Quarterly Report • Dec 12, 2007
Quarterly Report
Open in ViewerOpens in native device viewer
Annual Report 2006/07
| 2006/07 | 2005/06 | 2004/05 | 2003/04 | ||
|---|---|---|---|---|---|
| Balance sheet total | m EUR | 75.9 | 75.6 | 72.7 | 72.5 |
| Shareholders' equity | m EUR | 75.8 | 75.4 | 72.5 | 72.4 |
| Investment income | m EUR | 6.1 | 6.0 | 3.3 | 3.3 |
| Net income | m EUR | 6.0 | 5.9 | 3.2 | 3.2 |
| 2006/07 | 2005/06 | 2004/05 | 2003/04 | ||
|---|---|---|---|---|---|
| Forecast | |||||
| Total electricity sales | GWh | 1,172.9 | 1,217.7 | 1,203.4 | 1,302.6 |
| Revenues | m EUR | 240.9 | 216.3 | 210.7 | 194.6 |
| Pre-tax profit | m EUR | 25.0 | 31.6 | 32.1 | 36.9 |
| Total assets | m EUR | 705.7 | 604.5 | 594.2 | 576.7 |
| Shareholders' equity 1)1) | m EUR | 236.9 | 229.5 | 219.8 | 201.2 |
1) incl. untaxed reserves
| 2006/071) | 2005/06 | 2004/05 | 2003/04 | ||
|---|---|---|---|---|---|
| Natural gas sales volume | m m3 | 160.5 | 198.4 | 194.2 | 192.9 |
| Revenues | m EUR | 54.1 | 63.0 | 54.4 | 54.7 |
| Pre-tax profit | m EUR | 7.4 | 10.0 | 9.9 | 14.6 |
| Balance sheet total3) | m EUR | 226.3 | 219.4 | 206.6 | 196.5 |
| Shareholders' equity2)3) | m EUR | 125.9 | 121.3 | 112.6 | 94.8 |
1) Forecasted unaudited consolidated figures 2) incl. untaxed reserves/and construction cost subsidies
3) Balance sheet total and shareholders' equity pursuant to IFRS as from the 2004/05 business year
| Share capital, denomination | EUR 21,81m |
|---|---|
| 3m individual no-par shares | |
| Majority shareholder | EVN AG |
| ISIN securities identification number | AT 0000640552 |
| Ticker Symbols | BHAV.VI (Reuters) |
| BHD AV (Bloomberg) | |
| AT;BHD (Dow Jones) | |
| Listed | Vienna |
October 1, 2006 – September 30, 2007
| Burgenland Holding AG | Changes | |||
|---|---|---|---|---|
| 2006/07 | 2005/06 | +/- % | ||
| Investment income | m EUR | 6.1 | 6.0 | 0.4 |
| Net income | m EUR | 6.0 | 5.9 | 1.3 |
| Dividend/share | EUR | 1.901) | 1.9 | – |
| Balance sheet total | m EUR | 75.9 | 75.6 | 0.4 |
| Shareholders' equity | m EUR | 75.8 | 75.4 | 0.5 |
1) Proposal to the AGM
| Key figures | Cover |
|---|---|
| 2006/07 Highlights | 1 |
| Company Profile | 2 |
| Foreword | 3 |
| Burgenland Holding AG | 4 |
| Corporate Bodies | 4 |
| Corporate Governance | 4 |
| Group structure | 5 |
| Performance of BEWAG | 7 |
| Performance of BEGAS | 8 |
| Management Report | 11 |
| The Company's environment | 11 |
| Burgenland Holding AG – | |
| The 2006/07 Business Year | 12 |
| The Burgenland Holding Share | 14 |
| Environmental protection | 15 |
| Branch offices | 15 |
| Risk report | 15 |
| Research and development | 15 |
| Outlook | 15 |
| Financial Statements 2006/07 | 16 |
| Balance Sheet | 17 |
| Development of Fixed Assets | 18 |
| Income Statement | 18 |
| Notes | 19 |
| Auditor's report | 25 |
| Proposed distribution of profits | 25 |
| Report of the Supervisory Board | 25 |
The shares of Burgenland Holding AG (share capital: EUR 21.81m) are listed on the Official Market of the Vienna Stock Exchange under ISIN 00000640552. EVN AG holds a stake of 72.27 % of the share capital stock of Burgen land Holding AG, while Verbund Austrian Hydro Power AG holds more than 10% and Wiener Stadtwerke AG Holding AG holds between 5% and 10%. No other shareholder holds more than 5%.
Burgenland Holding AG continues to hold a 49% interest in the share capital of Burgen ländische Elektrizitätswirtschafts-AG (BEWAG) in the amount of EUR 34.88m. The remaining 51% of the shares are held by the Province of Burgenland. Burgenland Holding AG also continues to hold a 49% stake in the share capital of BEGAS amounting to EUR 7.44m. The remaining shares are held by BEGAS-
Gemeindeanteilsverwaltung AG (GAV). The share holders in GAV are exclusively the municipalities in the Burgenland supplied with natural gas.
