51
52
52
Table of Contents
The Group’s Financial Statements
56
57
62
96
97
99
100
ANNUAL REPORT
The Economic Environment
Development of the Group’s
Business Activities
Financial Position, Financial
Performance and Earnings Position
Material Events after the End
of the Business Year
Research and Development
Outlook
2003-2004
Balance Sheet as at 30 September 2004
Income Statement for 2003/2004
Notes to the 2003/2004
Financial Statements
Development of the Group’s Equity
Cash Flow Statement
Auditor’s Certificate
Glossary
The Group
More Modern, More Effective, More Committed
As Number One on an Expansion Course.
• More modern: Energie AG is always abreast of the times, observing trends and developments
in order to be able to react to them swiftly.
• Energie AG uses its effective and lean structures in order to be able to adjust with flexibility
to changes in market conditions.
• Commitment: Every single staff member makes his/her best effort in order to bring the Group
optimally in line with customer needs.
Expansion and Integration
06-07
"The whole is more than the sum of its parts."
This saying by Aristotle, the Greek philosopher,
is also of great importance for the economic
development of Energie AG, from a regional
supplier of electricity to a corporate infrastructure group with international activities. With its
vision, i.e. to be "Number One and the leading
infrastructure group in Upper Austria", Energie AG
has put a uniting covering above all of its business sectors and subsidiary companies. The
impressive performance of the Group in recent
years is a sound basis for sustainable success.
The 2003/2004 business year was characterized
by strengthening our position as the leading
infrastructure group in Upper Austria and by
expanding our market beyond existing borders.
Energie AG has developed the segments energy,
water and waste disposal to become its core
segments. While keeping a strong base in Upper
Austria, Energie AG is continuously expanding
into the neighboring countries. Not only the
The Group
Introduction by the
Board of Management
other regions of Austria, but also the Czech
Republic, Hungary, southern Germany and
Slovakia are among the company's markets.
The Group's goal is to use, in the best possible
fashion, the dynamism of European integration
in its core business. With the opening of borders,
an economic area is emerging in Central Europe
that has a great entrepreneurial potential.
Electricity is the main supporting pillar of
the Group. Together with its partners in
ENERGIEALLIANZ Austria, Energie AG can
once again boast a sound development
during the business year under review. As
far as electricity is concerned, it will also
be necessary in the future to meet the
challenges of the European internal market
for electricity, together with our partners.
Energie AG, a company with a rich tradition,
has made an important contribution to the
economic growth of Upper Austria for the
past 112 years, on account of its clear commitment to reliable supplies and a high level of
service quality.
In addition to the electricity segment, the water
and waste disposal segments are increasingly
gaining in importance. Energie AG is the market
leader with regard to waste disposal in Austria
and Hungary. In the Czech Republic the company
holds the fourth place. By acquiring VaK JC̆ and
VaK Beroun, two Czech water utilities, Energie AG
ensures that more than half a million people in
the Czech Republic are supplied with water, as
well as with waste-water treatment plants.
On account of its leading position in the field of
infrastructure, Energie AG also feels committed
to the subject of safety and security. The development of a comprehensive crisis management plan
means that crises can be dealt with in a more
professional way.
The committed managers and staff members of
Energie AG are responsible for the success of the
Group and support the dynamic development
of the company. Their common effort made it
possible to achieve an excellent performance in
the 2003/2004 business year. At the same time,
Werner Steinecker
Member of the Board of Management (left)
Leo Windtner
Chairman of the Board of Management (center)
Roland Pumberger
Member of the Board of Management (right)
ANNUAL REPORT
2003-2004
a sincere commitment to cooperation and team
work prevails at Energie AG.
The Board of Management would like to
thank all managers and staff members for their
commitment and contribution to our common
goals. Since they are all able and willing to
perform, we can be satisfied with the results,
and we can be sure that Energie AG will continue to develop successfully, in the interest
of customers, staff members, owners and the
region of Upper Austria.
Leo Windtner
Chairman of the Board of Management
Report of the Supervisory Board
The Group
Corporate Bodies
Supervisory Board:
Works Council Representatives:
Eduard Pesendorfer, Chairman, Linz
Guenther Arnold, Gmunden
Erich Haider, 1st Deputy Chairman, Linz
Regina Eikenberg, Gmunden
Peter Layr, 2nd Deputy Chairman,
Maria Enzersdorf
Isidor Hofbauer, Ostermiething
Friedrich Krofika, Wallern a. d. Trattnach
During the 2003/2004 business year, the Board
of Management informed the Supervisory Board
and the Working Committee of the Supervisory
Board in writing and orally of the activities of the
Group and its subsidiary companies on a regular
basis, and it discussed all important business
events with these bodies. The corporate bodies
gave their approval for all business events, which
is mandatory in specific cases.
Georg Bachmair, Neuhofen
08-09
Alois Gradauer, Thening
(until 17 December 2003)
Gottfried Laherstorfer, Chairman of the
Works Council, Pinsdorf
Bernhard Steiner, Ottensheim
Josef Heizinger, Linz
Christian Strobl, Gampern
Johannes Hintermayr, Linz
(until 17 December 2003)
Siegfried Tomaschek, Altmuenster
Gertraud Jahn, Linz
(until 17 December 2003)
Board of Management:
Ruperta Lichtenecker, Linz
(as of 17 December 2003)
Leo Windtner, Chairman of the
Board of Management, St. Florian
Joerg Mayer, Linz
Gerhard Merckens, Schwertberg
Roland Pumberger, Member of the
Board of Management, Purkersdorf
Adolf Mittendorfer, Sierning
(as of 17 December 2003)
Werner Steinecker, Member of the
Board of Management, Kirchschlag
Michael Obentraut, Vienna
Kurt Pieslinger, Linz
(as of 17 December 2003)
Manfred Polzer, Linz
(as of 17 December 2003)
Viktor Sigl, Linz
(as of 17 December 2003)
Max Stockinger, Linz
The financial statements of Energie AG Oberoesterreich – drawn up according to the Austrian
accounting regulations – together with the
accounts and the status report of the Board of
Management were audited by KPMG AlpenTreuhand GmbH, Chartered Accountants and Tax
Consultants, Linz. The auditors have reported in
writing about the outcome of their audit and
stated that the accounts and the financial statements comply with the statutory requirements
and that the status report of the Board of
Management is in conformity with the financial
statements. The auditing firm therefore issued
its unqualified audit certificate.
The Supervisory Board has examined the financial statements for 2003/2004, the status report
of the Board of Management, as well as the
proposal for the appropriation of the earnings.
The Supervisory Board has noted with approval
the outcome of the audit conducted by the firm
of chartered accountants and tax consultants,
and it established that the Supervisory Board,
in turn, does not have any objections regarding
these statements. The Supervisory Board also
examined the proposal of the Board of Management regarding the appropriation of the earnings
and supports this proposal. The Supervisory Board
states that it is in agreement with the status
report of the Board of Management, presented
in accordance with § 127 of the Austrian Stock
Corporation Act and that it approves the financial statements for 2003/2004, which is thus established according to § 125 (2) of the Austrian Stock
Corporation Act.
Rudolf Trauner, Linz
The consolidated financial statements for the
2003/2004 business year from 1 October 2003
to 30 September 2004, drawn up according to
the International Financial Reporting Standards
(IFRS), was also audited by KPMG Alpen-Treu-
Karl Wiesinger, Linz
Alois Wimmesberger, Ried i. Innkreis
(until 17 December 2003)
ANNUAL REPORT
2003-2004
hand GmbH, Chartered Accountants and Tax
Consultants, Linz. The auditing firm reported
about the outcome in writing and established
that the financial statements comply with the
statutory requirements and that the Group's
status report is in conformity with the consolidated financial statements. The auditing firm
therefore issued its unqualified audit certificate.
The Supervisory Board examined in detail the
consolidated financial statements and the Group's
status report. The Supervisory Board has noted
with approval the outcome of the audit conducted by the firm of chartered accountants
and tax consultants, and it established that the
Supervisory Board, in turn, does not have any
objections regarding these statements.
By drawing up the consolidated financial statements according to the IFRS, the company is
released from its obligation to prepare consolidated annual accounts according to Austrian
commercial-law provisions.
The Supervisory Board thanks the Board of
Management and all staff members of the
Group for their successful work during the
period under review.
Linz, December 2004
On behalf of the Supervisory Board:
The Chairman
Eduard Pesendorfer, m.p.
Energie OOE. Serviceund Beteiligungsverwaltungs- GmbH
100%
Salzburg AG fuer Energie,
Verkehr und
Telekommunikation
26,13%
Energie AG
Oberoesterreich Vertrieb
GmbH & CoKG
100%
Wels Strom
GmbH
49%
ENERGIEALLIANZ
Austria GmbH
17%
Energy
Energie AG –
An Essential Part of Upper Austria
Naturkraft
Energievertriebsgesellschaft m.b.H.
100%
SWITCH
Energievertriebsgesellschaft m.b.H.
100%
e&t Energie Handelsgesellschaft m.b.H
17%
10-11
The Group and its Environment
Ennskraftwerke
Aktiengesellschaft
50%
GeothermieFoerdergesellschaft
Simbach-Braunau mbH
20%
Waerme
Oberoesterreich GmbH
100%
Energie Contracting
Steyr GmbH
100%
Cogeneration Kraftwerke Management
Oberoesterreich GmbH
50%
GeothermieWaermegesellschaft
Braunau-Simbach mbH
20%
ENSERV Energieservice
GmbH & Co KG
37%
A.S.A. + RWE
Koernyezetvédelmi
Holding Kft
50%
Oberoesterreichische
Ferngas AG Konzern
50%
RWE Umwelt
Miskolc Kft
55%
AVE Magyaroszág
Hulladékgazdálkodási Kft
100%
RWE Umwelt
Tatabánya Rt.
67%
Waste Disposal
AVE CZ odpadové
hospodárství s.r.o.
100%
SOH Benatky
nad Jizerou, s.r.o.
90,80%
A.K.S.D.GmbH
51%
Responsibility for Upper Austria
With its 112 year-old history, Energie AG is one
of Upper Austria's companies with the longest
tradition. In 1892 Josef Stern and Franz Hafferl
founded Elektrizitaetswerke Stern & Hafferl, which
is the oldest legal predecessor of Energie AG,
today's Group. The pioneers of Austria's electricity industry already recognized the economic
and ecological advantages of the local water
power. In 1902 the Traunfall power station
went into operation. In 1924 Austria's first
large-scale hydroelectric power plant went into
operation at Partenstein. The city of Vienna
was supplied with electricity from Upper Austria
via a 110 kilovolt high-tension line from Partenstein. In 2004 Partenstein celebrated its 80th
anniversary. The power station continues to be
an important pillar of Energie AG for generating
electricity from water power.
Upper Austria has the lowest unemployment
rate, the best economic growth and the greatest
innovative force in Austria. An active policy to
attract companies and technological progress has
made Upper Austria a top region in Europe.
Far-sighted and future-oriented action helped
Upper Austria to develop not only into the
water-power region Number One, but also to
assume an overall leading role in Austria's
energy policy.
Kaposvári
Városgazdálkodási Rt
40,50%
AVE Beteiligungsverwaltungs
GmbH & Co KG
100%
AVE Deponie
Betriebs GmbH
100%
AVE Entsorgung GmbH
100%
AVE Beteiligungsverwaltungs GmbH
100%
WAV
Betriebsfuehrung-GmbH
100%
ASPG
Altlastensanierungsprojekte GmbH
100%
MA Restabfallverwertung GmbH
100%
AVE Reststoffverwertung
Lenzing GmbH
100%
Welser Baustoffrecycling GmbH
33,30%
AVE Restoffverwertung
Lenzing GmbH & Co KG
100%
WAV II Errichtungs- und
Abfallbehandlungs-GmbH
99%
VaK Jiz̆ny C̆echy, a.s.
95,20%
Water
ENERGIE AG
BOHEMIA s.r.o.
100%
VaK Beroun, a.s.
59,17%
Type of holding
OOE Landeswasserversorgungsunternehmen AG
98%
fully consolidated
companies
WDL Wasserdienstleistungs GmbH
35%
Oberoesterreichische
Gemeinnuetzige Bau- und
Wohnungs GmbH
100%
Others
The Energie AG Group
ENSERV Energieservice
GmbH
37%
A Company with a Tradition
companies with
pro-rata consolidation
LIWEST
Kabelmedien GmbH
44%
Vereinigte Telekom
Oesterreich Beteiligungs
Ges.m.b.H.
13,70%
companies associated
at equity
UTA Telekom AG
75%
non-consolidated
companies
2003-2004
75% of Energie AG is owned by the Federal
Province of Upper Austria. The company therefore bears a great responsibility for the economic
region Upper Austria. With a staff of 4,446 the
Energie AG Group is also an important employer
across borders.
Energie AG has always invested into the future –
with due consideration for sustainability and a
responsible attitude towards resources.
Reliable supplies are therefore the top priority.
They contribute decisively towards developing
industrial sites and to enhancing the quality of
life in Upper Austria.
The Group
Overview of Holdings
12-13
Principles of Corporate Policy
The Number One Infrastructure
Group in Upper Austria
Internationalization
as a Strategic Goal
Since the opening of markets in 1999,
Energie AG has developed from a regional
electricity supplier into the leading infrastructure group with headquarters in
Upper Austria. We built up new, strong
business sectors in order to secure the
position and performance of the Group
on a long-term basis.
Already at the beginning of the nineties,
Energie AG took greater advantage than most
other infrastructure companies in Austria of the
opportunities arising from the opening towards
the east. Thus, the Group has almost ten years
of experience on the Czech market. Energy AG's
shares of the Czech electricity suppliers JC̆E
(southern Bohemia), JME (southern Moravia)
and ZC̆E (Western Bohemia) were sold to the
German company E.ON in 2003.
During the year under review, the Group
implemented a comprehensive change in
its positioning. One corporate goal is to
earn one third of the Group's result with
non-electricity business. The commitments
in the new EU Member States, i.e. Czech
Republic, Hungary and Slovakia, will play
a decisive role in this connection.
In addition to energy, the core segment,
which comprises the sectors electricity,
gas and heating, Energie AG is also expanding the water and waste disposal segments
to become supporting pillars of the Group.
One of the main factors for success resulting
in the excellent performance is the close
cooperation within the Group.
At the same time as EU enlargement, the two
Czech water companies VaK JC̆ and VaK Beroun
were taken over, which constituted the successful re-entry into the Czech market. The Group
currently holds the sixth place on the Czech
water market.
When Energie AG took over the environmental
activities of RWE in the waste-disposal sector in
the Czech Republic and Hungary, this constituted
the second step towards expansion. Here, too,
the commitment of the Group allowed it to join
the top players' league.
Energie AG ranks fourth among the private
waste-disposal companies in the Czech Republic,
and it is the market leader in Hungary. In the
Czech Republic and Hungary, the waste-disposal
activities are operated by AVE, a 100% subsidiary.
When Energie AG assumed its new position,
the principles of our corporate policy were
drawn up as clear guidelines for the future.
All staff members were involved in the process
of preparing these principles. As a result, it
became possible to considerably enhance staff
identification with the Group.
The principles of our corporate policy comprise
the guiding vision, the mission, as well as the
Our Mission Statement
Our Group
Our Economic Goal
We are the leading infrastructure group in
Upper Austria. In this connection, growth
in all business sectors and efforts to be better
than our competitors are essential goals.
Our goal is to earn attractive profit margins,
to increase the value of our Group with
sustainability, and thus to be a reliable and
interesting partner for our owners and financial backers. Our efficient opportunity and risk
management is the basis for our success.
We reach these goals through a close
cooperation among the sectors of the
Group, through cooperative agreements
and partnerships, flexibility and optimization of the services offered to our
customers.
The focus is not only on providing a convincing benefit for our customers, but also
on the economic success of the Group.
Our Customers
Our customers' satisfaction is the yardstick
for our activities. We strive for lasting
relationships with our customers, based
on confidence, and we are continuously
expanding our reputation as a competent
partner.
The main priorities in this connection are
a comprehensive orientation to quality,
the maximum-possible security and the best
service standard in all business sectors.
ANNUAL REPORT
guidelines on the subjects of "the group",
"our customers", "our economic targets",
"our staff" and "the social environment".
These principles serve as a basis for the strategic orientation of Energie AG as a Group.
A broad range of accompanying measures
rounds off the project, in order to ensure
the optimum implementation of the new
principles of our corporate policy in our
day-to-day business activities.
2003-2004
Our Staff
A secure and healthy working environment,
further training and staff development promote the motivation and qualifications of our
staff members. Our managers distinguish themselves by acting as role models, in a team spirit
and by an open exchange of knowledge and
information. A good and amicable working
climate is an important contribution to our
corporate culture.
Our Social Responsibility
Reliable supplies and the responsible use of
resources contribute essentially towards
developing the industrial sites and enhancing
the quality of life in Upper Austria. We are
an important employer in Upper Austria, we
assume the responsibility for training young
people, and we support education, culture,
social issues and sports.
The Group
Strategy
At their last review, Standard & Poor's confirmed
Energie AG's excellent rating of "A+/outlook
stable". With that, the Group was able to defend
its position among the best energy suppliers in
Austria and ranks among the Top 20 of the more
than 150 companies covered in Europe. The
good rating is a decisive competitive edge for
Staff
Energie AG, especially since it has enlarged
its market territory to the neighboring
EU countries. Moreover, the rating provides
a global benchmark, a better access to the
bond market, as well as an optimum position
with a view to Basel II (new equity requirements for banks).
14-15
Crisis Management
With its new crisis management plan,
Energie AG is the first infrastructure group
to embark upon new avenues in dealing with
crises and disasters. The Group has assumed
an optimum position in order to act swiftly
and in a coordinated and efficient manner in
case of a crisis.
The crisis management plan resulted primarily
in an optimum linkage and coordination of
the existing proven structures. The interfaces
to the relief organizations were optimized
and the problem solutions were automated.
Approximately 200 staff members of
Energie AG were trained for their tasks in
the crisis management plan.
The service center of Energie AG has an important part to play in crisis management.
In case of an emergency, the call center can
be expanded into a 24-hour hotline within
a very short time. In cooperation with the
Federal Province of Upper Austria this call
center – as a service provider – will also
take over the crisis hotline function for the
federal province.
New Corporate Headquarters
As part of the new positioning and in the course
of developing into an international player as an
infrastructure group, the corporate headquarters
also have to meet new challenges. The existing
building of Energie AG dates back to 1937. For
more than 20 years there have been no substantial investments.
After looking into several options, constructing
a new building at the present location proved
to be the best choice, both in terms of costs and
strategic location.
The Group
Rating
In July 2004 the Supervisory Board unanimously
approved the construction of the new corporate
headquarters. It will facilitate a modern communications structure and the consolidation of
a large part of the subsidiaries in one location.
This will be of great importance for the further
integration of the Group. Construction work will
start during the next business year. About 500
staff members and the corporate management
will be accommodated in two substitute offices
for the duration of the building work which is
estimated to take up two years.
ANNUAL REPORT
Integration of Group Staff Members
as Part of our Corporate Culture
Our staff members are the most valuable potential of Energie AG and a decisive factor for our
business success. A safe and healthy but also
stimulating working environment in which highquality work can be done and career objectives
can be reached is of essential importance. Part
of a living corporate culture are a good and
considerate working climate, fair contacts and
relations to others, a team spirit and an open
exchange of knowledge.
The total staff level of the Energie AG Group
went up from 2,287 (average for the 2002/2003
business year) to 3,138 (average for the
2003/2004 business year). The main reason for
this development is the expansion into the Czech
Republic and Hungary. The dynamics of this evolution becomes apparent when looking at the
staff level according to the reporting-date rule.
As at 30 September 2004, the Group had 4,446
employees. With a figure of 1,574 the Czech
Republic held the largest share in staff members
behind Austria (2,289). 583 employees work for
the Hungarian waste disposal company.
The energy segment (Energie AG, ENERGIEALLIANZ Austria GmbH and ENERGIE AG
BOHEMIA, Waerme Oberoesterreich) has 1,761
staff members, the waste disposal segment
(AVE Austria, Hungary and the Czech Republic) has 1,563, and the water segment
(VaK JC̆ and VaK Beroun) has a staff of 1,122.
Part of our corporate culture is the swift integration into the Group. The employees of the
water and waste-disposal companies in the
Czech Republic and Hungary are gradually
integrated into the overall group. This process
was started with the two water companies
(VaK JC̆ and VaK Beroun).
respect to the water sector in the course of
a seminar lasting several days. In addition,
participants were able to give proof of their
knowledge and skills as future managers.
Further career development programs and
seminars are being planned.
Interactive Learning Platform
An interactive learning platform provides our
Czech staff members with the opportunity
to acquire or to perfect their knowledge of
German in their respective companies. The
interactive platform will also be used to communicate other subject matters.
Staff Interviews
In the course of a pilot project in the summer
of 2004, we began to introduce staff interviews
in the Czech water company. This tool is part of
our corporate culture and intended to ensure a
cooperative management style.
In the coming years the integration of our staff
members into the overall group will be further
stepped up by means of executive programs and
trainee programs.
Staff level of the Group according
to countries as at 30/09/2004
4,500
4,000
3,500
2003-2004
Total
3,000
2,500
2,289
Czech
Republic
2,000
1,500
Staff Development
Key staff members of the two Czech water
companies were informed about the overall
strategy of the Group and especially with
4,446
1,574
1,000
583
Hungary
500
0
Austria
The Group
Highlights of the
2003/2004 Business Year
• May 2004
The biggest fish-relocation campaign
in the history of Austria's electricity
industry takes place when the reservoir
at Ranna is overhauled.
• June 2004
Austria's most modern small-sized
water power station is inaugurated
at Agonitz/Steyr.
16-17
• July/August 2004
The crisis-management plan
goes into operation.
• September 2003
Sept.
• August 2004
March 2004 •
Best result
Energie AG assumes its new position.
The first fuel cell in an industrial
enterprise in Austria is taken into
operation at Dietachdorf/Steyr.
Oct.
Nov.
Dec.
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
• December 2003
Oct.
• October 2004
Take-over of the Czech water companies
VaK JC̆ and VaK Beroun
New principles of our
corporate policy
• September 2004
Start of the waste disposal activities
in the Czech Republic and Hungary
• July 2004
The EU gives the go-ahead sign for
the Austrian Electricity Solution (OESL).
• June 2004
The passive energy house
is opened at St. Oswald.
• April 2004
Heating offensive: All district heating
activities are bundled in "Waerme OOE. GmbH".
ANNUAL REPORT
2003-2004
The Group's Business Sectors
More Secure, Faster, Increased Performance
Infrastructure for Upper Austria
• Energie AG helps to secure a positive development for our country by creating jobs and
investing into the domestic economy.
