Quarterly Report • Aug 11, 2011
Quarterly Report
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Half-Year-Report 2011
| Profitability | Q 1 2011 | Q 2 2011 | 1 HY 2011 | Q 1 2010 | Q 2 2010 | 1 HY 2010 |
|---|---|---|---|---|---|---|
| Sales | 142.5 | 172.5 | 315.0 | 111.5 | 131.6 | 243.1 |
| EBITDA | 9.7 | 3.5 | 13.2 | 7.5 | 5.4 | 12.9 |
| EBIT | 3.2 | -3.0 | 0.2 | 5.1 | 2.6 | 7.7 |
| EBIT-margin (%) | 2.2 | -1.7 | 0.0 | 4.6 | 2.0 | 3.2 |
| EBT | 2.3 | -4.8 | -2.5 | 4.4 | 2.1 | 6.5 |
| Period result | 2.0 | -5.2 | -3.2 | 2.2 | 3.2 | 5.4 |
| Earnings per share (EUR) | 0.03 | -0.08 | -0.05 | 0.04 | 0.05 | 0.09 |
| Operating data | Q 1 2011 | Q 2 2011 | 1 HY 2011 | Q 1 2010 | Q 2 2010 | 1 HY 2010 |
| Productions (tons) | 116,895 | 134,119 | 251,014 | 131,306 | 145,988 | 277,294 |
| Utilisation (%) 1) | 67.0 | 76.9 | 72.0 | 75.3 | 83.7 | 79.5 |
| Investments in property, plant and equipment | 2.6 | 3.1 | 5.7 | 8.8 | 18.1 | 26.9 |
| Number of employees as of balance sheet date |
726 | 734 | 417 | 416 | ||
| Net asset position | 31/03/2011 | 30/06/2011 | 31/03/2010 | 30/06/2010 | ||
| Net financial assets | -41.4 | -62.0 | 8.0 | 13.9 | ||
| Equity | 330.1 | 329.4 | 309.3 | 315.4 | ||
| Equity ratio (%) | 59.5 | 63.3 | 67.0 | 73.1 | ||
| Balance sheet total | 555.2 | 520.2 | 461.9 | 431.7 | ||
| Financial status | 31/03/2011 | 30/06/2011 | 31/03/2010 | 30/06/2010 | ||
| Operating cash flow | 39.5 | 55.6 | 19.9 | 45.6 | ||
| Operating cash flow per share (EUR) | 0.63 | 0.88 | 0.32 | 0.74 | ||
| Cash and cash equivalents | 43.5 | 36.9 | 37.3 | 42.9 |
1) in relation to the production capacity
[EUR million]
| Biodiesel | Q 1 2011 | Q 2 2011 | 1 HY 2011 | Q 1 2010 | Q 2 2010 | 1 HY 2010 |
|---|---|---|---|---|---|---|
| Sales | 87.5 | 109.6 | 197.1 | 72.6 | 92.7 | 165.3 |
| Third party sales | 84.2 | 107.6 | 191.8 | 72.6 | 92.7 | 165.3 |
| EBIT 2) | 8.3 | -1.8 | 6.5 | -1.7 | 0.1 | -1.6 |
| Production (tons) | 78,278 | 94,342 | 172,620 | 89,002 | 98,179 | 187,181 |
| Utilisation (%) 1) | 73.2 | 88.3 | 80.8 | 83.3 | 91.9 | 87.6 |
| Number of employees as of balance sheet date | 105 | 103 | 100 | 99 | ||
| Bioethanol | Q 1 2011 | Q 2 2011 | 1 HY 2011 | Q 1 2010 | Q 2 2010 | 1 HY 2010 |
| Sales | 34.3 | 47.3 | 81.6 | 34.1 | 34.9 | 69.0 |
| Third party sales | 34.3 | 40.6 | 74.9 | 34.1 | 34.9 | 69.0 |
| EBIT 2) | -3.5 | -6.1 | -9.6 | 1.8 | 1.9 | 3.7 |
| Production (tons) | 38,617 | 39,777 | 78,394 | 42,304 | 47,809 | 90,113 |
| Utilisation (%) 1) | 57.2 | 58.9 | 58.1 | 62.7 | 70.8 | 66.8 |
| Number of employees as of balance sheet date | 167 | 169 | 171 | 166 | ||
| Trade Märka | Q 1 2011 | Q 2 2011 | 1 HY 2011 | Q 1 2010 | Q 2 2010 | 1 HY 2010 |
| Sales | 43.2 | 29.9 | 73.1 | 0.0 | 0.0 | 0.0 |
| Third party sales | 19.5 | 21.8 | 41.3 | 0.0 | 0.0 | 0.0 |
| EBIT 2) | 0.3 | 2.9 | 3.2 | 0.0 | 0.0 | 0.0 |
| Other | Q 1 2011 | Q 2 2011 | 1 HY 2011 | Q 1 2010 | Q 2 2010 | 1 HY 2010 |
| Sales | 10.0 | 3.8 | 13.8 | 4.9 | 3.9 | 8.8 |
| Third party sales | 4.5 | 2.5 | 7.0 | 4.9 | 3.9 | 8.8 |
| EBIT 2) | 0.1 | 0.4 | 0.5 | 5.0 | 0.6 | 5.6 |
1) in relation to the production capacity
2) Excluding elimination of intercompany results (1 HY 2011: in total EUR -0.4 million)
Our top priority is to continue combating climate change and not to jeopardise it.
How can you contribute? Switch to VERBIO's eco- - friendly alternatives – to make the turnaround a suc cess - for a better society and a new environmental awareness – without giving up your accustomed standards. Together we will invest in a sustainable future.
Join the ecolution!
After a three-month moratorium, the German Fed eral Parliament decided that nuclear power stations have had their day. By 2022 all nuclear power plants - will have been removed from the grid and the pro - portion of renewable energy sources in the electric ity mix will have doubled. A success – not just for opponents of nuclear energy.
A rapid withdrawal from nuclear energy, safe stor age options for atomic waste as well as improved safety standards of present-day power stations are important aims of the energy turnaround1 - . Produc tion and development of the regenerative resources network are essential measures in order to prevent bottlenecks in the energy supply.
According to a study by the Economic Research In , the energy turnaround could create a 2 stitute DIW sustainable stimulus for the German economy. This would in particular not only create more jobs in the renewable energy sector, it would also result in higher economic growth and the development of - new markets. So Germany is set to become a pio neer in the renewable energy sector.
The energy turnaround is deliberate and necessary, not only to achieve the EU Climate Targets 20203 .
for the period January 1 to June 30, 2011
In Germany the legislators defined a mandatory share of blending volume of biofuels which is unchanged at 6.25 per cent.
At the beginning of June, the German Federal Cabinet concluded through Amending Regulation to the biofuel ordinance that biofuels are double-counting to the biofuel quota if they are produced from certain raw materials as for example waste. The effects of the regulation are backdated to January 1, 2011. This promote the usage of biodiesel made from used edible fat as well as of biomethane made from liquid manure, straw and residuals.
According to current law, the biofuel quota to be reached should be restructured as from 2015. This should be realised by a climate protection quota to the reduction of the greenhouse gas emissions of the whole fuel market by the use of biofuels (so-called: decarburization strategy). From 2015, the climate protection quota shall amount 3 per cent and gradually increase to 7 per cent from the year 2020. However there are efforts on the part of various associations of the biofuel industry to bring the implementation of the climate protection quota forward to 2014 to increase to 4.5 per cent and to rise successively on a yearly basis.
The legal framework to reach the climate protection goals of the EU and the obligatory blending goal of 10 per cent renewable energies on the transport sector was built on EU level by enacting the "Renewable Energy Sources Directive" ("Erneuerbare-Energien-Richtlinie") and "Fuel Quality Directive" ("Kraftstoffqualitätsrichtlinie").Thereby biodiesel, bioethanol and biogas play a central role. Fuels from raw materials as for example rapeseed or corn are currently the only sustainable alternative to crude oil in Europe.