In spite of a significant decline in energy consumption as a result of the warm weather last year, the associated companies of Burgenland Holding AG have performed well. Thus, the Management Board can again recommend to the AGM the distribution of an unchanged dividend of EUR1.90 per share.
Against the background of still rising supply costs for electricity and gas and the decrease in grid rates due to rationalisation requirements, there is clearly noticeable pressure on profit development, which can only be offset by increasing investment income, in particular in the field of electricity and heat generation on the basis of biomass and wind power as well as continuing cost management.
In an extraordinary general meeting on December 6, 2007, the shareholders of Burgenland Holding AG filed a joint statement on the strategic orientation of BEWAG. The company's business is to be governed by the principle of concentration on core business actitivities in electricity grid operations, electricity trading and generation. This decision will entail a reduction of foreign operations, in particular in non-core areas, the preparation of a concept on expanding domestic electricity production from alternative energy sources, alone or - where necessary - with partners, with the extent of the exposure to be in line with a balanced risk structure; fur-
thermore, the entire range of options with regard to efficiency and accounting is to be utilised in order to improve BEWAG's investment and disbursement capacities. Based on this shareholder statement, it is now the task of BEWAG's Management Board to work out adequate proposals and concepts within the next few months and to present those to the Supervisory Board and, where applicable, to the AGM for approval and decision-making.
The performance of the associated companies overall suggests that the Holding's dividend policy will allow a distribution of dividends for the following business year at no less than this year's level.
Günther Ofner Michael Gerbavsits
In the light of the challenges in the energy markets, BEWAG and BEGAS are faced with the task to adapt to the competitive situation as best they can and to align their business portfolios with the requirements. More than anything else, the integration in EnergieAllianz, in which BEWAG and BEGAS hold 7% and 3 %, respectively, offers a sound foundation for a successful future.
Günther Ofner Michael Gerbavsits
Chairman Vice CEO Raiffeisenlandesbank Burgenland
Peter Layr Member of Executive Board EVN AG
Michael Amerer Member of Executive Board VERBUND-Austrian Hydro Power AG
Burkhard Hofer Speaker of Executive Board EVN AG
Josef Kaltenbacher Branch manager BAWAG Eisenstadt
Michael Obentraut Member of Executive Board retired Wiener Stadtwerke Holding AG
Werner Perz Managing Director EnergieAllianz Austria G.m.b.H.
Felix Sawerthal Head of Secretariat General and Corporate Affairs, EVN AG
Gerold Stagl Regional Manager Wiener Städtische Versicherung AG
Günther Ofner Michael Gerbavsits Burgenland Holding is an Austrian public limited company. Thus, corporate governance can be defined within the framework of the Austrian Code of Corporate Governance, in addition to the regulations of Austrian law, in particular the Companies Act and Capital Markets Act, regulations on employee co-de termination, as well as the by-laws of Burgen land Holding AG.
The Management and Supervisory Boards of Burgenland Holding are bound by the Principles of Good Corporate Governance. Investors expect responsible and transparent corporate governance and management control with a long-term perspective. To this end, Burgenland Holding AG fully subscribed to the Austrian Code of Corporate Governance as of October 1, 2006. Even prior to that date, however, the Company had explicitly embraced the objective of the Code and acknowledged a large part of its regulations.
The standards of the Austrian Code of Corporate Governance are subdivided into three groups: The first category (Legal Requirement) – based exclusively on mandatory legal provisions – has to be applied by all listed Austrian companies and is also fulfilled to the letter by Burgenland Holding. Concerning C-regulations (Comply- or-Explain), listed companies are obliged to provide statements on compliance at regular intervals, while R-regulations are of purely recommendatory character and leave companies a choice to deviate from such regulations without a need for explanation.
Mostly because of industry peculiarities of the Austrian energy sector, Burgenland Holding is unable to comply with the following C-regulations of the Austrian Code of Corporate Governance:
Regulations 4 and 5: Disclosure of motions and all documents including motions and counter-motions of shareholders on the Company's website including a download option does not appear to be conducive, as such information is not open to the general public, but public only to shareholders; this means that only shareholders are entitled to inspect such documents. Filing shareholders also have a right to confidentiality.
Regulation 16: Given the Company's holding function and the resulting collegial decisionmaking, which has always resulted in unanimous resolutions, it is considered unnecessary to appoint a chairperson of the Management Board.
Regulation 27: In view of the size of the Company, the Management Board's remuneration is based on an hourly lump sum; thus, it does not include any fixed or performancebased components..
Regulation 37: compare Regulation 16; any discussion on strategy, business performance and risk management is effected by the entire Management Board.
Regulations 38 and 41: The Company is subject to the mandatory provisions of the Staffing Act. The last sentence is not complied with, as the qualification of candidates is always given precedence over any age limit.
Regulations 64, 66, 67 and 74: As there is no obligation to prepare consolidated group accounts, IFRS are not applied. Reporting is effected pursuant to applicable Austrian financial reporting requirements.