• Faster means that we are always one step ahead and also think ahead in order to remain
the Number One also in the future.
• The performance potential of Energie AG as an infrastructure group is reflected especially
in our reliability, secure supplies and a comprehensive range of services for our customers.
The Group’s Business Sectors
The Energy Segment
The Electricity Sectors
Power plants
and supplied areas
areas supplied
by Energie AG
Ranna
Partenstein
Altenwoerth
LINZ
Hinternberg
Huebing
Ottensheim-Wilhering
Marchtrenk
Riedersbach
Stadl Paura
Traunfall
Offensee 2
Weinbach
20-21
Gosauschmied
Gosau
Muehlbach
Plankenau
Klaus
Laufen
Bad Goisern
Bad Aussee
ST. POELTEN
Staning
HYDROELECTRIC
POWER STATIONS
Garsten
Losenstein
Großraming
Weyer
run-of-river power station
Schoenau
Offensee 1
Schwarzensee
Melk
Muehlrading
Lambach
Pichlern
Timelkam
Humpelmuehle
Duernau
Steinbach
Agonitz
Gmunden
Steyrdurchbruch
SALZBURG
towns
Abwinden-Asten
St. Pantaleon
Traun-Pucking
Hinterstoder
storage power station
Trattenbachfall
thermal power station
Steeg
Arthurwerk
Wagrein-St. Johann
HYDRAULIC ELECTRICITY
PURCHASE RIGHTS
Spannberg
Großarl
run-of-river power station
storage power station
Malta
The electricity business sectors (generation, grid, distribution) are the roots
of Energie AG. The Group earns about
two thirds of total sales with electricity.
This is why great importance is attached
to this core sector.
Increasingly Difficult Overall Conditions for the Electricity Industry
In spite of increasingly difficult overall conditions,
the electricity business sectors of Energie AG show
an excellent performance. However, the positive
mood is dampened by statutory requirements.
In the coming years we can expect a
further scarcity of the energy sources.
In recent months, the prices for primary
energy have gone up dramatically.
For electricity, the price hikes on the
European market, where Energie AG
buys about one third of the supplied
quantity, amount to more than 62%.
Our own power plants thus have
not only a strategic but also a priceregulating significance. With the large
share of water power (about 62%)
in our portfolio, we have been able
so far to mitigate the international
price increase, although unable to
stop it altogether.
Emission Trading
In 2005 trading of CO2 certificates begins in
the EU. It is intended to induce industry and
energy generators to contribute towards a
reduction of the carbon dioxide emissions.
Certificate trading will make thermal power
production more expensive. On account of the
higher emission level of coal, as compared to
natural gas, it will be more difficult to operate
coal-fired power stations.
emissions. The Energy Efficiency Directive is
meant to save one per cent of the energy used
in every EU Member State.
Water Framework Directive
The political requirement to reach the Kyoto
target on greenhouse gas emissions conflicts, to
some extent, with the Water Framework Directive. Among other things, it establishes higher
allocations of residual water for storage power
stations and for the permeability of running
waters for fish. As a result, one can expect a loss
of nation-wide production of up to 15%, which
will affect the already tight supply situation in
the Alpine region. Storage power stations and
small-scale power stations, in particular, will
fall below the profitability threshold. The result
will be the paradoxical situation where smallscale water power stations will be encouraged,
on the one hand, on account of the regulations
on eco-electricity, while, on the other hand,
they will become unprofitable due to Austria's
especially strict transposition of the Water
Framework Directive.
Eco-Electricity Act
The grants dispersed since the regulations on
eco-electricity were launched in Austria on
01 January 2003 have resulted in lively construction activities regarding new eco-electricity
facilities. During the second half of the year this
has led to financing problems for the eco-balance
group. The Austrian Federal Ministry of the
Economy and Labor therefore introduced an
amendment of the eco-electricity legislation
to be decided by Parliament. Since the present
eco-electricity regulation ends on 31 December
2004, it is necessary to adopt new arrangements
for promoting eco-electricity facilities.
Energy Efficiency Directive
In December 2003 the EU Commission presented
a draft directive on energy efficiency. The decision is still outstanding. The directive is meant
to exploit energy savings potentials that are,
as yet, untapped and to lower greenhouse gas
Agonitz is Austria's most modern small-scale power
station delivering eco-electricity to 4,500 households.
ANNUAL REPORT
2003-2004
For Energie AG, energy efficiency is an important
strategic goal. Innovative projects such as promoting heat pumps and biomass (Upper Austria
leads in both fields in Austria), as well as research
into the use of fuel cells and passive energy houses
underline the leading role in this area.
ELECTRICITY GENERATION
In contrast to 2003, a dry year in terms of water,
the water levels of the rivers in Upper Austria
were exactly as forecast during the past summer.
Energie AG was able to use its water power plants
in an optimum fashion. Hydro-power generation
and thus the electricity volume from recognized
eco-electricity plants was up by about 5% and
the annual mean corresponds more or less to
the average of many years. On account of the
The Group’s Business Sectors
greater demand for electricity, electricity supplies from thermal power
stations and from third-party sources
went up by nearly 4%. With a volume
of about 8,300 mill. KWh, the total
consolidated electricity generation
recorded an increase of 4.5% over
the year before. As compared to the
year before, electricity generation
for the Group did not change:
29% electricity generated
by the Group
15% purchase rights
56% electricity from thirdparty sources
22-23
Reliable Supplies – A Major
Advantage for Industrial Sites
Energie AG gives priority attention to preserving its excellent standards of reliability
in supplies – both with regard to generation
and the grid.
Reliable supplies are a major factor for
the attractiveness of Upper Austria as an
industrial location. Energie AG therefore
is a major contributor to the fact that
Upper Austria is the economic engine of
Austria. In this connection it is necessary
to preserve what has been achieved and
to secure the competitive advantages for
the future, in spite of difficult overall
conditions.
Energie AG continues to rely on a high
share of its own electricity generation by
Total electricity generated
by the Group: 3.6 TWh
1.3 TWh
1.3 TWh
1.05 TWh
water power:
27.8%
water power
purchase rights:
36.1%
thermal power:
36.1%
means of a large number of modern, environmentally friendly and efficient power stations.
Hydroelectric Power Plants
The 34 hydroelectric power stations of
Energie AG with a total bottleneck output of
260 MW generated about 1.05 TWh of electricity in 2003. Last June, the small-scale power
station Agonitz/ Steyr went into operation;
this is a new structure replacing the old one.
The output of the small-scale power station
has increased by 350%, compared to that of
the old power station, which has now been
replaced. 4,500 households can now be
supplied with clean eco-electricity. At present,
the small-scale power station Muehlbach am
Hochkoenig in the Salzburg region is being
replaced by a new structure.
Relocating fish before the overhaul
of the Ranna reservoir.
Overhaul of the Ranna Reservoir
The Ranna reservoir had to be emptied last
summer, on account of necessary overhaul
work in order to optimize the safety of
the sluice and the station's operations. In
preparation for the overhaul, the biggest
fish relocation campaign in the history of
the domestic electricity industry was carried
out, rescuing 21 tons of fish live from the
lake and relocating them to substitute
water bodies.
Analysis of Potential Secures
Water Power Reserves
Energie AG conducts analyses in order to
establish the potential of the water power
reserves in Upper Austria. This is to secure
possible sites for subsequent generations.
While the rivers have mostly been exploited,
Upper Austria offers a great potential for
pump storage facilities.
Run-of-River Power Stations
The rivers in Upper Austria only hold a potential of a few hundred GWh. At the same time,
run-of-river power stations will gain in importance in the years to come on account of the
high environmental compatibility of electricity
generation. Energie AG will think of using water
power only in places where it is possible to build
new power stations in harmony with nature and
environmental protection.
Pumped Storage Power Stations
As the demand for peak-load electricity is
growing, pumped storage power stations
are gaining in importance on account of
Austria's biggest biomass plant is
under construction at Timelkam.
ANNUAL REPORT
2003-2004
their excellent adjustability. As a source for
compensating energy that is available quickly,
for example for the growing share of windgenerated electricity, it is important to build
new pumped storage structures. It is feasible to
construct plants with a peak output between
100 and 400 MW.
Thermal Power Stations
The two thermal plants at Riedersbach
and Timelkam, with a total output of about
400 MW, play an important role among
the power plants of Energie AG. Both
power stations are primarily coal-fueled.
The vigorously expanding electricity consumption in Austria can only be met in a
sustainable fashion by a combination of
eco-energy, large-scale water power stations
and thermal power stations. Energie AG is
also committed to thermal energy generation.
Although the thermal power station projects
to be implemented next will prioritize natural
gas as a fuel, coal will also continue to play
an important role in the years to come, on
account of the massively rising oil and gas
prices. The strategic value of coal, in particular
as a source of energy that can be stored and
obtained on the world market, has so far
received only little attention by politicians,
in particular.
Biomass
At the Timelkam site, building work is
currently under way on a biomass power
station with a thermal output of 50 MW.
At present, the plant is the biggest in
Austria. Start-up is scheduled for the end
of 2005.
The Group’s Business Sectors
ELECTRICITY DISTRIBUTION
When joining ENERGIEALLIANZ Austria in 2002,
Energie AG contributed its electricity distribution services to the alliance. The operative
entity is Energie AG Oberoesterreich Vertrieb
GmbH & Co KG. During the year under review,
we succeeded in continuing the positive development. The sold quantities developed favorably;
6,521.9 GWh of electricity were distributed to
customers in 2003/2004. This is an increase of
4%, as compared to the year before. Total electricity distribution by the Group went up by
4.6% over last year's figure and has reached a
total volume of 7,870 GWh.
24-25
Customer Service
Giving adequate attention to every customer is a
pillar of our corporate philosophy at Energie AG
Oberoesterreich Vertrieb GmbH & Co KG. The last
twelve months were characterized by high customer loyalty and a very low rate of change. By
continuing to giving intensive support, also after
customers left us and transferred to another
supplier, we succeeded in recovering up to 80%
of the fluctuating clientele from a few competitors
who operated quite aggressively on the market.
Movements in Price Developments
In spite of a continuous rise in electricity wholesale prices in recent years, it has been possible
not to increase net prices since 1992; instead they
have decreased. The development as of the middle
of the nineties was particularly remarkable, since
net prices for electricity became clearly decoupled
from the consumer price index. However, the
statutory charges which have been introduced
on an ongoing basis and imposed on customers
have covered up the decoupling trend. Since
1995 the portion of charges in the overall electricity price has gone up by 72.5%. It is only due
to the fact that Energie AG lowered its prices
during that same period by 13% that the increase in charges has hardly been felt to date.
Electricity Trading
Electricity trading by the ENERGIEALLIANZ
partners has been consolidated in e&t Energie
Handelsgesellschaft m.b.H. When joining the
alliance, Energie AG withdrew from electricity
trading. The primary goal of e&t is to jointly
manage the cost-optimized distribution and
production portfolio.
mission lines. The problem of "extinguishing"
the current to ground is currently the subject
of scientific investigations.
Unbundling
In keeping with statutory requirements, resulting
from the implementation of the amendment to
the Austrian Electricity Industry and Organization
Act (EIWOG III), the grids of energy suppliers must
be spun off under company law from their present
companies. This is an entrepreneurial challenge
for the electricity suppliers. In this environment,
Energie AG is also looking for an appropriate
approach to meet the statutory requirements and
to position the company with a grid operator
which can be divested. As of 01 January 2006, the
new companies must have obtained the required
licenses from the regional electricity authorities.
ELECTRICITY TRANSMISSION GRID
Innovation
On account of the changes in the overall political
conditions and the activities of the supervisory
authority (E-Control), the electricity transmission
grid of Energie AG is operating under increasingly difficult conditions. Although the grid rates
were lowered by a total of 11% in two steps over
the last two years, further rate reductions are
imminent. At the same time, the electricity demand especially in Upper Austria is increasing
strongly. On the higher voltage levels, in particular, resistance makes it difficult to further expand the network of transmission lines that is
necessary in order to maintain reliable supplies.
Technical restrictions run counter to the increasing demand for cabling of 110V overhead trans-
Energie AG is primarily pushing ahead with research on applications. In this connection, innovation activities focus on technologies with a
future for the generation of eco-electricity, as
well as on measures to enhance energy efficiency.
A World Novelty – StrafloMatrix™
When inaugurating the Agonitz power station
in June 2004, Energie AG and VA Tech Hydro
celebrated a world premiere – the first StrafloMatrix™, which is a turbine and generator unit
achieved by further developing the HydroMatrix,
went into its official trial operation. This revolutionary turbine type distinguishes itself espe-
The StrafloMatrix™ turbine developed by Energie AG
Operating on a trial basis since spring 2004:
and VA Tech Hydro satisfies all expectations.
The new satellite surveying system VRS.
ANNUAL REPORT
2003-2004
cially by its compact design and easy handling.
Since the water quantity, from which the
StrafloMatrix™ generates electricity, is strictly
defined, there is no need for any sophisticated
controlling technology. The turbine is lowered
into the water flow and begins to produce
electricity immediately, on account of the
integrated generator. StrafloMatrix™ has been
especially designed for use in irrigation dams or
lock systems, which are not suited as power
stations in the conventional sense. There are
about 20,000 such dams throughout the world.
The field trial is scheduled to run for a period
of five years. During the first months of its
operation, StrafloMatrix™ has fully satisfied
all expectations.
Satellite Surveying System
In cooperation with the Technical University of
Vienna, Energie AG was the first infrastructure
company in Austria to develop and install a
nation-wide satellite-supported virtual reference
network system (VRS). VRS makes it possible to
obtain high-precision surveying results. Since the
spring of 2004, the system has been in trial operation. For surveying needs, VRS is a quantum
leap. It comprises 12 GPS transmitters stationed in
Upper Austria, which are linked to 28 satellites.
By using a receiver and a mobile phone, any
random location in the country can be determined
down to a centimeter.
Fuel Cells
As a major contribution towards reaching
maturity for mass production, Energie AG,
together with erdgas ooe GmbH, took Austria's
The Group’s Business Sectors
26-27
first low-temperature fuel cell of the most
recent design into operation at Dietachdorf
near Steyr. The Vaillant EURO2-PEM fuel-cell
heating device has a thermal output of 11 kW
and an electric output of 4.6 kW. It supplies a
restaurant and hotel operation with its basic
demand for electricity and heating. First
findings from the field trial run confirm that
the fuel cell is very reliable in its operation.
We expect positive market opportunities
for the fuel cell as a decentralized small-scale
power station.
Holdings in Electricity Companies
Light Contracting
In order to be better able to cope with the
international development towards bigger units,
the Federal Government pushed ahead with the
consolidation of the domestic electricity market
under the slogan „Austrian Electricity Solution“
(Oesterreichische Stromloesung = OESL). The model
provides for the consolidation of the corporate
segments dealing with electricity trading, planning for the use and control of power stations,
as well as distribution to key accounts of the
members of ENERGIEALLIANZ Austria with the
Oesterreichische Elektrizitaetswirtschafts-AG (Verbund). The OESL solution is to be implemented
by two companies:
Energie AG tries to establish its position with
customers also by providing additional innovative products. For municipalities, a new service,
"light contracting", has been developed. This
is a particularly favorable and advantageous
form to finance the new construction of street
lighting systems in municipalities or to implement
electricity-saving measures for already existing
systems. Together with E-Werk Wels, "light
contracting" is also marketed in the Czech
Republic, as part of an infrastructure offensive
by Energie AG.
Passive Energy Houses
For Energie AG, new technologies to optimize
energy efficiency are an important area of
research into applications. By building a passive
energy house at the St. Oswald Golf Club, this
innovative course is being continued. The house
serves as a model for commercially used buildings
and does not need any conventional heating or
warm-water heating system.
The European electricity industry is undergoing
structural change. The trend in the direction
of larger entities cannot be stopped. At present,
the five biggest electricity groups in the EU
generate nearly one half of the entire electricity
volume supplied. In their original domestic
markets, the big players hold market shares of
more than 95%.
The Austrian Electricity Solution
E&S Austria Energievertrieb- und Service GmbH
(e&s new) will take over distribution to key
accounts, i.e. customers with more than 4 GWh
per site. Energie AG will hold a stake of 13.33%
in this distribution company and delegate a
managing director to it.
Austrian Power Trading AG (APT), which will
assume e&t Energie Handelsgesellschaft m.b.H.
of ENERGIEALLIANZ Austria, will be responsible
for all trading activities, as well as regulating
the electricity generation of the partners. Here,
Energie AG will hold a share of 6.67%.
The incentive for Energie AG to participate in
ENERGIEALLIANZ Austria and the OESL solution
is – in addition to achieving synergy potentials –
to also secure the sustainable supply of electricity
from domestic water power stations.
The OESL solution was scheduled to start
operating on 01 October 2004. All agreements
and documents were prepared on time. On
account of a public discussion of the open
questions regarding the implementation of
the Austrian Electricity Solution, it was not
possible to adhere to the originally planned
start of the operation. The further implementation will depend on the outcome of the
next negotiating rounds.
ENERGIEALLIANZ Austria GmbH,
e&t Energie Handelsgesellschaft m.b.H.
The merger of EVN AG, WIEN ENERGIE,
Energie AG, LINZ AG, as well as BEWAG and
BEGAS into ENERGIEALLIANZ Austria GmbH,
was an early reaction – in 2002 – to the fragmented structures on the Austrian energy
market. The energy alliance is a competitive
merger on the liberalized electricity market
and, at the same time, strengthens the competitive situation of its members through
synergy effects. The basis is the close cooperation of the energy suppliers in the area
of distributing gas and electricity, as well as
electricity trading. Energie AG holds a stake
of 17% each in the two lead companies of
the energy alliance, i.e. ENERGIEALLIANZ
Austria GmbH and e&t Energie Handelsgesellschaft m.b.H. (e&t). The total volume of electricity moved by the alliance amounted to
8,665 GWh.
In the alliance, regional distribution companies
are responsible for distributing and servicing
households and SME customers. The distribution
company of Energie AG in the framework of
ENERGIEALLIANZ Austria is Energie AG Oberoesterreich Vertrieb GmbH & Co KG. In this
connection, ENERGIEALLIANZ Austria GmbH
with its specific function constitutes an economic entity with a common leadership desire
extending to all regional distribution companies.
ENERGIEALLIANZ Austria GmbH looks after key
accounts, bundled, chain and foreign customers.
With regard to gas supplies, ENERGIEALLIANZ
Austria GmbH is responsible for customers with
a consumption of less than 500,000 m3.
All electricity trading of the partners of
ENERGIEALLIANZ Austria is consolidated in
e&t. The primary goal is to manage the assets
of the alliance partners at optimum costs.
Synergies between the partner companies are
also very much in the foreground. Altogether,
e&t traded about 30.7 TWh of electricity during
the 2003/2004 business year. Of these, e&t
sold about 23.7 TWh to the alliance partners.
The rest was sold to third parties and on the
commodity exchange. In addition to trading
in electricity, the range of services of e&t
also covers portfolio and risk management
regarding the use of the power stations run
by the alliance partners with a generated
quantity of more than 16 TWh.
During fiscal 2003/2004, e&t began preparatory
work on trading in CO2 certificates. For the
purpose of implementing the OESL solution the
business responsibilities of the management
were adjusted to the future structures.
Wels Strom GmbH
By means of a contract of assignment dated
11 July 2002 Energie AG obtained 49% of the
business shares of Wels Strom from the city
of Wels. Elektrizitaetswerke Wels Aktiengesellschaft is the other co-owner of Wels Strom.
As a regional electricity supplier Wels Strom
GmbH operates water power stations and the
The passive energy house at St. Oswald sets
new technical and architectural standards.
ANNUAL REPORT
2003-2004
The Group’s Business Sectors
The Heating Sector
28-29
district heating plant and provides the city
of Wels and some of the suburban municipalities around Wels with electric energy and
heating, which come from own production
to a large extent.
Salzburg AG supplies about 260,000 customers
with about 5,870 GWh of electricity, which is the
business sector that accounts for most of the sales.
Own production (including purchase rights)
amounts to approximately 22%.
During the year under review, the electricity produced by Wels Strom GmbH, which amounted to
more than 210 GWh, reached its highest production value so far. About 177 GWh were fed into
the district heating network of Elektrizitaetswerk Wels. This is equivalent to an increase of
7.6% over the year before.
During the 2003/2004 business year, Salzburg AG
supplied about 305 mill. m3 of natural gas to more
than 280,000 households and plants in Salzburg.
The gas comes primarily from Russia, Norway and
domestic extraction by RAG and OMV.
In order to cope with developments – being
the regional supplier in the Wels area – Wels
Strom GmbH is investing into the construction
of a new water power station, as well as in
the reinforcement of its network infrastructure.
Together with Elektrizitaetswerk Wels AG, a bank
consortium, and the city of Wels and Welser
Messe, EnergyLand Projektierungs-GmbH was
set up. Energie AG holds a share of 33.33% in
this company. The goal of this planning company is to develop a concept for the "Energy
Land" in Wels. By organizing technical congresses, attracting companies, opening a
science center, as well as engaging in research
and development activities in Wels, the company wants to position the city as a supraregional energy capital.
Salzburg AG
fuer Energie, Verkehr und Telekommunikation
In 2000, SAFE and Salzburger Stadtwerke AG,
two energy suppliers with a long tradition,
merged to become Salzburg AG. Energie AG
holds a stake of 26.13% in this company. The
merger has created a regional energy and
infrastructure service provider in Salzburg, with
electricity, natural gas, district heating, water,
transport, telecommunications, cable TV and
Internet as business sectors.
Synergies are achieved on an ongoing basis
via the partnership between Energie AG and
Salzburg AG. RVL at Lenzing, for example,
which is a 50% subsidiary of the AVE group,
processes about 40,000 tons of residual materials per year from Salzburger MechanischBiologische Anlagen (MBA).
The district-heating sector of Salzburg AG supplies
about 18,500 customers with 610 GWh of district
heating. In 2003 the largest co-generation plant
in Salzburg was officially inaugurated. With an
investment of about EUR 100 mill., Heizkraftwerk Mitte produces more than 515 GWh of
district heating with an annual CO2 reduction
potential of 100,000 tons, as compared to conventional power stations.
district heating
networks
Aigen-Schlaegl
locations
Aschach
LINZ
Braunau
Ostermieting
Riedersbach
Steyr
Timelkam
Voecklabruck
Regau
Lenzing
Micheldorf
Kirchdorf
The business sector water of Salzburg AG supplies
more than 12.5 billion liter of drinking water to
the capital of this federal province, as well as to
some municipalities on its outskirts. The public
transport branch of Salzburg AG transported more
than 49 million passengers.
Salzburg AG is the third-largest national
cable TV operator and provides its services to
approximately 73,000 households and enterprises in Salzburg.
