Annual Report • May 24, 2007
Annual Report
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ANNUAL REPORT 2006
| AUSTRIA | ||
|---|---|---|
| Rosenbauer | ||
| Österreich GmbH | ||
| AUSTRIA 100% |
||
| Rosenbauer Manage | ||
| ment Services GmbH | ||
| AUSTRIA 100% |
||
| Rosenbauer | Rosenbauer | General Safety |
| Holdings Inc. | America LLC. | Equipment LLC. |
| USA 100% |
USA 50% |
USA 100% |
| Rosenbauer Holding | Metz Aerials | Central States |
| GmbH & Co. KG | Management GmbH | Fire Apparatus LLC. |
| GERMANY 100% |
GERMANY 100% |
USA 100% |
| Rosenbauer | Metz Aerials | RK Aerials |
| Finanzierung GmbH | GmbH & Co. KG | LLC. |
| GERMANY 100% |
GERMANY 100% |
USA 50% |
| Rosenbauer | Rosenbauer Feuer | Rosenbauer |
| Española S.A. | wehrtechnik GmbH | Motors LLC. |
| SPAIN 62.11% |
GERMANY 100% |
USA 100% |
| Rosenbauer | Rosenbauer | |
| AG | Deutschland GmbH | |
| SWITZERLAND 100% |
GERMANY 100% |
|
| SK Fire | Eskay Rosenbauer | |
| PTE Ltd. | Sdn Bhd | |
| SINGAPORE 100% |
BRUNEI 80% |
|
| Rosenbauer YongQiang | ||
| Fire Fighting Vehicles Ltd.1 | ||
| CHINA | TRADE/SERVICE | |
| 50% | HOLDING/MANAGEMENT | |
| Rosenbauer | PRODUCTION FACILITY | |
| South Africa (PTY) Ltd. | ||
| 2006 | 2005 | 2004 | |||
|---|---|---|---|---|---|
| Rosenbauer | Revenue | m€ | 372.0 | 321.3 | 299.4 |
| Group | thereof Austria | m€ | 40.6 | 43.8 | 48.2 |
| thereof international | m€ | 331.4 | 277.5 | 251.2 | |
| EBIT | m€ | 25.1 | 19.6 | 13.7 | |
| EBIT margin | 6.8% | 6.1% | 4.6% | ||
| EBT | m€ | 22.0 | 15.9 | 10.5 | |
| Consolidated profit | m€ | 18.4 | 12.0 | 11.7 | |
| Cash flow from operating activities |
m€ | (1.4) | 21.9 | 16.4 | |
| Investments | m€ | 11.2 | 7.9 | 5.6 | |
| Order backlog as at Dec 31 | m€ | 354.1 | 243.1 | 226.1 | |
| Order intake | m€ | 485.9 | 377.0 | 337.0 | |
| Employees | 1,452 | 1,407 | 1,376 | ||
| thereof international | 742 | 685 | 665 | ||
| Key balance sheet | Total assets | m€ | 206.2 | 168.8 | 161.3 |
| data | Equity1 in % of total assets |
30.7% | 36.9% | 34.4% | |
| Capital employed (average) | m€ | 111.2 | 97.9 | 99.1 | |
| Return on capital employed | 22.6% | 20.1% | 13.8% | ||
| Return on equity1 | 35.1% | 27.0% | 19.7% | ||
| Net debt | m€ | 38.7 | 9.0 | 15.2 | |
| Gearing ratio2 | 37.9% | 12.6% | 21.5% | ||
| € | |||||
| Key stock exchange figures |
Highest share price | € | 100.1 | 72.5 | 66.5 |
| Lowest share price | € | 61.4 | 57.5 | 43.6 | |
| Year-end share price | 100.0 | 63.0 | 64.0 | ||
| Number of shares | m units | 1.7 | 1.7 | 1.7 | |
| Market capitalization | m€ | 170.0 | 107.1 | 108.8 | |
| Dividend | m€ | 4.83 | 3.4 | 3.4 | |
| Dividend per share | € | 2.83 | 2.0 | 2.0 | |
| Dividend yield | 2.8% | 3.2% | 3.1% | ||
| Earnings per share | € | 8.0 | 4.1 | 5.1 | |
| Price/earnings ratio | 12.5 | 15.4 | 12.5 |
1 Including minority interest and subordinated (mezzanine) capital 2004 and 2005
2 Modified according to the international standards as at January 1, 2004
3 Proposal to Annual General Shareholders' Meeting
Gerda Königstorfer Phone: +43 732 6794-568, Fax: +43 732 6794-94568 [email protected], www.rosenbauer.com
The Rosenbauer Group is one of the world's leading manufacturers of fire fighting vehicles. Rosenbauer is a "full-liner" that supplies the fire fighting sector in over 100 countries with a wide range of products and services. It produces its extensive series of fire fighting vehicles and aerials in three continents, to both European and US Standards. With a workforce of around 1,450, the Group generated 2006 revenues of over 370 m€.
| SEGMENT | PROFILE |
|---|---|
| Vehicles | ROSENBAUER ■ Production facilities in Europe, the USA and Asia ■ World's biggest exporter of fire fighting vehicles ■ The sector's technological and innovational leader |
| Aerials | METZ AERIALS ■ Advanced manufacturer of aerials, ■ based in Karlsruhe, Germany ■ Supplies to clients all over the world RK AERIALS ■ Innovative US-Standard manufacturer |
| Fire fighting components | ROSENBAUER ■ Leading fire fighting system supplier ■ Individual solutions for complex specifications ■ Worldwide partner of superstructure manufacturers |
| Fire & safety equipment | ROSENBAUER ■ Full-line supplier of fire & safety equipment ■ Rosenbauer products for the most exacting requirements ■ International equipment supplier to the fire fighting sector |
| Service & spare parts | ROSENBAUER ■ International service and spares network ■ Comprehensive instruction and training program ■ A high-caliber partner with 30 years' experience! |
| SPECTRUM OF PRODUCTS AND SERVICES | KEY FIGURES | 2006 | 2005 |
|---|---|---|---|
| ■ Municipal fire fighting vehicles, | Order intake | 342.1 m€ | 253.6 m€ |
| ■ air crash tenders and industrial fire fighting | Revenues | 247.4 m€ | 218.2 m€ |
| ■ vehicles to European and US Standards | Segment assets | 148.2 m€ | 120.6 m€ |
| Investments | 7.2 m€ | 5.2 m€ | |
| ■ Turntable ladders and aerial | Order intake | 55.8 m€ | 46.3 m€ |
| ■ rescue-platforms with rescue heights | Revenues | 45.9 m€ | 35.8 m€ |
| ■ of between 20 m and 53 m | Segment assets | 31.8 m€ | 22.4 m€ |
| Investments | 0.9 m€ | 0.5 m€ | |
| ■ Turntable ladders and ladder trucks | |||
| ■ with rescue heights of 60 ft to 109 ft | |||
| ■ Built-in pumps and fire fighting installations, | Order intake | 19.3 m€ | 17.2 m€ |
| ■ foam proportioning systems and monitors | Revenues | 14.8 m€ | 15.4 m€ |
| ■ Electronic controls for the fire fighting | Segment assets | 7.3 m€ | 5.7 m€ |
| ■ systems and portable fire pumps | Investments | 1.7 m€ | 0.6 m€ |
| ■ Personal protective equipment (PPE) | Order intake | 49.4 m€ | 39.0 m€ |
| ■ Technical emergency equipment | Revenues | 45.4 m€ | 35.2 m€ |
| ■ Special equipment for chemical | Segment assets | 9.8 m€ | 5.6 m€ |
| ■ and environmental assignments | Investments | 0.2 m€ | 0.6 m€ |
| ■ 24-hour service worldwide | Order intake | 19.3 m€ | 20.9 m€ |
| ■ Refurbishment of fire fighting vehicles | Revenues | 18.5 m€ | 16.7 m€ |
| ■ User, repair and maintenance courses | Segment assets | 5.3 m€ | 4.8 m€ |
| Investments | 1.2 m€ | 1.0 m€ | |
Rosenbauer's 140th year was also the most successful yet in the history of our company, with revenues up once again on the previous year, and a marked improvement in earnings. It is thus with great pride that we present the Annual Report 2006 to you today.
The upbeat climate in the fire equipment sector continued throughout 2006, with international project business stabilizing at a high level. This has been driven by brisk demand for air crash tenders, the growing purchasing power of petroleum-exporting countries and the heightened awareness of security needs in many countries, prompted both by the threat of terrorism and by increasingly frequent and severe natural disasters.
Business also developed very satisfactorily in 2006 in Europe's biggest market, Germany, where for the first time after years of decline and stagnation, the market grew again – by over 10%. Whether this was merely a one-off effect, in anticipation of the higher rate of value-added tax due to come into force on January 1, 2007, will only become apparent in the course of the next few years.
The restructuring measures at Metz Aerials GmbH & Co. KG proceeded successfully last year. We not only managed to generate a result that was very definitely "back in the black", but were also able to present the first fruits of our stepped-up research and development drive. Metz' volume product, the L32 turntable ladder, was given a complete overhaul, with new hydraulics and a reliable CAN-bus control system, and redesigned along ergonomical lines. In terms both of performance and appearance, the new ladder now rates as a top-notch, industry-leading product.
In the USA, we continued build-out of our dealer network, adding some very strong new partners to our organization. This helped us gain additional market share on the US market. Rosenbauer America today serves over 13% of the local American market, where it has now climbed to the Number 2 position.
Austrian pump-engineering and control-technology concepts are winning increasing acceptance among American customers, giving rise to further potential synergies between Austria and the USA.
The dynamic trend on the Chinese market continues unbroken. The products of our joint venture are rapidly convincing more and more Chinese customers of the merits of high-grade "made in China" Rosenbauer quality. The volume produced at the joint venture last year was not far short of breakeven point, and we expect the current year to bring a continuation of this uptrend.
The major program of capital investment at Group HQ in Leonding, Austria, was completed on schedule in 2006. It comprised the enlargement of the production areas, hand-in-hand with the centralization of all logistical activities in a newly built logistics center, and means that we have now taken all necessary steps in good time to meet the ever-rising demand for products from the Leonding production facility. We inaugurated the new premises in September 2006 as part of our 140th anniversary celebrations.
In mid-2006, we successfully completed an important personnel management project with the launch of a new remuneration system at the Leonding facility as from July 1, 2006. The new system makes for fair job gradings that fully reflect the demands of each workplace, takes account of the personal performance and qualifications of each individual employee, and guarantees all employees a share in
the company's profits in line with the corporate result. With this modern remuneration system, Rosenbauer is well prepared for the future.
The healthy course of business in 2006, and the clarification that took place in the Group's ownership structure at the beginning of the year, helped the Rosenbauer share to put in an above-averagely good performance. We are pleased that our active involvement on the capital market has been rewarded by growing interest on the part of international investors.
The excellent course taken by the Group's business in 2006 has prompted Management to propose to the General Meeting a significantly higher dividend of 2.80 € per share. Our intention is to demonstrate our continued commitment to being an attractive dividend payer.
At this juncture I wish to record my heartfelt thanks to all Rosenbauer people, both in Austria and abroad, for their superb dedication and outstanding performance. Our company's success is nothing less than the success of every single member of staff, all of whom can be justly proud of all that they have achieved.
Our expectation for the current year is of a continuation of the positive trend experienced in 2006. We started 2007 with the highest order-book levels in the history of the company. The dynamic pace of order intake has been continuing unchanged in the first months of this year, giving us good grounds for expecting a further uptrend in revenues and earnings.
Yours,
Julian Wagner
05
PRESIDENT AND CEO Business unit: Aerials
Born in 1950, joined Rosenbauer in 1968
Company strategy, human resources, social management, corporate communications, internal audit
MEMBER OF THE EXECUTIVE BOARD Business units: Specialty vehicles, Fire & safety equipment and USA
Born in 1946, joined Rosenbauer in 1993
MEMBER OF THE EXECUTIVE BOARD Sector finances
Born in 1949, joined Rosenbauer in 1983
Accounting and controlling, Group finance, information technology, risk management, investor relations
MEMBER OF THE EXECUTIVE BOARD Business units: Municipal vehicles and fire fighting components
Born in 1960, joined Rosenbauer in 1995
Technical Group co-ordination, logistics, innovation management, quality management, environmental management
The overall verdict on last year was once again an altogether satisfactory one: The ATX gained 21.7% in 2006, closing the year at an all-time high. Six new international trading members were admitted for direct dealing at the Vienna Stock Exchange. Around 56% of stock trading is now accounted for by foreign trading members.
The Rosenbauer share. The Rosenbauer share put in an impressive performance last year. At the beginning of the year, it profited from the successful reallocation of the 28% block of shares that had been held by Cross Industries. During a series of roadshows in early February, this package was placed with investors from Austria, Germany, Switzerland, Great Britain and France.
Demand for Rosenbauer shares was boosted by the positive media writeups on the 2005 financial statement. The results figures and forecasts published in the second half of the year prompted financial analysts and investors alike to make frequent upward revisions to their share price forecasts. Thereafter, the share went on to hit a succession of new severalyear highs, closing the year at an all-time high of 100.0 €. With a price advance of 59% in the course of one
08
year, the Rosenbauer share has won acceptance as a highly attractive investment that has since established itself at this higher valuation level.
Dividend increase. The Executive Board and the Supervisory Board propose to the General Meeting that a 0.8 € higher dividend of 2.8 € per share should be distributed for the financial year 2006 (2005: 2.0 €). This decision to raise the dividend reflects Rosenbauer's pursuit of an investorfriendly dividend policy founded on sustained positive development of the Group's business.
The sum for distribution for 1.7 million non-par-value shares is 4.8 m€ (2005: 3.4 m€). In terms of the share's closing price of 100.0 €, this corresponds to a dividend yield of an attractive 2.8%.
holder structure. Rosenbauer International AG has been quoted in the Vienna Stock Exchange's "Prime Market" with 1.7 million non-par-value shares (bearer shares) since 1994.
The shareholder structure was made much more international last year. 51% of the shares are held by Rosenbauer Beteiligungsverwaltung GmbH, a holdings-management company founded by the family shareholders. The proportion of the total capital held by foreign institutional investors amounts to more than 10%. The remainder is in the free float.
51% Rosenbauer Beteiligungsverwaltung GmbH
Investor relations. Since the increase in the size of the free float, greater demands are being made of Rosenbauer regarding capital market communications. For this reason, more personnel resources have been assigned to investor relations, and the scope of its activities has been further extended.
Several events were held at the Leonding production site to inform private investors, bank representatives and other interested parties about current developments in the Group, and its latest products. In the course of both one-to-one and group discussions and investor conferences
| 160 | |
|---|---|
| 150 | |
| 140 | |
| 130 | |
| 120 | |
| 110 | |
| 100 | |
| 190 |
at all the main international stock exchange centers, many representatives of the financial community and other interested parties were given thorough briefings on Rosenbauer. The company sets great store by consistent, transparent and rapid communications with all participants in the capital markets. In keeping with this principle, mandatory publications such as the annual report and quarter report are supplemented by a wealth of further in-depth information published on the company's website www.rosenbauer.com.
The Management of Rosenbauer International AG is pledged to uphold the new Austrian Corporate Governance Code as amended in January 2006. The Corporate Governance Code makes an important contribution towards strengthening investors' confidence in the company.
As a listed corporation and company that is active at an international level, Rosenbauer pursues a strategy aimed at sustained long-term growth in the value of the company, and so is in any case acting in line with the Code, and complies with all "C" Rules ("Comply or Explain").
The explanations required by the Code are published in the Annual Report and on the corporate website: www.rosenbauer.com:
approval. No "contracts subject to approval" as defined in L-Rule ("L" = legally required) n° 48 were in force last year, i.e. contracts with members of the Supervisory Board or with companies in which a member of the Supervisory Board has a considerable economic interest.
Rule 53: Independence of the Supervisory Board. The basic rule is: A member of the Supervisory Board shall be deemed to be independent if the said member does not have any business or personal relations to the company or its Executive Board that constitute a material conflict of interest and therefore have the potential to influence the behavior of the member. On the basis of this general clause, and pursuant to Rule 53, the Supervisory Board has defined the criteria that constitute independence as follows:
❚ The Supervisory Board member shall not maintain, or have maintained in the past year, any business relations with the company or any of its subsidiaries to an extent which is of significance for the member concerned. This shall also apply to relationships with companies in which a member of the Supervisory Board has a considerable economic interest.
❚ The Supervisory Board member shall not, at any time in the previous three years, have acted as auditor of the company or have owned a share in, or been employed by, the auditing firm carrying out the audit.
❚ The Supervisory Board member shall not be a member of the executive board of another company in which a member of the company's Executive Board is, in turn, a supervisory board member.
Having regard to the general clause and to the above criteria, the Supervisory Board members Peter Louwerse (Chairman), Alfred Hutterer (Deputy Chairman) and Christian Reisinger may be deemed to be independent.
Rule 54: Supervisory Board members with a shareholding in excess of 10%. None of the elected members of the Supervisory Board holds more than 10% of the shares of Rosenbauer International AG or represents the interests of a shareholder whose stake is in excess of 10%.
| Details of the share | Capital market diary 2007 | |||
|---|---|---|---|---|
| ISIN | AT0000922554 | April 27 | Result for the 2006 financial year | |
| Class of shares | Non-par-value shares | May 24 | Result for the first quarter of 2007 | |
| made out to bearer | May 25 | Annual General Shareholders' Meeting | ||
| Nominal share capital | 12,359,000 € | at "Börsensäle Wien" (former premises | ||
| Volume traded in 2006 | 78,280,481 € | of Vienna Stock Exchange), | ||
| Volume traded in 2005 | 20,468,035 € | Wipplingerstrasse 34, 1010 Vienna, Austria | ||
| N° of shares traded in 2006 | 1,091,414 | June 4 | Ex-dividend day | |
| N° of shares traded in 2005 | 326,136 | August 24 | Result for the first half of 2007 | |
| ATX prime weighting | 0.1% | November 23 | Result for the first three quarters of 2007 |
Moderate growth in world economy. In 2006 the world economy was into its third consecutive year of growth. Despite the oil price hitting record highs in the middle of the year, real global growth was running at 3.7% (after 4% in 2005), well above its trend rate. For 2007, economists are forecasting a slightly slacker pace of global growth, albeit still at a high level. The expectation is for year-onyear growth of around 2.9%, with a fair chance that for the first time, the engine of growth could be emergingmarket countries such as China, India and Russia rather than the USA.
Growth in the US economy fell back from 5.6% in the first quarter of 2006 to 1.6% in the third. In the fourth quarter, GDP growth picked up again due to lower oil prices and mild weather, reaching 3.5%, and helping the USA to pull off a classic soft landing. The perceptible cooling of the economic climate since the summer of 2006 – with industrial production suffering the biggest setbacks – has weighed on the forecast for 2007: Most forecasters now expect GDP growth of 2.3%, around one percentage point less than in 2006.
US dollar stabilized. The US dollar lost around 10% of its value against the Euro during 2006. This was primarily due to strong economic growth in the euro-zone and the large US trade deficit at the year-end. Since the beginning of 2007, the exchange rate has stabilized again.
Solid growth in Europe. The eurozone economy grew by 2.7% in 2006 (2.9% in the EU as a whole), nearly twice the rate of the year before. The driving force behind the most vigorous growth since 2000 was extremely dynamic foreign trade, with exports to Asia growing especially strongly. However, this was also accompanied by an appreciable revival in EU-wide domestic demand last year, thanks to increased capital investment and consumer expenditure. In December 2006 alone, industrial production in the euro-area surged by 1% over the previous month, and labor-market data also improved.