It is not to be expected that the electromobility can take over a higher share on short notice. In addition, the electricity from renewable energies which is used by the electromobility has to be made available and does therefore not automatically provide savings of greenhouse gases.
Even the so-called biofuels of the second generation which are made from wood or straw will not be available in the near future. Germany's flagship project to the extraction of diesel from wood and plant residues got bankrupt not only because of technical problems at the end of July 2011.
All EU member states had to transpose that extensive legislative package into national law until December 5, 2010. Until now, only Germany and Austria put this obligation into national law at due date. Further EU member states are in the process to implement the EU guideline. Thereby the establishment of sustainability criteria is a main aspect. The Netherlands and Sweden already put the sustainability regulations into its legislation. Experts expect that the implementation of the remaining EU member states will further accelerate in the second half-year 2011.The reason for this purpose is the registration of several EU-wide valid voluntary certification systems.
The E10 fuel (petrol with a share of 10 per cent ethanol) has been available in France since April 2009 and in the Nordic countries such as Finland and Sweden since May 2011. Moreover, in the last months a number of countries, e.g. Greece, Malta, Spain and the Czech Republic, have fulfilled the legal requirements for launching E10 on the market.
Since January 2011 E10 has been sold at petrol stations in Germany. Since February 2011 the petrol stations have been selling the fuel, mainly in eastern and southern Germany. About 95 per cent of petroldriven vehicles in Germany have been cleared to use the fuel. The lack of objective information and legally binding approvals by the oil and automotive industry were deficient when E10 was launched led to the initial rejection of the "new" fuel. Currently, the nationwide sales of E10 are at approx. 20 per cent of the total petrol consumption, which is a relatively low market share compared to the number of approved vehicles. Following the announcement by the mineral oil companies to expand the supply E10 nationwide, this percentage could range in the medium-term between 30 to 50 per cent. In addition, targeted marketing measures, by the petroleum associations as well, are contributing to educate the public and change public opinion about the E10 fuel.
Consumption data released by the German Federal Office of Economics and Export Control which extends to inclusively May 2011 indicate that the total amount of fuel sold in the first five months 2011 increased compared to the previous year: While sales of petrol stay on the level of the previous year, the sale of diesel increased by 5.9 per cent. It is to be expected, that this movement will continue in the following months.
In the first five months 2011, the biodiesel share which was delivered to the blending industry, decreased compared to the previous year's period by about 5 per cent. The reason may be a reserved "blending activity" of the mineral oil industry due to the very high price level of biodiesel. The mineral oil industry probably used previous year's quota surplus to compensate the reduced blending of bio-components. In addition, the extremely high price level of biodiesel led to a significant sales decrease of pure biodiesel B100. Compared to the previous year's period, sales decreased by 78 per cent.
In the first five months 2011, demand and therefore also sales of bioethanol on the German blending market is around 4.5 per cent over the comparably previous year's figures. The beginning market implementation of E10 let expect a clearly higher blending of ethanol. Due to the extensive and mostly very negative reporting in all medias to the implementation of E10 sales was very reserved. In the following months, only gradually increasing sales figures for E10 and therefore demand for bioethanol is to be estimated.
Compared to the respective previous year's period sales of E85 (petrol with a share of 85 per cent ethanol) increased by about 20 per cent. In view of the relatively low base level of this fuel, the utterly increase is little important for the total sales.
In the first six months of 2011, the price of crude oil (Brent) fluctuated between 94.49 USD/barrel (April 1, 2011) and 127.69 USD/barrel (April 28, 2011). The price was at an average of 111.98 USD/barrel which represents an increase of 44 per cent over the same period of the previous year.
The price of rapeseed oil reduced during the second quarter 2011 and was at an average of approx. 985 EUR/ton (Q1 2011: approx. 1,010 EUR/ton) The price consolidation is attributable to EU imports in the first quarter 2011, which eased the short supply of rapeseed and hence rapeseed oil.
The situation at the start of the EU rapeseed yield is not consistent, and is characterised by hectare yields that vary greatly from region to region. As a result of the poor yields in eastern and north-eastern Europe, the EU is dependent on rapeseed imports to balance supply and demand. The future price trend therefore depends on the availability of rapeseed, e.g. from the Ukraine and Australia.
In the second quarter 2011 grain prices were also extremely volatile and ranged from 255 EUR/ton (May 27, 2011) and 184 EUR/ton (June 30, 2011) for matif wheat. Russian exports put pressure on the world market price for wheat, and since then EU prices have been moving at approx. 200 EUR/ton. The return of Russia as an exporter has basically rebalanced the global supply and demand situation. India has eased is export restrictions following several successive record yields and ranks with Pakistan as a net exporter of grain.
Opinions on the future price development of wheat differ widely. The price movements of matif wheat of up to 70 EUR/ton within 5 weeks that have been observed to date are basically unjustified. On the contrary, they are largely attributable to the inflows and outflows of speculative capital. On the other hand this means the global economic development, as well as an expansive or restrictive monetary policy in the USA, Europe and China, will have a decisive impact on the price of wheat, as well as on other agricultural commodities.
The world market price of sugar has almost doubled in the last 12 months following its depression at the beginning of June 2010. The worsening yield forecasts for sugar cane from net exporter Brazil and reluctance on the part of India to export are driving up prices.
| Q 1 2011 | Q 2 2011 | Change | 1 HY 2011 | 1 HY 2010 | Change | |
|---|---|---|---|---|---|---|
| Crude oil (Brent; USD/barrel) | 106 | 118 | 11% | 112 | 78 | 44% |
| Mineral diesel (EUR/ton) | 664 | 683 | 3% | 673 | 502 | 34% |
| Rapseed oil (EUR/ton) | 1,037 | 985 | -5% | 1.011 | 676 | 50% |
| Wheat (MATIF; EUR/ton) | 252 | 233 | -7% | 242 | 128 | 89% |
| Sugar (EUR/ton) | 492 | 375 | -24% | 433 | 329 | 32% |
The following chart represents the relative price movement of raw materials on the international markets in 2010/2011:
A comparison ofthe items ofthe movement of revenues and results is limited due to the consolidation of the Märka GmbH as of November 1, 2010.
In the first six month of 2011 VERBIO produced 251,014 tons of biofuels compared to 277,294 tons in the compared previous period. Due to a positive market price development revenues stood at EUR 315.0 million (6 M 2010: EUR 243.1 million) in the first half-year 2011.
The result before interest, tax, depreciation and amortisation (EBITDA) increased despite difficult general conditions and was at EUR 13.2 million (6 M 2010: EUR 12.9 million). In addition, it was positively influenced by the sale of seven wind energy plants. Under consideration of accrued book losses in the amount of EUR 0.2 million, book profits were gained in total of EUR 4.5 million in the first half-year 2010. Additional income in the amount of EUR 2.5 million resulted from the disposal of corresponding special items for investment subsidies in the previous year.
Group operating result (EBIT) for the period January 1, to June 30, 2011 was at EUR 0.2 million (6 M 2010: EUR 7.7 million). Compared to the first six months 2010 this result from increased expenses for depreciation and amortisation (6 M 2011: EUR 13.0 million; 6 M 2010: EUR 5.2 million). This is mainly due to higher depreciation and amortisation of the biogas plants (6 M 2011: EUR 2.7 million; 6 M 2010: EUR 1.0 million) as well as higher expenses due to the appreciation in value of the bioethanol segment (EUR 4.2. million) at December 31, 2010.
Other operating income was at EUR 5.4 million (6 M 2010: EUR 18.1 million). The decrease compared to the previous year's figures is mainly due to oneoff effects which are shown in the selected explanatory disclosures to the notes
Other operating expenses were at EUR 16.3 million after EUR 17.7 million in the previous year.
The financial result amounts to EUR – 2.6 million (6 M 2010: EUR – 1.3 million) and contains interest income in the amount of EUR 0.5 million (6 M 2010: EUR 0.2 million) and interest expenses in the amount of EUR 3.1 million (6 M 2010: EUR 1.5 million).