The business sector heating comprises local
and district heating supplies, process heat for
industry and large trade enterprises, heating
services, as well as planning services.
Ennskraftwerke Aktiengesellschaft
In the course of giving the overall group a new
structure, the heating sector was also optimized.
The district heating networks at Timelkam, Riedersbach, Kirchdorf and Steyr were merged into
a powerful and compact unit and bundled in the
100% subsidiary Waerme Oberoesterreich GmbH.
At present, Waerme Oberoesterreich GmbH holds
the ninth place on the Austrian market.
50% each of Ennskraftwerke are owned by
Energie AG and Verbundgesellschaft.
The main tasks of this company are to operate
and maintain its own power stations along the
Enns and Steyr rivers. In its function as a "lowcost producer" of clean electricity from water
power, Ennskraftwerke are an important factor
in the production portfolio of Energie AG.
During the 2003/2004 business year, electricity
production amounted to about 1,315 GWh,
which is nearly 30% below the standard output
capacity of many years. The reason for this was
the extremely dry summer of 2003 with its low
river water levels.
ANNUAL REPORT
By concentrating these heating activities, as well
as other activities in the field of heating contracting and industrial process heat, Energie AG
Oberoesterreich created the structural requirements for offensive activities on these markets.
By adding the biomass power station at Timelkam to the already existing geothermal energy
station at Braunau, there will be an even stronger
2003-2004
emphasis on regenerative forms of energy in
the production of district heating. As a result,
the share of the biogenic component in the
decoupled district heating system at Timelkam
increased to more than 50%; this will also be
of benefit to future district-heating customers
in the supplied area. The district-heating network of Waerme Oberoesterreich thus supplies
its customers with heating that is even more
environmentally friendly.
Thanks to the participation of Waerme Oberoesterreich in the infrastructure offensive of
Energie AG in the Czech Republic, additional
interesting markets outside of Upper Austria
have opened up. One specific project is to enter
the market for district heating in the southern
part of the Czech Republic, as part of the crossselling strategies of the Energie AG Group. In
addition to internationalization, expanding the
range of products offered by low-temperature
process heat plays a decisive role in the development of the company.
The Group’s Business Sectors
Supplying District Heating
Supplying customers with environmentally friendly
district heating is the core business of Waerme
Oberoestereich. Four networks (Voecklabruck-Timelkam-Regau-Lenzing, Ostermiething-Riedersbach,
Kirchdorf and Steyr) and the power station at
Kirchdorf are operated in Upper Austria. During
the 2003/2004 business year, 225.2 GWh of
heating were supplied to the customers in the
aforementioned regions.
30-31
With the 144 systems that went into operation
during the 2003/2004 business year, a total of
3,813 customer systems with a connected volume
of 111.3 MW are supplied with district heating.
The network of district-heating lines thus grew
to a length of 227.7 km.
In spite of the different requirements, resulting
from the heterogeneity of the district-heating
networks, orientation to customers is the one big
common denominator. The existing networks are
being continuously expanded. There are always
ongoing analyses regarding the take-over of
further supply networks. Waerme Oberoesterreich
wants to actively anticipate this demand evolution and therefore is continuously expanding its
comprehensive offer of services.
Planning District Heating
Planning district-heating systems, especially on
the basis of biomass, has become a foothold of
growing importance throughout Upper Austria
and the neighboring countries. Waerme Oberoesterreich holds the first place in Upper Austria
when it comes to planning biomass districtheating systems. There is hardly a biomass districtheating system in which Waerme Oberoesterreich
was not involved at least in the planning phase.
With regard to implementation, the market
share is more than 70%.
Over 50 biomass district-heating stations have
been built in Upper Austria to date. Every year,
between six and eight new structures are being
added. The volume of the investments is about
EUR 48 mill. The special advantage for customers
of Waerme Oberoesterreich is the "all inclusive"
offer covering preliminary feasibility studies,
filing of documents and applications for grants,
as well as tender specifications, order placing
and monitoring construction work, which biomass
customers receive from one single source on which
they can rely to be a competent partner.
Holdings in the Heating Sector
Energie-Contracting Steyr GmbH
In the course of concentrating heating activities,
the share in Energie-Contracting Steyr GmbH
was transferred from Energie OOE Service- und
Beteiligungsverwaltungs GmbH to Waerme
Oberoesterreich GmbH. During the year under
review, the company earned sales in the amount
of EUR 7,982 thousand.
Energie-Contracting Steyr GmbH supplies industrial plants such as ZF Steyr GmbH & Co KG,
SKG Oesterreich AG, MAN Steyr AG or the
Engineering Center Steyr with energy services.
Customers are offered customized service
packages, comprising electricity and gas, as
well as water and compressed air.
Geo-Thermal Companies at Braunau and Simbach
Waerme Oberoesterreich holds a share of 20%
in the first cross-border district-heating plant
of Europe. Geothermie-Waermegesellschaft
Braunau-Simbach mbH is the Austrian partner
in the heating company which is responsible for
distributing environmentally friendly heating
and operating the heating center at Simbach.
During the year under review, expansion of the
district-heating network was completed.
ENSERV Energieservice
GmbH & Co KG
Cogeneration-Kraftwerke Management
Oberoesterreich GmbH (CMOOE)
In the field of local heating, Energie AG has a
stake of 37% in ENSERV Energieservice GmbH &
Co KG. This company, i.e. ENSERV, which is the
joint contracting company of OOE Ferngas AG,
the energy supplier in Upper Austria, (37%) and
Linz Gas/Waerme GmbH (26%), supplies its customers with heating from those energy sources
that are most appropriate in economic and/or
ecological terms. As of September, more than
220 energy centers have been in operation;
heating is delivered and sold to more than 5,200
end customers. The energy sales amount to more
than 60 GWh. The objective of the company is to
obtain a leading role on the growing heating
and contracting market as provider of complete
energy-technology solutions.
In the field of process heat, Energie AG
Oberoesterreich holds a share of 50% in
Cogeneration-Kraftwerke Management
Oberoesterreich GmbH. The company operates
an energy supply center at the site of its customer SCA Graphic Laakirchen AG. The purpose
of the company is primarily to operate and
maintain the plant construction. A scheduled
overhaul was carried out during the year
under review.
In addition, ENSERV has been able to establish
its name as a planner and contractor for agricultural bio-gas co-generation systems. At
present, 12 such projects are pending; they are
carried out in cooperation with the Chamber
of Agriculture of Upper Austria. In the fall of
2003, ENSERV was the first contractor to be
awarded the Climate Saver Certificate by the
Academy for Environment and Nature of
Upper Austria.
At the end of September 586 systems with a
connected volume of 32.7 MW were supplied
with district heating. The heating supplied into
the network during the current business year
amounts to 37.9 GWh, of which 72.8% come from
geo-thermal sources. Extracting the thermal
waters from a depth of about 2,000 m is the
responsibility of the German partner in this crossborder heating supply project, i.e. GeothermieFoerdergesellschaft Simbach-Braunau.
Bioenergie Aigen-Schlaegl reg. Gen.m.b.H.
Waerme Oberoesterreich GmbH holds a share
of 20.8% in Bioenergie Aigen-Schlaegl. During
fiscal 2003/2004 nearly 10 GWh of heating were
sold to customers.
ANNUAL REPORT
The district-heating plant at Kirchdorf. With a connection
density of 96%, the heating network at Kirchdorf has one
of the highest market penetration rates in Austria.
2003-2004
SCA Graphic Laakirchen AG received 497 GWh
of steam, as well as 409 GWh of electricity from
the co-generation plant.
The new paper machine PM 11 of SCA Graphic
Laakirchen AG went into operation in 2002.
Already during the first full year of operating
the new paper machine, more steam was sold.
The rise in gas prices tends to have a negative
effect on the result of CMOOE, on account of
agreements with the customer on price ceilings.
No relaxation of the prices for natural gas can
be expected for fiscal 2004, on account of the
evolution of crude-oil prices. Electricity prices
are going up and partially offset the negative
effects of the gas price.
The Group’s Business Sectors
The Gas Sector
The worldwide increase in energy demands will
result in enormous growth rates especially for
natural gas. According to studies, natural gas
will overtake crude oil as an energy source before the year 2005 in terms of significance. This
trend is also reflected in a study by Energie AG
on the heating materials for room heating in
Upper Austria.
In addition to the positive environmental
characteristics of natural gas, its use as a
fuel in thermal power stations is responsible
for this development. Natural gas will be
the leading primary-energy source in the
second half of this century and replace coal
in many places.
32-33
At present, sufficient supplies of natural gas
have been secured. The natural-gas fields in
Austria cover 20 to 25% of the domestic
demand. The largest part of the natural gas
is being imported; with Russia and Norway, in
particular, long-term supply agreements have
been signed. Since the methods to localize
natural gas are improving continuously, every
year more natural gas is found than is consumed. The established natural-gas reserves
that can be extracted economically with
the currently available technology meet the
worldwide demand for the next fifty years.
According to expert estimates, the total
natural gas reserves will suffice for at least
the next 50 years.
Especially with a view to reliable supplies
in the future, enormous efforts are being
made in order to be able to meet the
growing demand. The Nabucco gas pipe-
line, for example, is being planned as a
new route for gas supplies to Europe from
Turkey via Bulgaria, Romania and Hungary
to Austria, which will be a new corridor for
natural-gas supplies from the Middle East.
The pipeline with a length of 3,400 km will
also avoid the impending dependence of
large parts of the electricity production in
Central Europe on a few suppliers.
construction of the high-pressure line 026
from Bad Leonfelden to Linz, OOE. Ferngas AG
is making a major contribution to Upper Austria
as a site for industry, especially with a view to
reliable energy supplies. This natural-gas line
secures supplies to the greater Linz area and
also helps to meet the growing demand for
natural gas. Construction is to be completed
in the coming business year.
In keeping with statutory requirements,
the Austrian gas market was completely
liberalized in October 2002. Apart from
Austria, which took the lead in transposing the EU directive, only the national
markets of the United Kingdom, Italy,
Spain, Denmark and Germany are currently considered to have been completely
liberalized. Irrespective of the consumption level, all gas customers are now
entitled to choose their gas supplier freely.
Network operators for their part, have the
general obligation to allow gas transmission
for all gas customers at equal opportunities
and at established system utilization rates.
erdgas ooe. as a 100% subsidiary of OOE. Ferngas AG specializes in natural-gas trading for
customers in households, trade enterprises
and institutions with an annual consumption
of up to 500,000 m3. In the course of its two
years of presence on the market, erdgas ooe.
has succeeded in raising its level of popularity
as a domestic energy supplier enormously.
erdgas ooe. stands out clearly against its competitors by such strengths as proximity to
customers, on-site service, competent advice,
swift and efficient information and optimum
handling. At present, erdgas ooe. supplies a
total of more than 54,000 customers, who
were supplied with about 195 million m3 of
natural gas during the year under review.
As a result, erdgas ooe. has strengthened its
position as Number One in Upper Austria in
its customer segment.
OOE. Ferngas AG
Energie AG holds a share of 50% in OOE. Ferngas AG. The fact that it operates pipeline networks for natural gas, makes OOE. Ferngas AG
a reliable and strong partner for industry and
trade enterprises, the municipalities and private
households in Upper Austria. OOE. Ferngas AG
has a staff of about 200 and transports approximately 2.2 billion m3 along its 4,532 km of
natural-gas lines to end customers and regional
network operators in Upper Austria. With the
OOE. Ferngas AG - A strong partner for industry,
trade, municipalities and households.
ANNUAL REPORT
2003-2004
OOE. Ferngas AG holds a share of 15.55% in
EconGas GmbH, which was founded together
with OMV Erdgas GmbH, BEGAS, EVN, LINZ AG
and WIENGAS for industrial customers. The first
year of business operations was ended with a
remarkable success. The balance-sheet profit rose
by 30% to EUR 32.7 mill., and the sold quantities
by 10% to 6.6 bill. m3, as compared to the year
before. EconGas operates not only in Austria but
also in southern Germany and northern Italy, and
in the future it will expand its operations to the
new EU Member States. These countries consume
about 15 to 20% of the total European demand
for natural gas, amounting to about 400 bill. m3.
Other important joint holdings of OOE. Ferngas AG
and Energie AG Oberoesterreich are ENSERV Energieservice GmbH, with a stake of 37%, and the
geo-thermal companies at Braunau und Simbach,
with a share of 20% each. The company has a
share of 39% in Jihoc̆eská plynárenská, a.s.,
the regional natural-gas supply company in the
district of southern Bohemia.
Energy IT Service GmbH is a joint undertaking
of Energie AG, Managementservice Linz GmbH
and OOE. Ferngas AG, which provides IT services.
Energie AG has a share of 33.3% in this company, which was founded on 01 October 2003.
The Group’s Business Sectors
The Water Segment
Water segment
water-supply system. Public sewage systems
removed 576.3 mill. m3 of waste waters
and treated 533.6 mill. m3. Every year,
763 mill. m3 of drinking water are produced.
The total length of the water pipe networks,
excluding connections to households, amounts
to 56,273 km.
Prague
VaK Beroun
were transferred to 30 September. The year
under review is therefore a short business year
for VaK JC̆ and VaK Beroun.
Infrastructure Offensive 2004
of ENERGIE AG BOHEMIA
supplied areas
locations
Since the opening of the market in the
Czech Republic, many of the existing
state-run large-scale structures were often
regionalized (reduced in size), transformed
into stock corporations and partly privatized.
Foreign investors were obliged to implement
a continuous improvement and modernization process in order to strengthen the competitiveness of the sector. 36 companies are
responsible for 90% of the water supply
and for 90% of the waste-water facilities.
The booming market shows very good
growth rates.
VaK JC̆
Schaerding Area
Andorf
Water Pipeline East
Trattnachtal
Wels
Vorchdorf
34-35
VaK JC̆ and VaK Beroun
During the past year, the water segment of
Energie AG experienced a unique growth
momentum. In the course of restructuring
the Group, the water sector developed into
a supporting pillar equal to the energy
segment and the waste disposal segment.
The process was launched with the takeover of VaK JC̆ (95.2%), the company
operating in southern Bohemia, as well
as of VaK Beroun (59.2%) from Anglian
Water. The Energie AG Group now services
more than half a million of customers in
the segment of water supplies and/or waste
water disposal. 400,000 of these customers
are in the Czech Republic. The Group has
a staff of about 1,200 in this segment. With
regard to company law, the two Czech
holdings are in the hands of ENERGIE AG
BOHEMIA s.r.o., a 100% subsidiary of
Energie AG Oberoesterreich.
The Czech Republic – A Growth Market
The quality of the drinking water supplied in
the Czech Republic is comparable to that of
other highly developed European countries.
In the field of waste water disposal, 77.5% of
the population was connected to a sewage
system in 2002, while 69.6% were connected
to a waste-water treatment plant. Of the total
of 6,254 municipalities, 5,036 have a public
The two companies that are responsible
for the Austrian market are OOE Landeswasserversorgungsunternehmen AG (98%
share) and WDL Wasserdienstleistung
GmbH (35% share).
As of December 2003 the two new holdings were
taken over in a legal sense and appointments
were made to the management boards and the
supervisory boards. The project "PAI – VaK" (Post
Acquisition Integration) was launched in order to
ensure a structured integration into the Group
and in order to develop, in a coordinated fashion,
the necessary harmonizations with the control
and service departments of Energie AG.
An important component of the project related
to the integration of the holdings into the corporate financial statements. The reporting dates
The headquarters of VaK JC̆ in C̆eské Budéjovice.
ANNUAL REPORT
2003-2004
In the course of giving ourselves a new position
on the Czech market, a comprehensive information campaign was launched in southern
Bohemia and Beroun, in the course of which
ENERGIE AG BOHEMIA, VaK JC̆ , VaK Beroun,
AVE CZ, Waerme Oberoesterreich and E-Werk
Wels AG made joint presentations. More than
700 municipalities have been informed to date
of the broad range of services provided by the
Group in the Czech Republic. The success of the
campaign shows that there is great demand for
infrastructure services on the Czech market.
Stabilization and Further Expansion
in the Czech Republic
After having successfully completed the
integration phase, in the near future we
will focus on raising the existing synergy
potential both among the companies, and
with the Group, as well as on further increasing effectiveness. Partnerships with
towns and municipalities are also top
priorities. Building on the expansion strategy
of Energie AG, ENERGIE AG BOHEMIA, as the
holding company of VaK JC̆ and VaK Beroun,
is also participating in several tender procedures for the take-over of further water
utilities in eastern Bohemia.
The Group’s Business Sectors
The Waste Disposal Segment
Water Commitment of Energie AG
in Upper Austria
OOE. Landeswasserversorgungsunternehmen AG (LWU)
36-37
LWU builds and operates supra-regional water
supply systems in order to be able to meet the
demand in areas with scarce water resources
and to optimize quality in case of problems.
The areas supplied by the company, in which
Energie AG holds a share of 98%, range from
the Schaerding area via Wels to Vorchdorf and
comprise 29 municipalities with approximately
130,000 inhabitants. The total amount of drinking water supplied during the 2003 business
year was about 6.2 mill. m3.
Water for Burghausen
The activities of LWU were especially characterized by intensive negotiations regarding the
supply of water to the Bavarian border town of
Burghausen. The negotiations have been going
on since 1998. In September 2004 it was possible
to reach an agreement by consensus with the
neighboring municipalities in Austria which takes
account of local interests. The first water supplies
to Burghausen are planned for early 2007. Altogether, Burghausen will be supplied with a total
of up to 1.5 mill. m3 of drinking water per year.
the year under review, the consulting project
Aqua Perg was completed. In the course of this
project, the water supply and the waste-water
disposal of 28 municipalities and 7 municipal
associations were analyzed in order to be able
to identify options for synergies through more
regionalization. In a follow-up contract,
"communal audits" are currently being conducted in 50 municipalities in eight federal
provinces, together with a group of bidders.
In this context, WDL is responsible for the
entire infrastructure area.
Waste disposal segment
Novy Bor
Benatky
Prague
Plzen̆
Brandys
Caslav
Trebic
Ostrava
locations
Brno
C̆eské Budéjovice
Linz
Wels
Timelkam
Salzburg
St. Poelten
Steyr
Vienna
Miskolc
Lenzing
Bad Ischl
The second pillar of the consulting sector is planning services for municipalities and cooperatives.
The Financing Sector
WDL is the first company in Austria that is using
leasing models as a modern and intelligent form
of financing in water projects for residential
areas. So far, it has been possible to carry out
three projects with a total investment volume
of about EUR 11 mill. These related to two
sale-and-lease-back models for sewage systems
(Grieskirchen and Aspach), as well as a leasing
model for the construction of a new water
supply system at the municipality of Weyer.
At present, one can note a growing interest
of municipalities regarding these creative
financing solutions.
WDL-Wasserdienstleistungs GmbH (WDL)
Whereas LWU deals with supra-regional water
deliveries, WDL is the service provider for all
water-supply and waste-water disposal concerns.
In this context, giving advice to municipalities,
optimizing and taking over the operation
of existing plants, implementing projects and
financing such projects are the core business of
WDL, of which Energie AG holds a share of 35%.
The Consulting Sector
The Federal Ministry for Agriculture, Forestry,
Environment and Water Management is the
main customer for consulting projects. During
ANNUAL REPORT
Tatabánya
Bad Mitterndorf
Budapest
Debrecen
Kaposvár
AVE Oesterreich is the leading undertaking of
Energie AG in the waste disposal sector and
Austria's leading waste disposal operator. With
the existing stock of waste processing and disposal plants AVE is the waste disposal company
with the highest level of integration in Austria.
With its investments into new markets and into
long-term plant capacities, AVE has developed
into one of the largest and most innovative companies specializing in waste disposal in Central
Europe. AVE as a group with the Czech Republic
and Hungary generated total sales of about
EUR 145 mill. It has more than 1,800 staff
members in 25 locations in Central Europe. The
"hardware" comprises more than 600 vehicles
and more than 10,000 containers. The AVE group
uses this equipment to remove waste materials
from about 3.5 mill. households in Austria, the
Czech Republic and Hungary and has more than
35,000 trade and industrial customers. The consolidated sales of AVE for 2003/2004 amount
to EUR 96.3 mill. The total input volume of waste
materials amounted to about 1.121 mill. tons.
A major part of these quantities is recycled in
2003-2004
treatment and/or processing plants owned by AVE,
then returned to the market as useful materials
or used to produce electricity and/or heating.
The 2003/2004 business year was characterized
by massive steps of expansion for the AVE group.
In May 2004 Energie AG took over the wastematerials management activities of the German
company RWE Umwelt AG in the Czech Republic
and Hungary, putting AVE in charge of implementing the operations of this commitment in
the Czech Republic and Hungary. Energie AG has
two subsidiaries in this connection, i.e. AVE CZ
Abfallwirtschaft GmbH with registered offices in
Prague and AVE Ungarn Abfallwirtschaftsges mbH
with registered offices in Budapest.
With the strategic business sectors "communal
services", "trade and industrial waste materials",
"industry recycling", "hazardous waste" and
"remedial action at abandoned waste sites"
customers in the Czech Republic and Hungary
can be offered the full range of services in the
waste-management industry from one source.
The Group’s Business Sectors
Guided by Expansion
Number 4 in the Czech Republic
38-39
AVE CZ has a market share of about 9% on
the Czech waste-management market. It thus
holds fourth place among the private wastemanagement companies. With a staff of nearly
500, waste-disposal services are provided for
about 500,000 inhabitants. In 2003 the company earned sales of EUR 23 mill. All over the
Czech Republic services are provided for the
business sectors household waste, industrial
waste and useful materials. Altogether, the
Czech waste-materials market is showing
a vigorous growth. One of the biggest customers is the waste material services in Prague.
AVE CZ was commissioned by the city of
Prague to handle the household waste disposal,
which makes it the biggest private wastemanagement company in Prague. Energie AG
has set itself the clear goal to position AVE CZ
among the top three companies in the Czech
waste-management industry.
The entire market potential of the Czech
waste-disposal market in the amount of about
CZK 14 bill. is distributed amongst three
market players, i.e. self-disposal, municipalities
and the private waste-disposal industry. It is
expected that for the next few years there
will be a shift in the shares of the market
players on the waste-disposal market, in addition to an increase in absolute terms of the
market potential (3.7% per year). In recent
years, there has been a clear trend, especially
in the big towns, namely to privatize wastedisposal services. This will spread also to smaller
municipalities in the coming years, which
will definitely expand the market volume
accessible to private waste-disposal operators.
The market volume of the private wastedisposal industry accounts for 53% of the
entire market.
Biggest Private Environmental Services
Provider in Hungary
In Hungary the AVE group, which has a staff
of about 800, is among the leading environmental services providers in the country, and
it is the market leader among the non-staterun suppliers. The activities of RWE Umwelt AG
in Hungary, which we took over, comprise a
broad spectrum of waste-disposal services.