This renewed impetus in the European economy has continued through into 2007. According to European Commission forecasts, the outlook in the euroarea is likely to diverge still further from developments in the US economy, slackening only slightly by the summer. Growth of 2.7% is expected in the EU this year, and of 2.4% in the 13 eurozone members.
German economy on the upswing. The generally positive mood in Germany again, together with a distinct improvement on the labor market, have led to an about-turn in sentiment. After years of restraint, corporate investment rose again in 2006; private consumption, particularly in the second half of the year, was stimulated by significant pre-emptive effects in anticipation of the three percentage point increase in VAT from January 1, 2007. The lowering of unit labor costs to more competitive levels in recent years, making Germany an attractive business location again, and the more generous depreciation allowances until the end of 2007, both provide a basis for continued growth in 2007.
After a very good 2006, the economic dynamism of the CEE (Central & Eastern European) countries is set to continue through 2007. Healthy domestic demand and strong capital spending are going hand-in-hand with satisfactory export data and improved competitiveness. Following average growth of 6% in 2006, the forecast is for 5.4% in 2007.
China poised to become world's biggest exporter. The Chinese economy raced ahead at 10.7% in 2006, emphatically underlining China's rank as the world's fastest growing major economy. The World Bank expects growth of 9.6% in 2007, with exports growing much faster (+19.6%) than imports.
Economic developments in the main markets – the USA, Europe and Asia – in the past few years have led to improved overall parameters for the fire equipment industry.
In total, the world market takes delivery of fire fighting vehicles worth around 2,400 m€ every year. Of these shipments, more than 90% go to the NAFTA region, Western Europe, the Middle East and Central, South and East Asia. Fire & safety equipment is not included in this volume.
In North America, Europe, Russia and Central Asia, the lion's share of demand is traditionally met by local manufacturers. A trend towards local value creation has also become increasingly apparent in Southeast Asia in recent years.
Demand in the world's largest single market remained high in 2006 as well. Higher levels of funding are still being budgeted for upgrading the country's safety infrastructure, including investments in fire protection and civil defense. In particular, Pierce Oshkosh, the leading manufacturer in the USA, and Rosenbauer have, between them, been able to turn the weak market position of established fire fighting
vehicle manufacturers to their own advantage and carve out extra market share.
Europe stabilized. The signals from Germany – Europe's biggest single market – were distinctly positive again for the first time after years of decline, or at best stagnation. To give one example, sales volumes of fire fighting vehicles – the biggest market segment – leapt by more than 10% in 2006. Some of this procurement was doubtless pre-emptive purchasing in anticipation of the VAT rate-hike at the turn of the year, meaning that it is still too soon to talk of a sustained trend reversal on the German fire equipment market. How high procurement volumes turn out to be this year will depend on whether the proceeds of the VAT increase really are largely applied to municipal budgets as the government has promised.
Demand in the CEE countries has continued to develop very satisfactorily. Whereas sophisticated vehicles are still mainly supplied by noted international manufacturers, simpler fire fighting vehicles are increasingly coming from new local suppliers. It is foreseeable that these will further intensify competition on the hotly contested Central European markets in the coming years.
In Southern Europe, procurement is still dominated by centralized tendering procedures, which is increasingly giving these markets "spot-market" character.
Lively demand in Asia. The Chinese fire equipment market has established itself as the leading growth market in Asia. The Chinese government is making great efforts to upgrade the country's physical infrastructure. Recently introduced certification rules are now leading to a rise in quality standards for locally manufactured fire fighting vehicles as well.
Asia's booming aviation market has led to a strong uptrend in demand for air crash tenders. More stringent safety regulations issued by the International Civil Aviation Organization (ICAO), and the advent of new "superjumbo" jetliners have made it necessary for many airports to station new and bigger vehicles carrying larger extinguishant volumes.
The upgrades being made to infrastructure in this region, coupled with heightened awareness of security needs, have led to brisk demand for high-tech fire protection equipment – a trend favored by the high oil price and resultant increases in funding.
The markets in South America and Africa are characterized by spot projects based on central procurement programs, in some cases with lead-times of several years. This makes it difficult to forecast developments on these markets.
A successful 2006. The 2006 financial year was the best yet in the company's history. The Rosenbauer Group continued to expand, achieving a substantial increase in business volume. This development was driven by the favorable market environment, newly developed products, the turnaround at Metz Aerials and the ongoing rise in productivity. The successes of 2006 also had much to do with our determined implementation of the internationalization strategy.
Group revenues rose last year to 372.0 m€ (2005: 321.3 m€), the highest figure ever. All the segments contributed to the 50.7 m€ increase in revenues. Export sales from Austria, stepped-up shipments of aerials from Karlsruhe, increased sales volumes on the Spanish market and continued growth in the Group's US business were all key drivers here (see the Segment reports for more details).
16
Once again, the biggest revenue earner in 2006 was Rosenbauer International AG, with revenues of 180.5 m€ (2005: 155.2 m€). This is the biggest production company in the Group and has a high export ratio of 86% (2005: 83%).
Well-balanced distribution of rev-
enues. The "Vehicles" product segment accounted for the biggest single share (67%) of Group revenues in 2006 (2005: 68%). The "Aerials" segment posted revenues of 45.9 m€ (2005: 35.8 m€), corresponding to a 12% share of total revenues (2005: 11%). Accounting for 12% (2005: 11%) and 4% (2005: 5%) of revenues respectively, "Fire & safety equipment" and "Fire fighting components" were at roughly the same level as the year before. "Service & spare parts" and "Other" revenues accounted for 5% of the total in 2006 (2005: 5%).
As in previous years, Western and Eastern Europe were once again Rosenbauer's biggest sales regions in 2006. Around 48% (2005: 51%) of Group revenues, amounting to 177.4 m€ (2005: 163.1 m€) was achieved on these markets. Thanks to the growth on the US market, the NAFTA countries – with 86.8 m€ (2005: 68.1 m€) or 23% of the total (2005: 21%) – took second place in the revenue rankings. They were followed by Asia and Oceania with 29.3 m€ (2005: 34.6 m€) and by the Arab World with 44.0 m€ (2005: 35.5 m€). "Others" rose from 6% (2005) to 9%, largely as a result of shipments to Latin America.
Record order intake. At 485.9 m€ (2005: 377.0 m€), the volume of new orders taken by the Group in 2006 was well above the level of the past two years. This has led to a great increase in capacity utilization at the production facilities during the current financial year.
Another new record notched up in 2006 was for the volume of order backlog at the year-end, totaling 354.1 m€ as against 243.1 m€ in 2005.
Excellent earnings situation. The international export successes of Rosenbauer International AG, the turnaround at Metz Aerials and a massive increase in output were the crucial factors enabling the operating result (EBIT) to be raised by 28% to 25.1 m€ (2005: 19.6 m€).
Standing in equal measure for innovative products, quality and engineering excellence, the internationally renowned Rosenbauer brand assisted the Group's worldwide export business, as did a favorable market environment.
Following the restructuring of Metz Aerials in Karlsruhe, carried out at a cost of 3.6 m€ in 2005, this firm moved decisively back into the black in 2006. The restructuring operation was based on streamlining the
| 9% Others | |
|---|---|
| 12% Arab countries | |
| 48% Western/Eastern Europe | |
| 8% Asia/Oceania | |
| 23% NAFTA |
cost structure by reducing material expenses and personnel costs in the administrative field, on tailoring operational capacities to the market situation, and on boosting competitiveness by developing new and improved products in conjunction with product value appraisals. This paved the way for a return to profitability, in turn making a significant contribution towards improving the Group's overall result.
The net figure of 3.0 m€ resulting from financing expenses and income was little changed from the year before (2005: 3.3 m€). The pro-rata (50%) result of Rosenbauer YongQiang, the Group's joint venture in the Chinese province of Guangdong which has been reported "at-equity" in the balance sheet since 2005, came to –0.1 m€ last year (2005: –0.5 m€).
Profit before tax (EBT) rose in line with EBIT to 22.0 m€ (2005: 15.9 m€). The taxation ratio decreased from 24.3% in 2005 to 16.4%. The main
reason for this decrease is the utilization of not yet capitalized loss carryforwards resulting from Metz Aereals. This kept the stated taxation expense of 3.6 m€ below the previous year's figure (2005: 3.9 m€). The consolidated profit rose to 18.4 m€ (2005: 12.0 m€).
The profit-shares for minority interest held by the co-partners in Rosenbauer America LLC. and Rosenbauer Española came to 4.7 m€ (2005: 5.0 m€).
plan. Started in May 2005, the 50% joint venture Rosenbauer YongQiang Fire Fighting Vehicles Ltd. in Dongguan got into full swing during 2006. The newly built production facility has 15,000 m2 of production and office space and had a workforce of 129 by the year-end. On total 2006 revenues of 6.1 m€ (2005: 0.5 m€), a prorata result of –0.1 m€ was achieved (2005: –0.5 m€).
The Chinese fire equipment market continued to grow in 2006. The aim of the joint venture is to cover the demand for high-grade, state-of-theart fire fighting vehicles from local value-addition. Following intensive training given by production specialists from Austria, the China-made vehicles now meet the Group's high technical and qualitative standards. This puts Rosenbauer YongQiang in a position to play a pioneering rôle in the field of locally fabricated hightech vehicles.
For industry-specific reasons, the balance-sheet structure of the Rosenbauer Group at the year-end is typified by a high proportion of current assets. This results from the turnaround times, lasting several months, for the vehicle contracts that are currently under manufacture. The Group's financial position and asset
| 5% Other revenues, Service & spare parts | |
|---|---|
| 4% Fire fighting components | |
| 12% Fire & safety equipment | 67% Vehicles |
| 12% Aerials |
situation was mainly characterized last year by the massive increase in production and shipment volumes over the previous year.
Owing largely to the order-related increase in inventories, the Group's balance-sheet total at year-end 2006 rose to 206.2 m€ (2005: 168.8 m€).
The total amount invested in the course of the financial year came to 11.2 m€ (2005: 7.9 m€). Due to the building of the new logistics center and the expansion of production capacity at Leonding, it exceeded the annual depreciation charges.
The 5.8 m€ of deferred tax assets (2005: 6.7 m€) is slightly down on the previous year's figure.
Due to the massive increase in output, inventories rose to 80.9 m€, from 57.1 m€ the year before. Current receivables also rose, by 13% to 48.2 m€ (2005: 42.7 m€).
18
Despite the redemption of the subordinated (mezzanine) capital before the end of the year, the substantial improvement in the result meant that equity capitalization still finished the year slightly higher, at 63.4 m€ (2005: 62.2 m€, including subordinated (mezzanine) capital). At 30.7%,
the Group's equity ratio remained below the previous year's figure after redemption of the beneficial interest (2005: 36.9%, including subordinated (mezzanine) capital), owing to the larger balance-sheet total.
In order to finance the high production volume, it was necessary to have recourse to additional interest-paying external financing. For this reason, the interest-bearing liabilities rose from 18.2 m€ (2005) to 42.9 m€.
Owing to a volume-related increase in the trade accounts payable as well as the rise in current, interest-bearing liabilities, the total of all current liabilities increased to 107.6 m€ (2005: 81.1 m€).
As a consequence of the higher levels of financing required, the Group's net debt increased to 38.7 m€ last year (2005: 9.0 m€). This reduced the gearing to 37.9% (2005: 12.6%).
The net cash flow from operating activities decreased last year to –1.4 m€ (2005: 21.9 m€). This deterioration, despite the substantially better result, is primarily attributable to the inventories purchased before the year-end – especially chassis for Panther air crash tenders – with a view to fulfilling the large volume of orders on hand, and to the higher volume of receivables at the year-end as compared to the previous year.
Investments totaling 10.9 m€ were made in the tangible assets of the Group during the year under review (2005: 7.7 m€). Of this, the lion's share was accounted for by additions to capacity (65%), while 26% went on replacement capital investments and fulfilling official directives, and 9% on rationalization measures.
New logistics center opened. Work began at the Leonding facility in 2005 on building a new logistics center; this was put into service in the second quarter of 2006. All logistical activities are now concentrated on a total area of 5,500 m2 . As well as a new high-rise rack and small-parts store and a bigger, 600 m2 packing zone, a parking deck was also built with 110 employee car-parking spaces. At the same time, for safety and security reasons, the entire plant site was secured with a new access control system. The costs for the logistics center, including the warehousing appliances, totaled 6.5 m€, of which 3.6 m€ was expended in 2006 (2005: 2.9 m€).
| 2006 | 2005 | 2004 | ||
|---|---|---|---|---|
| Capital employed (average) | in m€ | 111.2 | 97.9 | 99.1 |
| Return on capital employed (ROCE) | in % | 22.6 | 20.1 | 13.8 |
| Return on equity (ROC)1 | in % | 35.1 | 27.0 | 19.7 |
| Return on sales (ROS) | in % | 5.9 | 4.9 | 3.5 |
1 Including minority interest and subordinated (mezzanine) capital 2004 and 2005
Production space enlarged. The building that was freed up after the former main store was moved to the new logistics center was then modernized at a cost of 1.9 m€. This released around an extra 3,000 m2 of space for air crash tender production in Leonding.
At the same time, a new fabrication concept was elaborated which has now made line-type assembly possible for air crash tenders as well. The combination of both these measures – enlarging the production areas and optimizing the assembly workflow – has augmented production capacity in Leonding in line with the greatly increased worldwide demand for Rosenbauer air crash tenders.
Reception area modernized. In the course of the extensive building and rebuilding activities, the entrance concourse of the Group HQ building was also modernized and given a new glass façade. This project involved an investment of 480 k€.
A new, fully automated machining center worth 950 k€ was put into service in Leonding last year, for making castings for pumps and other fire fighting components. Fitted out with state of the art tooling, this manufacturing cell permits simultaneous tooling up and machining of components, at more than three times the component fabrication speed of the machine used previously.
Successful transition to full-scale production. The Rosenbauer Group invested 7.4 m€ in research and development in 2006 (2005: 5.8 m€). This amount is equal to 3.4% (2005: 2.9%) of the relevant net sales proceeds from our own production. Around 67% (2005: 74%) of these development costs (5.0 m€, as against 4.3 m€ in 2005) were incurred by Rosenbauer International AG, the Group's center of expertise for specialty vehicles and fire fighting systems.
Rosenbauer products come into being in close collaboration with fire services from all over the world. This is the only way to ensure that every new product is not only right up to date, but also exactly meets firefighters' very specific requirements, also in ergonomical terms. Our strong innovation management system provides the necessary framework for the permanent development effort. Innovation management at Rosenbauer is greatly enriched by the many employees who are themselves active members of volunteer fire brigades and who input their practical know-how directly into our development work.
An innovational highlight of 2006 is the new L32 aerial ladder. In fact, the whole year was marked by the transition to full-scale production and the launch of the 18 product innovations first unveiled by Rosenbauer at the "Interschutz – Red Rooster" international fire equipment fair in 2005. The strongly increased inflow of new orders since then testifies both to the success of this development work and to Rosenbauer's innovational leadership in the industry.
cut the set-up time to less than half that specified in the EU Standard. On the L32, as in all the other newly developed products, CAN-bus technology provides greatly improved operator handling, for example by showing the operator all relevant information on color displays, as appropriate in the particular operational situation. The CAN-bus system also makes it possible to use a Group-wide service tool, and to connect up to the "service4fire" online service portal
Online service portal for fire serv-
that was developed for fire services
last year.
ices. In 2006, Rosenbauer was the world's first fire engineering supplier to go online with a service portal for automatic, active status monitoring of fire fighting vehicles. This tool captures the operating data and machine data of fire fighting vehicles and automatically alerts both after-sales service and the client to any out-ofthe-ordinary situations by e-mail. Online status monitoring is a reliable method of detecting errors at an early stage, thereby enhancing the availability and safety of fire fighting vehicles and making their routine maintenance easier to plan.
Over 1,000 items of operational data are captured by a telematic module in the vehicle and sent by GPRS to the portal www.service4fire.com during every mission. The system thus keeps a complete logbook of all missions and creates an individual maintenance history for every CAN-controlled fire fighting vehicle in the whole world. The client can call up the entire vehicle history at any time. The online service portal thus greatly reduces unforeseen downtime and facilitates pro-active maintenance.
Fire protection on offshore drilling platforms. The Rosenbauer POLY CAFS Twin Agent extinguishing system was specially developed for use on helipads on unmanned offshore drilling platforms. The system combines a dry powder extinguishing system with a CAFS foam extinguishing installation in such a way that the extinguishing media can be discharged either together or separately, as needed.
Among the other special features of the installation are its extended throwrange and extremely simple operator guidance arrangements. In this way, the fire fighting crew can commence operations as soon as it has been helicoptered to the platform when needed.
22
Sustained protection of the environment. As a manufacturing and distribution business whose activities span the globe, the Rosenbauer Group regards efficient utilization of resources and sustained environmental protection as indispensable. By expressing all environmental and workplace safety processes in terms of a uniform system of key figures, the environmental management system (UMS, to give it its German initials) has for some years now given the framework for continual improvement of the Group's overall environmental footprint.
A program has been underway since 2005 to optimize energy inputs at the Leonding site. It is based on a computer-aided energy control system and a highly efficient waste-heat recovery system. These measures have led to a substantial reduction in CO2 emissions, to more efficient use of energy and – in the face of rising energy costs – to savings of over 50 k€ a year.
Quality as a safety factor. Firefighters' personal safety depends to a high degree on the quality and reliability of their fire and safety equipment and of the vehicles and appliances they use. Quality at Rosenbauer is thus not just defined as a functional
product feature or performance characteristic, but always also understood as a critical safety factor in its own right. This broader understanding is assured by the Group-wide quality policy, which is centrally anchored in the company's organization as a controlling instrument.
All the main corporate processes have been designed with reference to quality criteria, enabling process deviations to be recognized and corrected at an early stage.
Not least, the consistent implementation of this quality policy is reflected in the Group's quality costs: Despite the high capacity utilization and the large number of new products in 2006, the ratio of these costs to overall production costs was still kept at the same low level as the year before. The current quality-cost ratio is 1.92% for the 2006 financial year, as against 2.04% for 2005.
The basis for Rosenbauer's quality and safety-conscious approach to all it does is the quality and environmental policy derived from the Group's mission statement. Also derived from this policy, the management system is a tool enabling employees to quickly see which rules apply in any given case; this is particularly useful in the case of Group-wide rules.
The Rosenbauer Group management system is uniformly structured, and documented in the Extranet. It consists of the QMS (quality management) and UMS (environmental management) systems, and of the guidelines for workplace safety and the hygiene regulations. The impact of the various processes on quality, environment and workplace safety is displayed in a system of key figures.
In the course of combined prolongation and certification audits conducted in 2006, the Rosenbauer management system at the Leonding, Neidling, Karlsruhe and Luckenwalde locations was certified to EN ISO 9001:2000 and (in the case of the Austrian locations) to the environmental standard EN ISO 14001:2004.
Clearly defined risks. Risk management is a systematic approach to identifying, evaluating and monitoring potential risks. The risk management system is an integral part of the management, planning and controlling process. Rosenbauer has laid down its risk-policy principles in writing and integrated them in the Group-wide management system.
As a globally active company, Rosenbauer is exposed to a large number of risks. Essentially, risks are seen as potential deviations from the corporate objectives, and the term "risk" therefore encompasses not only the possibility of a loss but also the failure to seize potential opportunities or a chance of additional profit.