49 % Burgenländische Elektrizitäts wirtschafts-AG (BEWAG)
100% Pannon Szél-erö Kft. (Budapest, Ungarn)
100% WPPM - Wind Power Pavlov Moravia s.r.o. (Brünn, Tschechien)
55,2% EPZ Energieprojekt Zurndorf GmbH
50% PAMA-GOLS Windkraftanlagenbetriebs GmbH
50% PAMA-GOLS Windkraftanlagenbetriebs GmbH & Co KG
50% VEM - Vetrná Energie Morava s.r.o. (Brünn, Tschechien)
50% SWP - Slovakian Wind Power s.r.o. (Bratislava, Slowakei)
50% PSW - Polska Sila Wiatru Sp. z.o.o. (Warschau, Polen)
50% CEMP - Čista Energija Mediterana I Panonije d.o.o. (Zagreb, Kroatien)
50% BWP - Bystrický Wind Power s.r.o. (Bratislava, Slowakei)
25% twp srl - Torremaggiore Wind Power s.r.l. (Mailand, Italien)
100% BEWAG Netz GmbH 100% BEWAG Energievertrieb GmbH & Co KG 100% EZH-Energiezentrale Heiligenkreuz Ges.m.b.H. 100% Austrian Wind Power GmbH 100% BEWAG Geoservice GmbH 100% PEW Pinkafelder Elektrizitäts-Werke GmbH 100% BEWAG Licht & Service GmbH 100% B.net Burgenland Telekom GmbH 100% B.net Hungaria Kft. (Sopron, Ungarn) 100% SIM Kft. (Fertöszentmiklós, Ungarn) 100% Aircom Kft. (Sopron, Ungarn) 100% Dataservice GmbH 100% B.net Hrvatska d.o.o. 100% BECOM Electronics GmbH 100% BECOM Electronics Hungary Kft. 100% BEWAG Konzernclearing GmbH 100% BKF Das Burgenland Fernsehen GmbH 50% Biomassekraftwerk Heiligenkreuz Betriebs GmbH 99% Biomassekraftwerk Heiligenkreuz Errichtungs GmbH 50% Best Energy VertriebsgmbH 33,33% EBRZ Erstes Burgenländisches Rechenzentrum GmbH 7% ENERGIEALLIANZ Austria GmbH 7% e&t Energie Handelsgesellschaft m.b.H. 4,57% Vereinigte Telekom Österreich Beteiligungs GmbH 2,52% APCS Power Clearing and Settlement AG 1,26% CISMO Clearing Integrated Services and Market Operations GmbH
49 % Burgenländische Erdgasversorgungs-AG (BEGAS)
100% IGM Industrie- und Gewerbepark Mittelburgenland Erwerbs-, Erschließungs- und Errichtungs-Gesellschaft m.b.H.
100% BEGAS Kraftwerk G.m.b.H.
100% RVH Reststoffverwertungs GmbH
100% BEGAS Handel G.m.b.H.
100% BEGAS Energievertriebs G.m.b.H. & Co. KG
100% BEGAS Wärme & Service G.m.b.H.
99,43% Biomassekraftwerk Oberpullendorf Errichtungs- und Betriebs GmbH
50% Biomassekraftwerk Heiligenkreuz Betriebs G.m.b.H.
49% Energiewerk G.m.b.H.
50% Best Energy VertriebsgmbH
3,0% EnergieAllianz Austria G.m.b.H.
3,0% e&t Energie Handelsgesellschaften m.b.H.
2,6% EconGas G.m.b.H.
1% Biomasse Kraftwerk Güssing G.m.b.H. u. Co. KG
1% Austria Ferngas Gesellschaft m.b.H. i. Liquidation
0,44% AGCS Gas Clearing and Settlement AG 0,22% CISMO GmbH
October 1, 2006 – September 30, 2007
Information on performance refers to a preview of BEWAG's group accounts for the 2006/07 business year as of September 30, 2007, based on the interim accounts as of June 30, 2007 (9 months of actual figures and 3 months of budget figures). For com parison, we present the figures from the group accounts as of September 30, 2006.
The comparability of the figures is limited to the extent that the consolidation circle has changed due to the initial consolidation of the Croatian telecom companies (Digitalni Centar Medija d.o.o. (DCM) (per 1.4.2007) and Adriatic Kabel d.o.o. (AK) (per 1.5.2007), now B.net Hrvatska d.o.o.), BKF-Das Burgenlandfernsehen GmbH and Biomassekraftwerk Heiligenkreuz Betriebs GmbH (BKHB) and Biomasse kraftwerk Heiligenkreuz Errichtungs GmbH (BKHE) (50% each).
The operating cash flow of EUR 59.8m will be 3.6% higher than last year.
As of September 30, 2007, the balance sheet total will amount to EUR 705.7m. The share of fixed assets (EUR 615.8m) in total assets will be 87.3%. The increase in fixed assed by EUR 84.7m will essentially be put down to the initial consolidation of BKHE, DCM and AK. Shareholder's equity including untaxed reserves will rise 3.2% to EUR 236.9m, resulting in an equity ratio of 33.6%.
At the time of printing, the final statements of BEWAG as of September 30, 2007 (2006/07 business year) were not available. We are there fore presenting data based on forecasts referring to the interim accounts as of June 30, 2007.
In the fourth quarter of the 2006/07 business year, the Croatian telecom subsidiaries will be amalgamated and renamed B.net Hrvatska.