With regard to household waste, AVE manages
the waste disposal for about one million inhabitants. Annual sales amount to about
EUR 20 mill. It was close at hand to venture
into Hungary, since AVE has locations reaching
from Salzburg to Burgenland.
The total market potential in the field of
waste disposal and recycling in Hungary
recorded a real market growth of an average
of 5% in recent years. The price level of the
market correlated with the development of
the inflation rate, not taking the technical
development into consideration. Until the year
2007, it is expected that the market potential
for private waste-management companies (the
market volume accessible to private wastedisposal operators) will grow by 21% per year
on account of more privatization and a greater
demand for additional waste-disposal services
(sorting, packaging materials, etc.).
In the Czech Republic and Hungary you also find
our unique logo – the AVE trademark.
Synergies Beyond Borders
Both in the Czech Republic and in Hungary, AVE
presents itself on the market with the trademark
"Die Entsorger AVE" (AVE Disposal Services). In
the Czech Republic the re-launch of the corporate
design has been largely completed. In Hungary
the graphic re-design is being implemented in
stages, since the consent of the municipalities is
needed. In addition to the appealing appearance
of the AVE group, the areas of budget consolidation and vehicle fleets are being integrated
in order to fully utilize synergy potentials on a
long-term basis.
Implementing the EU Dumping Directive will be
topic number one in the next ten years. With the
experience gained in Austria (the new landfill
regulations have been in force since 01 January
2004), AVE can be a trendsetter on the Czech
and Hungarian waste-management markets:
on the one hand by stepping up the separate
collection of useful materials and a sustainable
material-flows management, on the other hand
by actively participating in the further development of thermal waste-materials treatment in
these countries.
The Growth Course is Continued
In the years to come, the focus of the AVE expansion efforts will be on the countries immediately
bordering on Austria. By winning the DSD (Duales
System Deutschland) tender in the Traunstein
district, for example, a first success was scored on
the path towards southern Germany. At Traunstein, AVE will dispose of so-called sales packaging
materials over a period of three years.
The construction of WAV II will create one of the most
modern thermal waste processing plants in Europe.
ANNUAL REPORT
2003-2004
In Austria, the distribution activities are concentrated on the federal province of Tyrol. In contrast to the other federal provinces, Tyrol will
continue to dump unprocessed waste materials
until 2008 on account of an exemption that it
was granted. In order to further enhance our
presence in Tyrol, we are thinking about strategic partnerships with Tyrolean waste-disposal
operators.
Large-Scale Project WAV of AVE Austria:
Waste is Converted into Electricity
The thermal use of household and bulk waste
materials, as well as of industrial waste at
WAV II (Welser Abfallverwertung) is the core of
the Waste-Materials Solution in Upper Austria.
In consequence, Upper Austria is best suited to
implement and secure on a long-term basis
compliance with the landfill regulations. Stable
waste-disposal prices for the municipalities are
part of this waste-materials solution for all of
Upper Austria.
In the framework of the household waste solution for Upper Austria, WAV plays a leading role
and is at the center of this sustainable disposal
solution for Upper Austria. With the construction
of WAV II at its site in Wels, which represents
an investment of EUR 100 mill., a new standard
will be reached in waste-management. WAV II
will be one of the most modern thermal processing plants in Europe with an annual throughput of 300,000 tons of household waste. The
site in Wels is the showcase model of a modern,
future-oriented and ecological waste-materials
management. As early as 1995, WAV began
to process thermally more than 75,000 tons of
The Group’s Business Sectors
Others
Telecommunications
waste materials per year, which are used to
produce electricity and district heating. With the
expansion of the second incineration plant, the
annual capacity will be increased to 300,000 tons.
After completion there will still be two incineration lines at WAV. However, these will be technically synchronized and adapted to each other,
for example by a joint waste bunker, a central
control center, a joint waste-water treatment
plant, etc.
Throughput Record at RVL
40-41
With a record throughput volume of 289,000
tons for the year under review and the high
availability rate of the plant, the fluidized-bed
furnace of Reststoffverwertung Lenzing (RVL)
has produced an extremely positive result.
RVL can serve as a model for cooperation
between waste-management operators and
industry. RVL GmbH operates the plant (via
Lenzing AG), AVE is responsible for obtaining
the waste materials, the logistics and the disposal of the residues. More than 1 mill. tons
of residual materials from waste-material
processing, with a high thermal value, have
been converted into energy at RVL since its
start-up in 1998. As a result, Lenzing – in
addition to WAV – has become one of the
central players in implementing the landfill
regulations. RVL specializes in fuels with a
high thermal value that are supplied by
splitting plants and mechanical-biological
plants (MBA). More than half of the fuels
arrive at Lenzing by rail. So far, more than
13,000 annual tons of energy, in the form of
steam, have been generated.
As a leading infrastructure group Energie AG holds
shares in two telecommunications companies:
It should be mentioned by way of comparison
that more than 420,000 tons of coal would be
required to produce the same amount of energy.
LIWEST Kabelmedien GmbH acts as a multimedia network operator and provides cable TV,
broadband Internet, fixed network telephone
and digital television services. It is the biggest
cable-media network operator in Upper Austria
which can provide access to approximately 130,000
households and has more than 100,000 actively
connected households. On a nation-wide basis,
LIWEST ranks second among the cable operators.
Energie AG has a share of 44% in LIWEST.
Regulations on Used Electrical Appliances
With the EU directive on the recycling of materials in used electrical appliances, industry and
trade are facing completely new challenges.
With its refrigerator recycling plant at Timelkam,
AVE is establishing itself as a leader and competent partner for all of Austria for the implementation of such directives. Using most modern
technologies makes it possible to recycle 80% of
a refrigerator, as is required by law.
Abandoned Waste Sites –
A Market of The Future
Several hundreds of so-called hazardous
abandoned waste sites, i.e. unsecured landfills
and/or former industrial sites, are hidden in
Austria. In most cases, thermal disposal is used
for the contaminated material in the course of
intensive remedial action. AVE considers this
to be an interesting market which so far has
been tapped only by building contractors.
At the end of 2003 a separate company was
therefore established – Altlastensanierungsprojekte GmbH (ASPG). It will deal with
planning and implementing projects regarding
remedial action. At several tenders, initial
successes have already been achieved.
UTA focuses on voice telephony and Internet
services, leased lines, corporate networks and
data services to key accounts, as well as other
telecommunications companies.
Energie AG makes available its infrastructure
to UTA, which uses it to operate and maintain
its backbone-ring throughout the federal
province.
Housing
Energie AG is the sole owner of Oberoesterreichische Gemeinnuetzige Bau- und Wohngesellschaft mbH (OGW). This company operates
throughout Upper Austria and builds new
residential and single-family housing. It also
manages these housing complexes.
LIWEST is Austria's second-biggest cable-network operator
ANNUAL REPORT
Through Vereinigte Telekom Oesterreich Beteiligungs Ges.m.b.H., Energie AG holds a share
of 10.28% in UTA Telekom AG.
2003-2004
The services provided by OGW are being offered
increasingly on the open market. Optimum service,
an appropriate price-benefit ratio regarding
rentals, the good location of the apartments, as
well as a good infrastructure in the neighborhood
are decisive for the high level of rented objects.
Group Status Report
More Innovation, More Courage, More Success
Holding a Pole Position in Free Competition
• Innovations are the foundation for economic success. To be innovative means to keep on
developing new and better solutions for customers.
• Energie AG will also have the courage in the future to take steps towards further expansion
and to gain a position on new markets.
• Success to Energie AG means to face ever new challenges and to master them.
Group Status Report
Group Status Report
The status report was included with the Group Status Report, in keeping with § 267 (3) of the Austrian
Commercial Law Code. Unless indicated otherwise, the figures relate to the Group.
The Economic Environment
For the first time – after three slack years –
economic researchers are once again giving a
better assessment to the cyclical development
in Austria. The recovery of the world's economy
and the accompanying high export dynamics
will have a positive impact on Europe's economy
in the year 2004. In the year 2005 growth will
increasingly be supported by the growing
domestic demand.
Domestic companies have once again become
more optimistic and are correcting their pro-
duction expectations in the upward direction,
on account of the livelier demand. The economy
as a whole benefits from the expansion of
private consumer spending.
With a growth forecast of 2.5%, Austria holds
a very good place in international comparisons.
However, since prices for raw materials (crude
oil, natural gas, coal) continue to be high or
exposed to major fluctuation, as well as on
account of the strong euro, this may lead to
some uncertainties.
44-45
Development of the Group's
Business Activities
General Development
During the year under review, the central
issues were to focus the Group on its core
business sectors, i.e. energy (electricity,
gas, heating), water and waste disposal,
as well as to expand vigorously towards
the Czech Republic and Hungary. With
regard to its core business, the Group
clearly claims a leading position on all
defined markets.
Since Energie AG adjusted to the changes
in national and international overall conditions early and with consistency, the
Group is able to once again look back on
a very successful business year. With sales
of EUR 695.2 mill. (+15.6% as compared
to the year before), we succeeded in
achieving a result from ordinary activities
in the amount of EUR 80.1 mill.
Business Development
of the Energy Segment
The energy segment comprises the electricity
sector (generation, transmission grid, distribution), as well as the gas and heating sectors.
The Electricity Sectors
Throughout Europe, activities by the industry
to give itself a new structure continued during
the year under review. The major energy
suppliers are concentrating increasingly on defined core areas, small companies feel that they
stand a better chance as multi-utility suppliers.
Altogether, the industry continues to be marked
by strong concentration trends.
There were some problems in connection with
implementing the directives on the liberalization of the energy market.
ANNUAL REPORT
By 01 July 2004, at the latest, the EU Member
States should have transposed the provisions on
an opening of the electricity and gas markets
into national law. As yet, many EU countries
have not complied with these requirements.
As far as liberalization and transposition of the
corresponding EU directives is concerned, Austria
was one of the first to act, however.
The 2003/2004 business year was also marked
by the preparations for the "Austrian Electricity
Solution" – a cooperation project between
ENERGIEALLIANZ Austria and Verbundgesellschaft with the goal of establishing a player
that can compete under European conditions,
as well as to secure electricity production in
Austria from water power on a sustainable
basis. The major basis for this cooperation is
to integrate electricity trading, planning the
use and control of power stations, as well as
sales to key accounts. During the year under
review, negotiations on the agreements
covering the operative business were largely
completed, and agreement was reached on the
business objects of this joint enterprise. It was
also possible to comply with all requirements
of the EU Commission which were put forward
in the course of the European anti-trust proceedings. Due to a public discussion of the still
open questions regarding the implementation
of the "Austrian Electricity Solution" it was
not possible to observe the start of operation
scheduled for 01 October 2004. The further
implementation will depend on the outcome
of this discussion.
Further priorities of the industry were to prepare for the imminent changes in the statutory
framework such as the required separation of
the transmission grid sector from the marketeconomy sectors according to the unbundling
legislation, implementing trading in CO2 certificates on an operative basis, changes in the ecoelectricity legislation, as well as the impact of
the End Energy Efficiency Directive and the
Water Framework Directive.
The business sector electricity generation is a
core business of Energie AG and of great strategic importance. Energie AG produces its own
electricity at 34 hydroelectric power stations and
2003-2004
two thermal power stations. Austria's biggest
biomass power station, which is currently under
construction at Timelkam, will have a thermal
output of 50 MW and, if all goes according to
plan, it will go into operation at the end of
2005. Further capacity expansions are currently
being considered. In addition, there are also
electricity purchase rights relating to major
water power stations.
With a volume of approximately 8,300 mill. kWh
the consolidated electricity production (generation, purchase rights, third-party supplies)
experienced an increase of 4.5% during the
2003/2004 business year. Energy production
did not experience any special events during
the period under review. Thanks to the balanced procurement of electricity, Energie AG
was largely able to avoid having to pass on
higher costs to customers during the year
under review, which were due to significant
price rises on the world energy markets for
natural gas, coal and electricity.
Electricity procurement during the 2003/2004
business year is almost unchanged, as compared
to the year before, and can be broken down as
follows for the Energie AG Group:
29% own electricity generation
15% purchase rights
56% third-party supplies
Reliable supplies, as well as a price structure
which ensures the value of the electricity grid
sector on a long-term basis are the main objectives of Energie AG as an electricity grid
operator. The changes in the overall conditions,
further pressure on the grid rates, the need for
unbundling, as well as resistance against the
necessary expansion of the electricity grid are,
however, major challenges for this business
sector.
The focus during the 2003/2004 business year
was once again on measures to secure the
quality standards of electricity supplies for the
customers of Energie AG, in addition to preparing for unbundling. This was done mainly
by stepping up investments necessary for our
operations and by further intensifying main-
Group Status Report
tenance, operations and renewal. In this connection, smoothly functioning integrated IT systems
are also decisive for the future requirements
of product and service quality. During the year
under review, it was once again possible to take
successful steps towards intensifying and linking
the different software systems.
By joining ENERGIEALLIANZ Austria (17%
share) in 2002, Energie AG contributed its
energy distribution to the energy alliance.
The operative unit set up in this connection
is a 100% subsidiary, i.e. Energie AG Oberoesterreich Vertrieb GmbH & Co KG. The key
accounts are managed by Distribution Center
West of ENERGIEALLIANZ Austria GmbH.
During the year under review it was possible
to continue the positive development. Total
electricity sales of the Group rose by 4.6%,
as compared to the year before, and reached
a volume of 7,870 GWh.
46-47
All electricity trading activities, the portfolio
and risk management, as well optimizing the
actual use of power stations were carried out
in the framework of the energy alliance. The
joint subsidiary, e&t Energie Handelsgesellschaft m.b.H. (17% share), which is responsible
for these activities, handled the trading of about
30.7 TWh of electricity during the 2003/2004
business year.
The three most important strategic holdings in
the electricity field are Salzburg AG (26.13%),
Wels Strom GmbH (49%) and Ennskraftwerke AG
(50%). The most important areas of cooperation
are to implement the shared potentials for
synergies and growth, as well as to reach the
Group's goals.
The Gas Sector
With regard to the gas sector, the Group is represented with a 50% share in OOE. Ferngas AG.
This company, which operates a pipe network
for natural gas, is a reliable and strong partner
for industry, the trades, the municipalities, as
well as private households in Upper Austria.
The company has a staff of about 200 and transports about 2.2 bill. m3 of natural gas along its
network, which has a length of 4,532 km.
Through a 100% share in Erdgas Oberoesterreich
GmbH & Co KG, natural gas was distributed to
household, industrial and institutional customers
with an annual consumption of up to 500,000 m3.
After having been on the market for only two
years, this company has become well established
on the market and was able to further strengthen
its position as a market leader in Upper Austria.
The key accounts are managed by EconGas GmbH,
in which OOE. Ferngas AG holds a share of 15.55%.
This company operates in Austria, southern Germany and northern Italy; in the future it will also
operate in the new EU Member States. Already
in its first year of operation, it succeeded in obtaining remarkable results.
OOE. Ferngas AG has further important holdings
in the areas of energy contracting, geo-thermal
district heating, as well as gas supplies in southern
Bohemia.
With sales by the OOE. Ferngas group of
EUR 90.7 mill. during the 2003/2004 business
year, the company obtained a result from its
ordinary business activities of EUR 21.7 mill.
During fiscal 2003/2004 Waerme Oberoesterreich
GmbH sold 225.2 GWh of heating to customers
in the supplied areas and earned total sales of
EUR 11.7 mill.
With regard to local heating and heating contracting, Energie AG operates through its subsidiary ENSERV Energieservice GmbH & Co KG
(37%). Innovative solutions in heating technology, but also the contracting and planning of
biogas co-generation plants are offered. At full
operation (status: September 2004) energy sales
amount to more than 60 GWh.
With regard to process heat, Energie AG Oberoesterreich holds a share of 50% in CogenerationKraftwerke Management Oberoestereich GmbH.
At the site of its customer SCA Graphic Laakirchen AG, the company operates an energy
supply center. During the year under review
497 GWh of steam and 409 GWh of electricity
were supplied by the gas and steam plant.
Business Development
of the Waste Disposal Segment
The Heating Sector
Holdings such as Energiecontracting Steyr GmbH
and the geo-thermal companies at Braunau and
Simbach were transferred to this new company.
The AVE group is the center of Energie AG's
activities in the field of waste disposal. With its
current stock of disposal and processing plants
AVE is the waste disposal company in Austria
with the strongest integration. Global waste
disposal solutions are offered for the areas
of "communal services", "trade and industrial
waste materials", "industry recycling",
"hazardous waste materials" and "remedial
action at abandoned waste sites". Work is
under way to develop further services. A large
part of the volumes are recycled at AVE's own
treatment and processing plants, re-introduced
on the market as useful materials or used to
produce electricity and/or heating.
With Waerme Oberoesterreich GmbH Enegie AG
has created the structural prerequisites for an
offensive further development of the district
heating sector, focusing on Upper Austria but,
at the same time, able to operate also on markets
throughout Austria, in the Czech Republic and
southern Germany. The expansion of the range
of products plays an important role.
During the year under review, a decisive change
in the framework conditions in Austria resulted
from the entry into force of the new landfill
regulation on 01 January 2004. In essence, the
regulation stipulates that no waste materials
may henceforth be dumped unprocessed. This
has greatly enhanced the importance of highquality incineration plants.
With 01 October 2003 as the effective date,
Energie AG bundled all its activities in the field
of supplying district heating, as well as planning
district heating in a 100% subsidiary, Waerme
Oberoesterreich GmbH. At present, the company
comprises the district-heating supplies in the four
networks Voecklabruck-Timelkam-Regau-Lenzing,
Ostermiething-Riedersbach, Kirchdorf and indirectly Steyr, as well all activities in the field of
planning district heating.
ANNUAL REPORT
2003-2004
During the 2003/2004 business year, the main
focus of our activities was on an international
expansion of our business activities into the
Czech Republic and Hungary. During the year
under review, Energie AG took over the
waste-materials activities of RWE Umwelt AG
from Germany in the Czech Republic and
Hungary and entrusted AVE with the operational implementation of this commitment.
In this connection, Energie AG established
two companies, i.e. AVE CZ odpadové
hospodárství s.r.o., with registered offices
in Prague, and AVE Magyaroszág Hulladékgazdálkodási, with registered offices in
Budapest.
At present, the market share in the Czech
waste-disposal market amounts to about 9%.
Services are provided in the following business
sectors: residential wastes, industrial wastes
and useful materials. In Hungary, Energie AG
has about 800 staff members, which makes it
one of the leading environmental services
providers in the country, as well as market
leader among the non-state-run suppliers.
The goal is to further expand the market
position in these countries and – by using all
synergy potentials – to gradually offer the full
range of services of the AVE group on these
new markets.
With its investments into new markets and
long-term plant capacities, AVE is developing
into one of the biggest and most innovative
specialized waste-disposal companies in Central
Europe. The waste disposal segment shows
consolidated total sales of EUR 96.3 mill. and
has a staff of more than 1,800 in 25 locations
in Central Europe.
The building of WAV II on the site of the
Recyclingpark Wels and the investment of
EUR 100 mill. will increase the capacity for
the thermal processing of waste materials
by 300,000 tons (to date 75,000 tons). During
the year under review, work on this largescale project was exactly on schedule.
Completion can be expected for fall 2005.
WAV II will be one of most modern thermal
processing plants in Europe and the center-
piece of the waste disposal solution for Upper
Austria. Energie AG, bidding jointly with Linz
Service GmbH, was commissioned, by way of a
construction permit, to take care of the household and bulk waste disposal in Upper Austria
(excluding Linz).
In addition, the company Welser Baustoffrecycling GmbH, in which Energie AG holds
a share of 33.33%, operates a construction
waste recycling plant at the site of the
Recyclingpark Wels.
AVE Reststoffverwertung Lenzing GmbH & Co KG
was able to finish the year under review with a
very positive result, obtaining a throughput
volume of 289,000 tons. The company is a cooperation project between waste-disposal
operators and industry. It specializes in burning
fuels from splitting and mechanical-biological
plants, which have a high calorific value, at the
site of Lenzing AG.
48-49
With the refrigerator recycling plant at Timelkam,
as well as the company Altlastensanierierungsprojekte GmbH (ASPG), which was founded at
the end of 2003, the AVE group is extremely well
prepared for further dispoal services.
to Vorchdorf and comprise 29 municipalities
with about 130,000 inhabitants. During the 2003
business year, about 6.2 mill. m3 of drinking water
were supplied to customers. As of the beginning
of 2007, it is planned to expand business activities
into Bavaria by supplying the town of Burghausen
with approximately 1.5 mill. m3 of drinking water
per year.
WDL-Wasserdienstleistungs GmbH (WDL), a 35%
subsidiary of Energie AG, operates throughout
Austria in the fields of supplying water and disposing of waste water. In this context, consulting
services, especially for municipalities, optimizing
and taking over the operation of existing plants,
implementing projects, as well as financing such
projects constitute the core business of WDL.
Altogether the Energie AG Group services more
than half a million customers in the water supply
and waste water disposal segment. 400,000 of
these customers are in the Czech Republic. The
company has a staff of about 1,200. Further expansion of the business is planned.
Consolidated Financial Statements (in abbreviated form)
30/09/2004
30/0/.2003
Change
in EUR mill.
in EUR mill.
in%
Long-term assets
1,828.1
1,721.8
6.2
Short-term assets
273.9
410.5
- 33.3
2,102.0
2,132.3
- 1.4
ASSETS
LIABILITIES
Equity
Long-term debt
Short-term debt
The most important changes with
regard to long-term assets relate to
investments into electricity and
disposal plants, as well as additions
in the framework of expanding the
range of the consolidations in the
waste disposal and water/waste
water segments.
With regard to short-term assets,
the amount of cash was reduced,
The Business Development
of the Water Segment
The main activities of the water segment during
the year under review were geared to expanding
business activities into the Czech Republic. By
taking over VaK JC̆ (95.2%), the operating company in southern Bohemia, and Vak Beroun
(59.2%), the operating and plant company,
Energie AG has already positioned itself very
well on the Czech water market. The two Czech
holdings are owned, in terms of company law, by
ENERGIE AG BOHEMIA s.r.o., a 100% subsidiary
of Energie AG Oberoesterreich. The project "PAI –
VaK" (Post Acquisition Integration) makes sure
that the two companies are integrated into the
Energie AG Group in the best possible manner.
689.5
613.3
12.4
1,104.9
1,111.2
- 0.6
307.6
407.8
- 24.6
2,102.0
2,132.3
- 1.4
which is mainly due to the redemption of financial liabilities.
Equity increased due to retained
earnings, so that it was possible to increase the equity share to 32.8%
(28.9% for the year before).
The change regarding short-term debt
is mainly due to the redemption of a
bond denominated in Swiss francs.