The immediate responsibility for risk management lies with the management of the operational units in question. This is the level at which risk-related topics are regularly dealt with, and at which the annual risk inventory is carried out. Overall responsibility for operational risk management rests with the Executive Board. The results of the risk inventory are collated by the central risk management team and submitted to – and discussed with – the Supervisory Board once a year.
The most important risk monitoring instrument is the planning and controlling process. Thanks to the consistent reporting system, not only any risk positions, but also opportunities, can be recognized and deliberately responded to, or optimized, at an early stage.
Strategic risks. The five-year plan derived from the Group strategy was revised in 2006 and submitted to the Supervisory Board for approval. The annual business plan, made on a revolving basis for a three-year period, comprises a target-catalogue which is broken down into the different areas of business and serves as a controlling instrument. This systematic approach enables us to discern – and then largely avoid – any strategic risks at an early stage.
Competition-related risks. The large number of manufacturers means that competition on most markets is very intense in the fire equipment sector. International tenders are now attracting both the large, noted suppliers and many smaller local vehicle-bodywork firms. Due to the fact that most procurement needs are put out to tender, and that the bulk of the customers are public-sector purchasers, the pressure on margins is increased still further. Rosenbauer limits these risks by continuously bringing out new developments, by offering modular product concepts and by ongoing process-efficiency enhancement.
Operational risks. A number of risks with a potential impact on earnings result from the company's operational activities. Given the sheer breadth of the spectrum of vendor parts, procurement management plays a vital rôle. In order to ensure that the production operations are kept supplied on schedule and to the requisite quality level, our main vendors are continuously audited. This greatly reduces the risk of production outages. The fact that the Group has its own international network of production facilities also helps to minimize operational risks.
Excess production capacity can have a negative impact on both overheads and margins. For this reason, capacity is analyzed as part of the annual planning process, and adjusted where necessary by means of relevant measures.
Moreover, any earnings risk which might arise as a result of disruption of production operations is covered by appropriate production-outage insurance policies. Adequate insurance coverage is also in place for costs arising in connection with fire, explosion or similar occurrences.
To reduce the risks in the IT field, an audit was performed in 2006 by an independent consultancy. The aim of the audit was to survey the measures taken so far for preventing data loss, for ensuring maximum availability
of the IT systems and for preventing access by non-authorized persons, and to suggest possible improvements. The appraisal arrived at a positive overall picture, especially regarding non-authorized access. An action list for further optimization was drawn up, and is being implemented on an ongoing basis.
With the exception of damages claims in connection with the insolvency of the Group's Dutch company Rosenbauer BV in 2000, no significant legal claims or litigation risks are extant. Sufficient provisions have been made as a precaution against any litigation risks.
Owing to the nature of the manufacturing operations and to the large number of different suppliers, environmental risks, and risks in connection with the reliability of raw-materials and energy supplies, are of only minor significance.
Product risks. Rosenbauer lives out a consistent, rigorous quality management system aimed in part at forestalling product-liability cases. However, despite continuous improvements and product-quality control, liability cases cannot be ruled out altogether. In order to minimize the pecuniary risk which is possible here – particularly in North America – the instrument of product-liability insurance is employed throughout the Group.
Personnel risks. Rosenbauer sees its employees as one of the most important factors making for its success. Particularly in a client-orientated manufacturing operation like ours, a
high degree of specialist fire fighting knowledge is a crucial factor. A thorough approach to staff development, featuring institutionalized appraisal interviews, and a new performance-oriented remuneration system, are the central instruments at Rosenbauer for keeping qualified and motivated employees with the company. The comparatively low fluctuation rate the company has enjoyed in recent years owes a great deal to its successful utilization of human resources policy instruments.
Financial risks. The Group's credit standing, and with it the safeguarding of liquidity, are of critical importance. For this reason, Financial Management meets with the Group's bankers once a year for rating-talks from which the Group's position on the financial market is established.
Due to the fact that the great majority of clients are from the public sector, the risk of non-payment may be regarded as very limited. In the case of deliveries made to non-OECD countries, use is generally made of both state and private export guarantee schemes to cover the political risks encountered in these cases.
To limit and control interest and exchange rate risks, derivative financial instruments are used. In this connection, we would refer the reader to the explanations in the Notes.
Market risks. With its consistently implemented internationalization strategy and worldwide distribution network, Rosenbauer has achieved a well-balanced market position in comparison with its competitors. Given that the number of municipal fire services generally remains constant,
demand may also be expected to remain stable over the long term. Even on this market, however, budgetrelated fluctuations will occur every so often, in some cases persisting for several years at a time. In the field of specialty vehicles for airports and industry, market developments tend to be rather more dynamic and so are prone to greater fluctuation.
Risks for the fire safety business arising from changes in the overall political or legal conditions are, as a rule, unavoidable. In some European countries, for example, changes in the taxes payable on fire insurance policies can have an impact on fire departments' financing basis.
Aggregate risk. The annual evaluation of the Group's companies concluded that there were no relevant new or undocumented risks. On the basis of the information available today, moreover, there are no existential risks which might weigh decisively upon the asset position, financial status and earnings situation.
Higher purchasing volumes. Last year, the Group's purchasing volume for production materials, capital goods and merchandise came to 276.6 m€ (2005: 213.0 m€). This corresponds to 74% of Group revenues and is attributable to the large proportion of items which, in our industry, are typically bought in from external vendors. 85% of Rosenbauer International AG's procurement volume is sourced in Europe, and most of the remainder in the USA.
Mainly local procurement. The production companies in the USA and Germany cover the majority of their purchasing requirements on their respective local procurement markets. The biggest single item in the Group's procurement volumes are the chassis for fire fighting vehicles, accounting for 25% of the total. The principal chassis suppliers are from Germany, Austria, Sweden and the USA. The chassis for the Panther 4x4 and 6x6 air crash tenders are manufactured at the Group subsidiary Rosenbauer Motors LLC. in Wyoming, Minnesota.
For selecting and developing suitable suppliers and building long-term vendor relationships, increasing use is being made of framework supply agreements. Routine call-offs are placed by the process teams in the production operations concerned, enabling central procurement management to concentrate more on its strategic tasks.
prices of the main raw materials used in the vehicle manufacturing industry, prime among them steel, rose further in 2006. The massive steel-price hikes of the past two years have had only a moderate impact on the Group, as its vehicle superstructures are largely made of aluminum. For some years now, a consistent hedging strategy has been employed for purchasing the raw material aluminum, and this has succeeded in smoothing out particularly severe price peaks.
Shared values. The Group's success is based to a very large degree on the positive way in which its corporate culture is lived-out in practice, and in which its people then identify with these common values. Values such as helpfulness, camaraderie and trustworthiness, which typify the fire fighting community all over the world, are
also part-and-parcel of the Rosenbauer culture. The most obvious manifestation of this is the fact that many employees are themselves active members of volunteer fire brigades.
More employees. In 2006 an average of 1,452 persons were employed in the Rosenbauer Group, 710 of them in Austria and 742 elsewhere (corresponding figures for 2005: 1,407, 722 and 685, respectively). This total breaks down into 846 (2005: 803) blue-collar staff, 520 (2005: 522) white-collar staff and 86 (2005: 82) apprentices (57 of them in Austria).
The average age of the staff at the Austrian Rosenbauer locations is 36.6 years (blue-collar) and 37.9 years (white-collar), and the average length of stay with the firm is 13.7/14.6 years for blue/white-collar staff respectively. The low fluctuation rate of 4.0% (blue-collar) and 6.5% (white-collar) is another good indicator of the stability of the company.
| 2006: 1,452 | |||
|---|---|---|---|
| 710 | 742 | ||
| 2005: 1,407 | |||
| 722 | 685 | ||
| 2004: 1,376 | |||
| 711 | 665 |
New remuneration system. The new remuneration system at the Leonding facility marks the creation of a modernday wage and salary policy instrument that adheres to the principle of broadly harmonizing blue and whitecollar pay schemes.
The system takes both the individual's actual performance and his/her commitment into account and assures all employees of a bonus, the size of which will depend on the company's operating result and the individual's performance. In this way, the system gives staff an incentive to work on continuously improving their personal qualifications, and enhances employee motivation. What is more, it also takes full account of both technical/specialist and managerial career paths.
On top of a fixed basic compensation comprising both a function and a person-related component, the employee also receives a variable performance and results-related pay component. In comparison with the previous structure that had accreted over time, the new remuneration system creates substantially more transparency in the pay-setting process.
International co-operation. Crosslocational, transnational working is crucially important for the internationalization of the Group. In both of the past two years, there has been an increased trend for younger employees to be sent abroad for longer postings. The main destination countries were
Germany, China and the USA. The focus here is on technical and organizational skill transfer, and on continuing to develop multicultural teamworking within the Group.
Careers at Rosenbauer. Systematic vocational advancement of employees is a central pillar of the Group's personnel policy. To this end, an institutionalized program has been developed for grooming junior managers and highly skilled specialists, encompassing both technical/methodical skills and personality development.
Another area on which Rosenbauer places tremendous emphasis is apprenticeship training. A special trainee program has been set up to turn young employees who have successfully completed their apprenticeships into skilled, all-round specialists.
These programs are supplemented by a wide range of in-house on-the-job training offerings, which all employees can find out about, and sign up for, on the company Intranet. Expenditure on initial and in-service training in the Group came to 356.0 k€ last year (2005: 327.3 k€).
Besides this, employees at Group HQ also have their very own media library, which was modernized and considerably enlarged in the course of the rebuilding work in 2006. The media library has more than 25,000 books, numerous trade journals and other publications, and a range of electronic media available for borrowing – a service that is in great demand.
Customers, fire department officials, business associates and employees from all around the world attended the two-day event. They joined with Rosenbauer in celebrating 15 successful years of internationalization – one very visible sign of which is the new logistics center, which was inaugurated on this occasion.
In our globalized, fast-moving world, nothing is as certain as change itself. A word of heartfelt thanks is due at this point to all employees for their willingness to see this change as a challenge and to work towards a successful future with courage, enthusiasm and great dedication. Our thanks are due in equal measure to the workforce representatives in the Group companies in Austria and abroad, for their constructive co-operation. Together they have brought the company to where it stands today.
2% Asia 23% NAFTA 49% Austria 26% Rest of Europe
In its mission statement, Rosenbauer commits itself not just once but several times over to the principle of sustainability. As a globally active Group in the field of mobile fire protection and civil defense solutions, Rosenbauer strives to be and remain the very best in the long term, with top-rate performance in all significant areas of our business.
In its business, social, environmental and cultural environment, Rosenbauer is intent on being a fair partner for all who deal with it. The values of trust and respect, and continued employee skill development, are a central concern of the company's Management.
The products manufactured by the Group make a significant contribution towards saving human lives and safeguarding property.
An attractive employer. Developing and producing cutting-edge technology is only possible when employees unstintingly contribute their talent, creativity and commitment in equal measure. This attitude is stimulated and fostered by continual development of the corporate culture and by the creation of a positive working climate within the company. One important aim of our communications work is to be seen as a forward-looking, innovative and thus attractive employer.
Involvement in a volunteer fire brigade is a hiring criterion that we are always very happy to see when recruiting new employees. With their practical real-life experience, the firemen in our
own ranks make a vital contribution towards translating customers' requirements into high-performing products. By being at the service of the wider community, they also stand for continuity of the values that make Rosenbauer special.
Health and workplace safety have a high priority at Rosenbauer. Being alcohol-free enterprises, Rosenbauer's Austrian locations provide good fundamentals for a healthy working environment. As part of the "Generation 45+" campaign, older staff have the opportunity to take part in health-promoting programs so as to keep fit for the many and varied challenges of the modern-day world of work. They are also helped in this by the Rosenbauer sports association, which has been a fixture of company life for decades. Here staff can do seven different sports, and thus also do something for their health and fitness in their free time.
At its European facilities, Rosenbauer offers over 80 young people the opportunity of full-time vocational training. Compared with other industrial firms, this gives Rosenbauer an unusually high apprenticeship training rate. During their training, apprentices spend time in all relevant areas of the company; most of them then stay on with the firm for the long term.
By sourcing from a number of smaller subcontracting enterprises, the Group plays an active rôle in creating and sustaining regional employment and economic structures.
Absolute client-orientation. The many and varied tasks tackled by fire brigades necessitate a high degree of individualization when it comes to
designing customized products. This may include giving vehicles their own distinctive appearance, or designing them for a very specifically defined payload. Rosenbauer fulfills customer wishes such as these by always fitting out the industrially manufactured products in line with the individual ideas of the fire brigade in question. This is a service which plays no small part in generating sustained, longterm client loyalty.
Another important contribution to putting "sustainability" into practice is made by after-sales service – for instance, by being on call 24/7, made possible by a worldwide network of service stations. Another example is refurbishment, in which older vehicles are rehabilitated from the ground up and then refitted to the very latest state of the art.
Fire engineering equipment has to function reliably for years and decades on end, which is why Rosenbauer ensures the sustained, lasting quality of its products by means of systematic in-house quality management. The quality management system is certified to EN ISO 9001:2000 and is lived out in practice at Rosenbauer as a dynamic process.
The mission conditions under which fire brigades have to operate have changed greatly in the last few years. By institutionalizing innovation management, we have created the framework for systematically gearing product development to the specific requirements of the fire brigades.
In 2006, Rosenbauer's top-of-therange air crash tender the Panther was awarded the Innovation Prize of the Province of Upper Austria. Together with the award of the Upper Austrian Innovation Prize Rosenbauer also won the nomination for the Austrian State Prize for Innovation.
The Panther won a number of other coveted quality seals for design in 2006: iF design award, red dot, Focus Energy Gold and the Silver German State Prize for Design.
ment. Resource conservation, energy efficiency and comprehensive environmental management are all part of the corporate culture at Rosenbauer. Continuous improvement of the Group's "environmental balance sheet" is another declared aim. The ISO 14001 certified environmental management system is, in turn, partand-parcel of an integrated management system. The technologies used in production are mainly the classic processes of mechanical engineering and custom vehicle manufacturing, and of metalworking and plastics processing. As the activities involved are primarily assembly work, the impact on the environment is comparatively limited.
The nominal share capital of Rosenbauer International AG comprises 1,700,000 non-par-value shares. A 51% stake in Rosenbauer International AG is held by Rosenbauer Beteiligungsverwaltung GmbH. No limitations are in force regarding the voting rights or the assignment of shares.
To the best of the Company's knowledge, there are no shareholders having special controlling rights. This is also true of employees owning shares in Rosenbauer International AG.
§7 Sect. 3 and §9 Sect. 4 of the Articles of Association of Rosenbauer International AG lay down the provisions for the appointment and dismissal of members of the Executive and of the Supervisory Board. The only persons eligible for appointment as Members of the Executive Board are those who have not yet reached the age of 65 at the time of such appointment. The appointment of a person to the Executive Board who has already reached the age of 65 at the time of such appointment shall, however, be permitted if the General Shareholders' Meeting passes a resolution, by a simple majority of the votes cast, consenting to this appointment.
The only persons eligible for election to the Supervisory Board are those who have not yet reached the age of 70 at the time of such election. The election of a person to the Supervisory Board who has already reached the age of 70 at the time of such election shall, however, be permitted if the General Shareholders' Meeting passes an appropriate resolution by a simple majority of the votes cast.
There is no authorized capital at the present time. At the 14th Ordinary General Shareholders' Meeting, a resolution was passed prolonging the authorization to purchase (re-purchase) the Company's own shares pursuant to §65 Sect. 1 Clause 8 of AktG (the Austrian Companies Act) by a further 18 months, until November 24, 2007.
The company is not party to any significant agreements which would come into effect, substantially change or terminate if there should be a change in the controlling interest in the company as a result of a takeover bid.
No indemnity agreements have been concluded between the company and its Executive and Supervisory Board members or its employees providing for the event of a public takeover bid.
Since the balance-sheet date, no events of any significance have occurred which would have warranted a different presentation of the asset position, financial status and earnings situation.
The headlong growth of low-cost airlines has unlocked a new clientèle for short and medium-haul air travel. This, coupled with rising business passenger numbers throughout the world, has been driving a strong uptrend in demand for air crash tenders. This trend, in turn, has been compounded by the many new airports being built, especially in Asia. Moreover, the new generation of superlarge jetliners necessitate bigger extinguishant volumes, and thus bigger vehicles.
Rosenbauer was quick to spot this trend, and to respond to it with the new Panther. After the increase in production volume achieved last year, a further increase of over 50% is planned for 2007.
There is every prospect of the great economic dynamism in the CEE countries continuing through the current financial year. This makes it reasonable to expect 2007 to bring similarly high project volumes to those seen in the past two years.
Booming export business. The volume of order backlog in the Group's international business – especially from the Middle and Far East – was at record levels at the turn of the year. In view of the high volume of international project business currently being worked on, a strong inflow of new orders is also expected for 2007. Further rises in capacity utilization at the – largely export-oriented – Leonding manufacturing site are thus assured.
Recovery in Germany. The European market remains extremely competitive. In Germany – Europe's biggest single market – fire fighting vehicle sales finally rose again in 2006, for the first time after years of stagnation, doing so by more than 10%. It remains to be seen whether this higher procurement level will be sustained through 2007.
Following capacity scale-backs, subsidiary Metz Aerials achieved its turnaround in 2006, and is expected to close 2007 in the black as well. In particular, the strategic product initiative launched last year with the new L32 turntable ladder and B32 aerial rescue platform ought to help give a further lift to revenues and earnings this year.
China in the ascendant. Having got up to speed in 2006, the Rosenbauer YongQiang joint venture in Dongguan can now hold its own against the competition thanks to its rigorous product and quality policy, and expects to cross the break-even threshold in 2007.
Continued growth in the company. In view of the high volume of order backlog at the end of 2006, and the upbeat forecasts for the main markets, Management is confident of further revenue and earnings growth this year. This will be conditional upon smooth fulfillment of the high volumes to be supplied – especially towards year-end 2007.
The reports on the regional segments are broken down in line with Group company locations. The segment reports refer to the revenues and results earned by the individual segments both on their respective local market and from export sales.
The Austrian segment consists of Rosenbauer International AG, most of whose revenues are derived from export sales, and the sales company Rosenbauer Österreich GmbH, which supplies the Austrian market only.
Revenues at Rosenbauer International AG, the biggest production company in the Group, were up 16% last year at 180.5 m€ (2005: 155.2 m€). This sizeable increase is primarily attributable to revenue growth in the Middle East and Southeast Asia. The increase in revenues was essentially achieved with air crash tenders, especially with the top-of-the-range Panther model.
The sales company Rosenbauer Österreich GmbH posted a drop in turnover to 40.6 m€ (2005: 43.8 m€) due to the intensified competition prevailing in municipal vehicle business on the Austrian market. The company is countering this downturn with an innovative product policy and by systematically strengthening its service activities.
In 2006, the Austrian segment achieved an increase of more than 10% in both its revenues, which reached 194.6 m€ (2005: 172.0 m€) and its EBIT, which totaled 11.0 m€ (2005: 10.0 m€).
The US company Rosenbauer America LLC., comprising General Division, Central Division, Rosenbauer Aerials Division and Rosenbauer Motors LLC., did not quite manage a repeat of its record 2005 result last year, as an exceptionally large major order had come to an end.
The United States is the biggest single market in the world. Over the past 12 years, Rosenbauer has notched up some impressive growth here, with over 13% of the market in 2006.