Under consideration of the relevant applicable income taxes, net income for the first half-year 2011 the result for the period was at EUR – 3.2 million (6 M 2010: EUR 5.4 million).
Compared to December 31, 2010 the balance sheet total decreased with EUR 88.2 million at June 30, 2011 to EUR 520.2 million (December 31, 2010: EUR 608.4 million).
The assets side is affected by seasonal reasoned reduction in inventories and the decrease of other assets. From the operating cash flow development and the application of liquid funds, funds including time deposits were at EUR 36.9 million at June 30, 2011. After subtraction of financial liabilities in the amount of EUR 98.9 million a net interest in the amount of EUR 62.0 million remains. Net interest was therefore about EUR 3.7 million above the result at December 31, 2010 (EUR 58.3 million).
The equity and liabilities side of the balance sheet was basically dominated by equity in the amount of EUR 329.4 million, which represents 63 per cent (December 31, 2010: 55 per cent) of the balance sheet total and is therefore with 8 per cent points over the balance sheet total as at December 31, 2010. Compared to December 31, 2010 non-current liabilities reduced from EUR 69.3 million to EUR 56.1 million while current liabilities reduced to EUR 134.7 million (December 31, 2010: EUR 206.6 million). This movement is mainly due to the decrease of liabilities from grain and rapeseed transactions (other current liabilities) and the reduction of derivative liabilities.
| EUR million | 30/06/2011 | Share of balance sheet total |
31/12/2010 | Share of balance sheet total |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | 336.3 | 65% | 345.8 | 57% |
| Current assets | 183.9 | 35% | 262.6 | 43% |
| Total assets | 520.2 | 100% | 608.4 | 100% |
| EQUITY AND LIABILITIES | ||||
| Equity | 329.4 | 63% | 332.5 | 55% |
| Non-current liabilities | 56.1 | 11% | 69.3 | 11% |
| Current liabilities | 134.7 | 26% | 206.6 | 34% |
| Total equity and liabilities | 520.2 | 100% | 608.4 | 100% |
As at June 30, 2011 cash funds contain cash amounting to EUR 21.0 million as well as current time deposits totalling EUR 15.0 million. The operating cash flow is at EUR 55.6 million and is positively influenced by the decrease in inventories totalling EUR 57.6 million (6 M 2010: EUR 51.1 million) and other assets totalling EUR 17.2 million (6 M 2010: EUR 15.6 million). This is accompanied by the increase in trade receivables of EUR 10.3 million (6 M 2010: EUR 11.6 million) and the decrease in other liabilities of EUR 10.4 million (6 M 2010: EUR 2.0 million).
The cash flow from the investment activity is negative and amounts to EUR 2.6 million (6 M 2010: positive EUR 7.3 million). This is largely attributable to payments of investments in property, plant and equipment totalling EUR 6.5 million. (6 M 2010: EUR 15.4 million) and payments from time deposits totalling EUR 5.1 million (6 M 2010: EUR 10.6 million). In the previous year cash flows from the investment activity were significantly influenced by payments from the disposal of property, plant and equipment (EUR 12.0 million).
The negative cash flow from the financing activity amounting to EUR 60.7 million (6 M 2010: 48.3 million) is due to payments for secured loans totalling EUR 65.7 million (6 M 2010: EUR 45.4 million) and repayments of financial liabilities totalling EUR 34.3 million (6 M 2010: EUR 11.0 million). This is accompanied by payments for secured loans totalling EUR 12.3 million (6 M 2010: EUR 8.1 million). Financial liabilities entered into total EUR 27.0 million (6 M 2010: EUR 0.0 million).
At the end of the reporting period, the cash fund thus amounts to EUR 36.0 million (6 M 2010: EUR 38.8 million). Above all, VERBIO disposes of time deposits totalling EUR 0.8 million (June 30, 2010: EUR 4.0 million) as at due date June 30, 2011.
At June 30, 2011 VERBIO employed 734 employees (December 31, 2010: 743 employees), thereof 294 salaried employees (December 31, 2010: 274 salaried employees), 409 industrial employees (December 31, 2010: 434 industrial employees) and 31 trainees (December 31, 2010: 35 trainees).
For the first six months of 2011 investments of EUR 5.7 million in property, plant and equipment (6 M 2010: EUR 26.9 million) are reported. Investments in the amount of EUR 2.6 million relate primarily to the existing biogas plants in Schwedt/Oder and Zörbig. Moreover, investments were made into plant optimisation of the existing biodiesel and bioethanol plants.
| p.a. | Q 1 2011 | Q 2 2011 | 1 HY 2011 | Q 1 2010 | Q 2 2010 | 1 HY 2010 | |
|---|---|---|---|---|---|---|---|
| Nominal capacity (tons) | 450,000 | 112,500 | 112,500 | 225,000 | 112,500 | 112,500 | 225,000 |
| Production capacity (tons) | 427,500 | 106,875 | 106,875 | 213,750 | 106,875 | 106,875 | 213,750 |
| Production (tons) | 78,278 | 94,342 | 172,620 | 89,002 | 98,179 | 187,181 | |
| Utilisation nominal capacity | 69.9% | 83.9% | 76.7% | 79.1% | 87.3% | 83.2% | |
| Utilisation production capacity | 73.2% | 88.3% | 80.8% | 83.3% | 91.9% | 87.6% | |
| Number of employees on June 30 | 103 | 99 |
The sale of VERBIO biodiesel, which is delivered into the domestic and foreign blending market, reduced in the reporting period by 13.9 per cent, compared to the previous year. Sales of B100 is on the level of the previous year.
Compared to the previous year, the biodiesel business with foreign countries gained more importance, again. The current export quota is at about 22.5 per cent (2010: 4.1 per cent).
In the first six months 2011, 172,620 tons of biodiesel were produced and was therefore with 14,561 tons under the previous year's production figures.
In the first half-year of 2011 revenues amounted to EUR 197.1 million (thereof third party revenues EUR 191.8 million), compared to EUR 165.3 million in the first half-year 2010 (6 M 2010: third party revenues EUR 165.3 million). The increase was mainly caused by a increased price level compared to the previous year. In addition, non-required amounts of rapeseed were sold and sales in the amount of about EUR 4.2 million was realised. This is also reflected in a higher segment result before interest and tax which is in the amount of EUR 6.5 million (6 M 2010: EUR – 1.6 million).
| p.a. | Q 1 2011 | Q 2 2011 | 1 HY 2011 | Q 1 2010 | Q 2 2010 | 1 HY 2010 | |
|---|---|---|---|---|---|---|---|
| Nominal capacity (tons) | 300,000 | 75,000 | 75,000 | 150,000 | 75,000 | 75,000 | 150,000 |
| Production capacity (tons) | 270,000 | 67,500 | 67,500 | 135,000 | 67,500 | 67,500 | 135,000 |
| Production (tons) | 38,617 | 39,777 | 78,394 | 42,304 | 47,809 | 90,113 | |
| Utilisation nominal capacity | 51.5% | 53.0% | 52.3% | 56.4% | 63.7% | 60.1% | |
| Utilisation production capacity | 57.2% | 58.9% | 58.1% | 62.7% | 70.8% | 66.8% | |
| Number of employees on June 30 | 169 | 166 |
With a production of 78,394 tons of bioethanol in the first half-year of 2011, the production volume was significantly under the respective previous year's figures (6 M 2010: 90,113 tons).
In the first half-year 2011 the bioethanol segment generated revenues in total amounting EUR 81.6 million (thereof third party revenues EUR 74.9 million). The increase was mainly caused by the high price level compared to the previous year. In the first six month of 2010 revenues stood at EUR 69.0 million (third party revenues EUR 69.0 million).
The bioethanol segment also contains revenues and expense from the biogas plants. In the first halfyear of 2011 biogas revenues in the amount of about EUR 3.6 million were gained (6 M 2010: EUR 0 million).