Consolidated Income Statement (in abbreviated form)
Sales
Result of operations
Financial result
ANNUAL REPORT
2002/2003
Change
in EUR mill.
in EUR mill.
in%
695.2
601.3
79.6
48.6
63.8
0.5
26.3
- 98.1
Results from ordinary business activities
80.1
74.9
6.9
Net income for the year
80.6
54.9
46.8
The increase in sales is mainly due to the
growth of electricity sales, the positive
effects of the landfill regulation on the
waste disposal segment and to the sales
of the water segment, which was newly
formed. The improvement in the result
In Upper Austria Energie AG operates supraregional water supplying plants through its 98%
subsidiary OOE. Landeswasserversorgungsunternehmen AG (LWU). The regions supplied by the
company range from the Schaerding area via Wels
2003/2004
2003-2004
of operations is due, among others, to the
reduced staff costs, resulting from the preretirement model. The decline of the financial
result is mainly due to proceeds realized during
the previous year from the disposal of investments and securities.
Group Status Report
Financial Position, Financial Performance
and Earnings Position
Financial Performance
2003/2004
2002/2003
Change
in EUR mill.
in EUR mill.
in EUR mill.
Cash flow from the result
149.1
125.8
18.5
Cash flow from operating activities
165.4
141.2
17.1
- 534.5
Cash flow from investments
- 177.7
40.9
Cash flow from financing activities
- 118.1
- 63.2
86.9
Total cash flow
- 130.4
118.9
- 209.7
62.5
192.8
- 67.6
Cash
50-51
The improvement of the cash flow from the
result is due to the increase in the result for
the year. The cash flow from investments results
from the acquisitions of companies, as well as
from investments in the field of electricity and
waste disposal plants.
advantages especially in connection with
classical bank-loan financing can be obtained when optimizing financing conditions.
In addition, a recognized rating is the basis
for issuing corporate bonds on international
capital markets.
Energie AG is one of the few domestic industrial
undertakings that have an internationally recognized credit rating. Especially against the background of Basel II and the accompanying evaluation of the credit standing via external ratings,
The rating of "A+/outlook stable", which is
excellent also in an international comparison
with other utility companies, was once again
confirmed by Standard & Poor's, the rating
agency, in March 2004.
Research and development are integral components of the entrepreneurial activities of
the Energie AG Group. During the year under
review, the priorities were, on the one hand,
to implement, launch and test "new" technologies for their fitness for practical application and, on the other hand, to further
develop the many different systems – especially on account of the expansion of the
Group's activities – always from the angle
of sustainability.
Major projects in this connection were the
further development of customer-oriented
technologies and an analysis of the results
obtained from operation with the goal of
increasing customer benefit, energy efficiency, availability and suitability for everyday application.
Together with Erdgas OOE. GmbH & Co KG,
the pilot project "Using Fuel Cells for Electricity and Heat Generation" with natural
gas as the primary energy source was pursued further, and a new plant was set up
in a restaurant business, which is currently
being tested under different sets of
operating conditions. This helps to further
Material Events after the End of the
Business Year
At the middle of October 2004, Vereinigte Telekom Oesterreich Beteiligungs Ges.m.bH. (share
held by Energie AG: 13.7%) sold its shares in
UTA Telekom AG. The sale will become legally
effective after the currently pending anti-trust
proceedings have been completed successfully.
ANNUAL REPORT
2003-2004
and continuously build up the know-how
regarding this new technology which has excellent prospects for the future. During the
year under review, a two-day symposium was
also organized in Linz, with speakers from all
over Europe.
During the year under review, the project of a
further improvement of the medium and lowvoltage transmission grid, initiated jointly with
an external partner, was further pursued with
a view to grid operation, localization of interferences, data transmission in both directions
and additional possibilities of automating
operations. After its completion, it will be
possible to offer new and additional services
and products to customers that complement
the core business of the Group.
In addition to its in-house activities, Energie AG
also plays a decisive role in the energy research
group of the Austrian Association of Electricity
Companies and – moreover – in the energyrelated bodies of the research policy of the
European Commission, Directorate General
Research, especially by making available expert
knowledge and assuming the responsibility for
individual project tasks.
Group Status Report
Research and Development
Group Status Report
Outlook
With regard to electricity distribution it is
assumed that the demand for electricity will
develop more or less in analogy to the higher
growth in GDP forecast for the coming year.
On a long-term basis, it is expected that Austria
will have a mean growth of electricity demand
of about 1.5% to 2% per year. For an assessment
of the electricity prices, the price situation of
crude oil and coal markets plays an essential
role. If the development of 2004 continues, one
must expect further pressure on electricity prices
in an upward direction, or a generally higher
energy price level.
52-53
With regard to electricity generation, the expectations for the future have clearly improved.
After a difficult phase at a very low price
level, one will have to assume sales prices for
the future that will open up an interesting
perspective, on account of the fact that we
are increasingly approaching capacity ceilings,
which makes it necessary to construct new
generation facilities.
In addition to the ever more difficult situation
with respect to reliably supplying certain areas,
given the absence of transmission lines, and
to ensuring the value, another priority in
connection with the electricity grid will be the
implementation of the statutory requirement
to separate under company law the largely
monopolistic transmission network from
the market-economy areas (= unbundling).
With effect of 01 January 2006, at the latest,
unbundling will have to be achieved according
to Austrian legislation. In consideration of
the reporting date, Energie AG plans to realize
this project with effect of 1 October 2005
(= reporting date).
The result of the discussion, conducted on a
political level, on the further steps to be taken in
connection with the Austrian Electricity Solution,
as well as new statutory requirements such as
the new regulations for eco-electricity, the entry
into force of the Water Framework Directive,
an EU directive to improve end energy efficiency,
as well as the start of trading with CO2 emission
certificates as of 01 January 2005, will be further
areas of activity and challenges for the forthcoming business year.
With regard to heating, expansion of the business activities into the neighboring regions plays
an important role. We will step up further our
supplies with environmentally friendly district
heating, especially on the basis of biomass, as
well as geo-thermal energy, in Austria and the
area of southern Germany.
With regard to waste disposal, implementing
the EU Landfill Directive, as well as giving a
new structure to waste disposal markets in the
new EU countries Hungary, the Czech Republic
and Slovakia will have a considerable impact
in the future on the business activities of the
AVE group. In addition to further building up
efficient waste-disposal solutions along the
entire value chain, AVE will continue the course
of expansion abroad, on which it has begun to
ANNUAL REPORT
embark. As privatization increases and demand
for further waste disposal services goes up, a
clear increase in the accessible market potential
and very interesting growth opportunities will
arise in the coming years in the new EU Member
States for private waste-disposal companies.
Energie AG is also continuing its efforts to use
the opportunities in Austria and, in particular,
in the Czech Republic, but also in other new
EU Member States, resulting from the progressive opening of the markets and the positive
market development.
The focus in Austria is on strengthening and
expanding the Number One position as an
integrated operation specialized in waste
disposal operations, as well as on expanding
additional future-oriented waste-disposal
services – for example the disposal of electrical scrap or remedial action at abandoned
waste sites.
An important project of the Energie AG Group is
to build the new Group headquarters. According
to schedule, construction work will begin on the
present site in the second half of 2005. Two wellequipped substitute offices will be available
during the transition period.
In the future, the water segment will be
characterized by a stabilization and further expansion, on the one hand, and by optimizing
structures, on the other.
In particular, a planned re-organization, as
well as the implementation of existing synergy
potentials, both among the companies and with
the Group, are intended to further improve
economics and the market position of the subsidiary companies in the Czech Republic. Partnerships with towns and municipalities are also a
high priority. Building on the expansion strategy
of Energie AG, ENERGIE AG BOHEMIA, as the
holding company for VaK JC̆ and VaK Beroun,
is now also participating in several tender procedures for the take-over of additional water
companies in eastern Bohemia.
2003-2004
A strategic goal of the Energie AG Group is
to strengthen and further expand its leading
position in its core business sectors energy,
water and waste disposal in Austria, as well
as in defined market areas in the neighboring
countries. Sound corporate growth – linked
to an optimum organization of structures and
work flows for the entire Group – will ensure
the economic performance potential and value
of Energie AG for the future, and the Group
will develop into an important group of companies in Central Europe.
Consolidated Financial Statements
More Open, Better, More Reliable
Taking Stock of Our Success
• Openness and transparency are prerequisites for employing the Group's funds
economically.
• The quality of our staff members is reflected in the result but it is also the engine
behind expansion.
• You can rely on Energie AG. The Group is making a major contribution to the
social security in our region.
Assets
A.
B.
Consolidated Income Statement –
01/10/2003 to 30/09/2004
30/09/2004
30/09/2003
01/10/2003 to
01/10/2002 to
in EUR
in EUR
30/09/2004
30/09/2003
in EUR
in EUR
695,238,226.86
601,335,110.42
- 410,670.54
2,477,367.43
18,611,206.05
14,986,775.01
9,387,033.12
14,394,823.82
Long-term assets
I.
Intangible assets and goodwill
II. Tangible assets
III. Investments (of these companies associated at equity:
EUR 261,419.0 thousand (EUR 255,848.7 thousand for
the year before)
IV. Financial assets from cross-border leasing
V. Other financial assets
(11)
(11)
117,540,061.01
1,158,241,387.60
127,410,711.77
1,055,503,754.52
(12)
(13)
(14)
VI. Other long-term assets
VII. Deferred tax assets
(15)
(10)
288,919,762.77
84,770,686.92
166,036,632.56
1,815,508,530.86
6,833,066.87
5,732,334.59
1,828,073,932.32
284,419,907.80
83,762,963.70
154,176,100.69
1,705,273,438.48
11,310,280.64
5,234,740.02
1,721,818,459.14
48,613,621.84
157,729,027.12
5,083,204.16
62,457,224.49
273,883,077.61
45,714,368.13
171,937,051.14
0.00
192,844,954.57
410,496,373.84
2,101,957,009.93
2,132,314,832.98
Short-term assets
I.
Inventories
II. Accounts receivable and other assets
III. Securities
IV. Cash in hand, checks and bank balances
1. Sales
(1)
2. Change in inventories of finished and unfinished products
(16)
(17)
(18)
3. Capitalized cost of self-constructed items
4. Share in result of companies associated at equity
5. Other operating income
(3)
20,045,312.32
21,808,808.82
6. Cost of materials and other purchased manufacturing services
(4)
- 320,792,369.50
- 253,612,911.32
7. Personnel expenses
(5)
- 153,508,096.64
- 165,704,613.66
8. Depreciation
(6)
- 88,825,346.04
- 90,038,725.58
9. Other operating expenses
(7)
- 100,132,394.98
- 97,045,229.21
79,612,900.65
48,601,405.73
10. Result of operations
Liabilities
A.
56-57
Equity
I.
Equity
II. Revenue reserves
III. Net profit for the year
B.
Minority share in equity
C.
Long-term debt
I.
Financial liabilities
II. Liabilities from cross-border leasing
III. Long-term provisions
IV. Deferred tax liabilities
V. Contributions/Grants to construction costs
VI. Deferred credit from cross-border leasing
VII. Other long-term debt
D.
Short-term debts
I.
Financial liabilities
II. Short-term provisions
III. Tax provisions
IV. Accounts payable
V. Deferred credit from cross-border leasing
VI. Other short-term debt
(19)
(19)
(19)
30/09/2004
30/09/2003
in EUR
in EUR
60,000,000.00
604,827,385.37
15,022,925.38
679,850,310.75
60,000,000.00
538,819,185.96
14,451,732.12
613,270,918.08
9,555,963.25
327.66
416,807,724.56
73,290,184.37
206,694,567.58
64,029,390.86
234,504,194.48
94,788,233.37
14,831,866.69
1,104,946,161.91
415,877,698.14
72,222,161.15
207,765,394.58
72,225,295.53
230,489,770.38
98,605,492.46
14,063,977.93
1,111,249,790.17
85,684,453.70
10,141,544.16
4,320,991.24
62,462,927.39
3,817,259.09
141,177,398.44
307,604,574.02
193,584,202.53
9,326,603.77
2,103,182.55
57,659,519.59
3,817,259.09
141,303,029.54
407,793,797.07
2,101,957,009.93
2,132,314,832.98
11. Income from interest
(8)
- 12,770,784.07
- 15,613,449.86
12. Other financial results
(9)
13,217,689.39
41,867,964.17
446,905.32
26,254,514.31
80,059,805.97
74,855,920.04
478,659.64
- 19,995,383.55
80,538,465.61
54,860,536.49
- 115,275.04
22.66
80,423,190.57
54,860,559.15
Result per share
10.05
6.86
Proposed dividend per share
1.878
1.806
13. Financial result
14. Results from ordinary business activities
15. Taxes on income
(20)
(20)
(22)
(10)
(23)
(24)
16. Result after taxes on income
17. Minority share
18. Net income for the year
(20)
(25)
(26)
(27)
Consolidated Financial Statements
Consolidated Balance Sheet
as at 30 September 2004
ANNUAL REPORT
2003-2004
(10)
Consolidated Financial Statements
Development of Fixed Assets
(Annex to the Notes)
Cost of purchase or production
As at
Currency
Change in
30/09/2003
differences
consolidated
Additions
Accumulated depreciation
Disposals
Transfers
As at
As at
Currency
Change in
Write-ups/
30/09/2004
30/09/2003
differences
consolidated
depreciation
I.
Intangible assets and goodwill
Electricity purchase rights
1.
2.
Other rights
3.
4.
5.
6.
Goodwill
Customer base
Differentials carried as liabilities
Payments on account and
assets under construction
Total for intangible assets
II.
58-59
Tangible assets
1.
Electricity plants and equipment
1.1 Power plants
Land and buildings
Plant and machinery
Payments on account and
assets under construction
Total for power plants
1.2 Transformer and
distribution systems
Land and buildings
Plant and machinery
Power lines
Payments on account and
assets under construction
Total for transformer and
distribution systems
Total for electricity plants
and equipment
District heating systems
2.
Land and buildings
Plant and machinery
Distribution lines
Payments on account and
assets under construction
Total for district heating systems
3.
Waste disposal systems
Land and buildings
Plant and machinery
Payments on account and
assets under construction
Total for waste disposal systems
Water/Waste water systems
4.
Land and buildings
Plant and machinery
Payments on account and
assets under construction
Total for water/waste water facilities
in EUR 1,000
in EUR 1,000
Transfers
As at
Carrying value Carrying value
30/09/2004
30/09/2004
previous year
in EUR 1,000
in EUR 1,000
in EUR 1,000
group
group
in EUR 1,000
Disposals
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
- 3.4
- 3,363.4
—
—
136,433.9
32,593.6
77,032.2
18,796.6
80,710.2
21,383.6
—
—
—
—
—
34,070.8
—
—
25,032.8
2,235.0
- 6,102.5
25,296.0
—
—
213,473.5
48,822.0
—
27.8
—
2,786.4
—
3,212.4
- 7.4
- 3,580.4
—
122.0
213,466.1
51,390.2
132,763.3
27,438.4
—
20.6
—
2,098.4
56,332.9
—
—
—
—
—
2,770.7
2,235.0
- 8,243.4
—
—
—
—
—
2,140.9
—
—
59,103.6
2,235.0
- 6,102.5
31,036.9
—
—
—
—
—
—
—
—
3,674.0
6,412.5
- 12.9
3,033.9
—
—
20.9
21.7
650.7
128.3
—
- 91.5
730.1
—
5.7
178.4
—
—
—
184.1
546.0
20.9
318,649.3
49.5
199.4
3,340.7
- 1,446.9
30.5
320,822.5
191,238.6
26.3
2,276.8
13,107.5
- 3,366.8
—
203,282.4
117,540.1
127,410.7
385,785.6
509,274.4
—
—
988.5
3,545.9
3,336.2
2,888.3
- 6.8
- 362.7
2,506.7
1,523.7
392,610.2
516,869.6
197,571.3
456,152.5
—
—
847.0
3,029.4
5,054.0
5,083.7
- 0.2
- 359.0
—
2.6
203,472.1
463,909.2
189,138.1
52,960.4
188,214.3
53,121.9
5,659.0
900,719.0
—
—
—
4,534.4
13,237.3
19,461.8
- 0.6
- 370.1
- 3,330.8
699.6
15,564.9
925,044.7
—
653,723.8
—
—
—
3,876.4
—
10,137.7
—
- 359.2
—
2.6
—
667,381.3
15,564.9
257,663.4
5,659.0
246,995.2
108,048.3
375,497.3
738,905.8
—
—
—
—
—
—
875.3
10,474.2
22,133.2
- 176.2
- 2,871.6
- 5,500.1
- 25.8
2,903.0
3,655.2
108,721.6
386,002.9
759,194.1
65,571.7
223,580.0
379,165.5
—
—
—
—
—
—
2,726.4
12,260.8
21,764.7
- 131.0
- 2,103.7
- 4,171.7
- 5.6
- 3.3
6.3
68,161.5
233,733.8
396,764.8
40,560.1
152,269.1
362,429.3
42,476.6
151,917.3
359,740.3
7,664.4
—
—
10,461.0
- 60.0
- 6,574.2
11,491.2
—
—
—
—
—
—
—
11,491.2
7,664.4
1,230,115.8
—
—
43,943.7
- 8,607.9
- 41.8
1,265,409.8
668,317.2
—
—
36,751.9
- 6,406.4
- 2.6
698,660.1
566,749.7
561,798.6
2,130,834.8
—
4,534.4
63,405.5
- 8,978.0
657.8
2,190,454.5
1,322,041.0
—
3,876.4
46,889.6
- 6,765.6
—
1,366,041.4
824,413.1
808,793.8
1,464.8
11,392.6
54,782.8
—
—
—
228.0
2,989.0
4,965.0
—
172.1
78.1
—
- 103.0
—
—
400.5
86.4
1,692.8
14,851.2
59,912.3
1,163.6
10,510.2
41,655.9
—
—
—
157.9
2,609.6
3,841.6
34.6
205.9
1,562.5
—
- 65.3
—
—
—
—
1,356.1
13,260.4
47,060.0
336.7
1,590.8
12,852.3
301.2
882.4
13,126.9
1,516.1
69,156.3
—
—
140.3
8,322.3
2,265.1
2,515.3
—
- 103.0
- 86.4
400.5
3,835.1
80,291.4
—
53,329.7
—
—
—
6,609.1
—
1,803.0
—
- 65.3
—
—
—
61,676.5
3,835.1
18,614.9
1,516.1
15,826.6
94,893.0
139,533.4
—
—
29,146.4
25,500.7
706.4
1,282.5
- 63.3
- 2,130.6
182.8
270.9
124,865.0
164,456.9
29,546.6
94,518.0
—
—
11,565.5
15,609.2
2,404.4
5,079.2
- 53.9
- 2,054.1
—
—
43,462.6
113,152.3
81,402.4
51,304.6
65,346.4
45,015.4
17,271.2
251,697.6
—
—
237.1
54,884.2
35,176.8
37,165.4
- 72.5
- 2,266.4
- 437.8
15.9
52,174.8
341,496.7
—
124,064.6
—
—
- 94.1
27,080.6
—
7,483.6
—
- 2,108.0
—
—
- 94.1
156,520.8
52,268.9
184,975.9
17,271.2
127,633.0
—
1,307.0
39,677.2
449.2
- 36.3
629.4
42,026.5
—
551.1
16,491.5
- 3.5
—
17,874.6
24,151.9
—
—
69.2
2,078.1
66.0
- 6.3
33.7
2,240.7
—
38.7
1,158.4
863.2
- 27.7
55.4
- 4.0
—
1,248.5
992.2
—
—
—
11.3
1,387.5
411.0
42,166.3
170.4
685.6
- 18.6
- 61.2
- 253.5
409.6
320.6
44,587.8
—
—
0.3
590.1
—
17,649.9
15.5
906.4
—
- 7.5
—
—
15.8
19,138.9
304.8
25,448.9
—
—
ANNUAL REPORT
2003-2004
Consolidated Financial Statements
Development of Fixed Assets
(Annex to the Notes – continued)
Cost of purchase or production
As at
Currency
Change in
30/09/2003
differences
consolidated
Additions
Accumulated depreciation
Disposals
Transfers
As at
As at
Currency
Change in
Write-ups/
30/09/2004
30/09/2003
differences
consolidated
depreciation
5.
Other fixtures and fittings,
tools and equipment
Land and buildings
Tools and equipment
Factory and office equipment
in EUR 1,000
As at
Carrying value Carrying value
30/09/2004
30/09/2004
previous year
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
74,612.2
76,440.0
87,919.7
—
—
283.0
2,179.4
883.9
10,327.4
147.8
2,992.0
10,507.7
- 283.9 - 481.3
- 2,722.1 4,492.0
- 6,627.0
- 44.4
76,174.2
82,085.8
102,366.4
27,031.9
48,433.9
66,006.7
—
—
160.6
281.5
312.2
6,546.6
3,070.7
6,130.0
9,394.0
-272.0
- 213.7
- 2,638.0
- 6,112.0
- 13.1
14.1
- 1.0
30,157.3
52,252.2
75,722.9
46,016.9
29,833.6
26,643.5
47,580.3
28,006.1
21,913.0
5,751.0
—
9.5
2,029.9
- 15.3 - 5,480.6
2,294.5
0.0
—
—
—
—
—
0.0
2,294.5
5,751.0
244,722.9
283.0
13,400.2
15,677.4
- 9,648.3 - 1,514.3
262,920.9
141,472.5
160.6
7,140.3
18,322.7
- 8,963.7
—
158,132.4
104,788.5
103,250.4
2,696,411.6
1,670.5
123,307.4
119,449.2
- 21,056.9
- 30.5
2,919,751.3
1,640,907.8
750.7
62,356.3
75,405.3
- 17,910.1
—
1,761,510.0
1,158,241.3
1,055,503.8
III. Investments
1.
Shares in affiliated undertakings
2.
Shares in associated companies
3.
Other investments
20,106.8
255,848.7
19,226.1
—
- 185.8
—
- 1,687.2
415.4
2.8
—
8,789.6
4,741.2
- 0.6
- 3,448.9
- 153.0
—
—
—
18,419.0
261,419.0
23,817.1
—
—
10,761.7
—
—
—
—
—
—
—
—
3,973.6
—
—
—
—
—
—
—
—
14,735.3
18,419.0
261,419.0
9,081.8
20,106.8
255,848.7
8,464.4
Total for investments
295,181.6
- 185.8
- 1,269.0
13,530.8
- 3,602.5
—
303,655.1
10,761.7
—
—
3,973.6
—
—
14,735.3
288,919.8
284,419.9
IV. Financial assets from
cross-border leasing
102,240.7
—
—
6,511.6
- 60.3
—
108,692.0
18,477.8
—
—
5,443.5
—
—
23,921.3
84,770.7
83,762.9
24.2
—
—
—
- 1.1
—
23.1
12.7
—
—
- 0.4
- 0.3
—
12.0
11.1
11.5
145.3
—
—
30.9
—
980.3
—
117.2
—
- 161.8
—
—
145.3
966.6
14.4
—
—
—
—
—
—
—
—
—
—
—
14.4
—
130.9
966.6
130.9
—
160,877.3
—
307.4
144,592.9
- 151,537.9
—
154,239.7
6,843.6
—
12.0
- 11,310.0
- 6,233.9
—
- 10,688.3
164,928.0
154,033.7
Payments on account and
assets under construction
Total for other fixtures and fittings,
tools and equipment
Total for tangible assets
V.