In the 2006/07 business year, BEWAG's electricity supply will amount to 1,242.3GWh, and electricity sales to final customers by BEWAG Energievertrieb GmbH & Co KG will be 1,172.9 GWh, around 3.8 % below the volume in the corresponding period of the previous year (October 1, 2005 – September 30, 2006). Compared to the previous business year, grid sales will drop approximately 3.0 % to 1,463.1 GWh, which will mainly be due to the warm winter in 2006/07.
The revenues of the BEWAG Group will amount to about EUR240.9 Mio EUR, an increase of 11.4% compared to the previous year. This will mainly be the result of revenue increases by BEWAG Energievertrieb GmbH & Co KG and BECOM Electronics GmbH as well as initial consolidations of BKHB, DCM and AK on the one hand, and a decrease in grid sales on the other. Pre-tax profits will amount to about EUR 25.0m.
| 2006/07 | 2005/06 |
|---|---|
| Forecast | |
| 1,172.9 | 1,217.7 |
| 1,463.1 | 1,506.3 |
| 240.9 | 216.3 |
| 25.0 | 31.6 |
| 705.7 | 604.5 |
| 236.9 | 229.5 |
| 59.8 | 57.7 |
| GWh GWh m EUR m EUR m EUR m EUR m EUR |
1) Shareholders' equity incl. untaxed reserves
October 1, 2006 – September 30, 2007
Information on performance refers to the forecast financial statements of BEGAS, BEGAS Energie ver trieb GmbH&Co KG, BEGAS – Wärme & Service GmbH BEGAS Kraftwerk GmbH and IGM – Industrie-u. Gewerbepark Mittelbgld. Erwerbs-, Erschließungs- und Errichtungs- Gesellschaft m.b.H. consolidated by management (no consolidation under the Commercial Code).
In total, 160.5m³ of natural gas was sold from October 2006 to September 2007. This represents a decrease in the natural gas sales volume of 19.1 % compared to the same period of the previous year and can be put down mainly to the mild temperatures during the winter months.
The BEGAS Group generated revenues of EUR54.1m in the reporting period for the 2006/07 business year. The decrease in sales volume in the grid sector due to the warm temperatures combined with a reduction in the mandatory grid use rates as of January 1, 2007, were the main factors in the decline in revenues compared to the previous year.
| 2006/071) | 2005/06 | Change | ||
|---|---|---|---|---|
| +/- % | ||||
| Total natural gas sales grid | m m³ | 160.5 | 198.4 | -19.1 |
| Revenues | m EUR | 54.1 | 63.0 | -14.1 |
| Pre-tax profit | m EUR | 7.4 | 10.0 | -26.0 |
1) Forecasted unaudited consolidated figures
In the course of EU market liberalisation, the Austrian electricity and gas markets were liberalised in 2001 and 2002, respectively. For the electricity grid sector, an incentive regulation model (2006-2009) was introduced in early 2006. The system generally provides for an adjustment for inflation, reduced by an increase in productivity generally expected of the Austrian grid operators as well as a companyspecific increase in efficiency.
The world economy continued to show dynamic growth in 2006 and 2007. In 2006, the real growth rate of the world economy was 3.7% and thus above last year's result. Despite the US housing crisis and turbulences in the international financial markets, a similar growth rate is expected for 2007. The Eurozone showed a 2.7% increase in 2006 and thus recorded its strongest increase in the last 6 years. It even marked an increase in economic activity in the first half of 2007, which was due mainly to an increase in investment demand. The latest fore casts assume that the recent financial turmoil will only have a marginal impact on the economic development and that the sound economic foundation of the Eurozone will absorb the financial shocks. Overall, GDP is expected to rise by 2.6% in the Eurozone.
By contrast, the economy in the US has cooled off in recent months. Following strong GDP growth of 3.4% last year, this figure is expected to drop to 1.9% in 2007. Smaller increases in real wages and the weakness of the housing sector have a dampening effect on consumer sentiment.
The Austrian economy continues to profit from the favourable economic development worldwide as well as from EU enlargement. GDP growth in 2006 amounted to 3.2%. Following the strong economy in the first six months of 2007, GDP is expected to even rise by 3.5%. This, however, will mark the peak of the economic cycle. For the next two years, forecasts predict a marked decrease in real economic growth to 2.7% and 2.2% per year, respectively. Still, Austria will thus continue to outperform the EU average. The main drivers of economic growth at the moment are still exports and investments. Inflation rates for 2007 and 2008 of roughly 1.9% and 2.1%, respectively, are subdued.
It is a matter of fact that the conditions in the energy sector have a major impact on the performance of an energy provider. Of the various factors working in different ways, the following had a material impact on the results for the 2006/07 business year:
the price of CO2-emissions certificates dropped sharply in the middle of 2006. This trend was reinforced in the winter of 2006 as a result of the lower electricity demand due to the mild weather. Overall, the price of CO2-emissions certificates was EUR 3.1 per ton as compared to EUR 20.7 per ton last year.