The segment result before interest and tax in the amount of EUR – 9.6 million was clearly under the amount of the respective previous year's period (6 M 2010: EUR 3.7 million). The segment result also contained income from insurance recovery in the amount of EUR 2.1 million relating to the previous year. Compared to the previous year the negative difference is due to launching costs in connection with commissioning of the biogas plants and the lower usage in the first half-year 2011.
In the first six months of 2011, the contribution to revenues of the Märka segment amounted to EUR 73.1 million, whereby EUR 31.8 million relates to intersegment sales. From trading with third parties EUR 41.3 million were realised. For the consolidation period mentioned above, the trade Märka is showing a result before interest and tax of 3.2 million. As at due date June 30, 2011 the Märka GmbH had 186 employees (December 31, 2010: 162 employees).
Due to the decreasing importance of the previous energy segment the results of this segment were summarised with service of captive fleet and external logistics in the other segment at due date June 30, 2011.
From January 1, to June 30, 2011 revenues in the amount of EUR 13.8 million (thereof third party revenues EUR 7.0 million) were generated. The segment result before interest and tax was at EUR 0.5 million.
For further explanations we refer to the segment reporting in the notes of the consolidated interim financial statements.
There were no changes in risk and opportunity profile of the VERBIO-Group in the reporting period in comparison to the risks and opportunities described in detail in the group management report for the 2010 financial year.
From today's perspective there are no existential risks and non are currently recognisable for the future.
We believe that biofuel and biogas represent the growth market of the future. The legal rules have been created, more specifically by means of the guidelines in the "Renewable Energies Directive" (RES-D) and the energy plan presented by the German Government on September 6, 2010.
The demand for biofuels as well as the demand for electricity and heat energy from renewable, sustainably produced raw materials will gradually increase, not least as the result of broad public consensus and the decision by the German Government to opting out the nuclear energy.
Thereby biogas is particularly important because it could be not only used as biofuel but also as energy source for electricity generation in gas power plants. It receives a save and predictable compensation relating to the Renewable Energy Law (EEG).
In order to achieve the CO2 reductions that are prescribed in the "Renewable Energies Directive", the proportion of biofuels must be gradually increased in the coming years to reach 10 per cent by 2020. The product E10 gains growing acceptance, the negative reporting by the press have declined and sales are gradually increasing.
The mineral oil industry has a fundamental interest in E10 as a result of its quota obligation and will, from the current standpoint, accelerate market penetration through pricing policy at the petrol pump.
In the financial year 2011 we anticipate sales ranging from EUR 650 to 750 million, an EBITDA between EUR 25 and 30 million and an EBIT ranging from EUR 6 to 12 million.
The capacities, in particular in the bioethanol segment, are being fully utilised in the third quarter. We anticipate good utilisation of the entire production capacity in the fourth quarter as well. Biogas has gained in importance against the background of the latest political developments and demand has continued to rise.
In order to continue increasing the productivity and production safety of our biogas plants, we are investing around EUR 4.6 million in further construction of our plants.
VERBIO Vereinigte BioEnergie AG Leipzig, August 11, 2011
The Management Board
for the period from January 1 to June 30, 2011
| TEUR | 01/04-30/06/2011 | 01/04-30/06/2010 | 01/01-30/06/2011 | 01/01-30/06/2010 | |
|---|---|---|---|---|---|
| 1. | Revenue (including energy taxes collected) | 178,523 | 135,136 | 326,507 | 253,390 |
| Less: energy taxes | — 6,058 | — 3,522 | — 11,518 | — 10,308 | |
| Revenue | 172,465 | 131,614 | 314,989 | 243,082 | |
| 2. | Change in unfinished and finished goods | 3,087 | — 465 | 7,267 | — 113 |
| 3. | Capitalised production of own plant and equipment |
533 | 609 | 773 | 987 |
| 4. | Other operating income | 3,108 | 5,401 | 5,364 | 18,076 |
| 5. | Cost of materials | ||||
| a) Raw materials, consumables, supplies and purchased goods |
— 152,277 | — 108,544 | — 270,460 | — 201,992 | |
| b) Purchased services | — 9,282 | — 7,753 | — 19,444 | — 15,685 | |
| 6. | Personnel expense | — 7,788 | — 4,909 | — 14,856 | — 9,275 |
| 7. | Depreciation and amortisation | — 6,493 | — 2,783 | — 13,017 | — 5,220 |
| 8. | Other operating expenses | — 7,949 | — 7,832 | — 16,293 | — 17,747 |
| 9. | Result from forward contracts | 1,569 | — 2,686 | 5,837 | — 4,373 |
| 10. | Operating result | —3,027 | 2,652 | 160 | 7,740 |
| 11. | Interest income | 236 | 78 | 495 | 203 |
| 12. | Interest expenses | — 1,985 | — 701 | — 3,142 | — 1,481 |
| 13. | Financial result | —1,749 | —623 | —2,647 | —1,278 |
| 14. | Result before tax | —4,776 | 2,029 | —2,487 | 6,462 |
| 15. | Income tax expenses | — 483 | 1,148 | — 737 | — 1,111 |
| 16. | Net result for the period | —5,259 | 3,177 | —3,224 | 5,351 |
| Result attributable to shareholders of parent company |
— 5,490 | 3,177 | — 3,555 | 5.351 | |
| Result attributable to non-controlling interests | 231 | 0 | 331 | 0 | |
| Income and expenses recognised in equity: | |||||
| Fair value remeasurement on cash flow hedges | 6,206 | 4,236 | — 266 | — 1,221 | |
| Deferred taxes recognised in equity | — 1,720 | — 1,388 | 326 | 117 | |
| 17. | Income and expenses directly recognised in equity |
4,486 | 2,848 | 60 | —1,104 |
| 18. | Comprehensive result | —773 | 6,025 | —3,164 | 4,247 |
| Comprehensive result attributable to shareholders of parent company |
— 1,004 | 6,025 | — 3,495 | 4,247 | |
| Comprehensive result attributable to non-controlling interests |
231 | 0 | 331 | 0 | |
| Earnings per share (basic and diluted) | — 0.08 | 0.05 | — 0.05 | 0.09 | |
at June 30, 2011
| KEUR | 30/06/2011 | 31/12/2010 | |
|---|---|---|---|
| ASSETS | |||
| A. | Non-current assets |
||
| I. | Goodwill | 70,682 | 70,682 |
| II. | Customer relationships | 14,329 | 15,055 |
| III. | Other intangible assets | 156 | 163 |
| IV. | Property, plant and equipment | 249,626 | 258,239 |
| V. | Financial assets | 1,430 | 1,707 |
| VI. | Deferred taxes | 75 | 0 |
| Total non-current assets | 336,298 | 345,846 | |
| B. | Current assets |
||
| I. | Inventories | 57,332 | 126,048 |
| II. | Trade receivables | 48,728 | 38,417 |
| III. | Tax refunds | 7,642 | 8,027 |
| IV. | Other assets | 23,308 | 38,862 |
| V. | Derivatives | 8,876 | 3,408 |
| VI. | Time deposits | 803 | 4,000 |
| VII. | Cash and cash equivalents | 36,047 | 43,796 |
| VIII. | Non-current assets held for sale | 1,127 | 0 |
| Total current assets | 183,863 | 262,558 | |
Total assets 520,161 608,404
| KEUR | 30/06/2011 | 31/12/2010 | |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| A. | Equity | ||
| I. | Share capital | 63,000 | 63,000 |