60-61
in EUR 1,000
Transfers
group
group
in EUR 1,000
Disposals
Other financial assets
Loans to affiliated undertakings
1.
Due to undertakings with which
2.
the company is linked by virtue
of participation
3.
Other loans
4.
Securities (loan stock rights)
held as fixed assets
Total for other financial assets
Total for fixed assets
161,046.8
30.9
1,287.7
144,710.1
- 151,700.8
—
155,374.7
6,870.7
—
12.0
- 11,310.4
- 6,234.2
—
- 10,661.9
166,036.6
154,176.1
3,573,530.0
1,565.1
123,525.5
287,542.4
- 177,867.4
—
3,808,295.6
1,868,256.6
777.0
64,645.1
86,619.5
- 27,511.1
—
1,992,787.1
1,815,508.5
1,705,273.4
ANNUAL REPORT
2003-2004
Consolidated Financial Statements
Notes to the Consolidated
Financial Statements 2003/2004
General Information
The Energie AG Oberoesterreich Group is
the leading infrastructure group of
Upper Austria. It provides high-quality
services in connection with supplying
energy, as well as waste disposal and
water/waste water.
The Group headquarters – Energie AG Oberoesterreich – are located at Boehmerwaldstrasse 3 in Linz, Upper Austria.
The consolidated financial statements of
Energie AG Oberoesterreich for the 2003/2004
business year were drawn up in accordance
with the International Financial Reporting
Standards (IFRS), adopted by the International Accounting Standards Board (IASB),
and including the applicable interpretations
of the International Financial Reporting
Interpretation Committee (IFRIC). Their
application has become mandatory as at
the balance-sheet date. This is in accordance
with directives issued by the European Union
on corporate accounting.
The present financial statements of the Group
according to the IFRS release the company from
its commitment under § 245a of the Austrian
Commercial Law Code to prepare consolidated
annual accounts in keeping with the Austrian
Commercial Law Code. Whenever the Austrian
Commercial Law Code so requires, additional
information is provided in the respective notes.
The consolidated financial statements have been
prepared in euros (EUR). Unless indicated otherwise, all information in the Notes are in thousand
euros (EUR 1,000).
The annual accounts, as well as the IFRS
transitions of the main subsidiaries or the
fully and/or pro-rata consolidated subsidiaries
requiring auditing were examined by independent chartered accountants and received
their unqualified auditor's certificate.
Since automatic calculation tools were used for
summing up rounded amounts and percentages,
rounding differences may be the result.
Registered
Share
Type of
Consolidated
office
in %
consoli-
since
dation
ENERGY
Waerme Oberoesterreich GmbH
Linz
100.00
FC
01/10/2003
WASTE DISPOSAL
AVE Beteiligungsverwaltungs GmbH
Hoersching
100.00
FC
09/06/2004
Linz
100.00
FC
01/10/2003
AVE Deponie Betriebs GmbH
Hoersching
100.00
FC
01/01/2004
ASPG Altlastensanierungsprojekte GmbH
Hoersching
100.00
FC
01/01/2004
AVE Magyaroszág
Budapest
100.00
FC
30/09/2004
Hulladékgazdálkodási Kft
(Hungary)
55.00
FC
30/09/2004
67.00
FC
30/09/2004
50.00
PC
30/09/2004
50.00
PC
30/09/2004
40.5
CE
30/09/2004
100.00
FC
30/09/2004
90.8
FC
30/09/2004
100.00
FC
01/01/2004
95.20
FC
01/01/2004
59.17
FC
01/01/2004
MA Restabfallverwertung GmbH
RWE Umwelt
Miskolc Kft
Miskolc
(Hungary)
RWE Umwelt
Tatabánya
Tatabánya Rt.
( Hungary)
A.S.A. + RWE Koernyezetvédelmi
Holding Kft
A.K.S.D. GmbH
Gyál
( Hungary)
Debrecen
( Hungary)
Kaposvári Városgazdálkodási Rt.
62-63
( Hungary)
Consolidation Principles
Consolidated group
The principles of IAS 27 (Consolidated Financial
Statements and Accounting for Investments in
Subsidiaries) were applied in order to determine
the consolidated group. As a result, in addition
to Energie AG Oberoesterreich, the parent
company, the consolidated financial statements
comprise 21 fully consolidated subsidiary
companies (nine in the year before), in which
Energie AG Oberoesterreich directly or indirectly
holds a majority of the voting rights.
The consolidated financial statements include
six (four in the year before) joint ventures on
a pro-rata basis.
For the business year under review, the accounts
for seven (six in the year before) associated companies were drawn up according to the equity
method, pursuant to the principles of IAS 28
Kaposvár
(Accounting for Investments in Associates).
The historical cost method is applied to account
for shares in subsidiaries, joint ventures or
associated companies that are of minor significance from a Group perspective.
When taken together, the companies that were
not included on account of their minor significance are also insignificant.
AVE CZ odpadové
Prague
hospodárství s.r.o.
(Czech Republic)
SOH Benatky nad Jizerou, s.r.o
(Czech Republic)
WATER/WASTE WATER
ENERGIE AG BOHEMIA s.r.o.
For fiscal 2003/2004, the following undertakings
were consolidated for the first time:
ANNUAL REPORT
C̆eské Budéjovice
(Czech Republic)
Vodovody a Kanalizace
C̆eské Budéjovice
Jiz̆ny C̆echy a.s.
(Czech Republic)
Vodovody a Kanalizace
Uniform accounting and valuation principles
are applied to the financial statements of the
undertakings included in the consolidated
financial statements as fully consolidated or
pro-rata consolidated undertakings. The individual financial statements of the subsidiary
companies have been drawn up for the Group's
balance-sheet date.
Benatky nad Jizerou
Beroun a.s.
Beroun
(Czech Republic)
FC = fully consolidated company
PC = company with pro-rata consolidation
CE = company associated at equity
As of 30 September 2003, AVE Beteiligungsgesellschaft mbH, the transferred company, was merged
with Abfall-Verwertung-Entsorgung-Ges.m.b.H., the accepting company. Abfall-Verwertungs-EntsorgungGes.m.b.H. was transformed into AVE Beteiligungsverwaltungs GmbH & Co KG.
2003-2004
Consolidated Financial Statements
The Group’s Companies
The changes in the consolidated group have the following main effects:
in EUR mill.
Sales
Result of operations
Financial result
in EUR mill.
Share
Type of
office
in %
consoli-
for the
dation
year*)
36.0
2.3
- 0.1
Energie AG Oberoesterreich
2.2
in EUR 1,000
Linz
Parent company
595,665.9
65,833.6
Linz
100.00
FC
215,425.9
125,133.7
Vertrieb GmbH & Co KG
Linz
100.00
PC
2, 535.0
6,259.1
Energie-Contracting Steyr GmbH
Steyr
100.00
FC
1,817.6
1,394.8
Energie AG Oberoesterreich
LIABILITIES
Long-term assets
63.9
Equity
58.3
Short-term assets
49.7
Minority share
12.1
Long-term debt
18.4
Short-term debt
24.8
113.6
in EUR 1,000
Energie- OOE. Service- und Beteiligungs- Verwaltungs- GmbH
ASSETS
Net income
Equity*)
ENERGY
Results from ordinary
business activities
Registered
Oekoenergie Plus GmbH
Linz
100.00
CO
20.0
- 8.0
Waerme Oberoesterreich GmbH
Linz
100.00
FC
12,320.1
174.7
Budéjovice
100.00
CO
6.3
—
Steyr
50.00
CE
37,414.8
1,668.1
Linz
50.00
CE
152,058.9
16,035.9
ENSERV Bohemia s.r.o.
113.6
Ennskraftwerke Aktiengesellschaft
During fiscal 2003/2004, differentials carried as liabilities in the amount of 2,140.9 thousand were
reversed under "other operating income" with effect on the result. The purchase costs for the
acquired undertakings amount to EUR 1,699.3 thousand in the energy segment, EUR 40,399.9 in
the waste-disposal segment and EUR 18,611.2 in the water/waste water segment.
64-65
C̆eské
Oberoesterreichische Ferngas
Aktiengesellschaft
Cogeneration Kraftwerke Management Oberoesterreich GmbH
Linz
50.00
CE
1)
1)
Wels Strom GmbH
Wels
49.00
CE
12,047.4
2,051.9
ENSERV Energieservice GmbH
Linz
37.00
CO
52.3
2.4
GmbH & Co KG
Linz
37.00
CO
292.2
- 1,543.4
EnergyLand Projektierungs-GmbH
Wels
33.33
CO
150.0
—
ENSERV Energieservice
Salzburg AG fuer Energie, Verkehr
und Telekommunikation
Energie Austria GmbH
Salzburg
26.13
CE
300,347.7
17,130.0
Vienna
24.00
CO
1)
1)
Braunau
20.00
CO
- 255.3
406.1
Simbach
20.00
CO
1,291.4
82.3
Vienna
17.00
PC
3,278.0
202.9
Vienna
17.00
PC
203.6
18.8
Vienna
17.00
PC
627.5
3.1
Geothermie-Waermegesellschaft
Braunau-Simbach mbH
Geothermie-Foerdergesellschaft
Simbach-Braunau mbH
ENERGIEALLIANZ Austria GmbH
SWITCH Energievertriebsgesellschaft m.b.H.
Naturkraft Energievertriebsgesellschaft m.b.H.
*)
1)
FC
PC
CE
CO
ANNUAL REPORT
=
=
=
=
=
=
partially from 2003
applying the protective clause under § 241 (2) item 2 of the Austrian Commercial Law Code
fully consolidated company
company with pro-rata consolidation
company associated at equity
company not included in consolidated group due to insignificance
2003-2004
Consolidated Financial Statements
Registered
Share
Type of
office
in %
Equity*)
Net income
Registered
Share
Type of
consoli-
for the
office
in %
consoli-
for the
dation
year*)
dation
year*)
in EUR 1,000
in EUR 1,000
in EUR 1,000
WASTE DISPOSAL
WATER/WASTE WATER
Austria
Austria
AVE Beteiligungs-
Landeswasserversorgungs-
verwaltungs GmbH
Hoersching
100.00
FC
35.2
0.2
AVE Beteiligungsverwaltungs GmbH & Co KG
Linz
98.00
CO
15,921.6
285.0
Linz
35.00
CO
30.1
- 319.8
in CZK
in CZK
100.00
FC
24,654.4
- 2,341.8
100.00
FC
30.6
- 1.8
Hoersching
100.00
FC
108.4
- 494.3
ENERGIE AG BOHEMIA
projekte GmbH
Hoersching
100.00
FC
77.9
- 22.1
Vodovody a kanalizace
AVE Entsorgung GmbH
Hoersching
100.00
FC
11,547.5
- 1,063.4
Czech Republic
AVE Reststoffverwertung
"WAV" Betriebsfuehrung-GmbH
Lenzing
100.00
FC
70.0
0.3
Lenzing
100.00
FC
18,668.4
6,499.4
66-67
1,000
100.00
FC
586,958.0
- 286.0
Budéjovice
95.20
FC
572,723.0
35,534.0
Beroun
59.17
FC
472,569.0
4,595.0
in EUR
in EUR
1,000
1,000
Hoersching
100.00
FC
88.2
- 79.3
C̆eské
Others
WAV II Errichtungs- und
Abfallbehandlungs-GmbH
Jiz̆ny C̆echy a.s.
Vodovody a kanalizace Beroun a.s.
AVE Reststoffverwertung
Lenzing GmbH & Co KG
C̆eské
1,000
Budéjovice
ASPG Altlastensanierungs-
Lenzing GmbH
in EUR 1,000
WDL Wasserdienstleistungs GmbH
Linz
AVE Deponie Betriebs GmbH
Net income
unternehmen AG
Hoersching
MA Restabfallverwertung GmbH
Equity*)
Linz
99.00
FC
13.9
- 18.8
Lenzing
50.00
Wels
33.33
CO
69.9
- 3.0
CO
553.2
32.7
in HUF
in HUF
1,000
1,000
Oberoesterreichische Gemeinnuetzige
Bau- und Wohngesellschaft mbH
Linz
100.00
CO
4,131.8
408.4
LIWEST Kabelmedien GmbH
Linz
44.00
CE
12,207.2
3,688.8
Energy IT Service GmbH
Linz
33.33
CO
48.2
3.2
RVL Reststoffverwertung
Lenzing GmbH
Welser Baustoffrecycling GmbH
Hungary
AVE Magyaroszág
Hulladékgazdálkodási Kft
Budapest
100.00
FC
1,759,727.0
292,628.0
RWE Umwelt Miskolc Kft
Miskolc
55.00
FC
228,690.0
96,574.0
Tatabánya
67.00
FC
282,053.0
130,790.0
RWE Umwelt Tatabánya Rt.
A.S.A. + RWE Koernyezetvédelmi
Holding Kft
Gyál
50.00
PC
643,500.0
195,854.0
A.K.S.D. GmbH
Debrecen
50.00
PC
467,565.0
425,818.0
Kaposvári Városgazdálkodási Rt.
Kaposvár
40.50
CE
253,400.0
24,477.0
in CZK
in CZK
Czech Republic
AVE CZ odpadové hospodárství s.r.o.
SOH Benatky nad Jizerou, s.r.o
1,000
1,000
Prague
100.00
FC
840,250.0
135,412.0
Benatky
90.80
FC
904,513.0
52,899.0
nad Jizerou
*)
1)
FC
PC
CE
CO
=
=
=
=
=
=
partially from 2003
applying the protective clause under § 241 (2) item 2 of the Austrian Commercial Law Code
fully consolidated company
company with pro-rata consolidation
company associated at equity
company not included in consolidated group due to insignificance
ANNUAL REPORT
Consolidation methods
The book-value method is applied to capital
consolidation. The historical cost for acquiring
the investment is offset against the share in
the equity of the subsidiary at the time of
acquisition or at a close balance-sheet date,
if this does not have any major effect, as
compared to associating the undertaking at
the time of acquisition.
every year. Differentials carried as liabilities
pursuant to IFRS 3 are entered with immediate
effect on the result. During the 2003/2004
business year, all goodwill items were covered
by the obtainable amounts.
Intra-group receivables and liabilities, expenses
and revenues, as well as interim results are
eliminated, unless they are of subordinate significance.
Differentials carried as assets are capitalized as
goodwill and written down, using the straightline method, over their useful life. In the income
statement, goodwill amortization is shown under
"depreciation". Negative goodwill is written back,
with effect on the result, using the weighted,
mean useful life of the non-pecuniary asset items.
The most recently available annual accounts are
used as a basis for equity valuation. Goodwill
from equity valuation is written down according
to schedule over their useful life.
Goodwill resulting from company mergers as
of 31 March 2004 is entered pursuant to IFRS 3.
Pursuant to IAS 36, it is tested for impairment
energy segment
disposal segment
others
2003-2004
The useful life for goodwill amortization is
as follows:
10 to 20 years
5 to 10 years
10 years
Consolidated Financial Statements
Accounting and Valuation Principles
Intangible Assets and Tangible Assets
Intangible assets and tangible assets are
valued at purchase or production costs,
minus scheduled straight-line deprecation
or depreciation due to use.
Development costs that are capitalized
pursuant to IAS 38 (Intangible Assets) comprise all costs that are directly attributable
to the development process, as well as
reasonable portions of the developmentrelated overhead costs. The cost of
financing is not capitalized. Research costs are
carried under expenses.
In addition to the direct costs, reasonable portions
of the material and manufacturing overhead costs
are other components of the manufacturing costs.
General administrative expenses and interest on
borrowings are not capitalized.
The application of IAS 40 (Investment Property)
does not have any effect on the consolidated
financial statements, since there are no major realestate holdings serving as financial investments.
Scheduled depreciation for major equipment is measured pursuant to the following useful life spans
which are applied throughout the Group:
Useful life
(in years)
Intangible assets
Electricity purchase rights
4 – 50
Goodwill from full or pro-rata consolidation
5 – 10
depending on utilization
Building structures
68-69
Buildings
Other structures
Water engineering structures
50
10 – 50
75
Technical plants and equipment
Power plants
10 – 25
Electricity grid
15 – 40
Waste disposal systems
6 – 20
Telecommunication facilities
7 – 20
Plant and equipment, furniture and fixtures
Whenever the need for a write-down becomes
apparent, the corresponding depreciation is
entered.
3 – 10
ANNUAL REPORT
Other Financial Assets and Other
Long-Term Assets
Loans at market interest rates, as well as longterm receivables are shown at their nominal
value. No-interest-bearing or low-interest loans
and long-term receivables are valued at their
cash value. Value adjustments are made for
identifiable exposures.
IAS 36 (Impairment of Assets) requires that
intangible assets or groups of items are tested
for impairment. The projected surplus in
revenues is discounted, applying the weighted
average capital costs, in order to establish the
attributable value.
Securities and loan stock rights carried as fixed
assets are valued at market prices. Changes in
market price are entered with effect on the result.
Whenever valuation units must be formed in
the absence of independent cash flows, the
value to be attributed to these groups of assets
is determined. Whenever the need for a writedown becomes apparent, the corresponding
depreciation is entered.
Inventories are valued at average purchase or
manufacturing costs (moving average price
method), or at the lower net value at realization.
The manufacturing costs comprise the directly
attributable costs, as well as the pro-rata overhead costs for materials and production. No
interest is entered for borrowings.
Investments
Decreases in value due to reduced realizability
are reflected in write-downs.
15 – 50
Other rights
Dumping rights and landfills
The useful life of electricity purchase rights and
rights from easement agreements is determined
according to the term of the contract or an
expected shorter useful life. In some cases, the
period is longer than 20 years.
Unless investments are valued pursuant to the
equity method, they are entered at purchase
costs or market value, if these can be reliably
determined. Whenever a long-lasting impairment is expected, the value is written down.
The changes in value of investments valued at
market price are entered with effect on the
result.
The share in companies valued according to
the equity method is entered in keeping with
the held capital share, which is increased or
decreased according to the changes in equity.
2003-2004
Inventories
Receivables and Other Assets
Receivables and other assets are valued at
their historical cost. Identifiable exposures
are reflected by entering the corresponding
adjustments in value.
Consolidated Financial Statements
Financial Liabilities
Deferred Taxes
Cross-Border Leasing
Liabilities to Third Parties
Financial liabilities are entered upon addition
in the actually received amount. Any share
premium, discount or other issue costs are spread
out over the financing term and shown in the
financial result.
Deferred taxes are entered for temporary
deviations between the values shown in the
consolidated balance sheet and the values
shown in the tax balance sheets of the individual undertakings. Moreover, future tax
benefits, resulting from tax losses carried
forward, are taken into account. The values
are adjusted in case netting out cannot be
expected with sufficient probability.
During fiscal 2000/2001, Energie AG Oberoesterreich entered into so-called cross-border leasing
transactions for the power transmission and distribution grid of some of its power plants. In the
course of the transaction, the power grid and/or
14 hydro-power plants were leased to US investors
by means of a trust, which were leased back for
a shorter period at the same time. According to
Austrian law, this does not change the civil-law
and economic ownership relations. The financial
benefit (present-value benefit) which accrues to
Energie AG Oberoesterreich after deducting the
transaction costs is disclosed in the balance sheet
under long-term debt and retransferred with
effect on the result according to the term of the
underlying leasing transaction.
This item shows possible or existing liability
commitments which are based on earlier
transactions. In this connection, an outflow
of resources is not likely.
Derivative Financial Instruments
As a matter of principle, the Group uses derivative
financial instruments only for hedging purposes.
They are valued at their market value on the
reporting date. Changes in the market value of
derivative financial instruments are shown in the
financial result, as are the changes in market
value of the underlying transactions.
Provisions for Pensions and
Severance Payments
70-71
Provisions for pensions, severance payments and
anniversary bonuses are calculated according to
the projected unit credit method. Expected
increases in wages, salaries and pensions are
taken into account. Actuarial gains and losses
exceeding the corridor of 10% of the cash value
of the commitments are distributed over the
average remaining service period when forming
provisions for pensions and severance payments.
Contributions/Grants
to Construction Costs
This item primarily comprises funding
contributions agreed with electricity and
district-heating customers. Contributions/
grants to construction costs carried as
liabilities are retransferred with effect on
the result in keeping with the course of
depreciation for the corresponding asset.
Public-Sector Grants
Public-sector grants to assets carried as
fixed assets are shown under liabilities in
the balance sheet, together with other
long-term liabilities and retransferred with
effect on the result in keeping with their
useful life.
Other Provisions
Other provisions comprise all commitments identifiable on the balance-sheet date that relate to
earlier transactions and are uncertain as to their
amount or maturity. The provisions are valued at
the amount that is most likely to be incurred.
Accounts Payable
and Other Liabilities
Accounts payable and other liabilities are
entered at historical cost or their higher
amount repayable.
ANNUAL REPORT
In the course of the cross-border leasing transactions, the funds received as advance lease payments from the US trust – except for the presentvalue benefit – are invested on the closing day
with financial institutes of first-class credit standing or via payment undertaking agreements and
used to cover the future installments under the
lease-back arrangement.
In the course of payment undertaking agreements,
which are entered into with financial institutions
on the closing day, the financial institutes undertake to make all payments directly to the US trust
that arise under the lease back arrangements. In
contrast to the classical instrument of investing
via deposits, this financing tool does not lead to
an increase of the assets shown in the balance
sheet. However, Energie AG Oberoesterreich is
liable to the US trust for compliance with the
commitments that the financial institutes have
assumed in connection with the payment undertaking agreements.
2003-2004
Foreign-Currency Translations
Foreign-currency translations are made
according to the concept of the functional
currency. The respective national currency is
the functional currency for all consolidated
undertakings. As a result, items in the balance
sheet are translated at the mean exchange
rate on the balance-sheet date, and items in the
income statement are translated at the mean
exchange rate for the period. Differences in
translating the pro-rata equity shares are shown
under revenue reserves and do not affect the
result. The differences from foreign-currency
translations that are due to minority interests
are shown as minority shares in equity. On
01 January 2004, the exchange rate for Czech
crowns was 32.65803, and on 30 September
2004 it was 31.63243; the exchange rate on
30 September 2004 of 246.9795 was used for
Hungarian forint.