• The falling prices of primary energy and the drastic decline in prices of CO2-emissions certificates led to a decrease in the whole sale prices of electricity in Europe by more than a third in the reporting period. However, the falling spot market rates only have a limited impact on procurement costs, as electricity is purchased mainly in the forward market.
October 1, 2006 – September 30, 2007
The performance of Burgenland Holding is determined mainly by the dividends of the two associated companies BEWAG and BEGAS.
In the 2006/07 business year, Burgenland Holding received investment income amounting to EUR 6.08m (2005/06: 6.06m), which was composed of the BEWAG dividend of EUR 5.29m and the BEGAS distribution in the amount of EUR 0.73, both for the 2005/06 business year. In addition, Burgenland Holding received a dividend of EUR 0.05m from Wiener Börse AG, in which Burgenland Holding continues to hold 0.88%.
In total, investment income was 0.4% above the corresponding value for the previous year. Burgenland Holding AG does not engage in operations itself and employs no personnel. Research and development activities are not carried out within the company but in its associated enterprises.
Based on the net profit for 2006/07, a dividend in the amount of EUR 1.90 per share, totalling EUR 5.70m, is to be distributed to the share holders.
Burgenland Holding's sound capital structure remained basically unchanged compared to the 2005/06 business year. The balance sheet total stood at EUR 75.9m, an increase of EUR 0.24m on the previous year. As of September 30, 2007, the equity ratio amounts to 99.9%.
The Company's share capital was reorganized following a resolution of the Tenth Annual General Meeting on July 7, 1999, and now amounts to EUR 21.81m, broken down into 3 million individual bearer shares
| 2006/07 | 2005/06 | +/- | ||
|---|---|---|---|---|
| Forecast | ||||
| Pre-tax profit | m EUR | 6.0 | 5.9 | 1.3 |
| Investment income | m EUR | 6.1 | 6.0 | 0.4 |
| Net income | m EUR | 6.0 | 5.9 | 1.3 |
| Balance sheet total | m EUR | 75.9 | 75.6 | 0.4 |
| Fixed assets | m EUR | 70.5 | 70.5 | - |
| Current assets, prepaid expenses and deferred charges | m EUR | 5.4 | 5.1 | 5.8 |
| Shareholders' equity | m EUR | 75.8 | 75.4 | 0.5 |
| Debt capital | m EUR | 0.1 | 0.1 | - |
| 2006/07 in TEUR |
2005/06 in TEUR |
+/- abs. in TEUR |
+/- % | ||
|---|---|---|---|---|---|
| EBIT | Pre-tax profit + | 6,048 | 5,969 | 79 | 1.3 |
| interest and similar expenses | |||||
| pursuant to § 231 (2) Z 15 UGB | |||||
| (Austrian Commercial Code) |
Since the business activities of Burgenland Holding AG are confined to holding and managing investments, Burgenland Holding AG again did not generate any revenues in the past 2006/07 business year.
| 2006/07 in TEUR |
2005/06 in TEUR |
+/- abs. in TEUR |
+/- % | ||
|---|---|---|---|---|---|
| Return on capital | |||||
| Return on equity | Pre-tax profit / average shareholders' equity | 8.0 % | 8.1 % | - | -0.1 % |
| Return on assets | EBIT / | ||||
| Pre-tax profit / average total assets | 8.0 % | 8.1 % | - | -0.1 % |
| 2006/07 in TEUR |
2005/06 in TEUR |
+/- abs. in TEUR |
+/- % | ||
|---|---|---|---|---|---|
| Working capital | Current assets – | 5,341 | 4,997 | 344 | 6.9 % |
| Long-term current assets | |||||
| = short-term current assets – | |||||
| short-term debt capital | |||||
| = Working capital | |||||
| Equity ratio | Shareholders' equity / Total assets | 99.9 % | 99.8 % | - | 0.1 |
Burgenland Holding AG does not show any liabilities vis-à-vis credit institutions either as of September 30, 2007, or in the corresponding period. The working capital increased due to higher investments in the Group (cash pooling). Like last year, net gearing (net debt / shareholders' equity) amounts to 0.00%.
| 2006/07 | 2005/06 | +/- abs. | +/- % | |
|---|---|---|---|---|
| in TEUR | in TEUR | in TEUR | ||
| Net operating cash flow | 5,985 | 5,961 | 24 | 4.0 % |
| Net investment cash flow | 0 | 0 | - | - |
| Net financing cash flow | -5,700 | -3,060 | -2,640 | -86.3 % |
| Change in cash and cash equivalents affecting cash flow | 285 | 2,901 | -2,616 | -90.2 % |
Based on a net income of EUR 6.0m, it was possible to achieve an operating cash flow of almost EUR 6.0m. The high net income was determined to a large extent by the distributions of the associated companies. Due to the increased distribution from the net profit from the 2005/06 business year, the cash flow of Burgenland Holding AG decreased to TEUR 285.
Between October 2006 and September 2007, international stock markets generally performed well. Despite an increase in share price fluctuations due to numerous corrections in late February/early March, late May/mid-June, and especially mid-July/August as a result of the credit crisis in the US, many share indices managed to continue their positive trend.