| II. | Additional paid-in capital | 487,680 | 487,680 |
| III. | Other reserves | 255 | 195 |
| IV. | Retained earnings | -225,293 | -221,738 |
| V. | Reserve from currency translation | -4 | 0 |
| Total equity, excluding non-controlling interests | 325,638 | 329,137 | |
| VI. | Non-controlling interests | 3,698 | 3,358 |
| Total equity | 329,336 | 332,495 | |
| B. | Non-current liabilities |
||
| I. | Provisions | 19 | 56 |
| II. | Financial liabilities | 22,856 | 35,443 |
| III. | Deferred investment grants and subsidies | 11,642 | 12,648 |
| IV. | Other non-current liabilities | 18,118 | 18,082 |
| V. | Deferred tax liabilities | 3,487 | 3,117 |
| Total non-current liabilities | 56,122 | 69,346 | |
| C. Current | liabilities | ||
| I. | Tax liabilities | 8,495 | 8,541 |
| II. | Provisions | 1,846 | 3,006 |
| III. | Financial liabilities | 58,105 | 52,776 |
| IV. | Trade payables | 36,712 | 32,597 |
| V. | Deferred investment grants and subsidies | 1,980 | 1,990 |
| VI. | Other current liabilities | 20,695 | 84,586 |
| VII. | Derivatives | 6,552 | 23,067 |
| VIII. | Liabilities in connection with non-current assets held for sale | 318 | 0 |
| Total current liabilities | 134,703 | 206,563 |
for the period from January 1 to June 30, 2011
| KEUR | 01/01-30/06/2011 | 01/01-30/06/2010 |
|---|---|---|
| Net result for the period | — 3,224 | 5,351 |
| Income tax expense | 737 | 1,111 |
| Financial result | 2,647 | 1,278 |
| Depreciation and amortisation | 13,017 | 5,220 |
| Non-cash losses | 646 | 0 |
| Non-cash gains | — 20 | 0 |
| Gain on disposal of property, plant and equipment and disposal of investment grants | — 88 | — 7,061 |
| Gain on disposal of non-current financial assets | — 295 | 0 |
| Release of deferred investment grants and subsidies | — 991 | — 593 |
| Non-cash changes in derivative financial instruments | — 10,600 | — 245 |
| Decrease in inventories | 57,649 | 51,123 |
| Increase in trade receivables | — 10,307 | — 11,628 |
| Decrease in other assets | 17,217 | 15,620 |
| Decrease (in prior period: increase) in provisions | — 1,115 | 89 |
| Increase (in prior period: decrease) in trade payables | 4,959 | — 9,953 |
| Decrease in other liabilities | — 10,417 | — 2,040 |
| Interest paid | — 3,672 | — 1,570 |
| Interest received | 452 | 221 |
| Income tax amounts paid | — 1,042 | — 1,282 |
| Cash flows from operating activities | 55,553 | 45,641 |
| Disbursement for time deposits | — 1,900 | 0 |
| Proceeds from time deposits | 5,097 | 10,634 |
| Disbursements for investments in intangible assets | — 63 | — 17 |
| Disbursements for investments in property, plant and equipment | — 6,537 | — 15,413 |
| Proceeds from disposal of property, plant and equipment | 195 | 11,969 |
| Proceeds from acquisition of cash and cash equivalents from subsidiaries | 9 | 0 |
| Proceeds from disposal of non-current financial assets | 570 | 155 |
| Proceeds from investment grants | 13 | 0 |
| Cash flows from investing activities | —2,616 | 7,328 |
| KEUR | 01/01-30/06/2011 | 01/01-30/06/2010 |
|---|---|---|
| Proceeds from secured loans | — 65,684 | — 45,370 |
| Proceeds on secured loans | 12,324 | 8,139 |
| Disbursements for repayment of financial liabilities | — 34,326 | — 11,044 |
| Disbursements for payments on secured loans | 27,000 | 0 |
| Cash flows from financing activities | —60,686 | —48,275 |
| Net cash flows | — 7,749 | 4,694 |
| Cash funds at beginning of period | 43,796 | 34,156 |
| Cash funds at end of period | 36,047 | 38,850 |
| Cash funds at end of period comprise the following: | ||
| Restricted cash and cash equivalents | 2,190 | 1,055 |
| Cash and cash equivalents | 33,857 | 37,795 |
| Cash funds at end of period | 36,047 | 38,850 |
| Complementary information: | ||
| Time deposits | 803 | 4,000 |
for the period January 1 to June 30, 2011
| KEUR | Share capital | Additional paid-in capital |
Other reserves |
|---|---|---|---|
| 01/01/2010 | 63,000 | 483,659 | -2,688 |
| Fair value remeasurement on cash flow hedges (after tax) | 0 | 0 | -1,104 |
| Income and expenses recorded directly to equity | 0 | 0 | -1,104 |
| Net income for the period | 0 | 0 | 0 |
| Comprehensive result for the period | 0 | 0 | -1,104 |
| 30/06/2010 | 63,000 | 483,659 | -3,792 |
| 01/01/2011 | 63,000 | 487,680 | 195 |
| Fair value remeasurement on cash flow hedges (after tax) | 0 | 0 | 60 |
| Income and expenses recorded directly to equity | 0 | 0 | 60 |
| Net income for the period | 0 | 0 | 0 |
| Comprehensive result for the period | 0 | 0 | 60 |
| Change in currency | 0 | 0 | 0 |
| Founding of a subsidiary | 0 | 0 | 0 |
| 30/06/2011 | 63,000 | 487,680 | 255 |
| Reserve for treasury shares |
Retained earnings | Reserve from currency translation |
Total equity excl. non-controlling interest without non-controlling shares |
Non-controlling interests |
Total equity |
|---|---|---|---|---|---|
| -3,030 | -229,847 | 0 | 311,094 | 0 | 311,094 |
| 0 | 0 | 0 | -1,104 | 0 | -1,104 |
| 0 | 0 | 0 | -1,104 | 0 | -1,104 |
| 0 | 5,351 | 0 | 5,351 | 0 | 5,351 |
| 0 | 5,351 | 0 | 4,247 | 0 | 4,247 |
| -3,030 | -224,496 | 0 | 315,341 | 0 | 315,341 |
| 0 | -221,738 | 0 | 329,137 | 3,358 | 332,495 |
| 0 | 0 | 0 | 60 | 0 | 60 |
| 0 | 0 | 0 | 60 | 0 | 60 |
| 0 | -3,555 | 0 | -3,555 | 331 | -3,224 |
| 0 | -3,555 | 0 | -3,495 | 331 | -3,164 |
0 0 -4 -4 0 -4 0 0 0 0 9 9 0 -225,293 -4 325,638 3,698 329,336
The consolidated interim report of VERBIO Vereinigte BioEnergie AG ("VERBIO AG" or "Company") at June 30, 2011 including selected explanatory disclosures to the notes has been prepared, as well as the consolidated financial statements as at December 31, 2010 in accordance with the requirements of the International Accounting Standards Board (IASB) published and by the EU accepted International Financial Reporting Standards (IFRS).
The regulations of IAS 34 to the "consolidated interim reporting" have been applied. All interim financial statements of companies included in the consolidated statements of the VERBIO AG have been prepared in accordance with integrative accounting and valuation methods.
As the consolidated interim financial reporting is based on the consolidated financial statements we refer to the accounting, valuation and consolidation methods described in detail in the notes to the consolidated financial statements at December 31, 2010. The accounting, valuation and consolidation methods used basically relate to the methods used in the previous year except obligatory new standards to be implemented.
The consolidated interim financial statement is presented in euros (EUR). Unless otherwise mentioned, all amounts are presented in thousand of euros (KEUR). Figures have been rounded and therefore rounding differences are possible.
Effective January 1, 2011 the following new and/or revised standards and interpretations were to be applied for the Group:
There were no significant effects from the first-time adoption of these changes to the consolidated interim financial statements of the VERBIO AG.
There were no changes in the period under review compared to December 31, 2010 except the following facts. In the business year 2011 the VERBIO Gaz Polska Sp. z o.o. Stettin/Poland and VERBIO Gas Pápa Kft., Pápa/ Hungary were founded as a further 100 per cent subsidiary of VERBIO AG. Both companies started business and are currently in its expansion phase.