Income Realization
Revenues from sales are entered once the risk
has passed to the customer. The electricity charge,
which is paid directly, is shown separately.
Income from interest is realized pro rata
temporis in keeping with the effective interest
rate. Dividends are entered at the date at which
the title to the payment has been created.
Consolidated Financial Statements
Notes on the Income Statement
1. Sales
The segment reporting according to business segments is as follows:
2003/2004
2002/2003
in EUR 1,000
in EUR 1,000
598,103.7
562,937.1
14,230.4
11,566.8
2003/2004
Energy
in EUR mill.
Electricity
District heating
Reversal of contributions/grants
Sales to third parties
Water/
Waste water
in EUR mill.
in EUR mill.
Others
Transition/
Group
Elimination
in EUR mill.
in EUR mill.
in EUR mill.
566.7
96.3
32.2
—
—
0.8
0.7
—
—
- 1.5
—
Total for sales
567.5
97.0
32.2
- 1.5
695.2
Depreciation
72.5
15.0
1.3
—
—
88.8
Income from operations
70.4
8.5
1.1
- 0.4
—
79.6
9.8
—
—
- 0.4
—
9.4
1,458.1
278.8
42.0
13.4
309.7
2,102.0
323.7
55.4
14.8
—
1,018.7
1,412.6
77.9
41.8
3.1
—
—
122.8
2.6
35.7
28.8
—
—
67.1
80.5
77.5
31.9
—
—
189.9
Inter-segment sales
to construction costs
15,656.8
15,281.3
Waste disposal
96,182.0
75,464.4
Water/Waste water
32,176.9
—
Other sales
28,186.5
19,974.6
784,536.3
685,224.2
Income from shares
- 89,298.1
- 83,889.1
in equity companies
695,238.2
601,335.1
Electricity charge
Waste
disposal
Carrying value of segment assets
Segment debt
695.2
Investments into intangible
assets and fixed assets
2. Segment Reporting
Segment Reporting According
to Business Segments
72-73
The Energie AG Oberoesterreich Group operates
mainly in the segments "energy" and "waste
disposal", as well as in the segment "water/
waste water" as of the 2003/2004 business
year. In this connection, the business segment
"energy" relates especially to the production
and distribution of electrical energy and district
heating. The "waste disposal" segment covers
accepting, sorting, burning and dumping
household and industrial waste materials. The
"water/waste water" segment primarily comprises the supply with potable water, as well
as the removal of waste water. The primary
reporting format therefore comprises the segments
"energy", "waste disposal", "water/waste water",
as well as "others".
Sales between segments ("inter-segment sales")
are invoiced at market prices. The segment assets
only include assets which are used by one segment for its operating activities and which can
be attributed to one segment directly or on
account of a reasonable basis. Debts from the
operating activities of the segments are shown
as segment debt.
current
acquisitions
2002/2003
Waste
in EUR mill.
in EUR mill.
Others
disposal
Transition/
Group
Elimination
in EUR mill.
in EUR mill.
in EUR mill.
525.8
75.5
—
—
601.3
0.2
0.2
—
- 0.4
—
Total for sales
526.0
75.7
—
- 0.4
601.3
Depreciation
68.6
21.4
—
—
90.0
Income from operations
48.3
1.3
- 1.0
—
48.6
Sales to third parties
The undertakings, acquired in the Czech Republic
and Hungary in the segment "waste disposal",
were first consolidated as at 30 September 2004.
The income from sales of these companies is
therefore not comprised in the figures for fiscal
2003/2004.
Energy
Inter-segment sales
Income from shares
in equity companies
Carrying value of segment assets
Segment debt
15.4
—
- 1.0
—
14.4
1,641.0
178.6
13.9
298.8
2,132.3
336.4
36.3
—
1,146.3
1,519.0
53.9
17.1
—
—
71.0
0.5
5.5
—
—
6.0
54.4
22.6
—
—
77.0
Investments into intangible
assets and fixed assets
current
acquisitions
ANNUAL REPORT
2003-2004
Consolidated Financial Statements
Segment Reporting According to Geographical Segments
4. Cost of Materials and Other Purchased Manufacturing Services
During the 2003/2004 business year, the Energie AG Oberoesterreich Group operated in the regions of
"Austria", "Czech Republic" and "Hungary". For the previous business year, there was no secondary
segment reporting according to geographical criteria because of the low level of regional diversification.
Electricity purchased from third parties
2003/2004
Austria
Czech
Hungary
in EUR mill.
in EUR mill.
Republic
Sales to third parties
Carrying value of segment assets
Transition/
Group
Elimination
in EUR mill.
in EUR mill.
in EUR mill.
663.0
32.2
—
—
695.2
1,693.2
77.9
21.2
309.7
2,102.0
119.7
3.1
—
—
122.8
2.3
49.9
14.9
—
67.1
122.0
53.0
14.9
—
189.9
2003/2004
2002/2003
in EUR 1,000
in EUR 1,000
184,456.4
149,520.4
Cost of use of system
30,904.8
31,320.0
Cost of fuels
35,924.5
31,868.9
Cost of other materials
25,853.4
18,425.4
Cost of purchased services
43,653.3
22,478.2
320,792.4
253,612.9
Investments into intangible assets
and fixed assets
current
acquisitions
3. Other Operating Income
2003/2004
2002/2003
in EUR 1,000
in EUR 1,000
74-75
Capitalized production costs
945,5
3.235,4
1.642,2
1.224,5
Income from leases and rentals
2.634,7
2.241,7
Leased Telekom line
3.071,8
3.682,1
449,1
389,4
11.302,0
11.035,7
20.045,3
21.808,8
Income from the reversal of investment grants
Other income
ANNUAL REPORT
2003/2004
2002/2003
in EUR 1,000
in EUR 1,000
Wages
12,283.6
9,188.4
Salaries
99,637.7
96,227.8
Severance payments
- 1,279.6
6,929.1
Pension payments
11,455.2
25,233.6
29,240.2
26,558.7
2,171.0
1,567.0
153,508.1
165,704.6
Statutory social-security charges and
remuneration-related charges and
cumpulsory contributions
Gains from the disposal of and the write-up
to tangible assets and fixed assets
5. Personnel Expenses
Other social expenses
Expenses for contribution-defined pension
schemes amounted to EUR 2,874.4 thousand
in 2003/2004 (EUR 2,816.8 thousand for the
year before). Expenses for severance payments in the amount of EUR 49.6 thousand
2003-2004
(EUR 32.7 thousand for the year before)
and pension payments in the amount of
EUR 140.4 thousand (EUR 958.4 thousand
for the year before) relate to members of
the Board of Management.
Consolidated Financial Statements
The members of the Board of Management and of the Supervisory Board of Energie AG Oberoesterreich received the following remunerations:
2003/2004
2002/2003
in EUR 1,000
in EUR 1,000
7. Other Operating Expenses
Taxes
Board of Management
721.7
716.5
1,008.9
1,007.1
98.9
100.5
1,829.5
1,824.1
Former members of the Board of Management
and their dependents
Supervisory Board
2003/2004
2002/2003
in EUR 1,000
in EUR 1,000
2,286.4
3,450.7
Outside services
48,759.7
40,608.7
Travel expenses
6,283.5
5,884.2
Insurance premiums
6,451.1
5,813.5
Postage, telephone and telex
3,299.9
2,817.1
Rentals and leases
9,707.9
2,112.2
Write-downs of receivables
1,212.9
4,217.7
554.9
433.9
6,039.5
3,884.4
Allocated value allowance
for receivables
Average employment figures for the year under review were as follows:
Expenses for vehicles
Losses from the disposal of intangible
2003/2004
2002/2003
assets and fixed assets
Other expenses
Salaried employees
Wage-earning employees
Apprentices
76-77
2,208
1,850
855
359
75
78
3,138
2,287
100,132.4
97,045.2
Taxes comprise mainly land taxes, location-dependent charges, electricity levies, as well as contributions to remedial action at abandoned waste sites.
6. Depreciation
Non-scheduled depreciation
6,892.7
20,930.1
8. Income from Interest
Part-time staff members are accounted for on a pro-rata basis.
Scheduled depreciation
2,449.0
13,087.6
2003/2004
2002/2003
in EUR 1,000
in EUR 1,000
86,055.3
83,965.5
2,770.0
6,073.2
88,825.3
90,038.7
2002/2003
in EUR 1,000
in EUR 1,000
Income from financing
Interest and similar income
3,446.0
2,201.9
Cross-border leasing
6,509.2
6,219.1
Exchange rate gains from financial liabilities
2,592.0
8,511.9
12,547.2
16,932.9
- 22,625.7
- 28,002.0
- 2,752.3
- 2,411.5
Cost of financing
Interest and similar expenses
Please refer to the table "Development of Fixed Assets" for the depreciation of individual items under
fixed assets.
2003/2004
Cross-border leasing
Exchange rate losses from financial liabilities
- 2.6
- 360.1
- 25,380.6
- 30,773.6
62.6
- 1,772.7
- 12,770.8
- 15,613.4
Changes in market prices
Interest swap transactions and bonds
ANNUAL REPORT
2003-2004
Consolidated Financial Statements
9. Other Financial Results
2003/2004
2002/2003
in EUR 1,000
in EUR 1,000
Other investments
Income from the disposal of investments
Write-ups for investments
25.1
103.3
432.4
95.1
2003/2004
2002/2003
—
11,635.7
in EUR 1,000
in EUR 1,000
601.5
89.4
1,059.0
11,923.5
Expenses for investments
Expenses for the disposal of investments
expenses for taxes on income that results from
applying the Austrian or the Czech tax rate on
the result before taxes on income.
The causes for the difference between the calculated and the shown expenses for taxes on income are
as follows:
Income from investments
Non-consolidated affiliated companies
Expenses for taxes on income are lower by
EUR 27,610.1 thousand (EUR 5,455.6 thousand
for the year before) than the calculated
- 661.3
- 99.1
Profit before taxes on income
80,059.8
74,855.9
Calculated expenses for taxes
27,131.4
25,451.0
- 19,864.9
—
income from investments
- 3,338.6
- 5,551.8
value allowance for losses carried forward
- 3,356.7
—
- 727.9
—
841.9
820.6
Effect on taxes due to
changes in deferred taxes on
Securities
Income from securities
account of change in tax rate
2,185.7
8,438.4
Gains from the disposal of securities
—
19,484.8
Losses from the disposal of securities
- 715.2
—
—
- 625.0
amortization of goodwill
11,310.1
2,745.1
other consolidating entries
Write-downs for securities
Write-ups for securities
Other
39.4
0.3
12,820.0
30,043.6
13,217.7
41,868.0
reversal of differentials carried as liabilities
transfers of profits/losses
non-tax-deductible expenses
- 471.0
—
- 65.7
202.9
106.3
- 710.3
- 144.8
—
- 518.7
- 121.5
- 129.4
tax credits for investments, apprentice-related
and educational measures
transfer of provisions for severance payments
78-79
not affecting taxes
interest from equity growth
10. Taxes on Income
other items
Effective tax expenses
2003/2004
2002/2003
in EUR 1,000
in EUR 1,000
Expenses for current taxes on income
6,577.1
3,219.8
Changes in deferred taxes on income
- 7,055.8
16,775.5
- 478.7
19,995.3
ANNUAL REPORT
Effective tax rate in %
2003-2004
- 64.0
27.9
- 478.7
19,995.4
- 0.6
26.7
The temporary differences between the amounts stated in the consolidated financial statements and
the respective taxable amounts have the following effect on the shown deferred taxes:
Intangible assets
30/09/2004
30/09/2003
in EUR 1,000
in EUR 1,000
- 7,203.2
- 8,472.4
Tangible assets
- 64,193.2
- 89,736.3
Financial assets
- 2,819.8
4,791.0
4,584.5
194.1
Other long-term assets
- 1,484.0
- 3,334.3
Financial liabilities
- 3,567.1
1,642.9
8,118.0
13,338.2
19,358.0
26,130.5
Cross-border leasing
Provisions
Contributions/Grants to construction costs
Tax losses carried forward
Untaxed reserves
Other items
2,336.7
7,110.6
- 14,694.0
- 20,481.8
1,267.0
1,826.9
- 58,297.1
- 66,990.6
Unclaimed tax losses carried forward in the amount of EUR 266.3 thousand (EUR 10,335.4 thousand
for the year before) are not shown as deferred tax claims in the balance sheet, since their realization
cannot be expected with sufficient reliability.
11. Intangible Assets
and Tangible Assets
Please refer to the table "Development of Fixed
Assets" regarding the development of items
under intangible assets and fixed assets.
The item "other rights" primarily comprises
rights of use regarding different facilities, rental
rights, as well as dumping rights, in addition to
IT software.
The table "Development of Fixed Assets" contains a detailed breakdown of the investments
and their development.
Changes in the value of associated undertakings
valued according to the equity method are shown
under write-ups and/or disposals of assets.
13. Financial Assets from
Cross-Border Leasing
This item comprises deposits from the crossborder leasing transaction entered into in
fiscal 2000/2001. These have gone up during
fiscal 2003/2004 by EUR 6,511.6 thousand
ANNUAL REPORT
14. Other Financial Assets
The table "Development of Fixed Assets"
contains a detailed breakdown of the other
financial assets and their development.
12. Investments
The table "Development of Fixed Assets" contains a detailed breakdown of the loans in
connection with the cross-border leasing transaction and their development.
80-81
(EUR 6,094.5 thousand for the year before)
on account of compounded interest. This
item was valued in foreign currency,
which resulted in a devaluation amount of
EUR 5,443.6 thousand (EUR 13,605.1 thousand
for the year before).
2003-2004
Securities comprise shares in investment funds
in the amount of EUR 151,744.3 thousand
(EUR 145,291.1 thousand for the year before),
which are used to some extent for the taxable
provisions for severance and pension payments.
The carrying values correspond to the market
price as at the balance-sheet date.
Securities also comprise quoted shares in
the amount of EUR 13,178.1 thousand
(EUR 8,737.0 thousand for the year before),
which are valued at the stock-exchange
price as at the reporting date.
15. Other Long-Term Assets
Other long-term assets comprise, in particular,
the positive market price of financial instruments
(interest swaps), which satisfy the criteria for
hedge accounting pursuant to IAS 39 (Financial
Instruments).
Consolidated Financial Statements
Notes to the Balance Sheet
Consolidated Financial Statements
16. Inventories
Primary energy
18. Cash in Hand, Checks and Bank Balances
30/09/2004
30/09/2003
30/09/2004
30/09/2003
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
34,128.5
32,631.8
Raw materials and supplies
7,450.7
5,740.6
Work in progress
6,729.7
7,220.5
304.7
121.5
48,613.6
45,714.4
Finished goods and goods for resale
Cash in hand
Cash in banking accounts
19. Equity
17. Accounts Receivable and Other Assets
30/09/2004
30/09/2003
in EUR 1,000
in EUR 1,000
110,805.6
114,748.7
505.4
266.0
is linked by virtue of participating interests
10,856.5
22,003.3
Accruals and deferrals of interest
13,963.2
14,702.3
Other
21,598.3
20,216.8
157,729.0
171,937.1
Accounts receivable (trade debtors)
Due from non-consolidated
affiliated companies
Due from undertakings with which the company
82-83
Receivables for electricity supplies, which had not been invoiced as at the reporting date, were deferred
on a pro-rated basis and are shown under "accounts receivable (trade debtors)".
ANNUAL REPORT
The capital stock of Energie AG Oberoesterreich
is divided into 8,000,000 individual share certificates, of which 7,960,000 are ordinary shares
and 40,000 preferred shares.
The revenue reserves are the result of profits
earned but not distributed by the Group. Allocations are made to revenue reserves in the
amounts required in order to adjust the net
profit to that of Energie AG Oberoesterreich.
20. Financial Liabilities
The item especially comprises the euro bonds
issued in the years 1999 and 2000. Derivative
transactions were entered in order to partly
hedge the interest-rate exposure. The value of
the bonds is shown at the market price of the
hedged exposure. It was established from the
2003-2004
181.4
53.8
62,275.8
192,791.2
62,457.2
192,845.0
bond price on the basis of market information
available on the reporting date.
The liabilities from the cross-border leasing transaction of the 2000/2001 business year, which are
offset by loans shown under assets, went up by
EUR 6,511.6 thousand (EUR 6,094.5 thousand
for the year before) on account of compounded
interest. This item was valued in foreign currency,
which resulted in a devaluation amount of
EUR 5,443.6 thousand (EUR 13,605.1 thousand
for the year before).
Financial liabilities in the amount of
EUR 3,055.3 thousand (EUR 4,374.1 thousand
for the year before) are covered by real
security.
Consolidated Financial Statements
Maximum
Nominal
Carrying
Term to
Term to
Term to
Weighted
Effective
maturity until
amount
value on
maturity
maturity
maturity more
nominal
interest rate
30/09/2004
up to 1 year
1 to 5 years
than 5 years
interest rate
in EUR mill.
in EUR mill.
in EUR mill.
in EUR mill.
Fair value
on
30/09/2004
in EUR mill.
Bonds
in euros (fixed interest)
2009
EUR 350 mill.
351.9
0.0
351.9
0
4.86%
4.94%
368.6
in euros
2023
EUR 146.6 mill.
145.0
84.0
37.3
23.7
2.82%
2.82%
145.0
in foreign currency
2008
HUF 550.3 mill.,
1.6
1.5
0.1
0.0
9.00%
9.00%
1.6
Liabilities to banks
CZK 14.8 mill.
Total for liabilities
146.6
85.5
37.4
23.7
2.88%
2.88%
146.6
fixed interest
2013
EUR 95.4 mill.
95.4
61.6
16.2
17.6
3.05%
3.05%
95.4
variable interest
2023
EUR 49.7 mill.,
51.2
23.8
21.2
6.2
2.58%
2.58%
51.2
4.0
0.3
0.8
2.9
0.86%
0.86%
4.0
502.5
85.8
390.1
26.6
4.25%
4.30%
519.2
HUF 550.3 mill.,
CZK 14.8 mill.
Other
in euros (fixed interest)
2023
EUR 4.3 mill.
Total
sheet indicates the stock of primary financial
instruments (financial assets and financial debt,
credit balances with banks, accounts receivables
and accounts payable).
21. Financial Instruments
84-85
Financial instruments comprise both primary and
derivative financial instruments. The balance
Derivative financial instruments are used to
secure the interest exposure, as well as the
currency exposure arising in connection with
bonds. All derivative instruments are shown
in the balance sheet at market prices under
assets or liabilities.
Derivative financial instruments comprise the following items:
30/09/2004
Reference value
30/09/2003
Fair value
Reference value
in EUR 1,000
Fair value
in EUR 1,000
Other accounts receivable
Interest swaps
(fixed interest recipients)
EUR 50 mill.
5,936.1
EUR 50 mill.
9,469.8
—
—
EUR 180 mill.
337.1
EUR 50 mill.
629.2
EUR 50 mill.
1,163.6
EUR 50 mill.
207.4
EUR 50 mill.
376.7
Forward exchange contracts
and options
Other accounts payable
Interest swaps
(fixed interest payers)
Interest swaps
(variable interest payers)
ANNUAL REPORT
2003-2004
Market-price fluctuations are shown in the
financial result.
The reference values comprise the reference
basis of the open derivative instruments on the
reporting date.
Consolidated Financial Statements
22. Long-Term Provisions
30/09/2004
30/09/2003
in EUR 1,000
in EUR 1,000
87,790.7
89,084.1
-
fair value of the fund assets
- 5,619.2
- 5,240.6
82,171.5
83,843.5
-
non-realized actuarial loss
- 1,344.7
- 958.0
80,826.8
82,885.5
82,885.5
4,724.7
4,845.6
Provisions for severance payments
28,285.7
29,648.0
Provisions for anniversary bonuses
10,191.5
9,461.0
Provisions for pre-retirement payments
57,671.1
68,849.5
Other long-term provisions
24,994.7
12,075.8
+
current service costs
206,694.5
207,765.4
+
interest expense
-
expected investment result
Provisions for the pension fund of LINZ AG
Pension provision as at 30/09,
shown in the balance sheet
Expenses shown in income statement
Provisions for Pensions
On account of company agreements and
commitments under individual contracts,
pensions must be paid upon retirement to
staff members who joined the company
before 30 September 1996 and have accepted
neither full nor partial compensation of their
claims to direct payments. A pension provision
86-87
has been formed for this group of persons
pursuant to IAS 19 (Employee Benefits)
according to the actuarial valuation method
(projected unit credit method).
The company must pay additional contributions for the benefit-defined pension
commitments that were transferred to the
company's pension fund.
2003
in EUR 1,000
Present value of pension commitment (DBO)
80,826.8
Pension provisions
2004
in EUR 1,000
548.9
591.6
5,184.0
5,012.9
- 275.1
- 167.3
5,457.8
5,437.2
Pension provision as at 01/10,
shown in the balance sheet
82,885.5
85,373.0
+
expenses as above
5,457.8
5,437.2
-
allocation to fund assets
- 157.5
- 715.6
+
actual payments (fund assets)
-
pension payments
176.7
62.5
- 7,535.7
- 7,271.6
80,826.8
82,885.5
Pension provision as at 30/09,
shown in the balance sheet
The calculation was based on the following parameters:
Provisions for the Pension Fund of LINZ AG
2004
2003
Assumed interest rate
5.25%
5.25%
Trend regarding salaries
2.80%
2.75%
Trend regarding pensions
1.50%
1.75%
Expected income from pension fund assets
5.25%
5.25%
"AVOE 1999-P Rechnungsgrundlagen fuer die
Pensionsversicherung – Pagler & Pagler"
were used as the biometric basis for the
calculations.
Fluctuation was not taken into account for the
"energy" segment. Depending on the period of
employment, a fluctuation rate of 2 to 10% is
assumed for the segment "waste disposal".
The statutory retirement age was taken as a
basis.
All expenses and revenues connected to the provisions are shown under personnel expenses.
On account of staff transfers, Energie AG Oberoesterreich must make pension payments on an ongoing
basis to the pension fund of LINZ AG for former staff members of LINZ AG.
The parameters of the pension provision are the basis for the calculation:
2004
2003
in EUR 1,000
in EUR 1,000
4,875.9
4,911.2
246.3
271.7
- 367.2
- 368.1
- 30.3
30.8
4,724.7
4,845.6
Present value of provisions (DBO)
required as at 01/10
+
interest expenses
-
pension payments
+/- non-realized net gains/losses
Pension provision as at 30/09,
shown in the balance sheet
ANNUAL REPORT
2003-2004
Consolidated Financial Statements
Provisions for Severance Payments
Severance payments are made to staff members
at the time of retirement or on dismissal, on
the basis of statutory obligations and collectiveagreement commitments. The amount of this
one-off payment is determined by the most
recent remuneration and the number of service
years.