General Division scored a hefty increase in revenues in 2006, from 19.7 m€ (2005) to 29.4 m€. The main reasons for this were strong domestic demand for municipal vehicles, and the success of the Panther air crash tender, sales of which from the US manufacturing facilities were also raised very substantially last year. This Division manufactures mainly custom fire fighting vehicles for airports and municipalities, and is active on both the US market and selected export markets.
Central Division can look back on a very good year, despite the nonrecurrence of a major order that was fulfilled the year before. By beefing up its sales organization, the firm was able to continue expanding its business on the local market, largely making up for the non-recurrence of revenues under the previous year's major order. Central Division posted 2006 revenues of 66.6 m€ (2005: 70.2 m€). The 46% rise between the 2004 (45.7 m€) and 2006 revenue totals makes plain the substantial growth that Central Division has achieved on its domestic market.
| Revenue | EBIT | |||||
|---|---|---|---|---|---|---|
| 2006 | 2005 | 2004 | 2006 | 2005 | 2004 | |
| m€ | m€ | m€ | k€ | k€ | k€ | |
| Austria | 194.6 | 172.0 | 174.0 | 11,038.4 | 9,960.9 | 6,037.5 |
| America | 109.7 | 97.8 | 66.7 | 8,392.3 | 8,562.3 | 5,397.2 |
| Germany | 84.7 | 72.6 | 76.6 | 2,655.4 | 2,873.01 | 124.1 |
| Spain | 31.8 | 16.7 | 10.4 | 1,859.2 | 817.4 | 428.3 |
| Switzerland | 6.8 | 7.3 | 7.3 | 392.8 | 396.8 | 291.6 |
| Asia | 11.6 | 7.0 | 8.8 | 687.6 | 413.6 | 650.0 |
| Consolidation | (67.2) | (52.1) | (44.4) | 110.3 | (3,394.7) | 745.8 |
| Rosenbauer Group | 372.0 | 321.3 | 299.4 | 25,136.0 | 19,629.3 | 13,674.5 |
1 Including grant of the Rosenbauer International AG in favor of Metz Aerials GmbH & Co. KG in the amount of 3.6 m€
Rosenbauer Aerials Division produces US standard hydraulic turntable ladders and ladder trucks. These are supplied both to the Group's US companies and to other superstructure manufacturers in the USA. Production capacity at the Fremont, Nebraska plant was doubled in 2005, enabling the number of aerials produced to be raised still further. The company achieved a 73% increase in revenues last year, to 6.9 m€ (2005: 4.0 m€).
Rosenbauer Motors produces chassis for the Panther air crash tender, exclusively for the Group's own superstructure fabrication operations in the USA and Austria. Due to the buoyant demand for this hit model, both in international business and in the USA itself, the firm was able to boost its revenues to 10.8 m€ in 2006, from 7.7 m€ the year before.
The American segment managed to lift its revenues from 97.8 m€ to 109.7 m€ last year – despite the non-recurrence of a result-boosting major order that was fulfilled in 2005. The EBIT figure of 8.4 m€ was not far short of the record result for 2005 (8.6 m€). This success once again confirms the strategy pursued jointly with our partners on the American market.
For the first time after years of stagnation or even decline, the signals from Germany – Europe's biggest single market – were distinctly positive again. Sales of fire fighting vehicles – the most important market segment – rose more than 10% in 2006. Despite this recovery in the market, the competitive environment in Germany is still very fierce, which has so far prevented any improvement in the unsatisfactory sales prices.
Following the trimming of capacity in Karlsruhe, Metz Aerials GmbH & Co. KG pulled off a turnaround last year. To strengthen the competitiveness of this manufacturer of DIN-Standard aerials, substantial savings were made in both material costs and in administrative personnel costs. Furthermore, a crucial strategic product initiative was launched with the new L32 turntable ladder and B32 aerial rescue platform in 2006, which again will help the firm to move forward on a sustained positive basis.
Metz Aerials boosted its revenues by over 20% in 2006, to 41.1 m€ (2005: 34.1 m€). This growth in revenues is attributable to higher numbers of aerial rescue platforms and to an increase in the proportion of sales accounted for by larger turntable ladders.
Rosenbauer Feuerwehrtechnik GmbH (a manufacturer of standards-compliant fire fighting vehicles for municipalities) posted revenues up 13% at 30.9 m€ (2005: 27.3 m€).
The sales company Rosenbauer Deutschland GmbH generated 2006 revenues of 13.0 m€ (2005: 11.4 m€). It supplies the German market with Austrian-manufactured industrial fire fighting vehicles and air crash tenders.
At 84.7 m€, 2006 revenues in the German segment as a whole were 17% up on the previous year (2005: 72.6 m€). Last year's EBIT came to 2.7 m€ (2005: 2.9 m€). It should be borne in mind here that the originally negative EBIT posted by the German segment in 2005 on account of the restructuring of Metz Aerials had been improved by a 3.6 m€ grant from Rosenbauer International AG.
The Spanish segment consists of the Group company Rosenbauer Española, which can look back on an excellent 2006. It supplied a considerable number of Panther air crash tenders both to the Spanish airport and airtraffic control operator and to clients in other countries.
11% Revenue in Austria
29% Export from Austria
60% Foreign subsidiaries
The revenue figure of 31.8 m€ (2005: 16.7 m€) achieved by Rosenbauer Española last year was the highest in the company's history, pushing the previous year's EBIT of 0.8 m€ up to 1.9 m€.
The projects currently being prepared indicate that there are good prospects of the Spanish Group company executing some major export orders again during 2007.
The Swiss segment consists of the sales company Rosenbauer AG, which last year generated EBIT of 392.8 k€ (2005: 396.8 k€) on revenues of 6.8 m€ (2005: 7.3 m€) despite the stiffer competition on this market.
36
Two companies make up the Asian segment: SK Fire PTE Ltd., Singapore and Eskay Rosenbauer Sdn Bhd,
Brunei. In 2006, SK Fire boosted its revenues from sales of fire fighting vehicles and superstructures for aerials to Hong Kong, Singapore and neighboring countries by 63% to 11.4 m€ (2005: 7.0 m€). Eskay Rosenbauer distributes fire fighting vehicles on the local market, and posted revenues of 1.2 m€ last year (2005: 558.4 k€).
The Asian segment achieved 2006 EBIT of 687.6 k€ (2005: 413.6 k€) on revenues of 11.6 m€ (2005: 7.0 m€).
With revenues of 247.4 m€ (2005: 218.2 m€), the "Vehicles" product segment last year accounted for the biggest single share (67%) of Group revenues (2005: 68%). A total of 1,593 vehicles were shipped, including aerial rescue vehicles (2005: 1,513). 76% (2005: 77%) of vehicle sales revenues were from municipal vehicles, 20%
(2005: 19%) from air crash tenders and 4% (2005: 4%) from industrial fire fighting vehicles.
Rosenbauer develops, manufactures and distributes municipal and custom fire fighting vehicles for industrial firms and airports. Its production facilities are located in Austria, the USA, Germany, Spain, Singapore and – since mid-2005 – also in China. The largest manufacturers in the Group are Rosenbauer International AG in Austria, and Central Division in the USA.
Rosenbauer's main markets for its vehicle business in 2006 were the USA, Germany and Austria.
With a share of 4% (2005: 5%), "Fire fighting components" account for only a comparatively small proportion of the Group's overall revenues. However, it should be remembered here that pump units and other fire fighting systems and components worth
4% Industrial fire fighting vehicles
20% Air crash tenders
76% Municipal vehicles
20.3 m€ (2005: 14.5 m€) are not included in the figure for this product segment. These are installed on vehicles in Leonding and the other production facilities and counted towards the "Vehicles" segment.
The "Fire fighting components" product segment mainly provides the "hearts" of the fire fighting vehicles. These comprise water-hydraulic pumps and pump units, portable fire pumps, foam proportioning systems and monitors, as well as their electronic control systems, complete with the relevant system engineering. This product segment also includes mobile and stationary foam extinguishing installations (POLY and CAF systems). Rosenbauer fire fighting components are developed and produced at the Leonding plant and dispatched from there to other Group companies and to selected superstructure manufacturers and endcustomers all over the world. In 2006, Rosenbauer produced a total of 1,225 built-in pump units (2005: 1,314) and 977 (2005: 669) portable fire pumps.
The Rosenbauer "Fire & safety equipment" product segment offers fire services a complete assortment of
equipment for every type of mission. This range includes anything from personal protection equipment (PPE), to technical emergency equipment, to special equipment for dealing with the aftermath of hazmat accidents and environmental disasters. With revenues up at 45.4 m€ (2005: 35.2 m€), this segment accounted for a 12% share of Group revenues in 2006 (2005: 11%).
Revenues of 45.9 m€ were achieved with aerials in 2006 (2005: 35.8 m€), accounting for a 12% (2005: 11%) share of Group revenues.
The "Aerials" product segment encompasses turntable ladders and hydraulic rescue platforms. The center of expertise for European standard vehicles is Metz Aerials in Karlsruhe, while US Standard vehicles are manufactured at the Rosenbauer Aerials Division in Fremont, Nebraska.
The bulk of revenues in this segment was accounted for by turntable ladders produced by Metz Aerials and by the Rosenbauer Aerials Division in the USA. Other manufacturers' equipment was supplied by the parent company in Leonding and by the subsidiaries in Singapore and Switzerland.
The "Service & spare parts" field accounted for 5% of total revenues in 2006 (2005: 4%). Despite the small percentage that it contributes to overall Group revenues, this is nevertheless a strategically important area of business for the Group.
The reduced budgets available to fire services in many countries mean that refurbishment – i.e. the technical modernization of existing fire fighting vehicles – is becoming an increasingly important area of business. In order to better exploit this opportunity, a special refurbishment program has been developed, ranging from total overhaul of the fire fighting systems all the way through to completely new vehicle superstructures.
"Other revenues" have no causal connection with the ordinary activities of the Group and are thus not directly attributable to any one product segment. They do not, as a rule, have any significant influence on the corporate result, and last year amounted to 1.6 m€ (2005: 2.5 m€).
v FOX portable fire pump: Pump output, portability, ease of operation and reliability are decisive factors underlying the deployment of portable fire pumps. In all these points, the third-generation FOX sets up brand-new benchmarks. With an output of 1600 l/min at 10 bar and 1,000 l/min at 15 bar, the FOX is the most powerful portable fire pump in its class.
k HEROS®-xtreme fire helmet: Developed by Rosenbauer as a helmet system, the HEROS ranks among the best and most comfortable fire helmets in the world. The HEROS®-xtreme gives the fireman the very best possible protection for any mission, even those involving extreme situations.
v PANTHER 6x6 air crash tender: The Panther 6x6 is built on the 705 HP rear-engined chassis produced at Rosenbauer Motors in the USA, and is the trendsetter among air crash tenders. With an operational weight of 34 tonnes, over 12,000 liters of extinguishant, a top speed of 115 km/h and a wealth of high-tech solutions, the Panther is easily the most innovative fire fighting vehicle at the airport of today.
v Metz turntable ladder L32: With its new L32, Metz Aerials has introduced a revolutionary aerial that unites cutting-edge technology with trendsetting design. A new high-performance hydraulic system has made it possible to raise the motion speed of the aerial ladder by 25%, and to cut the set-up time to less than half that specified in the EU standard.
k Mini pumper: Maximum performance in compact dimensions – this is what is offered by the mini pumper from Central Division. Thanks to its extruded aluminum-section bodywork, this vehicle combines low weight with extremely rugged constructional design.
k Find out more about the fascinating world of Rosenbauer at www.rosenbauer.com
At its meetings held during 2006, the Supervisory Board was informed regularly by the Executive Board upon the situation of the company and the progress of its business. The reports hereon given by the Executive Board, together with its reports on important items of business, were approved by the Supervisory Board.
The Supervisory Board met four times in the year under review. In addition, regular meetings of the owner representatives on the Supervisory Board took place at which matters of operational and strategic corporate governance were discussed with the Executive Board. The Supervisory Board members attended a total of 17 meetings of the Supervisory Board and of its committees during 2006. One of these meetings took place at the production facility in Neidling.
The Audit Committee met in April 2007 to review and prepare the annual accounts, to draw up both a proposal
40
for the appointment of the External Auditor and a suitable motion to be put to the General Shareholders' Meeting, and for deliberations in all matters relating to the Group's financial reporting. A second meeting of the Audit Committee was given over to an appraisal of the Group's risk management system. The members of the Audit Committee were Peter Louwerse (Chairman), Dieter Siegel and Rudolf Aichinger.
Both the financial statement and the situation report have been audited by Ernst & Young Wirtschaftsprüfungsgesellschaft mbH in accordance with statutory provisions.
The final results of the audit have not given reason to any grounds for query. Accordingly, the financial statement and the situation report have been endorsed with an unqualified audit certificate. The auditors'
report has been submitted to the members of the Supervisory Board in accordance with §273 Sect. 3 of the Austrian Commercial Code.
The financial statement and the Group's financial statement per December 31, 2006 have been approved by the Supervisory Board and is thus established in accordance with §125 of AktG (the Austrian Companies Act). The Supervisory Board concurs with the Executive Board's proposal regarding the distribution of profits and proposes that this proposal be adopted at the Annual General Shareholders' Meeting.
Leonding, April 2007
Peter Louwerse Chairman of the Supervisory Board
| Note N° | Dec 31, 2006 | Dec 31, 2005 | ||
|---|---|---|---|---|
| ASSETS | in k€ | in k€ | ||
| A. | Non-current assets | |||
| I. Tangible assets |
(1) | 39,731.1 | 34,393.1 | |
| II. Intangible assets |
(1) | 483.6 | 628.0 | |
| III. Securities | (2) | 202.5 | 1,601.0 | |
| IV. Joint venture | (3) | 2,014.0 | 2,135.3 | |
| V. Receivables |
(7) | 1,221.0 | 2,226.3 | |
| VI. Deferred tax assets | (4) | 5,845.6 | 6,671.5 | |
| 49,497.8 | 47,655.2 | |||
| B. | Current assets | |||
| I. Inventories |
(5) | 80,860.3 | 57,058.4 | |
| II. Production contracts |
(6) | 23,709.4 | 13,779.5 | |
| III. Receivables | (7) | 48,188.2 | 42,712.9 | |
| IV. Cash and short-term deposits | (8) | 3,945.6 | 7,596.6 | |
| 156,703.5 | 121,147.4 | |||
| Total assets | 206,201.3 | 168,802.6 |
| Dec 31, 2006 | Dec 31, 2005 | |||
|---|---|---|---|---|
| EQUITY AND LIABILITIES | in k€ | in k€ | ||
| A. Equity |
||||
| I. Share capital |
(9) | 12,359.0 | 12,359.0 | |
| II. Capital reserves |
(9) | 24,944.4 | 24,944.4 | |
| III. Other reserves | (9) | 144.8 | 132.9 | |
| IV. Accumulated results | (9) | 15,039.0 | 5,317.6 | |
| 52,487.2 | 42,753.9 | |||