A comparison of the items of the consolidated statement of comprehensive income is limited due to the consolidation of the Märka GmbH as of November 1, 2010.
| KEUR | 01/01-30/06/2011 | 01/01-30/06/2010 |
|---|---|---|
| Release of investment grants | 991 | 824 |
| Reimbursement of electricity and energy tax | 878 | 638 |
| Charge-out of expenses paid in advance | 846 | 361 |
| Rental and leasing income | 548 | 322 |
| Release of other provisions and write-off of trade payables | 502 | 544 |
| Gains on the disposal of non-current financial assets | 295 | 0 |
| Reimbursement of damages | 114 | 30 |
| Gains on the disposals of property, plant and equipment | 102 | 4,868 |
| Release of allowance for doubtful receivables | 73 | 358 |
| Insurance recoveries | 62 | 6,454 |
| Gains on the disposal of investment grants | 0 | 2,520 |
| Ongoing warehousing charges | 0 | 588 |
| Miscellaneous other operating income | 953 | 569 |
| Total other operating income | 5,364 | 18,076 |
Insurance recoveries included in the previous year were granted primarily as compensation for a business interruption at the Zörbig site. Furthermore, in the comparable period, gains on the disposal of property, plant and equipment and deferred investment grants are included which resulted from the sale of six wind energy plants.
Cost of materials mainly comprise procurement of raw materials, consumables, supplies for the current production and purchased goods. According to the segmentation we refer to the explanations under "segment reporting" in these consolidated interim financial statements.
| KEUR | 01/01-30/06/2011 | 01/01-30/06/2010 |
|---|---|---|
| Maintenance and repairs | 3,265 | 2,739 |
| Outgoing freight | 2,912 | 4,516 |
| Insurances and dues | 1,806 | 1,095 |
| Motor vehicle costs | 1,721 | 794 |
| Marketing costs | 789 | 191 |
| Other taxes | 608 | 26 |
| Rental and leasing expenses | 503 | 200 |
| Miscellaneous personnel expenses | 475 | 566 |
| Losses on receivables and increase in allowances | 397 | 603 |
| Legal and consulting fees | 390 | 347 |
| Selling expenses | 386 | 1,494 |
| Travel expenses | 381 | 197 |
| Other out-of-period expenses | 379 | 456 |
| Bank charges | 326 | 88 |
| Other administrative expenses | 314 | 147 |
| Cleaning costs | 129 | 82 |
| IT costs | 109 | 124 |
| Warehousing expenses | 3 | 2,231 |
| Reimbursement of damages | 0 | 838 |
| Losses on the disposal of property, plant and equipment | 14 | 338 |
| Miscellaneous other operating expenses | 1,386 | 675 |
| Total other operating expenses | 16,293 | 17,747 |
The result from the valuation and closing of positions of forward contracts which do not qualify for hedge accounting, the result from commodity futures that are used for hedge accounting (fair value hedges) and the ineffective portion of forward contracts that are used for hedge accounting (cash flow hedges) amounts in total to KEUR 5,837 (6 M 2010: KEUR – 4,373). This item included the remeasurement result relating to imbedded derivatives in the amount of KEUR – 241 (6 M 2010: KEUR 0).
The result from commodity future transactions is affected by positive (KEUR 879) and negative amounts (KEUR 3,787) from commodity future transactions in connection with the application of the fair value hedge accounting. In addition, as of the balance sheet date the amount of KEUR 60 (6 M 2010: KEUR 1,104) increased (previous year: decreased) without effect on the income statement, resulting from the qualification as cash flow hedges.
Tax expenses for the period January 1, to June 30, 2011 amounting KEUR 737 (6 M 2010: KEUR 1,111) comprise as follows:
| KEUR | 01/01-30/06/2011 | 01/01-30/06/2010 |
|---|---|---|
| Current tax expense | -22 | -1,455 |
| Deferred tax income (previous year: expense) | -715 | 344 |
| Total tax expense | -737 | -1,111 |
Earnings per share were calculated in accordance with IAS 33. For the calculation of the earnings per share the earnings for the period were divided by the weighted average number of shares outstanding. There is no dilutive effect.
| 2011 | 2010 | |
|---|---|---|
| Issued shares as of January 1, | 63,000,000 | 61,530,000 |
| Effect of treasury shares | 0 | 0 |
| Number of average shares outstanding as of June 30, | 63,000,000 | 61,530,000 |
| Net result for the period in KEUR | -3,224 | 5,351 |
| Earnings per share in EUR | -0.05 | 0.09 |
Intangible assets include goodwill, customer relationships and software licenses. Customer relationships are amortised over a period of 15 years. In accordance with IAS 36, goodwill is subject to an annual impairment test.
The total value of property, plant and equipment reduced due to scheduled depreciation (KEUR 12,221), disposals (KEUR 950) and investments (KEUR 5,685) as well as due to the reclassification of two wind energy plants in the balance-sheet caption "Non-current assets held for sale" (KEUR 1,127).
As of the balance sheet date the amount shown under this section represents mainly the non-current portion of a loan receivable, which was measured at amortised cost.
| KEUR | 30/06/2011 | 31/12/2010 |
|---|---|---|
| Raw materials, consumables and supplies | 15,720 | 50,058 |
| Unfinished and finished goods | 13,340 | 6,074 |
| Merchandise | 28,272 | 69,916 |
| Total inventories | 57,332 | 126,048 |
The item "finished goods" includes stock generated by VERBIO of not yet disposed biofuel quotas in the amount of KEUR 2,145.
As of June 30, 2011 the examination of inventories for recoverability resulted in allowanced totalling KEUR 975 (December 31, 2010: KEUR 17) to adjust to the lower market or net realisable value. The write-downs for raw materials, consumables and supplies as well as for merchandise are included in "Cost of materials" (KEUR 93; December 31, 2010: KEUR 0) and for finished products in "Change in unfinished and finished goods" (KEUR 882; December 31, 2010: KEUR 17) in the consolidated statement of comprehensive income.
Restraints of disposal regarding raw materials, consumables and supplies as well as merchandise in the amount of KEUR 9,325 (December 31, 2010: KEUR 65,910) are based on a secured loan.
At the balance sheet date trade receivables amounted to KEUR 48,728 (December 31, 2010: KEUR 38,417) and are disclosed net of valuation allowances in the amount of KEUR 1,860 (December 31, 2010: KEUR 1,660). All receivables have a remaining term of up to one year.
Tax refund receivables of KEUR 7,642 (December 31, 2010: KEUR 8,027) concern construction withholding tax, corporate tax and trade tax.
| KEUR | 30/06/2011 | 31/12/2010 |
|---|---|---|
| Investment subsidies | 13,024 | 12,781 |
| Security deposits resulting from security agreements and liability declarations | 3,267 | 3,275 |
| Reimbursement of electricity and energy tax | 1,674 | 1,016 |
| Value-added tax receivables | 1,356 | 1,609 |
| Deferred expenses | 1,092 | 941 |
| Other receivables VERBIO STS AG | 700 | 700 |
| Loan receivables | 648 | 1,192 |
| Security deposits for guaranteed credit lines | 360 | 0 |
| Advance deposits for inventories | 284 | 0 |
| Claims from the sale of wind power plants | 179 | 179 |
| Security deposits for unrealised losses on forward transactions | 0 | 15,618 |
| Realised gains on forward transactions | 0 | 864 |
| Miscellaneous other assets | 724 | 687 |
| Total other assets | 23,308 | 38,862 |
In order to hedge raw materials of rapeseed and wheat at the biodiesel production as well as fixed obligations for rapeseed and wheat procurement against value fluctuations, forward sales are entered into. In addition, in order to hedge revenues on sales contracts that are linked to the mineral diesel/gasoline prices, hedges in the form of fixed diesel/gasoline sales (fix) against variable diesel/gasoline prices are utilised.
In connection with raw material purchase contracts, price indexing exists that relates to the sales price of the products manufactured from the raw materials. These price indexing are bifurcated from the related purchase contracts as embedded derivatives.
At June 30, 2011 the positive fair value of these derivatives amounted to KEUR 8,876 (December 31, 2010: KEUR 3,408), the negative fair value was KEUR 5,539 (December 31, 2010: KEUR 21,615). Regarding the effect to the consolidated statement of comprehensive income, we refer to the section "result from commodity forward contracts".