In the reporting period, the German DAX rose 30.9 %, while the European EuroStoxx 50 index increased by a respectable 12.4 %. The American Dow Jones index, which just recently again reached an all-time-high, had
gone up almost 19% as of the end of Sept ember. The Japanese Nikkei index, which had suffered most from the turmoil in the credit sector, edged up only 4.1%.
Vienna's leading ATX index rose 17 By comparison, the DOW JONES EURO STOXX UTILITIES industry index, relevant for Burgen land Holding, performed very well and posted an increase of 24.9 %.
The shares of Burgenland Holding closed at 67.61 at the end of September 2007; this represents a small decrease by 0.54% and thus a stable performance in the reporting period. This corresponds to a market capitalisation of currently EUR 203m. At the end of September 2007, its weighting in the WBI was 0.13%.
| Performance | 2006/07 | 2005/06 | 2005/06 | |
|---|---|---|---|---|
| Average daily volume | No. | 55 | 93 | 78 |
| Total share volume | m EUR | 0.94 | 1.34 | 0.96 |
| Share price high | EUR | 72.00 | 70.00 | 51.00 |
| Share price low | EUR | 59.60 | 45.05 | 45.00 |
| Share price as of the last trading day in September | EUR | 67.61 | 67.98 | 49.15 |
| Market capitalisation as of the last trading day | ||||
| in September | m EUR | 203 | 204 | 147 |
| Weighting in the WBI index as of the last trading | ||||
| day in September | % | 0.13 | 0.16 | 0.15 |
Important dates for investors: see back of this report Details on the share: see inside front cover
Early on, EVN Group installed a comprehensive environmental management system in order to take into account environmental protection in all its management decisions; Burgenland Holding AG is also integrated in this system.
Environmental activities are not conducted within the Company itself, but are carried out by the associated companies BEWAG and BEGAS on the one hand, and EVN Group on the other.
Burgenland Holding AG does not have any branch offices.
Due the constant growth of its investments, Burgenland Holding AG continues to keep an increased focus on equity risk. In organising the Group's risk management, management accounting for investments is thus given a special role.
Like last year, there were no R&D activities at Burgenland Holding AG.
We expect the positive performance of our investments to continue and anticipate a slight increase in dividend income.
| 30.09.2007 | 30.09.2006 | |||
|---|---|---|---|---|
| EUR | TEUR | |||
| A. | Fixed assets: | |||
| I. Financial assets: |
||||
| 1. Investments | 70,451,755.80 | 70,451.8 | ||
| 70,451,755.80 | 70,451.8 | |||
| B. | Current assets: | |||
| I. Accounts receivable and other assets: |
||||
| 1. Receivables from affiliated companies | 5,350,000.00 | 5,030.0 | ||
| 2. Other receivables | 30,387.02 | 18.5 | ||
| 5,380,387.02 | 5,048.5 | |||
| II. Cash at hand and with banks | ||||
| 1. Cash with banks | 27,651.79 | 62.9 | ||
| 5,408,038.81 | 5,111.4 | |||
| C. | Prepaid expenses and deferred charges | 1,614.15 | 1.6 | |
| 75,861,408.76 | 75,564.8 |
| 30.09.2007 | 30.09.2006 | ||
|---|---|---|---|
| EUR | TEUR | ||
| A. Shareholders' equity: |
|||
| I. Share capital |
21,810,000.00 | 21,810.0 | |
| II. Capital reserves: | |||
| 1. Committed reserves | 43,676,373.33 | 43,676.4 | |
| III. Retained earnings: | |||
| 1. Other reserves (free reserves) | 4,600,000.00 | 4,260.0 | |
| IV. Net profit: | 5,708,623.72 | 5,704.4 | |
| Thereof profit carry-forward | 4,400.57 | 3.9 | |
| 75,794,997.05 | 75,450.8 | ||
| B. Provisions: |
|||
| I. Tax provisions |
875.00 | 0.9 | |
| II. Other provisions | 14,529.24 | 14.0 | |
| 15,404.24 | 14.9 | ||
| C. Liabilities: |
|||
| I. Trade accounts payable |
422.60 | 3.9 | |
| II. Liabilities to affiliated companies | 50,584.87 | 95.3 | |
| 51,007.47 | 99.2 | ||
| 75,861,408.76 | 75,564.8 |
| EUR | Acquisition cost Oct 1, 2006 |
Additions | Disposals |
|---|---|---|---|
| I. Financial assets |
|||
| Investments | 70,451,755.80 | 0.00 | 0.00 |
| Total I | 70,451,755.80 | 0.00 | 0.00 |
| Fixed assets – total | 70,451,755.80 | 0.00 | 0.00 |
October 1, 2006 to September 30, 2007
| 2006/07 EUR |
2006/07 EUR |
2005/06 TEUR |
||
|---|---|---|---|---|
| 1. | Other operating income | |||
| a) Rest | 71.13 | 0.1 | ||
| 2. | Other operating expenses | |||
| a) Taxes | -351.56 | |||
| b) Others | -209,859.45 | -155.9 | ||
| -210,211.01 | -156.2 | |||
| 3. | Total 1 to 2 (operating result) | -210,139.88 | -156.1 | |
| 4. | Investment income | 6,083,410.64 | 6,061.7 | |
| From affiliated companies EUR 0.00; prev.yr. TEUR 0) | ||||
| 5. | Other interest and similar income | 174,452.39 | 63.5 | |