| V. Minority interest |
(10) | 10,884.4 | 11,991.2 | |
| 63,371.6 | 54,745.1 | |||
| B. Subordinated (mezzanine) capital |
(11) | 0.0 | 7,488.2 | |
| C. Other non-current liabilities |
||||
| I. | Non-current, interest-bearing liabilities | (12) | 13,761.2 | 5,199.1 |
| II. Other non-current liabilities |
(13) | 1,453.9 | 950.8 | |
| III. Non-current provisions | (14) | 19,388.4 | 18,911.2 | |
| IV. Deferred income tax liabilities | (4) | 632.9 | 391.5 | |
| 35,236.4 | 25,452.6 | |||
| D. Current liabilities |
||||
| I. | Current, interest-bearing liabilities | (15) | 29,091.8 | 12,969.3 |
| II. Advance payments received |
10,747.2 | 11,054.1 | ||
| III. Trade accounts payable | (16) | 30,218.4 | 18,295.4 | |
| IV. Other current liabilities | (17) | 25,387.8 | 26,574.9 | |
| V. Provisions for taxes |
(18) | 517.5 | 543.7 | |
| VI. Other provisions | (18) | 11,630.6 | 11,679.3 | |
| 107,593.3 | 81,116.7 | |||
| Total equity and liabilities | 206,201.3 | 168,802.6 |
| Note N° | 2006 | 2005 | ||
|---|---|---|---|---|
| in k€ | in k€ | |||
| 11. | Revenue | (19) | 371,966.0 | 321,335.5 |
| 12. | Other income | (20) | 3,656.0 | 4,024.8 |
| 13. | Change in inventories of finished goods | |||
| and work in progress | 10,324.1 | 4,497.5 | ||
| 14. | Expenses for materials and services | (252,348.3) | (206,177.0) | |
| 15. | Personnel expenses | (31) | (77,223.6) | (71,619.0) |
| 16. | Depreciation on intangible | |||
| and tangible assets | (5,308.5) | (4,771.5) | ||
| 17. | Goodwill impairment | (1) | 0.0 | (136.2) |
| 18. | Other expenses | (21) | (25,929.7) | (27,524.8) |
| 19. | Operating result (EBIT) | |||
| before result of joint venture | 25,136.0 | 19,629.3 | ||
| 10. | Financing expenses | (22) | (4,418.2) | (4,415.7) |
| 11. | Financial income | (23) | 1,427.2 | 1,138.6 |
| 12. | Profits/losses on joint venture | (3) | (124.5) | (471.8) |
| 13. | Profit before tax (EBT) | 22,020.5 | 15,880.4 | |
| 14. | Taxes on income | (24) | (3,620.1) | (3,854.3) |
| 15. | Consolidated profit | 18,400.4 | 12,026.1 | |
| thereof | ||||
| – profits/losses on minority interest | 4,726.0 | 4,992.3 | ||
| – profits/losses parent company | 13,674.4 | 7,033.8 | ||
| Average number of shares issued | (32) | 1,700,000.0 | 1,700,000.0 | |
| Basic earnings per share | (32) | 8.04 € | 4.14 € | |
| Diluted earnings per share | (32) | 8.04 € | 4.14 € |
| AS AT DECEMBER 31, 2006 | Attributable to shareholders in the parent company | |||||
|---|---|---|---|---|---|---|
| Other reserves | ||||||
| Share | Capital | Currency | Re-evaluation | Hedging | ||
| in k€ | capital | reserves | translation | reserve | reserve | |
| As at Jan 1, 2006 | 12,359.0 | 24,944.4 | 317.0 | 83.5 | (267.6) | |
| Currency differences | 0.0 | 0.0 | (661.4) | 0.0 | 0.0 | |
| Total amounts of joint venture | ||||||
| recognized directly in equity | 0.0 | 0.0 | 3.2 | 0.0 | 0.0 | |
| Securities valuation | 0.0 | 0.0 | 0.0 | (111.4) | 0.0 | |
| Hedging transactions valuation | 0.0 | 0.0 | 0.0 | 0.0 | 1,004.8 | |
| Acquisition of minority interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Taxes offset directly against equity | 0.0 | 0.0 | 0.0 | 27.9 | (251.2) | |
| Total income and expense for the year | ||||||
| recognized directly in equity | 0.0 | 0.0 | (658.2) | (83.5) | 753.6 | |
| Consolidated profit | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Total income and expense for the year | 0.0 | 0.0 | (658.2) | (83.5) | 753.6 | |
| Dividend | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| As at Dec 31, 2006 | 12,359.0 | 24,944.4 | (341.2) | 0.0 | 486.0 |
AS AT DECEMBER 31, 2005 Attributable to shareholders in the parent company
| Share | Capital | Currency | Re-evaluation | Hedging | ||
|---|---|---|---|---|---|---|
| in k€ | capital | reserves | translation | reserve | reserve | |
| As at Jan 1, 2005 | 12,359.0 | 24,944.4 | (923.0) | 36.0 | 153.2 | |
| Currency differences | 0.0 | 0.0 | 1,229.9 | 0.0 | 0.0 | |
| Total amounts of joint venture | ||||||
| recognized directly in equity | 0.0 | 0.0 | 10.1 | 0.0 | 0.0 | |
| Securities valuation | 0.0 | 0.0 | 0.0 | 75.4 | 0.0 | |
| Hedging transactions valuation | 0.0 | 0.0 | 0.0 | 0.0 | (510.1) | |
| Taxes offset directly against equity | 0.0 | 0.0 | 0.0 | (27.9) | 89.3 | |
| Total income and expense for the year | ||||||
| recognized directly in equity | 0.0 | 0.0 | 1,240.0 | 47.5 | (420.8) | |
| Consolidated profit | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Total income and expense for the year | 0.0 | 0.0 | 1,240.0 | 47.5 | (420.8) | |
| Dividend | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| As at Dec 31, 2005 | 12,359.0 | 24,944.4 | 317.0 | 83.5 | (267.6) |
| Accumulated | Subtotal | Minority | Equity |
|---|---|---|---|
| results | interest | ||
| 5,317.6 | 42,753.9 | 11,991.2 | 54,745.1 |
| (291.2) | (952.6) | (854.1) | (1,806.7) |
| 0.0 | 3.2 | 0.0 | 3.2 |
| 0.0 | (111.4) | 0.0 | (111.4) |
| 0.0 | 1,004.8 | 0.0 | 1,004.8 |
| (261.8) | (261.8) | (695.9) | (957.7) |
| 0.0 | (223.3) | 0.0 | (223.3) |
| (553.0) | (541.1) | (1,550.0) | (2,091.1) |
| 13,674.4 | 13,674.4 | 4,726.0 | 18,400.4 |
| 13,121.4 | 13,133.3 | 3,176.0 | 16,309.3 |
| (3,400.0) | (3,400.0) | (4,282.8) | (7,682.8) |
| 15,039.0 | 52,487.2 | 10,884.4 | 63,371.6 |
| Equity | Minority | Subtotal | Accumulated | |
|---|---|---|---|---|
| interest | results | |||
| 47,977.6 | 9,724.2 | 38,253.4 | 1,683.8 | |
| 2,153.1 | 923.2 | 1,229.9 | 0.0 | |
| 10.1 | 0.0 | 10.1 | 0.0 | |
| 75.4 | 0.0 | 75.4 | 0.0 | |
| (510.1) | 0.0 | (510.1) | 0.0 | |
| 61.4 | 0.0 | 61.4 | 0.0 | |
| 1,789.9 | 923.2 | 866.7 | 0.0 | |
| 12,026.1 | 4,992.3 | 7,033.8 | 7,033.8 | |
| 13,816.0 | 5,915.5 | 7,900.5 | 7,033.8 | |
| (7,048.5) | (3,648.5) | (3,400.0) | (3,400.0) | |
| 54,745.1 | 11,991.2 | 42,753.9 | 5,317.6 |
| Note N° | 2006 | 2005 | ||
|---|---|---|---|---|
| in k€ | in k€ | |||
| Profit before tax (EBT) | 22,020.5 | 15,880.4 | ||
| + | Depreciation | 5,308.5 | 4,907.7 | |
| – | Gains from the reversal of investment grants | (87.5) | (87.5) | |
| + | Losses from joint venture | 124.5 | 377.0 | |
| +/– | Expenses/income from valuation of financial instruments | (531.5) | 198.6 | |
| – | Gains from the disposal of tangible assets, | |||
| intangible assets and securities | (105.1) | (52.4) | ||
| + | Interest expenses | 3,621.4 | 3,495.9 | |
| – | Interest income | (1,280.4) | (923.9) | |
| –/+ | Unrealised gains/losses from currency translation | 567.5 | (586.1) | |
| +/– | Change in inventories | (23,801.9) | (703.7) | |
| +/– | Change in trade accounts receivable | |||
| and production contracts | (14,031.6) | (485.1) | ||
| +/– | Change in other receivables | 778.1 | (1,185.4) | |
| +/– | Change in trade accounts payable/ | |||
| advance payments received | 11,616.1 | 1,321.1 | ||
| +/– | Change in other liabilities | (1,504.7) | 1,693.7 | |
| +/– | Change in provisions | |||
| (excluding income tax deferrals) | 428.5 | 3,563.9 | ||
| = | Cash earnings | 3,122.4 | 27,414.2 | |
| – | Interest paid | (25) | (3,681.0) | (2,974.0) |
| + | Interest received | (25) | 782.0 | 832.0 |
| – | Income tax paid | (1,641.0) | (3,356.0) | |
| = | Net cash flow from operating activities | (1,417.6) | 21,916.2 | |
| – | Payments from the purchase of (interests in) subsidiaries/ | |||
| joint ventures, less purchased cash and cash equivalents | (25) | (1,876.2) | (1,583.4) | |
| – | Payments from the purchase of tangible and | |||
| intangible assets and securities | (11,444.4) | (8,099.9) | ||
| + | Proceeds from the sale of tangible and | |||
| intangible assets and securities | 1,898.9 | 1,607.2 | ||
| = | Net cash flow from investing activities | (11,421.7) | (8,076.1) | |
| – | Dividends paid | (25) | (3,400.0) | (3,400.0) |
| – | Dividends paid to minority interest | (4,282.8) | (3,648.5) | |
| + | Proceeds from interest-bearing liabilities | 18,481.2 | 11,770.7 | |
| – | Repayment of interest-bearing liabilities | (1,296.6) | (18,821.1) | |
| = | Net cash flow from financing activities | 9,501.8 | (14,098.9) | |
| Net change in cash and cash equivalents | (3,337.5) | (258.8) | ||
| + | Cash and cash equivalents | |||
| at the beginning of the period | 7,596.6 | 7,381.4 | ||
| +/– | Adjustment from currency translation | (313.5) | 474.0 | |
| = | Cash and cash equivalents | |||
| at the end of the period | (25) | 3,945.6 | 7,596.6 |
| As at | Currency | As at | Allocations | Consumption | Reversals | As at | |
|---|---|---|---|---|---|---|---|
| in k€ | Dec 31, 2005 | differences | Jan 1, 2006 | Dec 31, 2006 | |||
| Short-term | |||||||
| Personnel provisions | 829.3 | 0.0 | 829.3 | 96.0 | (383.2) | 0.0 | 542.1 |
| Provisions for warrenties | 4,976.7 | (91.0) | 4,885.7 | 5,418.4 | (4,610.1) | (281.7) | 5,412.3 |
| Contract loss provisions | 2,004.1 | (1.4) | 2,002.7 | 1,396.7 | (1,128.6) | (874.1) | 1,396.7 |
| Provision for | |||||||
| income taxes | 543.7 | (15.6) | 528.1 | 474.2 | (484.8) | 0.0 | 517.5 |
| Other provisions | 3,869.2 | (0.6) | 3,868.6 | 1,330.8 | (835.5) | (84.4) | 4,279.5 |
| 12,223.0 | (108.6) | 12,114.4 | 8,716.1 | (7,442.2) | (1,240.2) | 12,148.1 | |
| Long-term | |||||||
| Provisions for | |||||||
| long-service bonuses | 1,977.5 | 0.0 | 1,977.5 | 3.2 | (11.4) | 0.0 | 1,969.3 |
| Other non-current | |||||||
| provisions | 439.5 | 0.0 | 439.5 | 19.5 | 0.0 | (306.0) | 153.0 |
| 2,417.0 | 0.0 | 2,417.0 | 22.7 | (11.4) | (306.0) | 2,122.3 | |
| Total | 14,640.0 | (108.6) | 14,531.4 | 8,738.8 | (7,453.6) | (1,546.2) | 14,270.4 |
The schedule of provisions for severance payments and pensions is contained under the item D.14. "Non-current provisions" in the Notes.
| AS AT DECEMBER 31, 2006 | Cost of acquisition or production | |||||||
|---|---|---|---|---|---|---|---|---|
| As at | Currency | As at | ||||||
| in k€ | Jan 1, 2006 | differences | Additions | Disposals | Adjustment | Dec 31, 2006 | ||
| I. | Tangible assets | |||||||
| 1. | Land and buildings | |||||||
| a) Land value |
2,806.8 | (42.8) | 39.5 | 0.0 | 0.0 | 2,803.5 | ||
| b) Office and plant buildings |
24,207.3 | (648.2) | 4,672.5 | 76.7 | 2,921.7 | 31,076.6 | ||
| c) Outside facilities |
1,935.7 | 0.0 | 1,048.6 | 68.0 | 0.0 | 2,916.3 | ||
| d) Investments in non-owned buildings |
2,143.1 | (11.4) | 186.6 | 0.0 | 13.7 | 2,332.0 | ||
| 2. | Undeveloped land | 1,967.6 | 0.0 | 0.0 | 0.0 | 0.0 | 1,967.6 | |
| 3. | Technical equipment and machinery | 15,989.4 | (252.3) | 1,192.1 | 284.7 | 0.0 | 16,644.5 | |
| 4. | Other plant and office equipment | 23,368.0 | (130.5) | 3,734.4 | 1,541.3 | 36.6 | 25,467.2 | |
| 5. | Advance payments made, | |||||||
| construction in progress | 2,972.0 | 0.0 | 25.6 | 0.0 | (2,972.0) | 25.6 | ||
| 75,389.9 | (1,085.2) | 10,899.3 | 1,970.7 | 0.0 | 83,233.3 | |||
| II. | Intangible assets | |||||||
| 1. | Rights | 3,466.3 | (9.2) | 311.3 | 14.5 | 0.0 | 3,753.9 | |
| 2. | Goodwill | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| 3,466.3 | (9.2) | 311.3 | 14.5 | 0.0 | 3,753.9 | |||
| III. Securities | 2,144.8 | 0.0 | 233.9 | 1,870.7 | 0.0 | 508.0 | ||
| IV. Joint venture | 2,135.3 | 3.2 | (124.5) | 0.0 | 0.0 | 2,014.0 | ||
| 83,136.3 | (1,091.2) | 11,320.0 | 3,855.9 | 0.0 | 89,509.2 |
| AS AT DECEMBER 31, 2005 | Cost of acquisition or production | |||||||
|---|---|---|---|---|---|---|---|---|
| As at | Currency | As at | ||||||
| in k€ | Jan 1, 2005 | differences | Additions | Disposals | Adjustment | Dec 31, 2005 | ||
| I. | Tangible assets | |||||||
| 1. | Land and buildings | |||||||
| a) Land value |
2,780.6 | 26.2 | 0.0 | 0.0 | 0.0 | 2,806.8 | ||
| b) Office and plant buildings |
22,322.0 | 618.7 | 1,189.3 | 14.9 | 92.2 | 24,207.3 | ||
| c) Outside facilities |
1,769.8 | 0.0 | 170.2 | 4.3 | 0.0 | 1,935.7 | ||
| d) Investments in non-owned buildings |
2,065.5 | 0.0 | 134.7 | 57.1 | 0.0 | 2,143.1 | ||
| 2. | Undeveloped land | 1,967.6 | 0.0 | 0.0 | 0.0 | 0.0 | 1,967.6 | |
| 3. | Technical equipment and machinery | 14,922.6 | 314.1 | 852.2 | 99.5 | 0.0 | 15,989.4 | |
| 4. | Other plant and office equipment | 22,257.9 | 174.0 | 2,352.1 | 1,465.9 | 49.9 | 23,368.0 | |
| 5. | Advance payments made, | |||||||
| construction in progress | 142.1 | 0.0 | 2,972.0 | 0.0 | (142.1) | 2,972.0 | ||
| 68,228.1 | 1,133.0 | 7,670.5 | 1,641.7 | 0.0 | 75,389.9 | |||
| II. | Intangible assets | |||||||
| 1. | Rights | 3,625.5 | 12.0 | 216.5 | 387.7 | 0.0 | 3,466.3 | |
| 2. | Goodwill | 1,378.9 | 0.0 | 0.0 | 1,378.9 | 0.0 | 0.0 | |
| 5,004.4 | 12.0 | 216.5 | 1,766.6 | 0.0 | 3,466.3 | |||
| Investments in | ||||||||
| associated companies | 44.0 | 6.7 | 0.0 | 50.7 | 0.0 | 0.0 | ||
| III. Securities | 3,679.5 | 0.0 | 212.9 | 1,747.6 | 0.0 | 2,144.8 | ||
| IV. Joint venture | 0.0 | 10.1 | 2,125.2 | 0.0 | 0.0 | 2,135.3 | ||
| 76,956.0 | 1,161.8 | 10,225.1 | 5,206.6 | 0.0 | 83,136.3 |
| Net carrying values | Accumulated depreciation | |||||||
|---|---|---|---|---|---|---|---|---|
| As at | As at | As at | Value imp. | Currency | As at | |||
| Dec 31, 2005 | Dec 31, 2006 | Dec 31, 2006 | Adjustment | Disposals | (IAS 36) | Additions | differences | Jan 1, 2006 |
| 2,794.6 | 2,789.5 | 14.0 | 0.0 | 0.0 | 0.0 | 1.8 | 0.0 | 12.2 |
| 13,527.5 | 19,657.7 | 11,418.9 | 0.0 | 41.7 | 0.0 | 1,045.1 | (264.3) | 10,679.8 |
| 523.3 | 1,405.9 | 1,510.4 | 0.0 | 65.6 | 0.0 | 163.6 | 0.0 | 1,412.4 |
| 936.6 | 945.2 | 1,386.8 | 0.0 | 0.0 | 0.0 | 180.8 | (0.5) | 1,206.5 |
| 1,967.6 | 1,967.6 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 4,608.9 | 4,760.6 | 11,883.9 | 0.0 | 276.4 | 0.0 | 953.1 | (173.3) | 11,380.5 |
| 7,062.6 | 8,179.0 | 17,288.2 | 0.0 | 1,415.4 | 0.0 | 2,508.7 | (110.5) | 16,305.4 |
| 2,972.0 | 25.6 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 34,393.1 | 39,731.1 | 43,502.2 | 0.0 | 1,799.1 | 0.0 | 4,853.1 | (548.6) | 40,996.8 |
| 628.0 | 483.6 | 3,270.3 | 0.0 | 14.5 | 0.0 | 455.4 | (8.9) | 2,838.3 |
| 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 628.0 | 483.6 | 3,270.3 | 0.0 | 14.5 | 0.0 | 455.4 | (8.9) | 2,838.3 |
| 1,601.0 | 202.5 | 305.5 | 0.0 | 238.3 | 0.0 | 0.0 | 0.0 | 543.8 |
| 2,135.3 | 2,014.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 38,757.4 | 42,431.2 | 47,078.0 | 0.0 | 2,051.9 | 0.0 | 5,308.5 | (557.5) | 44,378.9 |
| Net carrying values | Accumulated depreciation | |||||||
|---|---|---|---|---|---|---|---|---|
| As at | As at | As at | Value imp. | Currency | As at | |||
| Dec 31, 2004 | Dec 31, 2005 | Dec 31, 2005 | Adjustment | Disposals | (IAS 36) | Additions | differences | Jan 1, 2005 |
| 2,770.1 | 2,794.6 | 12.2 | 0.0 | 0.0 | 0.0 | 1.7 | 0.0 | 10.5 |
| 12,677.6 | 13,527.5 | 10,679.8 | 0.0 | 8.3 | 0.0 | 841.1 | 202.6 | 9,644.4 |
| 428.4 | 523.3 | 1,412.4 | 0.0 | 0.6 | 0.0 | 71.6 | 0.0 | 1,341.4 |
| 1,002.1 | 936.6 | 1,206.5 | 0.0 | 54.8 | 0.0 | 197.9 | 0.0 | 1,063.4 |
| 1,967.6 | 1,967.6 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 4,620.0 | 4,608.9 | 11,380.5 | 0.0 | 54.8 | 0.0 | 910.9 | 221.8 | 10,302.6 |
| 7,023.4 | 7,062.6 | 16,305.4 | 0.0 | 1,305.2 | 0.0 | 2,240.3 | 135.8 | 15,234.5 |
| 142.1 | 2,972.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 30,631.3 | 34,393.1 | 40,996.8 | 0.0 | 1,423.7 | 0.0 | 4,263.5 | 560.2 | 37,596.8 |
| 973.0 | 628.0 | 2,838.3 | 0.0 | 333.4 | 0.0 | 508.0 | 11.2 | 2,652.5 |
| 136.2 | 0.0 | 0.0 | 0.0 | 1,378.9 | 136.2 | 0.0 | 0.0 | 1,242.7 |
| 1,109.2 | 628.0 | 2,838.3 | 0.0 | 1,712.3 | 136.2 | 508.0 | 11.2 | 3,895.2 |
| 0.0 | 0.0 | 0.0 | 0.0 | 50.7 | 0.0 | 0.0 | 6.7 | 44.0 |
| 2,671.6 | 1,601.0 | 543.8 | 0.0 | 464.1 | 0.0 | 0.0 | 0.0 | 1,007.9 |
| 0.0 | 2,135.3 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 34,412.1 | 38,757.4 | 44,378.9 | 0.0 | 3,650.8 | 136.2 | 4,771.5 | 578.1 | 42,543.9 |
The segment reports refer to the revenues and results earned by the individual segments both on their respective local market and from export sales.