In order to hedge variable interest payment obligations, interest rate swaps were entered into. The fair value of the interest rate hedging transactions is presented under derivatives. If no hedging relationships are designated, changes in the value are accordingly presented in the financial result. As of June 30, 2011, the negative fair value of the stand-alone interest rate hedging transactions amounted to KEUR 870 (December 31, 2010: KEUR 1,452). At the balance sheet date the negative fair value from interest rate swaps in hedging relationships amounted to KEUR 143 (December 31, 2010: KEUR 0) is recorded directly to equity.
Time deposits in the amount of KEUR 38 (December 31, 2010: KEUR 3,645) are pledged as collateral and therefore withdrawn from direct availability.
This item includes unrestricted cash and cash equivalents in the amount of KEUR 33,857 (December 31, 2010: KEUR 32,542) plus restricted cash and cash equivalents in the amount of KEUR 2,190 (December 31, 2010: KEUR 11,254).
This balance sheet item includes two wind energy plants of the VERBIO Diesel Bitterfeld GmbH & Co. KG (VDB), which are under sales purpose. The carrying amount as of June 30, 2011, taking the capitalised recultivation obligations into account, amounted to KEUR 1,127. A reclassification was made from property, plant and equipment to "assets held for sale".
The fair value reserves comprise the effective portion of changes in the fair value of forward purchase contracts which qualify as cash flow hedges as well as interest swaps. In line with the cash flow hedge accounting KEUR 7,567 of equity and of revenues (decrease of revenues) KEUR 2,178 has been reclassified to "Cost of materials" (decrease of "Cost of materials") during the reporting period.
At June 30, 2011, non-current provisions amounted to KEUR 19 (December 31, 2010: KEUR 56). This amount represents asset retirement obligations for wind power plants.
| KEUR | Investment subsidies |
Investment grants |
Total |
|---|---|---|---|
| 31/12/2010 | 12,045 | 2,593 | 14,638 |
| Additions | 256 | 0 | 256 |
| Release | -678 | -313 | -991 |
| Reclassification in liabilities in connection with non-current assets held for sale |
-281 | 0 | -281 |
| 30/06/2011 | 11,342 | 2,280 | 13,622 |
| Thereof current | 1,355 | 625 | 1,980 |
| Thereof non-current | 9,987 | 1,655 | 11,642 |
We refer to the detailed explanations in the consolidated notes for the financial year 2010.
Tax liabilities comprise trade tax obligations in the amount of KEUR 1,446 (December 31, 2010: KEUR 1,505), state-, council and federal tax of Switzerland in the amount of KEUR 157 (December 31, 2010: KEUR 157), corporate tax amounting to KEUR 974 (December 31, 2010: KEUR 961) and, unchanged to December 31, 2010, construction withholding tax in the amount of KEUR 5,918.
| KEUR | 30/06/2011 | 31/12/2010 |
|---|---|---|
| Litigation risks | 1,466 | 1,389 |
| Impending losses on pending sales transactions | 34 | 1,312 |
| Other provisions | 346 | 305 |
| Total provisions | 1,846 | 3,006 |
In the Biodiesel segment provisions for impending losses on existing sales contracts were recognised in the amount of KEUR 34 (2010: Biodiesel KEUR 1,312). The provision was recorded in the amount that the anticipated production costs exceed the expected sales prices.
With judgment of July 21, 2008 VERBIO Diesel Bitterfeld GmbH & Co. KG (VDB) was sentenced to pay a compensation amounting to KEUR 3,416 plus interest. VDB appealed the sentence within the time limit. Nevertheless, at December 31, 2010, the company has recognised a provision of KEUR 1,198 to cover the risk. At June 30, 2011 the interest rate was adjusted in the amount of KEUR 28 to KEUR 1,226.
| KEUR | 30/06/2011 | 31/12/2010 |
|---|---|---|
| Liabilities from grain and rapeseed transactions | 8,637 | 62,097 |
| Energy tax | 4,899 | 5,644 |
| Liabilities from the acquisition of Märka GmbH | 1,500 | 1,500 |
| Bonuses and special payments | 929 | 1,511 |
| Realised losses on forward contracts | 908 | 1,682 |
| Wages and salaries | 892 | 893 |
| Value-added tax | 591 | 6,295 |
| Advanced payments received on orders | 438 | 2,599 |
| Miscellaneous other current liabilities | 1,901 | 2,365 |
| Total other current liabilities | 20,695 | 84,586 |
It is aimed to sell two wind energy plants balanced at VDB. In this connection investment grants issued (KEUR 281) and dilapidation reserves (KEUR 37) were reclassified to a separate balance sheet item "Liabilities in connection with assets held for sale".
The Group's risks and earnings are significantly affected by its business segments. Segmentation into biodiesel, bioethanol, trade Märka and other is in accordance with the Group's internal organisational and management structure. The "other" segment includes the business segment transport, logistics and energy.
Segmentation on a geographical basis was not made, since such segmentation is not used for the VERBIO Group's controlling.
In the following revenues are net of energy tax amounting to KEUR 11,518 (6 M 2010: KEUR 10,308).
| KEUR | Biodiesel | Bioethanol | Trade Märka | Other | ||||
|---|---|---|---|---|---|---|---|---|
| 1 HY 2011 | 1 HY 2010 | 1 HY 2011 | 1 HY 2010 | 1 HY 2011 | 1 HY 2010 | 1 HY 2011 | 1 HY 2010 | |
| Revenue | 197,116 | 165,344 | 81,626 | 68,971 | 73,143 | 0 | 13,776 | 8,767 |
| Thereof third party revenue |
191,815 | 165,344 | 74,877 | 68,971 | 41,294 | 0 | 7,003 | 8,767 |
| Change in finished and unfinished goods |
3,521 | 252 | 3,746 | -365 | 0 | 0 | 0 | 0 |
| Capitalised production of own plant and equipment |
129 | 0 | 644 | 987 | 0 | 0 | 0 | 0 |
| Other operating income |
964 | 1,583 | 1,850 | 8,741 | 2,418 | 0 | 521 | 7,752 |
| Cost of materials | -183,454 | -151,433 | -79,164 | -60,393 | -65,577 | 0 | -8,305 | -5,851 |
| Personnel expenses | -3,362 | -3,660 | -4,890 | -4,506 | -3,877 | 0 | -2,727 | -1,109 |
| Depreciation and amortisation |
-3,132 | -3,170 | -7,001 | -1,175 | -1,963 | 0 | -921 | -875 |
| Other operating expenses |
-7,043 | -7,047 | -7,022 | -7,624 | -4,399 | 0 | -1,837 | -3,076 |
| Result of forward contract transactions |
1,798 | -3,448 | 577 | -925 | 3,462 | 0 | 0 | 0 |
| Segment result | 6,537 | -1,579 | -9,634 | 3,711 | 3,207 | 0 | 507 | 5,608 |
| Financial result | -921 | -814 | -1,033 | -433 | -667 | 0 | -26 | -31 |
| Result before taxes | 5,616 | -2,393 | -10,667 | 3,278 | 2,540 | 0 | 481 | 5,577 |
| KEUR | Total segments | Intersegment revenues and expenses |
Other corrections Group |
Group | |||||
|---|---|---|---|---|---|---|---|---|---|
| 1 HY 2011 | 1 HY 2010 | 1 HY 2011 | 1 HY 2010 | 1 HY 2011 | 1 HY 2010 | 1 HY 2011 | 1 HY 2010 | ||
| Revenue | 365,661 | 243,082 | -50,672 | 0 | 0 | 0 | 314,989 | 243,082 | |
| Change in finished and unfinished goods | 7,267 | -113 | 0 | 0 | 0 | 0 | 7,267 | -113 | |
| Capitalised production of own plant and equipment |
773 | 987 | 0 | 0 | 0 | 0 | 773 | 987 | |
| Other operating income | 5,753 | 18,076 | -389 | 0 | 0 | 0 | 5,364 | 18,076 | |
| Cost of materials | -336,500 | -217,677 | 47,061 | 0 | -465 | 0 | -289,904 | -217,677 | |
| Personnel expenses | -14,856 | -9,275 | 0 | 0 | 0 | 0 | -14,856 | -9,275 | |
| Depreciation and amortisation | -13,017 | -5,220 | 0 | 0 | 0 | 0 | -13,017 | -5,220 | |
| Other operating expenses | -20,301 | -17,747 | 4,008 | 0 | 0 | 0 | -16,293 | -17,747 | |
| Result of forward contract transactions | 5,837 | -4,373 | 0 | 0 | 0 | 0 | 5,837 | -4,373 | |
| Segment result | 617 | 7,740 | 8 | 0 | -465 | 0 | 160 | 7,740 | |
| Financial result | -2,647 | -1,278 | 0 | 0 | 0 | 0 | -2,647 | -1,278 | |
| Result before taxes | -2,030 | 6,462 | 8 | 0 | -465 | 0 | -2,487 | 6,462 |
| KEUR | 30/06/2011 | 31/12/2010 |
|---|---|---|
| Biodiesel | 192,634 | 241,453 |
| Bioethanol | 200,228 | 244,263 |
| Trade Märka | 97,987 | 96,729 |
| Other | 11,917 | 10,524 |
| Group | 502,766 | 592,969 |
Other corrections mainly include the intercompany profit elimination in connection with the sale of raw materials through the segments trade Märka and bioethanol. Compared to December 31, 2010 the decrease in segment assets in the biodiesel and bioethanol segment is mainly due to the reduction of inventory stock and decreased guarantees for non-realised losses from forward contracts (included in other assets).