| From affiliated companies EUR 173,842.44; prev.yr. TEUR 62.7) | ||||
| 6. | Total 4 to 5 (financial result) | 6,257,863.03 | 6,125.2 | |
| 7. | Pre-tax profit | 6,047,723.15 | 5,969.0 | |
| 8. | Taxes on income | -3,500.00 | -3.5 | |
| 9. | Net income | 6,044,223.15 | 5,965.5 | |
| 10. | Transfer to retained earnings | -340,000.00 | -265.0 | |
| 11. | Profit carry-forward | 4,400.57 | 3.9 | |
| 12. | Net profit | 5,708,623.72 | 5,704.4 |
| Reclassification | Acquisition cost Sep 30, 2007 |
Value adjustments Sep 30, 2007 |
Net book value Sep 30, 2007 |
Net book value Sep 30, 2006 |
Depreciation 2005/06 |
|---|---|---|---|---|---|
| 0.00 | 70,451,755.80 | 0.00 | 70,451,755.80 | 70,451,755.80 | 0.00 |
| 0.00 | 70,451,755.80 | 0.00 | 70,451,755.80 | 70,451,755.80 | 0.00 |
| 0.00 | 70,451,755.80 | 0.00 | 70,451,755.80 | 70,451,755.80 | 0.00 |
The financial statements were prepared in accordance with GAAP Austrian as well as the general principle of presenting a true and fair view of the company's asset, financial, and income situations. In preparing the financial statements, the principle of completeness was observed. Individual valuation and going-concern principles were applied in valuing individual assets and liabilities. The principle of conservatism was taken into account by showing only those profits which had been realized as of the balance-sheet date. All potential risks and impending losses were duly recognized. The Company is a group company under §15 AktG (Austrian Corporation Act), and as an affiliated company belongs to the reporting entity of EVN AG, Maria Enzersdorf, pursuant to §244 UGB (Austrian Commercial Code).
The financial assets were valued at acquisition cost.
Receivables and other assets
Receivables and other assets were valued at face value. Foreign exchange receivables were valued at the lower of exchange rate on the date they accrued or exchange rate on the balance-sheet date. In case individual risks were recognized, the lower value was entered.
In accordance with the principle of conservatism, the provisions contain all risks recognized at the time of preparing the balance sheet as well as all contingent liabilities at those amounts which are required under due diligence.
Liabilities were valued at the amount to be repaid.
The development of the individual items under fixed assets and the breakdown of annual depreciation by individual items are shown in the fixed-asset schedule as an attachment to the notes.
| Name and Registered Office |
Total Stake | Shareholders' equity (under § 224 (3) HGB) |
Net income | As of |
|---|---|---|---|---|
| % | TEUR | TEUR | ||
| BEWAG | 49.00 | 189,793.3 | 20,542.2 | Sep 30, 2006 |
| RO: Eisenstadt | ||||
| BEGAS | 49.00 | 68,071.3 | 7,697.4 | Sep 30, 2006 |
| RO: Eisenstadt | ||||
| Wiener Börse AG | 0.88 | 64,594.2 | 25,183.3 | Dec 31, 2006 |
| RO: Wien |
| Breakdown (Figures for previous year in parentheses) | ||||
|---|---|---|---|---|
| According to balance sheet |
Those with remaining maturity of >1yr |
Those evidenced by b/e |
Lump-sum adjustment |
|
| TEUR | TEUR | TEUR | TEUR | |
| Receivables from affiliated | 5,350.0 | 0.0 | 0.0 | 0.0 |
| companies | (5,030.0) | (0.0) | (0.0) | (0.0) |
| Other receivables | 30.4 | 0.0 | 0.0 | 0.0 |
| and assets | (18.5) | (0.0) | (0.0) | (0.0) |
| Current year – total | 5,380.4 | 0.0 | 0.0 | 0.0 |
| Previous year – total | (5,048.5) | (0.0) | (0.0) | (0.0) |
The receivables from affiliated companies cover exclusively receivables from finance activities. The accruals amounting to EUR 1,614.15
(prev.yr. TEUR 1.6) are made up exclusively of other deferred charges.
The Company's share capital was reorganized following a resolution of the 10th Annual General Meeting on July 7, 1999, and now amounts to EUR 21.81m, broken down into 3 million individual bearer shares.
Other provisions are composed as follows:
| Item | As of Sep 30, 2007 TEUR |
As of Sep 30, 2006 TEUR |
|---|---|---|
| Supervisory board reimbursement | 9.4 | 8.9 |
| Audit and legal counsel | 5.1 | 5.1 |
| Breakdown: (Figures for previous year in parentheses) |
According to balance sheet |
Those with remaining maturity of <1yr |
Those with remaining matuity of >1yr |
|---|---|---|---|
| TEUR | TEUR | TEUR | |
| Trade accounts payable | 0.4 | 0.4 | 0.0 |
| (3.9) | (3.9) | (0.0) | |
| Payables due to affiliated | 50.6 | 50.6 | 0.0 |
| companies | (95.3) | (95.3) | (0.0) |
| Current year – total | 51.0 | 51.0 | 0.0 |
| Previous year – total | (99.2) | (99.2) | (0.0) |
The payables due to affiliated companies are made up exclusively of trade accounts payable.