50
| External revenue 148,722.3 96,904.2 76,479.8 |
|
|---|---|
| Internal revenue 45,897.8 12,841.4 8,243.9 |
|
| Total revenue 194,620.1 109,745.6 84,723.7 |
|
| Operating result (EBIT) | |
| before result of joint venture 11,038.4 8,392.3 2,655.4 |
|
| Segment assets 123,039.9 38,373.2 40,016.2 |
|
| Segment liabilities 59,827.8 14,525.0 39,387.2 |
|
| Investments 8,930.9 901.9 1,228.7 |
|
| Depreciation 3,620.2 563.9 829.9 |
|
| Other non-cash income/expenses 887.3 0.0 383.3 |
|
| Result of joint venture (124.5) 0.0 0.0 |
|
| Carrying amount joint venture 2,014.0 0.0 0.0 |
|
| Employees 710 340 339 |
|
| PRIMARY SEGMENT FOR 2005 | |
| in k€ Austria America Germany |
|
| External revenue 141,603.4 87,750.6 63,485.4 |
|
| Internal revenue 30,420.5 10,080.3 9,163.5 |
|
| Total revenue 172,023.9 97,830.9 72,648.9 |
|
| Operating result (EBIT) | |
| before result of joint venture 9,960.9 8,562.3 2,873.01) |
|
| Segment assets 101,008.3 28,973.1 31,532.7 |
| Segment liabilities | 53,719.2 | 13,525.9 | 36,358.1 |
|---|---|---|---|
| Investments | 6,275.2 | 827.6 | 696.5 |
| Depreciation | 3,146.3 | 521.2 | 916.9 |
| Other non-cash income/expenses | 663.4 | 0.0 | 76.5 |
| Result of joint venture | 0.0 | 0.0 | 0.0 |
| Carrying amount joint venture | 2,135.3 | 0.0 | 0.0 |
| Employees | 722 | 286 | 337 |
1) Including grant of the Rosenbauer International AG in favor of Metz Aerials GmbH & Co. KG in the amount of 3.6 m€.
| SECONDARY SEGMENT | Revenue | ||
|---|---|---|---|
| in m€ | 2006 | 2005 | |
| Vehicles | 247.4 | 218.2 | |
| Fire fighting components | 14.8 | 15.4 | |
| Equipment | 45.4 | 35.2 | |
| Aerials | 45.9 | 35.8 | |
| Service & spare parts | 16.9 | 14.2 | |
| Others | 1.6 | 2.5 | |
| Consolidation | 0.0 | 0.0 | |
| Group | 372.0 | 321.3 |
| Spain | Switzerland | Asia | Consolidation | Group |
|---|---|---|---|---|
| 31,478.7 | 6,798.2 | 11,582.8 | 0.0 | 371,966.0 |
| 327.5 | 0.0 | 17.6 | (67,328.2) | 0.0 |
| 31,806.2 | 6,798.2 | 11,600.4 | (67,328.2) | 371,966.0 |
| 1,859.2 | 392.8 | 687.6 | 110.3 | 25,136.0 |
| 18,241.8 | 4,273.0 | 6,641.2 | (36,391.6) | 194,193.7 |
| 18,269.4 | 789.5 | 1,404.3 | (35,376.9) | 98,826.3 |
| 8.2 | 43.2 | 97.7 | 0.0 | 11,210.6 |
| 38.0 | 162.8 | 93.7 | 0.0 | 5,308.5 |
| 0.0 | 0.0 | 0.0 | 0.0 | 1,270.6 |
| 0.0 | 0.0 | 0.0 | 0.0 | (124.5) |
| 0.0 | 0.0 | 0.0 | 0.0 | 2,014.0 |
| 13 | 15 | 35 | 0 | 1,452 |
| Spain | Switzerland | Asia | Consolidation | Group |
|---|---|---|---|---|
| 14,174.0 | 7,339.7 | 6,982.4 | 0.0 | 321,335.5 |
| 2,486.7 | 0.0 | 7.7 | (52,158.7) | 0.0 |
| 16,660.7 | 7,339.7 | 6,990.1 | (52,158.7) | 321,335.5 |
51
| 817.4 | 396.8 | 413.6 | (3,394.7) | 19,629.3 |
|---|---|---|---|---|
| 12,747.1 | 4,523.6 | 4,651.8 | (32,638.4) | 150,798.2 |
| 12,926.1 | 1,772.9 | 1,405.7 | (32,242.1) | 87,465.8 |
| 9.6 | 41.4 | 36.7 | 0.0 | 7,887.0 |
| 39.5 | 168.8 | 115.0 | 0.0 | 4,907.7 |
| (60.6) | 0.0 | 0.0 | 0.0 | 679.3 |
| 0.0 | 0.0 | (471.8) | 0.0 | (471.8) |
| 0.0 | 0.0 | 0.0 | 0.0 | 2,135.3 |
| 14 | 15 | 33 | 0 | 1,407 |
| Segment assets | Investments | ||
|---|---|---|---|
| 2006 | 2005 | 2006 | 2005 |
| 148.2 | 120.6 | 7.2 | 5.2 |
| 7.3 | 5.7 | 1.7 | 0.6 |
| 9.8 | 5.6 | 0.2 | 0.6 |
| 31.8 | 22.4 | 0.9 | 0.5 |
| 0.3 | 0.3 | 0.0 | 0.0 |
| 5.0 | 4.5 | 1.2 | 1.0 |
| (8.2) | (8.3) | 0.0 | 0.0 |
| 194.2 | 150.8 | 11.2 | 7.9 |
The Rosenbauer Group is an internationally active corporation with an Austria-based parent company, Rosenbauer International AG. Its main focus is on the production of fire fighting vehicles, the development and manufacture of extinguishing systems and the equipping of both vehicles and their crews. The Group head office is located at Paschinger Strasse 90, 4060 Leonding, Austria. The company is noted at the Linz Provincial Court under the company register number FN 78543 f.
These consolidated financial statements for Rosenbauer International AG and its subsidiaries for the financial year 2006 correspond with the International Financial Reporting Standards (IFRSs) and are to be approved for publication by the Supervisory Board, which will probably convene in April 2007.
The consolidated financial statements are prepared in thousands of Euros (k€) and unless expressly stated, this also applies to the figures quoted in the Notes.
The consolidated financial statements have been prepared on a historical cost basis, except for investment properties, land and buildings, derivative financial instruments and available-for-sale investments that have been measured at fair value. The carrying values of recognized assets and liabilities that are hedged items in fair value hedges, and are otherwise carried at cost, are adjusted to record changes in the fair values attributable to the risks that are being hedged.
In general, the accounting and valuation methods applied in 2006 correspond with those employed in the preceding year. In addition, the Group utilized new/revised standards, which are binding for the financial year commencing January 1, 2006. 52
As at January 1, 2006, the Group adopted the amendments to IAS 19. This change has resulted in additional disclosures being included for the financial years 2006 and 2005 but has not had a recognition or measurement impact.
The following amendments to IAS 39 did not have an effect on the financial statements.
Financial guarantee contracts that are not considered to be insurance contracts are to be recognized initially at fair value and to be remeasured at the higher of the amount determined in accordance with IAS 37 (Provisions, Contingent Liabilities and Contingent Assets) and the amount initially recognized less, when appropriate, cumulative amortization recognized in accordance with IAS 18 (Revenue). This amendment did not have an effect on the financial statements.
Concerning the reporting for hedges of forecast intragroup transactions the amendment to IAS 39 permits to qualify the foreign currency risk of a highly probable intragroup forecast transaction as the hedged item in the cash flow hedge, provided that the transaction is denominated in a currency other than the functional currency of the entity entering into that transaction and that the foreign currency risk will effect the consolidated income statement. This amendment to IAS 39 did not have an effect on the financial statements.
The amendment for the fair value option restricts the use of the option to designate any financial asset or any financial liability to be measured at fair value through the income statement. The Group had not previously used this option, hence the amendment did not have an effect on the financial statements.
As at January 1, 2006, the Group adopted the amendments to IAS 21. As a result, all exchange differences arising from a monetary item that forms part of the Group's net investment in a foreign operation are recognized in a separate component of equity in the consolidated financial statements regardless of the currency in which the monetary item is denominated. This change had no impact on the financial years 2006 and 2005.
The Group adopted IFRIC 4 as at January 1, 2006, which provides guidance in determining whether arrangements contain a lease to which lease accounting must be applied. This change in accounting policy has not had a significant impact on the Group as at December 31, 2006 and December 31, 2005.
The Group adopted IFRIC 5 as at January 1, 2006, which establishes the accounting treatment for funds established to help finance decommissioning for a companies assets. This change had no impact on the financial years 2006 and 2005.
The Group adopted IFRIC 6 as at January 1, 2006, which established the recognition date for liabilities arising from the EU Directive relating to the disposal of waste electrical and electronic equipment. This change had no impact on the financial years 2006 and 2005.
IFRIC 8 regulates the application of IFRS 2 to any arrangements where equity instruments are issued for consideration which appears to be less than fair value. The interpretation had no impact on the financial statements of the Group.
The amendment to IAS 1 requires the Group to make new disclosures to enable users of the financial statements to evaluate the Group's objectives, policies and processes for managing capital. This amendment was not put to premature use.
Furthermore, IFRS 7 (Financial Instruments: Disclosure), which extends the scope of reporting on financial instruments and applies to financial years beginning on or after January 1, 2007, was not put to premature use.
IFRIC 9 was issued in March 2006, and becomes effective for financial years beginning on or after June 1, 2006. This interpretation establishes that the date to assess the existence of an embedded derivative is the date an entity first becomes a party to the contract, with reassessment only if there is a change to the contract that significantly modifies the cash flows. The Group is still evaluating the effect of this interpretation and expects that adoption of this interpretation will have no impact on the Group's financial statements implemented in 2007.
The companies included within the scope of consolidation are reported in the subsidiaries table.
Subsidiaries are defined as companies, over which the parent company exerts a dominant influence with regard to financial and business policy. A dominant influence is given when the parent company holds more than half of the voting rights in a company. A dominant influence is also given when due to an agreement between one shareholder and others, the possibility exists to dispose over more than half of the voting rights.
For all subsidiaries, over which the parent company holds not more than half of the voting rights, a dominant influence on a contractual basis exists.
Accordingly, subject to the application of IAS 27, the scope of consolidation includes two domestic and 17 international companies, which are under the legal and effective control of Rosenbauer International AG.
The initial inclusion of a subsidiary takes place at the point in time when control over the assets and business activities of the company actually passes to the respective parent company. All the subsidiaries included are fully consolidated.
A joint venture is a contractual agreement, in which two or more parties undertake an economic activity, which is subject to shared management. The equity method is applied to the investment for inclusion in the balance sheet and it is initially reported at the cost of acquisition. Subsequently, the carrying value of the investment rises or falls in accordance with the results of the joint venture company. The share of the Group in the profits and losses of the joint venture from the date of purchase are contained in the income statement.
Since August 26, 2005, one joint venture (Rosenbauer YongQiang Fire Fighting Vehicles Ltd., China) is included in the consolidated financial statements. 54
| Number of fully | Number of companies | |
|---|---|---|
| consolidated companies | consolidated at equity | |
| January 1, 2006 | 20 | 1 |
| Acquisitions | 0 | 0 |
| Foundations | 1 | 0 |
| Disposals | 1 | 0 |
| Mergers | 0 | 0 |
| December 31, 2006 | 20 | 1 |
| Date | Business activities | |
| Foundations | ||
| Rosenbauer South Africa (PTY) Ltd., South Africa | Jan 1, 2006 | Service/spare parts |
| Disposals |
Rosenbauer New England LLC., USA Dec 31, 2006 Service/spare parts
Capital consolidation of the subsidiaries taken over takes place on the basis of the purchase method through the netting of the acquisition costs of the acquired interests against pro rata equity at the time of purchase.
Following a repeat assessment of identifiable assets, liabilities and contingent liabilities, in accordance with IFRS 3, a liabilities side difference is recognized immediately in the income statement. The annual financial statements of the companies included in the consolidated financial statements are drawn up on the basis of uniform accounting and valuation standards. The individual financial statements of the companies included are prepared on the closing date of the consolidated financial statements. All receivables and liabilities, expenses and income derived from clearing between companies included in the scope of consolidation are eliminated. Interim results derived from asset transfers within the Group are also eliminated.
Minority interests represent the portion of profit or loss and net assets not hold by the Group and are presented separately in the income statement and within equity in the consolidated balance sheet, separately from parent shareholders' equity. Acquisitions of minority interests are accounted for using the entity concept method, whereby, the difference between the consideration and the carrying amount of the share of the net assets acquired is netted against reserves.
The annual financial statements of the companies included in the consolidated financial statements reporting in foreign currencies, are translated into Euros using the functional currency concept in accordance with IAS 21. In the case of all companies, the functional currency in which they complete their independent financial, business and organizational activities is the respective national currency. Therefore, all assets and debts are translated at the respective mean exchange rate on the balance-sheet date, expenses and income at mean annual rates.
Differences between the currency translation of asset and liabilities items in the current and preceding year, as well as translation differences between the consolidated balance sheet and the consolidated income statement, are recognized at fair value in the income statement under equity.
The translation difference derived from the adjustment of equity as compared to initial consolidation is netted against the Group reserves. During the year under review, reporting date translation differences of –1,806.7 k€ (2005: 2,153.1 k€) are recognized at fair value in the income statement under equity.
The exchange rates established for currency translation demonstrate the following shifts.
| Closing rate | Annual mean rate | ||||
|---|---|---|---|---|---|
| in € | Dec 31, 2006 | Dec 31, 2005 | Dec 31, 2006 | Dec 31, 2005 | |
| 100 US dollars | 75.8725 | 84.5309 | 79.5603 | 80.3229 | |
| 100 Swiss francs | 62.2123 | 64.3418 | 63.5062 | 64.6223 | |
| 100 Singapore dollars | 49.5295 | 50.7743 | 50.1449 | 48.2659 | |
| 100 Brunei dollars | 49.5295 | 50.7743 | 50.1449 | 48.2659 | |
| 100 Chinese renminbi | 9.7339 | 10.4753 | 9.9879 | 9.8077 | |
| 100 South African rand | 10.8578 | 13.3779 | 11.6956 | 12.6781 |
The principle of uniform reporting and valuation is maintained by a directive, which applies throughout the Group.
56
Tangible assets are valued at the cost of acquisition or production, less scheduled depreciation, accumulated value impairment, or the lower attainable amount (Note: Real estate is not subject to scheduled depreciation). Scheduled depreciation is calculated using the linear method and takes place at the time an asset becomes operational. The cost of acquisition or production derives from the amount of cash or cash equivalents paid for the acquisition or production, or from the market value or other form of payment at the time of acquisition or production. The following scheduled depreciation is employed:
| Office and plant buildings | 2.00% – 20.00% |
|---|---|
| Technical equipment and machinery | 10.00% – 25.00% |
| Other plant and office equipment | 10.00% – 33.33% |
The residual carrying values, the depreciation method and service life are examined on each balance-sheet date and adjusted where required.
As at December 31, 2006 and 2005 there were no leased assets, for which in the main all the risks and chances derived from the possession of an asset are transferred (finance leasing), as well as there were no investment properties, which are retained for the purpose of obtaining rent or value added. Borrowing costs are recognized as an expense when incurred.
Intangible assets are valued at the cost of acquisition less scheduled linear depreciation. The rates of depreciation lie between 25.0% and 33.3%. Intangible assets with an undefined service life are not subject to scheduled linear depreciation, but are submitted to an annual impairment test as at December 31. Depending on every single case the examination will be implemented for every single asset or at the cash generating unit level. Intangible assets with indefinite useful lives are tested for impairment annually as of December 31. Depreciation for intangible assets is included under the item "Depreciation on intangible and tangible assets".
Pursuant to IAS 38 (Intangible Assets), research costs cannot be capitalized and are thus reported in their entirety in the income statement (2006: 7,434.0 k€; 2005: 5,771.1 k€). Development costs may only be capitalized, when the prerequisite conditions exist in accordance with IAS 38. As at December 31, 2006 no development costs are capitalized.
In the case of asset impairments, other than financial assets, where the recoverable amount (which corresponds with the higher of the cash value or the value in use), or the net selling price is below the respective carrying value, an impairment of the recoverable amount takes place in accordance with IAS 36 (Impairment of Assets). If the reasons for an impairment undertaken in the preceding year no longer exist, then a corresponding write-up is made. Assets are written off when the contractual rights to the cash flow relating to the respective asset expire or cease.
If the recoverable amount for an asset cannot be identified, the asset is included in a Cash Generating Unit (CGU) and subjected to an impairment test, whereby as a rule, the value in use is used as the recoverable amount. In the Rosenbauer Group, each of the legally autonomous company units forms a CGU.
A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognized. If that is the case the carrying amount of the assets is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the income statement.
The Group assesses at each balance-sheet date whether a financial asset or group of financial assets is impaired.
If there is objective evidence that an impairment loss on loans and receivables carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have non been incurred) discounted at the financial asset's original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced through use of an allowance account. The amount of the loss shall be recognized in the income statement.
The Group first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant and individually or collectively for financial assets that are not individually significant. If it is determined that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is included in a group of financial assets with similar credit risk characteristics and that group of financial assets is collectively assessed for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in a collective assessment of impairment.
Loans and receivables are valued at amortized cost using the effective interest method, less allowance for impairment. Profits and losses are reported under the result for the period, when the loans and receivables are written off or are impaired. Receivables in foreign currency are valued at the mean exchange rate on the balance-sheet date.
In general, derivative financial instruments relating to hedge accounting are reported at market value on a fair value basis in line with the hedge accounting stipulations of IAS 39 (Financial Instruments). Should the hedge prove ineffective, recognition in the income statement occurs. Removal from the balance sheet takes place when the power of disposition is lost. Hedging policy, as well as the financial instruments existent on the balance-sheet date are described in detail under item D.27. "Risk management".
Securities and other interests fall into the available-for-sale category. After initial measurement, available-for-sale financial assets are measured at fair value with unrealized gains or losses being recognized directly in equity in the net unrealized gains reserved. When the investment is disposed of, the cumulative gain or loss previously recorded in equity is recognized in the income statement. Interest earned or paid on the investments is reported as interest income or expense using the effective interest rate.
Deferred tax assets are to be carried for all taxable temporary differences between the value in the IFRS consolidated balance sheet and the taxation value. In accordance with IAS 12, these deferrals are calculated using the balance-sheet liability method. Deferred income tax liabilities are recognized for all taxable temporary differences, except where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
Furthermore, no deferred income tax liabilities are recognized in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. Current income tax relating to items recognized directly in equity is recognized in equity and not in the income statement.
Asset-side tax deferrals on loss carryovers are formed to the extent to which consumption within a determinable period can be anticipated.
The carrying amount of deferred income tax assets is reviewed at each balance-sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at each balance-sheet date and are recognized to the extent that is has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities.
The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balancesheet date.
Inventories are valued at the cost of acquisition or production or at the lower net realizable value (market price) on the reporting date. The calculation of the cost of acquisition or production for identical assets takes place using the weighted average cost method or similar procedures. Production costs only include directly attributable expenses and pro rata overheads subject to the assumption of a normal use of capacity. Interest for loans is not reported.
Long-term production contracts, which allow a reliable profit estimate, are valued at pro rata selling prices (percentage of completion method). The estimate of progress is made according to the ratio of actual costs to anticipated overall expenditure (cost to cost). Should a reliable profit estimate for a production contract not be possible, then the order proceeds are only to be reported to the amount of the order costs, which can probably be recovered. If it is likely that the entire order costs will exceed the entire order proceeds, then the anticipated loss is immediately recognized as an expense.
The capitalization of trade account and other receivables takes place at the cost of acquisition. Value impairments are taken into account in accordance with IAS 39. Impaired debts are derecognized when they are assessed as uncollectible.
The cash and cash equivalents reported under the item D.8. "Cash and short-term deposits", such as cash and bank balances are valued at the market value on the reporting date.
Monetary items in foreign currencies are translated into the functional currency on the balance-sheet date at the exchange rate on the closing date. Non-monetary items, reported according to the cost of acquisition method are reported unchanged at the exchange rate on the date of initial booking. Currency differences derived from the translation of monetary items are recognized in the income statement. All differences are taken to profit or loss with the exception of differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity.
A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognized when:
Under national law, in the case of dismissal or upon attainment of retirement age, employees of Austrian corporations with entry point until December 31, 2002 are entitled to a one-off severance payment. The amount of this payment is dependent on the number of years of service and remuneration at the time of severance. The provisions for severance payments are calculated in a uniform manner on the reporting date using the project unit credit method, an interest rate of 4.75% p.a. (2005: 4.5% p.a.) and a dynamic rate of 3.5% p.a. (2005: 3.5% p.a.) for future increases in remuneration. If the balance of the accumulated nonrecognized actuarial gains and losses at the end of the previous reporting period exceeds more than 10% of the cash value of the obligation (corridor method), this excess has to be allocated by the expected average remaining working lives of the employees participating in that plan.
Past service cost has to be recognized over the period until the benefits concerned are vested. As long as benefits concerned are vested immediately after introduction or change in a pension plan, past service cost has to be recognized immediately in the income statement.
Apart from invalidity and mortality rates (basis: Pagler & Pagler actuarial tables) and the end of the employment relationship upon attainment of the age of retirement, an annual rate of 1.5% is applied for premature terminations of employment with a severance payment entitlement. The calculation is based on the individual age of retirement according to the Austrian pension reform in regard of a gradually approach of the age of retirement.