Compared to the previous year the transport sector of Märka Group, which is consolidated since November 1, 2010, was assigned to the other segment (assets: KEUR 4,290). As of December 31, 2010 this sector was shown under the segment trade Märka in the consolidated financial statements with assets in the amount of KEUR 4,247.
VERBIO Half-Year-Report 2011 | 33
Regarding contingent liabilities please refer to the information in the consolidated notes for the financial year 2010.
Regarding pending litigations please refer to the information in the consolidated notes for the financial year 2010.
With judgement of March 28, 2011 a claim in the district court of Hamburg, in which a business partner is claiming refunds from a project contract entered into in previous years with VERBIO STS AG (STS) in the amount of KEUR 1,900 was rejected in its full amount.
Additional financial commitments of KEUR 10,376 exist from various long-term leasing contracts. Allotted to the following year are KEUR 1,506, KEUR 1,655 are allotted to the next one to five years and KEUR 7,215 for a period exceeding five years.
The leasing contract about the operation of 22 wind energy plants was disbanded by VERBIO Ehanol Schwedt GmbH & Co. KG and the owner of the wind power plants in the second quarter of 2011. On the other hand VES concluded a heritable building right contract about one site with the PCK Raffinerie GmbH, Schwedt. The heritable building right will end on May 31, 2053.
For further information please refer to the explanations in the consolidated notes for the financial year 2010.
As at June 30, 2011 there is an open purchase obligation for investments amounting KEUR 5,986 (December 31, 2010: KEUR 1,858).
Related party disclosures mainly relate to the production of goods and services and in particular to the sale of biofuels as well as transportation services. The comparability of these transactions is limited due to the consolidation of the Märka-Group (November 1, 2010).
For further information please refer to the explanations of related party disclosures in the consolidated notes for the financial year 2010.
There were no significant events subsequent to the end of the reporting period.
The interim financial statements and interim management report on hand were not subject to any form of audit or review by an auditor.
As the legal representatives of VERBIO, we declare that – to the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting – the interim consolidated financial statements give a true and fair view of the income, assets and financial situation of the Group, and the interim consolidated management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
VERBIO Vereinigte BioEnergie AG Leipzig, August 11, 2011
Claus Sauter Dr. Oliver Lüdtke Management Board & CEO
Theodor Niesmann Bernd Sauter
Chairman of the Deputy Chairman of the Management Board
Management Board Member Management Board Member
Alexander von Witzleben Chairman of the Supervisory Board
President, Feintool International Holding AG, Lyss, Switzerland
Other Supervisory Board mandates: • PVA TePla AG, Wettenberg
Mandates in comparable controlling bodies: • Kaefer Isoliertechnik GmbH & Co. KG, Bremen
Ulrike Krämer Member of the Supervisory Board Deputy Chairman of the Supervisory Board
Managing director, M&K Treuhand GmbH, Ludwigsburg
Dr.-Ing. Georg Pollert Member of the Supervisory Board (since June 24, 2011)
Chemist and process engineer, Berlin
Dr.-Ing. Claus Meyer-Wulf Member of the Supervisory Board (until June 24, 2011)
Manager environmental protection, Aurubis AG, Lünen
Claus Sauter Chairman of the Management Board & CEO
Responsible for corporate development, press and publicity, puchasing, sales and trading, product planning, mergers & acquisitions, finance and accounting, taxes, controlling, treasury, investor relations, law and IT
Bioethanol/Biogas (since May 19, 2011) Deputy Chairman of the Management Board
Responsible for the bioethanol and biogas segment (research and development, production, project development) and data privacy
Biodiesel and plant engineering (since May 19, 2011)
Responsible for the biodiesel segment (research and development, production), plant engineering, quality management and workplace safety
Procurement, logistics and HR director
Responsible for procurement (solid raw materials), logistics and transport, fleet and property management, insurances and HR
Dr.-Ing. Georg Pollert Production, technology and HR director (until May 18, 2011) Deputy Chairman of the Management Board
Responsible for research and development, production, plant engineering, quality management, workplace safety and HR
| March 23, 2011 | Publication of consolidated financial statements 2010 Analysts' conference/press conference on financial statements in Frankfurt/Main |
|---|---|
| May 12, 2011 | Publication of the quarterly financial report up to March 31, 2011 Telephone conference with analysts' and investors |
| June 24, 2011 | Annual General Meeting at Radisson Blu Hotel, Leipzig |
| August 11, 2011 | Publication of the quarterly financial report up to June 30, 2011 Telephone conference with analysts' and investors |
| November 10, 2011 | Publication of the quarterly financial report up to September 30, 2011 Telephone conference with analysts' and investors |
VERBIO Vereinigte BioEnergie AG Augustusplatz 9 04109 Leipzig Phone: +49 341 308530-90 Fax: +49 341 308530-99 www.verbio.de
Anna-Maria Schneider, CIRO Phone: +49 341 308530-94 Fax: +49 341 308530-98 Email: [email protected]
Editing/Text VERBIO Vereinigte BioEnergie AG, Leipzig
For technical reasons (e. g. the conversion of electronic formats) there may be variances between the financial statements contained in this half-year report and those submitted to the electronic Federal Gazette. In this case the version submitted to the electronic Federal Gazette is considered to be binding.
This half-year report contains statements that relate to the future and are based on assumptions and estimates made by the management of VERBIO Vereinigte BioEnergie AG. Even if the management is of the opinion that these assumptions and estimates are appropriate the actual development and the actual future results may vary from these assumptions and estimates as a result of a variety of factors. These factors include, for example, changes to the overall economic environment, the statutory and regulatory conditions in Germany and the EU and changes in the industry. VERBIO Vereinigte BioEnergie AG makes no guarantee and accepts no liability for future development and the actual results achieved in the future matching the assumptions and estimates stated in this half-year report. It is neither the intention of VERBIO Vereinigte BioEnergie AG nor does VERBIO Vereinigte BioEnergie AG accept a special obligation to update statements related to the future in order to align them with events or developments that take place after this report is published. This half-year report is available in German; if there are variances the German version has priority over the English translation. It is available for download in both languages at http://www.verbio.de.
We will be delighted to send you additional copies and further information material on VERBIO Vereinigte BioEnergie AG free of charge on request. Telephone: +49 341 308530-90 Fax: +49 341 308530-99 Email: [email protected]
VERBIO Vereinigte BioEnergie AG Augustusplatz 9 04109 Leipzig Phone: +49 341 308530-90 Fax: +49 341 308530-99 www.verbio.de
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