The income statement was prepared in accordance with the total expenditure format.
Income investment comprises dividend payouts of BEWAG for the 2005/06 business year in
the amount of EUR5,298,515.04 (previous year: TEUR 5,298.5), of BEGAS for the 2005/06 business year in the amount of EUR 729,725.60 (py: TEUR729.7), and of Wiener Börse AG for the 2005 business year in the amount of EUR 55,170.00 (py: TEUR33.4).
The item "Income taxes" shows the minimum corporation tax of EUR3,500.00 (prev yr: TEUR 3.5).
IIn the business year under review, the following persons were members of the management board:
Günther Ofner, Eisenstadt Michael Gerbavsits, Sulz
Expenses for the members of the management board amounted to EUR 763.07 for the reporting period (prev.yr.: TEUR 1,853.12).
In the business year under review, the following persons were members of the supervisory board:
Leopold Buchmayer (Chairman) Peter Layr (Vice Chairman) Michael Amerer Burkhard Hofer Josef Kaltenbacher Michael Obentraut Werner Perz Felix Sawerthal Gerold Stagl
The members of the supervisory board received compensation in the amount of TEUR 12.1 (py: TEUR 12.8). The Company does not have employees.
The Company is a group company under §15 AktG (Austrian Corporation Act), and as an affiliated company belongs to the reporting entity of EVN AG, Maria Enzersdorf, pursuant to §244 UGB (Austrian Commercial Code).
Eisenstadt, October 12, 2007
Management Board
Günther Ofner, mp
Michael Gerbavsits, mp
We have audited the enclosed annual financial statements of Burgenland Holding Aktien gesell schaft, Eisenstadt, for the business year from October 1, 2006, to September 30, 2007, including accounting procedures. Accounting procedures, preparation and content of these financial statements as well as the management report in accordance with the regulations of the Austrian Commercial Code are the responsibility of the duly authorized representatives of the company. Our responsibility is to express an opinion on these financial statements based on our audits and a statement as to whether the management report is in accordance with the financial statements.
We conducted our audits in accordance with applicable Austrian law and generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement
and whether it is possible to determine if the management report is in accordance with the financial statements. In determining auditing procedures, familiarity with business activities and the economic and the legal environment of the company as well as expectations concerning possible errors are taken into account. The audit includes evaluating, on the basis of random sampling, evidence supporting the amounts and disclosures in accounting procedures and the financial statements. It further includes assessing the accounting principles used and the significant estimates made by the duly authorised representatives, as well as evaluating the overall financial statement presentation. We are satisfied that our audit has provided a sufficiently sound basis for our audit opinion.
Our audit has not resulted in any objections. Based on the findings of the audit, we conclude that the financial statements are in compliance with legal regulations and present a true and fair view of the company's assets, liabilities, financial position, and profit or loss in conformity with generally accepted accounting principles. The Management Report is consistent with the Financial Statements.
Vienna, 12. 10. 2007
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Mag. Rainer Hassler Auditors and Tax Consultants ppa Mag. Maximiliam Schreyvogl
The management board proposes the distribution of a dividend of EUR1.90 per share, totalling EUR 5,700,700.00, from the net profit
amounting to EUR 5,708,623.72 and carrying forward the remainder of EUR 8,623.72.
Eisenstadt, October 2007
Management Board Günther Ofner Michael Gerbavsits
The supervisory board has fulfilled all relevant obligations by law and under the Company's by-laws.
The management board provided continuous information on the state of affairs and the Company's economic situation.
The financial statements including the relevant notes were audited by KPMG Burgen land Wirtschaftstreuhand Gesellschaft mbH, Wirt schaftsprüfungs- und Steuerberatungs gesell schaft, which provided a written report of the audit and conferred its unqualified opinion.
The supervisory board has approved the financial statements and relevant notes presented by the management board and has agreed to the management board's recommendation concerning the application of profits. Therefore, the financial statements as of Sept ember 30, 2007, are deemed completed pursuant to §125 para 2 Corporation Act (AktG).
In conclusion, the supervisory board would like to express its gratefulness to the
management board for its efforts in the 2006/07 business year.
Eisenstadt, 3.12.2007
On behalf of the Supervisory Board
The Chairman, Leopold Buchmayer
Technologiezentrum Marktstraße 3 A-7000 Eisenstadt
Corporate Communications and Investor Relations Renate Lackner-Gass
T +43 2236 200-24 186 F +43 2236 200-84 703 [email protected] www.buho.at
| Results 1st quarter | February 27, 2008 |
|---|---|
| AGM | March 28, 2008 |
| Ex-dividend date | April 3, 2008 |
| Dividend payout | April 10, 2008 |
| Results first six months | May 30, 2008 |
| Results 3rd quarter | August 29, 2008 |
| Results for the full year 2007/08 | December 16, 2008 |
1) preliminary
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.