A provision is formed on the basis of these stipulations under labor law and collective agreements,
which is calculated by applying the projected
unit credit method.
By including the corridor arrangements pursuant to IAS 19 (Employee Benefits), the same parameters
were taken as a basis as are used for the pension provisions:
(DBO) as at 01/10
+
change in consolidated group
2003
+
current service costs
in EUR 1,000
in EUR 1,000
+
interest expense
-
anniversary bonus payments
+
realized actuarial loss
30,028.2
Present value of anniversary bonus commit-
261.3
130.5
ment (DBO) as at 30/09 = Anniversary bonus
current service costs
1,639.3
1,626.8
commitment as at 30/09, shown in the
+
interest expense
1,574.8
1,810.6
balance sheet
-
severance payments
- 4,838.9
- 2,599.1
change in consolidated group
+
+/- non-realized net profit/loss
4.1
- 0.6
1,221.0
- 1,348.4
28,285.7
29,648.0
4,116.2
- 1,223.9
32,401.9
28,424.1
Provisions for Pre-Retirement Periods
Severance provision as at 30/09,
shown in the balance sheet
+/- non-realized actuarial profit/loss
Present value of severance payments
commitment (DBO) as at 30/09
2004
2003
in EUR 1,000
in EUR 1,000
Present value of anniversary bonus commitment
28,424.1
+
+/- realized actuarial losses/gains
88-89
For the calculations pursuant to IAS 19 (Employee Benefits) the same parameters are used as a basis as
for the severance payments and pension provisions:
2004
Present value of severance payments commitment
(DBO) as at 01/10
Provisions for Anniversary Bonuses
On the basis of a company agreement entered
into in 1998, staff members of Energie AG
Oberoesterreich have the time-limited possibility
to make use of a pre-retirement model under
certain conditions.
The model offers employees temporary assistance
in order to bridge the period between the end
9,461.0
8,461.7
54.6
—
504.0
438.9
511.2
495.4
- 792.3
- 487.1
453.0
552.1
10,191.5
9,461.0
of the employment relation and the actual
entitlement to a statutory pension payment
pursuant to the stipulations of the Austrian
General Social Security Act.
In keeping with IAS 19 (Employee Benefits)
a provision was formed for the resulting
commitment. The parameters of the pension
provisions were used as a basis for the calculation.
2004
2003
in EUR 1,000
in EUR 1,000
Present value of pre-retirement commitment
(DBO) as at 01/10
+
interest expense
-
pre-retirement payments
+
actuarial loss
68,849.5
67,335.5
3,195.1
3,423.8
- 14,465.3
- 14,848.1
91.8
12,938.3
57,671.1
68,849.5
Present value of pre-retirement provision
(DBO) as at 30/09 = Pre-retirement provision
as at 30/09, shown in the balance sheet
ANNUAL REPORT
2003-2004
Consolidated Financial Statements
Other Long-Term Provisions
25. Short-Term Provisions
Other long-term provisions developed as follows during the year under review:
Short-term provisions developed as follows during the year under review:
2004
2003
30/09/2004
30/09/2003
in EUR 1,000
in EUR 1,000
EUR 1,000
EUR 1,000
Carrying value as at 01/10
12,075.8
12,247.2
9.326,6
11.222,5
Change of consolidated group
13,629.4
—
Consumption
- 2,263.3
- 499.5
Consumption
Reversals
- 187.0
- 498.1
Reversals
Allocations
1,734.8
826.2
5.0
—
24,994.7
12,075.8
Currency differences
Other long-term provisions primarily comprise provisions for disposal costs and environmental
protection.
23. Contributions/Grants to Construction Costs
Carrying value as at 01/10
Change of consolidated group
Allocations
Currency differences
Other liabilities
- 2.182,2
9.842,2
7.956,3
36,6
—
10.141,5
9.326,6
30/09/2004
30/09/2003
in EUR 1,000
in EUR 1,000
4,321.0
1,823.7
previous years
—
278.6
Other taxes
—
0.9
4,321.0
2,103.2
Corporate income tax for the business year
WAV dumping rights
- 1.108,1
26. Tax Provisions
24. Other Long-Term Debt
Investment grants
261,2
- 7.931,2
Short-term provisions primarily comprise provisions for disposal costs, as well as provisions for
imminent losses from pending transactions.
This item mainly consists of financing contributions received from electricity and district-heating
customers. They are retransferred in each case, with effect on the result, over the average depreciation period of the equipment concerned (up to 30 years).
90-91
2.271,7
- 10.227,5
Back payments of corporate income tax for
30/09/2004
30/09/2003
in EUR 1,000
in EUR 1,000
12,156.1
10,369.7
252.5
1,250.0
2,423.3
2,444.3
14,831.9
14,064.0
ANNUAL REPORT
2003-2004
Consolidated Financial Statements
29. Other Commitments
27. Other Short-Term Debts
30/09/2004
30/09/2003
in EUR 1,000
in EUR 1,000
6.7
811.4
10,185.7
16,364.4
Due to non-consolidated
affiliated companies
Due to undertakings with which the company
is linked by virtue of participating interests
Liabilities under social security
Tax liabilities
Advances from customers
Other liabilities
3,567.3
3,734.1
28,240.2
26,886.9
7,893.7
2,414.7
91,283.8
91,091.5
141,177.4
141,303.0
Other liabilities primarily comprise liabilities to staff members, as well as accruals/deferrals of interest.
92-93
Cross-border leasing
Other
The use of fixed assets, not shown in the balance
sheet, results in a commitment in the amount
of EUR 1,925.6 thousand (EUR 1,478.0 thousand
for the year before), which is due to long-term
rent, lease and leasing agreements. The total
amount of these commitments for the next five
years amounts to EUR 6,244.9 thousand
(EUR 6,254.1 thousand for the year before).
2003/2004
2002/2003
in EUR 1,000
in EUR 1,000
149,992.7
19,581.6
1,405,700.7
1,435,435.0
122,002.4
121,652.4
1,677,695.8
1,576,669.0
Hedging transactions
In accordance with the Austrian Commercial
Law Code, hedging transactions must be shown
as liabilities in the balance sheet, to the extent
that they may constitute impending losses.
According to the IAS, hedging transactions
are valued and entered at their attributable
fair value.
Cross-border leasing
30. Material Differences between
IFRS/IAS and the Austrian
Accounting Regulations
28. Liabilities to Third Parties
Bank guarantees
In accordance with the energy supply contract
between Energie AG Oberoesterreich and Verbundgesellschaft, dated 07/08 August 2001,
Energie AG Oberoesterreich receives from Verbundgesellschaft a certain amount of electricity every
year, on the basis of generally accepted market
products. The compensation for these electricity
supplies is shown under cost of materials.
As a matter of principle, all differences
between the fiscal and the commercial-law
carrying value, which may lead to a tax burden
or a tax relief in the future, must be entered
under deferred taxes according to the IFRS.
Anticipated tax reductions, due to tax losses
carried forward, must be shown as deferred
tax assets.
Securities held as fixed assets
The deposits under the cross-border leasing
transaction, comprised in the loans, as well
as the corresponding liabilities vis-à-vis a
US-American trust, are valued in the foreign
currency on the reporting dates.
According to Austrian commercial-law provisions,
securities held as fixed assets are valued at the
lower of historical cost and attributable fair
value. Pursuant to IAS 39 (Financial Instruments),
securities are entered at the respective market
value. Differences in value are shown, with effect
on the result.
According to the Austrian Commercial Law
Code, the deposits and the liabilities constitute
a closed foreign currency item, when taking
account of the income from interest accruing
in the future and the expenses on interest.
They do not require a valuation in the foreign
currency.
Deferred taxes
In accordance with the Austrian Commercial
Law Code, there is the option to capitalize
deferred tax assets and the obligation to accrue
deferred tax liabilities in full under liabilities in
the balance sheet. Tax accruals and deferrals are
established on the basis of the differences in
result between the commercial and the tax
balance sheet. No deferred tax assets may be
formed for losses carried forward.
ANNUAL REPORT
2003-2004
31. Result per Share and Proposal for
the Appropriation of Earnings
The Group result per share amounts to
EUR 10.05 (EUR 6.86 for the year before).
The Board of Management of Energie AG
Oberoesterreich proposes to the general
shareholders' meeting to distribute a dividend in the amount of EUR 1.88 (EUR 1.806
for the year before) per share.
Consolidated Financial Statements
32. Financial Risk Management
(Group Treasury)
Management Oberoesterreich GmbH, as well
as Wels Strom GmbH, on the other.
An internal control system, in line with requirements, has been put in place in order to monitor
and control the risks existing in money and
foreign-exchange transactions.
Profit and loss transfer agreements
Treasury enters into all money and foreignexchange transactions, as well as all hedging
transactions regarding interest and currencyrisk exposure. For all related activities, a
division between trading, managing and
accounting is observed.
Derivative transactions are entered to
limit exposure.
Energie AG Oberoesterreich, as controlling company, maintains a fully integrated inter-company
relationship with Oekoenergie plus-GmbH, as
controlled subsidiary company.
Guarantees/Bank guarantees
Liabilities of Geothermie-Waermegesellschaft
Braunau-Simbach mbH, as well as of
Geothermie-Foerdergesellschaft SimbachBraunau mbH are secured by guarantees
or bank guarantees in the amount of
EUR 1,720.0 thousand (EUR 2,190.4 thousand
for the year before).
33. Relations to Subordinated
Companies
35. Information about the Group Management Bodies
The following persons were the appointed members of the Board of Management of Energie AG
Oberoesterreich during the year under review:
Leopold Windtner (CEO, Chairman of the Board of Management, St. Florian); Roland Pumberger
(Member of the Board of Management, Purkersdorf); Werner Steinecker (Member of the Board of
Management, Kirchschlag)
During the 2003/2004 business year the Supervisory Board of Energie AG Oberoesterreich consisted of
the following members:
Eduard Pesendorfer (Chairman); Erich Haider (First Deputy Chairman); Georg Bachmair; Alois Gradauer
(until 17 December 2003); Josef Heizinger; Johannes Hintermayr (until 17 December 2003); Gertraud Jahn
(until 17 December 2003); Peter Layr (Second Deputy Chairman); Ruperta Lichtenecker (as of 17 December 2003); Joerg Mayer; Gerhard Merckens; Adolf Mittendorfer (as of 17 December 2003); Michael
Obentraut; Kurt Pieslinger (as of 17 December 2003); Manfred Polzer (as of 17 December 2003); Viktor
Sigl (as of 17 December 2003); Max Stockinger; Rudolf Trauner; Karl Wiesinger; Alois Wimmesberger.
The following persons were delegated by the Works Council: Guenther Arnold; Regina Eikenberg; Isidor
Hofbauer; Friedrich Krofika; Gottgried Laherstorfer; Bernhard Steiner; Christian Strobl; Siegfried Tomaschek.
Electricity supplies
34. Material Events after the End
of the Business Year
Energy is supplied between the Energie AG
Oberoesterreich Group, on the one hand, and
Ennskraftwerke AG, Cogeneration-Kraftwerke-
With 01 October 2004 as the effective date,
Energie AG Oberoesterreich GmbH & Co KG raised
electricity prices for the first time after 12 years.
Linz, 19 November 2004
The Board of Management of Energie AG Oberoesterreich
94-95
Leo Windtner
ANNUAL REPORT
2003-2004
Roland Pumberger
Werner Steinecker
Group
Cash-Flow Statement
Revenue reserves
TOTAL
Equity
Retained
Currency
Total
Net
earnings
differences
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
in EUR 1,000
Dividend payment
60,000.0
498,393.5
—
498,393.5
9,320.8
567,714.3
—
—
—
—
- 9,304.0
- 9,304.0
—
—
—
—
54,860.6
54,860.6
—
40,425.7
—
40,425.7
- 40,425.7
—
60,000.0
538,819.2
—
538,819.2
14,451.7
613,270.9
—
—
—
—
- 14,468.6
- 14,468.6
in EUR 1,000
Net income
for the year
Development
of reserves
Status as at
30/09/2003
Dividend payment
Net income
for the year
—
—
—
—
80,423.2
80,423.2
Currency differences
—
—
624.8
624.8
—
624.8
—
65,383.4
—
65,383.4
- 65,383.4
—
60,000.0
604,202.6
624.8
604,827.4
15,022.9
679,850.3
Development
of reserves
Status as at
30/09/2004
2003/2004
2002/2003
in EUR 1,000
in EUR 1,000
profit
Status as at
30/09/2002
Consolidated Financial Statements
Development of Group Equity
96-97
Result before taxes on income
Tax payments
Result after taxes on income
Depreciation/Write-ups regarding intangible assets
Reversal of differentials carried as liabilities
Change in long-term provisions
Change in other long-term assets
Change in other long-term debt
Income from the reversal of the present-value
benefit of the cross-border leasing transactions
Income from investments and retained earnings
of equity companies
Contributions/Grants to construction costs received
Income from the reversal of contributions/grants
to construction costs
Losses from the disposal of assets
Gains from the disposal of assets
CASH FLOW FROM THE RESULT
Change in inventories and short-term receivables
Change in securities held as current assets
Changes in short-term liabilities
Changes in short-term provisions
CASH FLOW FROM OPERATING ACTIVITIES
Inpayments from the disposal of fixed assets
and intangible assets
Outflows for additions to fixed assets and intangible assets
Inpayments from the disposal of financial assets
Acquisition of subsidiary companies minus acquired
net cash and cash equivalents
Outflows for additions to financial assets
and other financial investments
CASH FLOW FROM INVESTMENTS
Dividend payment
Dividends and profit distributions received
Raising and redeeming financial debt
Present-value benefit received from cross-border leasing
CASH FLOW FROM FINANCING ACTIVITIES
TOTAL CASH FLOW
Funds at the beginning of period
Funds at the end of period
The cash-flow statement includes the following items:
Interest received
Interest paid
ANNUAL REPORT
2003-2004
80,059.8
- 5,997.0
74,062.8
86,619.5
- 2,140.9
- 8,313.4
6,957.5
- 677.5
74,855.9
- 1,902.1
72,953.8
85,719.3
—
267.0
- 409.0
6.7
- 3,817.2
- 3,817.2
- 9,844.5
19,671.2
- 4,850.7
16,569.9
- 15,656.8
3,164.2
- 945.4
149,079.5
39,298.9
- 5,083.2
- 18,441.8
559.5
165,412.9
- 15,281.3
6,892.7
- 32,246.0
125,805.2
158.2
—
18,426.4
- 3,206.6
141,183.2
1,864.3
- 126,710.9
144,965.3
3,246.9
- 71,094.3
167,120.9
- 41,907.8
- 3,148.5
- 155,952.9
- 177,742.0
- 14,468.6
4,493.8
- 108,083.9
—
- 118,058.7
- 55,222.1
40,902.9
- 9,304.0
198.4
- 101,321.5
47,223.4
- 63,203.7
- 130,387.8
118,882.4
192,845.0
62,457.2
73,962.6
192,845.0
2,232.1
23,976.8
2,108.7
26,135.1
Bestaetigungsvermerk
Auditor’s Certificate
(Original version)
(Translation)
6.6. Report of the Auditor and Audit Report
To the Supervisory Board and the Shareholders
of Energie AG Oberoesterreich
We have audited the consolidated financial statements of Energie AG Oberoesterreich
as at 30 September 2004, which were drawn up in accordance with the International
Financial Reporting Standards (IFRS), adopted by the International Accounting
Standards Board (IASB). The consolidated financial statements comprise the Group's
balance sheet as at 30 September 2004, the Group's income statement, the Group's
cash-flow statement, as well the development of the Group's equity for the 2003/2004
business year, together with the notes to the financial statements. The Board of
Management of the company is responsible for the preparation and substance of the
consolidated financial statements. Our responsibility is to express an opinion on the
consolidated financial statements, based on our audit.
We conducted our audit in accordance with the principles generally accepted by our
profession in Austria for the proper performance of audits and by observing the International Standards on Auditing of the International Federation of Accountants (IFAC).
These principles require that we plan and perform the audit to obtain reasonable assurance as to whether the consolidated financial statements are free from any material
misstatements. An audit includes examining, on a random-check basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit
also includes assessing the accounting principles applied and the essential estimates
made by the Board of Management, as well as evaluating the overall conclusions of the
consolidated financial statements. We believe that our audit provides a reasonable basis
for our opinion.
98-99
In our opinion, the consolidated financial statements present fairly, in all material
respects, the financial position and the financial performance of Energie AG Oberoesterreich as at 30 September 2004, as well as the earnings positions and the cash flows
during fiscal 2003/2004 in accordance with the International Financial Reporting
Standards (IFRS), adopted by the International Accounting Standards Board (IASB).
Austrian commercial-law regulations require that the Group's status report is examined
and that it is established whether the statutory requirements for a release from preparing
the consolidated annual accounts according to Austrian law are met. We certify that the
Group's status report is in compliance with the consolidated financial statements and
that the statutory requirements for a release from the reporting obligation in the form of
consolidated annual accounts according to Austrian law are met.
Linz, 14 November 2004
KPMG Alpen-Treuhand GmbH Wirtschaftspruefungs- und Steuerberatungsgesellschaft
Firm of Chartered Accountants and Tax Consultants
Johann Lummerstorfer, Stephan Beurle
(Chartered Accountants and Tax Consultants)
When publishing (except for the publication required by law) or forwarding the consolidated financial statements in a form deviating from the certified version (e.g. in an
abbreviated form or in a translation into other languages), our consent is required for
any reference to the auditor's certificate or to our audit.
Glossary
• Biomass power plant: In biomass power stations biogenic (i.e. naturally grown) fuels are used to generate
energy. When burning wood and residual timber materials, electric energy and district heating are generated.
Biomass is a CO2-neutral fuel. The thermal use of biogenic fuels is thus a closed natural CO2 cycle over time.
• Eco-electricity: Electricity from renewable energy sources
according to the definitions in the Eco-Electricity Act, for
example small-scale water power, biomass, wind power,
photo-voltaic energy.
• E-Control: Energie-Control GmbH was set up by the legislator in 2001 in order to check on the implementation of
liberalizing the Austrian electricity and gas market.
• EIWOG: The Electricity Industry Organization Act applying to the implementation of the liberalization process
entered into force on 19 February 1999.
• Emission Trading Directive: EU emission trading with
CO2 will begin on 01 January 2005. Companies will then
have the opportunity to buy surplus certificates from
other companies.
• ENERGIEALLIANZ Austria: In 2002 WIENSTROM,
Energie AG OOE, EVN, BEWAG and LINZ AG joined forces
to become the largest Austrian electricity provider.
• Energy efficiency: At present, the EU is working on a
directive that will increase the efficiency of electricity production and use. The action plan for improving energy
efficiency of the European Commission is intended to
contribute towards a reduction of electricity consumption.
• Fuel cell: Fuel-cell plants produce electricity and heating
from hydrogen and oxygen from the ambient air without any emissions. Pure water is the product of the reaction. In the stationary sector, fuel cells will be used in the
future to generate electricity and heating for buildings.
• Geo-thermal energy: Using geo-thermal energy from
deep drillings for an environmentally friendly supply
with district heating.
• Kyoto Protocol: In 1997 the contracting states agreed
at the conference on climate protection in Kyoto to
reduce their greenhouse emissions by 5.2% by the year
2008 and/or 2012. Austria committed itself to reduce
CO2 emissions by 13%.
• Landfill Regulation: Since 01 January 2004 unprocessed
waste materials must no longer be dumped in landfills
throughout Austria.
• Liberalization: In 1999 the first step was taken to open
the electricity market for big key accounts. Since 2001
the market is open to all customers.
• Mechanical-biological plants (MBA): MBAs are used in
Austria for the pre-treatment of waste materials before
dumping. The mechanical treatment steps and the biological treatment help to produce waste materials that
are poor in reaction, which can be dumped in keeping
with the landfill regulations. The fraction containing
high thermal values, which is generated by MBAs (up
to 50%), is burnt.
• OESL (Oestereichische Stromloesung = Austrian Electricity
Solution): It provides for a merger of Verbundgesellschaft and ENERGIEALLIANZ Austria in order to secure
domestic water production and to strengthen international competitiveness.
• Passive energy house: Passive energy houses do not
need conventional heating systems. This reduces energy
consumption by 70 to 85%.
• Renewable energy: Energy sources that do not consume
any of the existing resources, for example water power,
biomass, wind power, geo-thermal energy, solar energy.
20% of the electricity generated worldwide come from
renewable energy.
• StrafloMatrix: StrafloMatrix™ was developed jointly
by Energie AG and VA TEch Hydro. The revolutionary
turbine-generator unit is undergoing a trial test, begun
in June, at the Agonitz power station of Energie AG,
as part of a joint venture for research into applications.
Unlike turbines requiring controlling, StrafloMatrix™ is
lowered into a precisely defined water flow. Only minor
adaptations are therefore required on existing dams.
• Thermal power stations: Power stations which generate electricity and heating from incineration energy.
Energie AG operates thermal power stations at two
locations, i.e. Riedersbach and Timelkam. In addition
to coal, the main energy source, natural gas and – as
of 2005 – also biomass will be used.
• UCTE mix: UCTE refers to the Union for Coordinating
the Transport of Electric Energy. When obtaining electricity on the electricity exchange or when buying electricity from wholesalers who do not or cannot clearly
define their sources, the UCTE mix is applied (12.8%
water power, 54.3% fossil fuels, 32.9% nuclear energy).
• Unbundling: Separating the regulated electricity grid
sector from the non-regulated market-economy areas
(production, distribution and others).
• Water Framework Directive: This EU directive is meant to
ensure measures by the Community in the area of water
policy. The main goal is to protect bodies of water. It will
enter into force as of 2008.
• Waste Material Solution for Upper Austria (Oberoesterreichische Muell-Loesung): Cooperation between
Energie AG, Linz AG and private companies for the
disposal of household waste in Upper Austria. This
waste material solution facilitates implementation
of the landfill regulations.
Publisher’s information:
Responsible publisher: Energie AG Oberoesterreich, Boehmerwaldstrasse 3, 4020 Linz
Editor: Walter Czetsch, Energie AG Oberoesterreich, Group Strategy Department
Translated into English by Liese Katschinka, Vienna
Photography: Energie AG, Dauml, Laresser, Kressl, OOE. Ferngas AG, Gruenbacher, Getty Images, ZEFA
Idea and graphic design: MMS Werbeagentur, Linz
All errors and misprints reserved.
Linz, December 2004
ENERGIE AG Oberoesterreich · P.O. Box 298
Boehmerwaldstrasse 3 · A-4021 Linz
Service telephone number: 0800 81 8000
Service fax number: 0800 81 8001
E-mail: service@energieag.at
Internet: www.energieag.at
A partner of ENERGIEALLIANZ Austria.