In addition, fluctuation deductions in line with the number of years of service were also taken into account. These amount to 5% in the first year of service, 2% in the second year and 0.25% in the third to fifth year. Appropriate provisions calculated on the basis of actuarial principles counterbalance payment obligations. The provision for performance-related pension schemes reported in the balance-sheet corresponds with the cash value of the performance-related liability (DBO) on the balance-sheet date, adjusted by accumulated unrecognized actuarial gains and losses and unrecognized service expenses requiring subsequent offsetting.
In the case of existing pension entitlements established within the framework of company agreements, payments are calculated on the basis of the eligible years of service in the form of a fixed annual amount. This fixed sum is modified upon retirement according to pensionable, individual income. Current pensions are subject to regular examination with regard to indexing. Current pensions are paid fourteen times annually, whereby a transitional widow/widower regulation amounting to 50% is partly employed.
The pension's obligation is established on the basis on the following parameters:
| Interest | Remuneration | Pension | ||
|---|---|---|---|---|
| rate | increase | increase | ||
| Austria | 4.75% | 3.5% | 3.0% | |
| 60 | Germany | 4.75% | 1.5% | 1.5% |
Apart from the performance-related system, workers in Austria, who entered employment beginning with January 1, 2003, have access to a contribution-related pension's scheme. A mandatory amount of 1.53% of gross remuneration is to be paid into an employee pension fund, which is reported under "Personnel expenses" (details are contained in the Notes under the item D.31. "Personnel expenses, corporate bodies and employees". Accordingly, the creation of a provision for these employees is not given.
The other provisions carried under the non-current and current liabilities cover all the risks recognizable up to the reporting date derived from uncertain liabilities and are recognized to an amount determined as the most probable in a careful examination of the facts.
Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Liabilities are reported at the cost of acquisition. Liabilities in foreign currency are valued at the mean foreign exchange rate on the reporting date.
Government grants are recognized where there is a reasonable assurance that the grant will be received and all attaching conditions will be complied with. When the grant relates to an expense item, it is recognized as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Where the grant relates to an asset, it is set up as deferred income. Where the Group receives non-monetary grants, the asset and that grant are recorded at nominal amounts and the grant is released to the income statement over the expected life of the relevant asset by equal annual installments.
In accordance with IAS 20, long-term funding provided by research support funds, which contains an interest subsidy, is treated as public funding, why the interest advantage does not require qualification.
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognizing of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the income statement.
The proceeds from the sale of products and goods are realized at the point in time at which the risks and chances are transferred to the purchaser. Gains on interest are realized on a pro rata temporis basis taking into account the effective interest on the asset. Dividends are reported with the origination of a legal entitlement. Rental income is recognized on a straight line basis over the lease terms. Income realization for long-term orders going beyond the reporting date occurs subject to the percentage of completion method. 61
To a certain extent, the compilation of the consolidated financial statements requires the use of estimates and assumptions, which can influence the values reported for assets and payables, the other liabilities on the reporting date and income and expenses for the period under review. The actual, future values can deviate from the estimates.
The most important future-related assumptions, which could result in significant risk in the form of a material adjustment of the carrying values of assets and liabilities in the coming financial year, are explained subsequently.
The Group checks for the value impairment of existing goodwill at least once annually. Estimates are made of the probable future cash flow from the cash generating units to which the goodwill is allocated. In addition, an appropriate interest rate (2006: 6.0%; 2005: 5.7%) is selected in order to determine the cash value of this cash flow. As at December 31, 2006, there is no goodwill.
The Rosenbauer Group employs actuarial tables for the calculation of provisions for pensions. The calculations are based on assumptions concerning the discount rate, as well as increases in wages, salaries and pensions. The discount rate is oriented towards specific, national first class industrial bonds. The balance-sheet provision as at December 31, 2006 amounted to 12,501.7 k€ (2005: 11,752.3 k€) for severance payments and 4,764.4 k€ (2005: 4,741.9 k€) for pensions. More detailed information concerning the provision for pensions is contained in the description of the accounting and valuation methods, as well as the calculations contained under item D.14. "Non-current provisions".
The basis for the capitalization of asset-side tax deferrals is provided by both the business plans of the subsidiaries and tax planning calculations. If, on the basis of these forecasts, an existing loss carryforward will not be consumed within an appropriate period of three to five years, this loss carryforward is not capitalized. The amount of the non-capitalized loss carryforwards is reported under item D.4. "Deferred tax assets".
In the figures for the preceding year, reallocations from the current personnel provisions to the other current liabilities in the amount of 2,596.2 k€ were done.
62
The assets combined in the consolidated balance sheet and the related movements are shown in the movement in the consolidated assets table on pages 48 to 49. The tangible assets contain as in the preceding year no rented goods or real estate held as a financial investment.
The future expenses from operating leasing contracts, which exclusively involve tangible assets, were structured as follows:
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| In the following year | 1,359.2 | 1,560.2 |
| In the following 1 to 5 years | 4,373.0 | 4,971.5 |
| Over 5 years | 2,232.0 | 4,617.9 |
Payments from operative leasing agreements, which are carried in the result for the period amounted to 1,501.4 k€ (2005: 1,585.4 k€).
The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at inception date of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset.
As at December 31, 2006, the order liability for tangible assets in the Group amounted to 350.7 k€ (2005: 212.5 k€). During the 2006 financial year, no extraordinary depreciation was undertaken on tangible assets (2005: 0.0 k€). There were also no write-ups (2005: 0.0 k€).
Public subsidies were granted for investments in tangible assets. As at December 31, 2006, a subsidy of 407.3 k€ (2005: 494.8 k€) is reported on the liabilities-side under "Other liabilities". The subsidies are not to be repaid.
Construction in progress amounting to 25.6 k€ (2005: 2,972.0 k€) are reported in the movement in the consolidated assets. In the main, the amount of the financial year 2005 related to a new logistics center in Austria, which became operational in 2006.
Tangible assets of 2,488.5 k€ were pledged as hedging for liabilities (2005: 2,573.7 k€). There are no limitations with regard to rights of disposal.
The intangible assets contain software licences and rights in the amount of 483.6 k€ (2005: 628.0 k€). The depreciation of the financial year 2006 amounted to 455.4 k€ (2005: 508.0 k€). As at December 31, 2006, there is no goodwill as in the preceding year.
The securities reported in the consolidated financial statements in the amount of 202.0 k€ (2005: 1,601.0 k€) are in the availablefor-sale category. The highly reduction compared to the financial year 2005 can be explained by the disposal of the mandatory cover for severance payments and pensions in Austria.
The newly founded joint venture in China (Rosenbauer YongQiang Fire Fighting Vehicles Ltd.) was reported in the consolidated financial statements at equity as follows:
| in k€ | 2006 | 2005 |
|---|---|---|
| Beginning of the year | 2,135.3 | 0.0 |
| Capital payment | 0.0 | 2,597.0 |
| Share of loss/profit | (124.5) | (471.8) |
| Currency differences | 3.2 | 10.1 |
| End of the year | 2,014.0 | 2,135.3 |
| in k€ | 2006 | 2005 |
|---|---|---|
| Non-current assets | 2,118.3 | 2,304.9 |
| Current assets | 2,547.4 | 2,481.3 |
| Current liabilities | 2,802.8 | 2,650.9 |
| Income | 3,070.6 | 225.2 |
| Expenses | 3,195.1 | 697.0 |
As at December 31, 2006, capital obligations in favour of the joint venture in the amount of 1.0 m USD exist.
Differences between the values in the consolidated tax and IFRS balance sheets derive from the following difference amounts or deferred taxes:
| Deferred tax assets/liabilities | ||||
|---|---|---|---|---|
| 2006 | 2005 | |||
| in k€ | Asset-side | Liabilities-side | Asset-side | Liabilities-side |
| Open one-seventh depreciation purs. | ||||
| §12 (3) Austrian Corporation Tax Act | 1,440.0 | 0.0 | 1,979.6 | 0.0 |
| Foreign exchange forwards and securities | ||||
| (recognized at fair value in equity) | 7.1 | 169.1 | 91.9 | 30.5 |
| Foreign exchange forwards and securities | ||||
| (recognized in the income statement) | 20.7 | 185.0 | 148.6 | 79.3 |
| Valuation differences of receivables | 37.4 | 58.6 | 35.6 | 40.5 |
| Production contracts | 0.0 | 880.8 | 0.0 | 689.7 |
| Loss carryforwards | 2,890.3 | 0.0 | 2,971.7 | 0.0 |
| Special tax allowance | 0.0 | 210.1 | 0.0 | 214.4 |
| Valuation differences of other provisions and payables | 2,345.0 | 0.0 | 1,909.3 | 1.5 |
| Others | 286.0 | 310.2 | 568.6 | 369.4 |
| Asset-side/Liabilities-side deferred tax | 7,026.5 | 1,813.8 | 7,705.3 | 1,425.3 |
| Netting of asset-side and | ||||
| liabilities-side deferred tax | (1,180.9) | (1,180.9) | (1,033.8) | (1,033.8) |
| 5,845.6 | 632.9 | 6,671.5 | 391.5 |
Asset-side tax deferrals of 2,379.5 k€ (2005: 2,455.3 k€) for loss carryforwards are not reported as their effectiveness as definitive tax relief is insufficiently secured.
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Raw materials and supplies | 34,707.9 | 26,887.2 |
| Work in progress | 30,976.4 | 20,186.1 |
| Finished goods | 12,440.0 | 8,217.3 |
| Goods in transit | 2,580.5 | 1,593.5 |
| Advance payments made | 155.5 | 174.3 |
| 80,860.3 | 57,058.4 |
The inventories contain accumulated value impairments amounting to 3,599.5 k€ (2005: 4,774.7 k€). The amount of the value impairment in the current year in the amount of 1,107.9 k€ is included in the income statement under "Expenses for materials and services". There were no value write-ups in the current financial year (2005: 0.0 k€) and no inventories were pledged as hedging for liabilities. The balance-sheet value of the inventories reported corresponds with the lower of value at the cost of acquisition or production and net selling price.
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Production contracts | ||
| costs up to the balance-sheet date | 23,988.2 | 13,259.8 |
| gains up to the balance-sheet date | 4,037.1 | 2,858.2 |
| advance payments received | (4,315.9) | (2,338.5) |
| 23,709.4 | 13,779.5 |
All production contracts have a residual period of less than one year. Sales revenues include sales from production contracts in the amount of 12,735.4 k€ (2005: 666.5 k€).
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Trade accounts receivable | 42,101.2 | 38,000.2 |
| Other receivables | 7,308.0 | 6,939.0 |
| 49,409.2 | 44,939.2 |
In 2006, the other receivables with a period to maturity of between one and five years totaled 1,221.0 k€ (2005: 2,226.3 k€). As in the preceding year, in 2006 there are no receivables with a period to maturity in excess of five years.
As at December 31, 2006, the value impairments on the trade accounts receivable, as well as other receivables totaled 1,015.5 k€ (2005: 1,252.0 k€). The value impairments of the current year are reported in the amount of 365.4 k€ as other expenses.
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Cash, bank balances | 3,945.6 | 7,596.6 |
On the reporting date, there were no drawing restrictions on the amounts carried under this item.
Rosenbauer Group share capital comprises 1,700,000 non-par value shares. At the 14th Ordinary General Shareholders' Meeting, a resolution was passed concerning the prolongation of the authorization to purchase (repurchase) company shares in accordance with §65 Para. 1 Clause 8 Austrian Stock Corporation Act by a further 18 months up to November 24, 2007.
The capital reserve derives from the new shares issued in 1994 via the Vienna Stock Exchange and constitutes a committed capital reserve, which is not available for the payment of dividends. The individual financial statements of the company prepared according to Austrian Accounting Law (HGB) provide the basis for the proposal for the distribution of profits.
The item "Other reserves" contains the offset item for currency translation, the revaluation and hedging reserves. The offset item for currency translation carries the difference recognized at fair value derived from the adjustment of equity as compared to initial consolidation. In addition, this item also contains the differences from currency translations relating to asset and liability items, as compared to the translation of the preceding year, as well as translation differences between the consolidated balance sheet and income statement.
The change in the hedging reserve derives from the fair value valuation of currency futures subject to IAS 39.
Details concerning the reserves can be obtained from the consolidated statements of changes in equity table on pages 44 to 45.
The item "Minority interest" contains the interests of third parties in the equity of Group subsidiaries. In 2006, 4,282.8 k€ (2005: 3,648.5 k€) was distributed among minority shareholders in Group subsidiaries. Third party shareholders exist with regard to the following subsidiaries:
| 2006 | 2005 | |
|---|---|---|
| Rosenbauer AG, Oberglatt, Switzerland1) | 0.00% | 30.00% |
| Rosenbauer Española S.A., Madrid, Spain | 37.89% | 37.89% |
| Rosenbauer America LLC., Lyons, USA | 50.00% | 50.00% |
| Eskay Rosenbauer Sdn Bhd, Brunei | 20.00% | 20.00% |
1) The parent company Rosenbauer International AG acquired further 30% of its subsidiary Rosenbauer AG, Switzerland, on June 29, 2006. The purchase price amounted to 957.5 k€. Since then, the investment totals 100%. The carrying amount of the additional shares acquired was 695.7 k€. The difference of 261.8 k€ was netted against reserves.
The subordinated (mezzanine) capital of 7,488.2 k€ reported in the balance sheet 2005 was totaly repaid on December 29, 2006. The reimbursement occurred according to prior agreement between the holder and Rosenbauer by the use of an option.
This item contains all interest-bearing liabilities to banks and the Austrian Research Promotion Fund with a remaining period to maturity of over one year. Details concerning financial liabilities are contained under the item D.27. "Risk management". 66
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Liabilities to banks and | ||
| the Austrian Research Promotion Fund | ||
| thereof with a period to maturity of 1 to 5 years | 13,761.2 | 5,199.1 |
| thereof with a period to maturity of over 5 years | 0.0 | 0.0 |
| 13,761.2 | 5,199.1 |
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Other non-current liabilities | ||
| thereof with a period to maturity of 1 to 5 years | 714.2 | 335.4 |
| thereof with a period to maturity of over 5 years | 739.7 | 615.4 |
| 1,453.9 | 950.8 |
In 2006, the non-current liabilities mainly relate to export financing.
Details concerning the provisions for severance payments are contained in the description of the accounting and valuation methods. The transfer of cash values to the provisions for severance payments reported in the consolidated balance sheet is structured as follows:
| in k€ | 2006 | 2005 |
|---|---|---|
| Cash value of the obligation | 13,398.2 | 12,271.8 |
| Not yet recognized actuarial gains/losses | 896.5 | 519.5 |
| Provision reported as at Dec 31 | 12,501.7 | 11,752.3 |
| in k€ | 2006 | 2005 |
| Provision as at Jan 1 | 11,752.3 | 11,610.7 |
| Service expense | 633.9 | 610.7 |
| Interest expense | 564.9 | 665.8 |
| Recognized actuarial gains/losses | 4.5 | 0.0 |
| Ongoing payments | (453.9) | (1,134.9) |
| Provision as at Dec 31 | 12,501.7 | 11,752.3 |
The cash value of the obligation for the current year as well as the preceding years is structured as follows:
| in k€ | 2006 | 2005 | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|
| Cash value of the obligation | |||||
| as at Dec 31 | 13,398.2 | 12,271.8 | 11,938.7 | 11,587.1 | 9,319.7 |
Details concerning the provisions for pensions are contained in the description of the accounting and valuation methods. The transfer of cash values to the provisions for pensions reported in the consolidated balance sheet is structured as follows:
| in k€ | 2006 | 2005 |
|---|---|---|
| Cash value of the obligation | 4,979.1 | 5,311.2 |
| Not yet recognized actuarial gains/losses | 214.7 | 569.3 |
| Provision reported as at Dec 31 | 4,764.4 | 4,741.9 |
| in k€ | 2006 | 2005 |
| Provision as at Jan 1 | 4,741.9 | 4,741.0 |
| Service expense | 40.8 | 32.7 |
| Interest expense | 231.9 | 254.0 |
| Recognized actuarial gains/losses | 27.3 | 0.0 |
| Ongoing payments | (277.5) | (285.8) |
| Provision as at Dec 31 | 4,764.4 | 4,741.9 |
The cash value of the obligation for the current year as well as the preceding years is structured as follows:
| in k€ | 2006 | 2005 | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|
| Cash value of the obligation | |||||
| as at Dec 31 | 4,979.1 | 5,311.2 | 4,790.9 | 4,620.5 | 4,693.2 |
| in k€ | 2006 | 2005 |
|---|---|---|
| Provisions for long-service bonuses | 1,969.3 | 1,977.5 |
| Other non-current provisions | 153.0 | 439.5 |
| 2,122.3 | 2,417.0 |
The change in non-current provisions for 2006 under the item c) is contained in the schedule of provisions on page 47.
Apart from production and investment loans, this item also includes the ongoing account overdrafts as at December 31 of the respective reporting date. Details concerning the financial liabilities are contained under the item D.27. "Risk management".
All trade accounts payable in the amount of 30,218.4 k€ (2005: 18,295.4 k€) mature within a year.
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Tax liabilities | 3,565.1 | 3,413.5 |
| Liabilities derived from social security contributions | 850.7 | 1,186.0 |
| Other liabilities | 20,972.0 | 21,975.4 |
| 25,387.8 | 26,574.9 |
The overwhelming majority of the other liabilities consist of commission obligations to international commercial agents and personnel obligations.
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Tax provisions | 517.5 | 543.7 |
| Current provisions | 11,630.6 | 11,679.3 |
| 12,148.1 | 12,223.0 |
The other provisions contain cover for guarantees and risks in the sales area, as well as provisions from the personnel area. The remaining current provisions for 2006 are contained in the schedule of provisions on page 47.
Sales revenues derive mainly from the completion of orders. Information concerning the revenue structure is contained in the product segment sections and segment reporting in the Notes on pages 50 to 51.
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Income from the disposal of assets | 24.0 | 52.4 |
| Own work capitalized | 16.3 | 56.1 |
| Other income | 3,615.7 | 3,916.3 |
| 3,656.0 | 4,024.8 |
Other income largely consists of cost transfers to third parties.
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Taxes other than taxes on income | 259.2 | 197.2 |
| Administrative expenses | 15,498.9 | 16,219.4 |
| Marketing and sales expenses | 10,171.6 | 11,108.2 |
| 25,929.7 | 27,524.8 |
As in the preceding year, this item consists of maintenance, legal, auditing and consulting costs, external services, expenses for events, rents and leases, as well as the cost of the marketing and sales department.
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Interest and other expenses | 3,621.4 | 3,495.9 |
| Interest on non-current personnel provisions | 796.8 | 919.8 |
| 4,418.2 | 4,415.7 |
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Income on securities | 65.7 | 90.1 |
| Gains from the disposal of securities | 81.1 | 124.6 |
| Other interest and similar income | 1,280.4 | 923.9 |
| 1,427.2 | 1,138.6 |
| in k€ | 2006 | 2005 |
|---|---|---|
| Expense for current income tax | 2,776.2 | 3,508.8 |
| Change in deferred income tax | 843.9 | 345.5 |
| 3,620.1 | 3,854.3 |
The reasons for the difference between the calculated income tax expense and effective tax expense in the Group are as follows:
| in k€ | 2006 | 2005 |
|---|---|---|
| Profit before income tax | 22,020.5 | 15,880.4 |
| thereof 25% (2005: 25%) calculated income tax expense | 5,505.1 | 3,970.1 |
| Permanent differences | (498.4) | 735.4 |
| Effect of differing tax rates | 1,278.0 | 719.3 |
| Effect of tax rate change | 19.2 | (122.0) |
| Consumption of unaccounted loss carryforwards | (99.6) | 0.0 |
| Tax relief on limited companies1) | (1,507.0) | (1,183.9) |
| Capitalized loss carryforwards, for which no deferred | ||
| taxes had previously been reported | (1,077.2) | (1,429.1) |
| Taxes from previous years, | ||
| withholding taxes, minimum taxes | 0.0 | 1,164.5 |
| Effective tax income (–)/expense (+) | 3,620.1 | 3,854.3 |
1) Taxes relating to minority interest
70
The consolidated cash flow statement was prepared according to the indirect method. The finance funds consist entirely of cash in hand and bank balances. Interest received and paid is reported as part of current business activities. Dividend payments are reported as part of financing activities. There were no material non-cash transactions.
In 2006, capital contributions of 918.7 k€ were made for the in 2005 founded joint venture in China. These have already been recognized as a liability in the financial year 2005. Furthermore, Rosenbauer International AG increased its investment in Rosenbauer AG, Switzerland, from 70% to 100%. The purchase price amounted to 957.5 k€.
More detailed information is contained in the consolidated cash flow statement on page 46.
The development of Group companies takes special priority in internal reporting. For this reason, primary segment reporting is in line with the location of the assets of the Rosenbauer Group companies and secondary reporting according to product segments.
Clearing prices between the segments are based on comparable, standard market conditions.
Segment reporting refers to sales revenues and operating results, which are achieved from every single segment on local as well as export markets. Segment assets and segment liabilities only concern those operating assets and liabilities that are used from a segment for its operational activity. Not included are interest-bearing assets and liabilities.
Group revenue in the amount of 372.0 m€ (2005: 321.3 m€) splits up into Western and Eastern Europe (177.4 m€; 2005:163.1 m€), NAFTA countries (86.8 m€; 2005: 68.1 m€), Arab World (44.0 m€; 2005: 35.5 m€), Asia and Oceania (29.3 m€; 2005: 34.6 m€) and other countries (34.5 m€; 2005: 20.0 m€).
Sales revenues in the amount of 17.4 m€, segment assets in the amount of 7.5 m€ as well as investments in the amount of 3.5 m€ allocated in the previous year under the item "Others" have been attributed in the current year to segment concerned. The previous year was adapted correspondingly.
The numerical presentation of the segments is available from the primary and secondary segment tables for the years 2005 and 2006 on pages 50 to 51.
As a global player, the Rosenbauer Group is inevitably subject to price, interest and exchange rate risks. It is company policy, to closely monitor risk positions, counteract internally the market development of existing risks to the greatest extent possible, steer net items towards an optimum result, and where necessary, undertake hedging. The aim of currency risk hedging is the creation of a secure calculation basis for production contracts.
71
Overall evaluation: No material new or previously unrecognized risks resulted from the yearly evaluation of Group companies. In addition, on the basis of current information, there are no individual, existential risks that could have a decisive effect on the asset, financial and earnings position of the Group.
Financial instruments form one important area of risk hedging. Financial instruments are cash business procedures based on civil law contracts. In accordance with IAS 32 these include original financial instruments such as receivables, trade accounts payable, financial receivables and liabilities. On the other hand, there are also derivative financial instruments, which are used as hedging transactions against the risks derived from exchange and interest rate shifts. Both categories of financial instruments are reported on subsequently.
All regular way purchases and sales of financial assets are recognized on the trade date, which is the date that the Group commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace.
Due to daily or short-term maturity, the fair value of cash and short-term deposits, short-term receivables and payables largely corresponds with the carrying value. Banks largely administer the securities reported under non-current assets within the scope of portfolio management. On the reporting date, the securities were allocated a fair value of 202.5 k€ (2005: 1,601.0 k€).
As a result of the customer structure and the credit risk hedging policy, the receivables risk can be regarded as negligible. The amounts reported also represent the maximum creditworthiness and loss risk. The carrying values reported largely correspond with the market values.
Within the European Union, receivables largely relate to local government legal entities. Where private business recipients of lower or unknown creditworthiness are involved, receivables are insured, e.g. in Austria via Österreichische Kreditversicherung Coface AG.
Receivables from customers outside the European Union with low creditworthiness, including governmental clients, are insured by means of documentary credits or bank guarantees. If required, alternative and also cumulative insurance is concluded with a state insurance company. In Austria this takes place via Österreichische Kontrollbank AG (risk insurance outside the OECD) and Österreichische Kreditversicherung Coface AG (risk insurance inside the OECD).
Interest and interest change risks relate primarily to payables with a period to maturity of over a year.
72
In the case of assets, an interest change risk only applies to the securities carried in the financial assets. On the reporting date, the securities were allocated with their fair value. A reduction in interest rate risk and earnings optimization is possible by means of constant surveillance of interest trends and a resulting regrouping of the securities portfolio.
Long-term payables to banks consist of loans for various investments in operative business. Interest rates are hedged in the medium-term by means of interest cap instruments.
In the case of securities carried under the consolidated non-current assets, investments take place almost entirely in the local currency of the Group company involved. Consequently, there is no foreign exchange risk in this connection.
Virtually all of the foreign exchange risks on the assets side derive from trade accounts receivable in US dollars from international customers. In the majority of markets, invoicing takes place in Euros. On the liabilities side, with the exception of trade accounts payable, there are no foreign exchange risks of note, as ongoing financing of operative business takes place in the local currency of the respective company involved. Possible foreign exchange risks from short-term peaks are borne by the company. Apart from hedging using derivative financial instruments, further hedging derives from naturally closed items, which for example, are counterbalanced by trade accounts payable in US dollars.
Hedging of interest and foreign exchange risks is carried out by means of derivative financial instruments such as currency futures and interest cap instruments. These are initially reported at market value on the date of the conclusion of the contract and then revalued with market values.
The changes in value of the instruments used as a cash flow hedge are recognized under equity and reported separately in the movements in the Group equity table. The contribution to profit of the hedge is recognized in the income statement as of the date of the realization of the underlying transaction.
From a business perspective some transactions represent hedging, but fail to fulfill the hedge accounting requirements pursuant to IAS 39. The fair value changes of these financial instruments are recognized immediately in the income statement.
On the reporting date, the Rosenbauer Group had the following list of hedging transactions running, wereby the nominal values are reported in the respective local currency.
| Nominal value | ||||
|---|---|---|---|---|
| in 1,000 | Currency | Dec 31, 2006 | Currency | Dec 31, 2006 |
| Currency future | SGD | 5,032.8 | SGD € | 113.5 56.9 |
| Currency future | USD | 371.8 | USD € | 12.1 9.7 |
| Currency future | € | 12,498.0 | € | 340.1 |
| Interest instrument | € | 36,534.9 | € | 124.8 |
| Nominal value | Fair value | ||||
|---|---|---|---|---|---|
| in 1,000 | Currency | Dec 31, 2005 | Currency | Dec 31, 2005 | |
| Currency future | SGD | 3,047.8 | SGD € | (20.1) (9.7) | |
| Currency future | USD | 1,369.9 | USD € | (71.1) (57.1) | |
| Currency future | CHF | 2,583.0 | CHF € | 48.8 31.5 | |
| Currency future | € | 5,456.8 | € | (118.7) | |
| Interest instrument | € | 17,000.0 | € | (41.0) |
| Nominal value | Fair value | |||
|---|---|---|---|---|
| in 1,000 | Currency | Dec 31, 2006 | Currency | Dec 31, 2006 |
| Currency future | € | 21,376.1 | € | 648.0 |
| Nominal value | Fair value | |||
| in 1,000 | Currency | Dec 31, 2005 | Currency | Dec 31, 2005 |
| Currency future | € | 13,720.3 | € | (284.9) |
| Interest instrument | € | 23,000.0 | € | (72.0) |
In the 2006 financial year –267.6 k€ were transferred from the equity to the income statement.
74
Group liquidity is secured by appropriate liquidity planning at the beginning of the year, sufficient financial assets with a maturity of less than one year and short-term credit lines. The following table shows the breakdown of interest-bearing liabilities as at December 31, 2006.
| Loan | Final | Interest | Interest | Dec 31, 2006 | Dec 31, 2005 | ||
|---|---|---|---|---|---|---|---|
| in 1,000 | Currency | Dec 31, 2006 | maturity | in % | variable/fixed | in k€ | in k€ |
| Current, | |||||||
| interest-bearing liabilities | |||||||
| Production financing | SGD | 4,809 | 2007 | Sibor+1.25 | variable | 2,382.0 | 2,054.6 |
| Production financing | USD | 1,000 | 2007 | 6.150 | variable | 758.7 | 0.0 |
| Production financing | USD | 307 | 2007 | 5.810 | variable | 232.7 | 0.0 |
| Production financing | USD | 8,550 | 2007 | 7.250 | variable | 6,487.1 | 0.0 |
| Production financing | CHF | 1,700 | 2007 | Libor+1.50 | variable | 1,057.6 | 965.1 |
| Production financing | € | 2,000 | 2007 | 4.133 | variable | 2,000.0 | 1,500.0 |
| Production financing | € | 2,100 | 2007 | 4.188 | variable | 2,100.0 | 1,700.0 |
| Production financing | € | 2,847 | 2007 | 4.640 | variable | 2,847.2 | 2,087.1 |
| Production financing | € | 96 | 2007 | 6.830 | fixed | 95.9 | 95.9 |
| Research promotion fund | € | 180 | 2007 | 2.500 | fixed | 180.0 | 0.0 |
| Investment loan | € | 0 | 2006 | 4.000 | fixed | 0.0 | 94.5 |
| Investment loan | € | 174 | 2007 | 1.500 | fixed | 174.4 | 174.4 |
| Loan on overdraft | € | 10,776.2 | 4,297,7 | ||||
| Total | 29,091.8 | 12,969.3 | |||||
| Non-current, | |||||||
| interest-bearing liabilites | |||||||
| Production financing | USD | 0 | 2007 | 6.150 | variable | 0.0 | 1,690.5 |
| Production financing | USD | 43 | 2009 | 5.810 | variable | 32.8 | 0.0 |
| Production financing | € | 983 | 2010 | 6.830 | fixed | 982.6 | 1,078.5 |
| Research promotion fund | € | 0 | 2007 | 2.500 | fixed | 0.0 | 180.0 |
| Research promotion fund | € | 382 | 2008 | 2.000 | fixed | 382.4 | 382.4 |
| Investment loan | USD | 3,000 | 2010 | 5.750 | variable | 2,276.2 | 1,606.1 |
| Investment loan | € | 10,000 | 2011 | 4.250 | variable | 10,000.0 | 0.0 |
| Investment loan | € | 87 | 2008 | 1.500 | fixed | 87.2 | 261.6 |
| Total | 13,761.2 | 5,199.1 | |||||
| Interest-bearing liabilities | 42,853.0 | 18,168.4 | |||||
Of the non-current, interest-bearing loans, 565.5 k€ mature in one-two years, 128.7 k€ in two-three years, 3,067.0 k€ in threefour years and 10,000.0 k€ in four-five years. The carrying values reported largely correspond with the market values.
The entire interest-bearing financial liabilities amount to 42,853.0 k€ (2005: 18,168.4 k€). The interest on interest-bearing liabilities amount to 2,735.9 k€ (2005: 2,367.3 k€), which represented an average of 5.0% (2005: 5.6%). Non-current variable interest-bearing liabilities are based on interest agreements on 3-months respectively 6-months Euribor/Libor.
There were no material events up to the preparation of the consolidated financial statements.
Rosenbauer International AG made no commitments to third parties other than Group companies. In addition, there were no contingent liabilities, which could lead to material liabilities.
| Currency | Equity | Holding1) | Result2) | Type of | |
|---|---|---|---|---|---|
| in 1,000 | consolidation | ||||
| Rosenbauer Österreich GmbH, | |||||
| Austria, Leonding | € | 2,951 | 100% | 03) | FC |
| Rosenbauer Management Services GmbH, | |||||
| Austria, Leonding | € | 77 | 100% | 0 | FC |
| Rosenbauer Holding GmbH & Co. KG, | |||||
| Germany, Karlsruhe | € | 6,087 | 100% | 42 | FC |
| Rosenbauer Deutschland GmbH, | |||||
| Germany, Passau | € | 823 | 100% | 152 | FC |
| Rosenbauer Feuerwehrtechnik GmbH, | |||||
| Germany, Luckenwalde | € | 4,314 | 100% | 257 | FC |
| Metz Aerials Management GmbH, | |||||
| Germany, Karlsruhe | € | 24 | 100% | 1 | FC |
| Metz Aerials GmbH & Co. KG, | |||||
| Germany, Karlsruhe | € | 4,163 | 100% | 988 | FC |
| Rosenbauer Finanzierung GmbH, | |||||
| Germany, Passau | € | 38 | 100% | 1 | FC |
| Rosenbauer AG, | |||||
| Switzerland, Oberglatt | CHF | 3,872 | 100% | 495 | FC |
| Rosenbauer Española S.A., | |||||
| Spain, Madrid | € | 3,453 | 62.11% | 1,141 | FC |
| General Safety Equipment LLC., | |||||
| USA, Minnesota4) | USD | 14,044 | 50% | 1,691 | FC |
| Central States Fire Apparatus LLC., | |||||
| USA, South Dakota4) | USD | 51,034 | 50% | 8,097 | FC |
| Rosenbauer Holdings Inc., | |||||
| USA, South Dakota | USD | 14,883 | 100% | 3,340 | FC |
| Rosenbauer America LLC., | |||||
| USA, South Dakota4) | USD | 73,321 | 50% | 9,357 | FC |
| RK Aerials LLC., | |||||
| USA, Nebraska4) | USD | 6,035 | 25% | 1,178 | FC |
| Rosenbauer Motors LLC., | |||||
| USA, Minnesota4) | USD | 283 | 50% | 190 | FC |
2) Profit/loss for the year after movements in the reserves AE = at equity consolidated companies
3) Profit transfer agreement with Rosenbauer International AG
4) Deciding vote right with Rosenbauer International AG
1) Direct interest FC = fully consolidated companies
| Currency | Equity | Holding1) | Result2) | Type of | |
|---|---|---|---|---|---|
| in 1,000 | consolidation | ||||
| SK Fire PTE Ltd., | |||||
| Singapore | SGD | 5,412 | 100% | 967 | FC |
| Rosenbauer YongQiang Fire Fighting | |||||
| Vehicles Ltd., China, Dongguan | CNY | 38,275 | 50% | (2,493) | AE |
| Eskay Rosenbauer Sdn Bhd, | |||||
| Brunei | BND | 2 | 80% | 5 | FC |
| Rosenbauer South Africa (PTY) Ltd., | |||||
| South Africa, Pretoria | ZAR | 384 | 100% | 383 | FC |
2) Profit/loss for the year after movements in the reserves AE = at equity consolidated companies
1) Direct interest FC = fully consolidated companies
The following transactions took place with closely associated persons. The purchases of goods relate in particular to vehicle deliveries by a Spanish company, the owner of which is related to the management of the recipient Spanish subsidiary. The loan in 2005 was provided to an American subsidiary by an executive manager. The rental agreement relates to the use of a property and was agreed between the manager and an American company. The one concerning an office in Beijing was agreed between the manager of the joint venture and Rosenbauer International AG.
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Sale of goods | 9.0 | 20.8 |
| Purchase of goods | 1,441.1 | 2,833.4 |
| Loan from closely associated persons | 0.0 | 1,014.4 |
| Rental agreement for land | 923.7 | 970.9 |
| Rental agreement for office | 103.4 | 104.4 |
The following transactions were made with the joint venture in China.
| in k€ | Dec 31, 2006 | Dec 31, 2005 |
|---|---|---|
| Sale of goods | 1,545.7 | 560.5 |
| Purchase of goods | 882.0 | 1.2 |
| Receivables | 656.9 | 560.5 |
| Liabilities | 842.3 | 918.7 |
The salaries of the members of the Rosenbauer International AG Executive Board in 2006 amounted to 2,753.4 k€ (2005: 2,533.4 k€) and consisted of a basic salary (2006: 982.4 k€; 2005: 982.4 k€), fees (2006: 1,603.0 k€; 2005: 1,383.0 k€) and rights for the creation of independent retirement and dependant provisions (2006: 168.0 k€; 2005: 168.0 k€). Provisions for severance payments of the Executive Board total 1,723.2 k€ as at December 31, 2006. Total expenses of the members of the Executive Board, which consist of salaries and changes in provisions for severance payments amounted to 2,349.4 k€ in the financial year 2006.
Following the termination of an employment relationship, there are no future burdens on the company resulting from company pension scheme contributions for Executive Board members.
Fees are calculated as a percentage of the consolidated income statement result prior to income tax and "Minority interest", whereby the percentage is gradually reduced in line with improvements in the consolidated profit.
| in k€ | 2006 | 2005 |
|---|---|---|
| Wages | 31,863.8 | 28,039.3 |
| Salaries | 30,449.0 | 28,569.9 |
| Expenses for severance payments and pensions | 1,043.9 | 1,976.0 |
| Expenses for the company employee pension fund | 83.2 | 67.0 |
| Expenses for mandatory social security payments | ||
| as well as wage-related taxes and obligatory contributions | 12,778.5 | 12,143.8 |
| Other social security payments | 1,005.2 | 823.0 |
| 77,223.6 | 71,619.0 | |
| Average number of employees | 2006 | 2005 |
| Blue-collar | 846 | 803 |
| White-collar | 520 | 522 |
| Apprentices | 86 | 82 |
| 1,452 | 1,407 |
The earnings per share are calculated on the basis of IAS 33 (Earnings per Share) by dividing the consolidated profit minus minority interest by the number of shares issued. As there were no "ordinary shares with a potentially dilutory effect" in circulation during the past financial year, the "diluted earnings per share" correspond with the "basic earnings per share". The calculation takes the following form:
| 2006 | 2005 | ||
|---|---|---|---|
| Consolidated profit minus minority interest | in k€ | 13,674.4 | 7.033,8 |
| Average number of shares issued | units | 1,700,000 | 1,700,000 |
| Basic earnings per share | in €/share | 8.04 | 4.14 |
| Diluted earnings per share | in €/share | 8.04 | 4.14 |
Between the balance-sheet date and the preparation of the consolidated financial statements there were no transactions with potentially ordinary shares.
The individual financial statements of the company prepared according to Austrian Accounting Law (HGB) provide the basis for the proposal for the distribution of profits. A net profit of 4,862,934.65 € is reported in the individual financial statements of Rosenbauer International AG. The Executive Board proposes to distribute this net profit through the payment of a dividend p.a. of 2.8 € (2005: 2.0 €) per share (4,760,000.0 € for 1,700,000 ordinary shares). The carryforward to new account: 102,934.65 €.
In the 2006 financial year, the Supervisory Board received emoluments of 175.4 k€ (2005: 159.9 k€). Emoluments to the Supervisory Board consist of a fixed amount and a variable sum. The latter is calculated as a percentage of the consolidated profit in the income statement prior to income tax and "Minority interest", whereby the percentage is gradually reduced in line with improvements in the consolidated profit.
Works Council delegates to the Supervisory Board:
Leonding, March 23, 2007
The Executive Board
Wagner Schwetz Kastil Brunbauer
We have audited the accompanying consolidated financial statements of Rosenbauer International Aktiengesellschaft, Leonding, for the financial year from January 1, 2006 to December 31, 2006. These consolidated financial statements comprise the balance sheet as at December 31, 2006, and the income statement, statement of changes in equity and cash flow statement for the year ended December 31, 2006, and a summary of significant accounting policies and other explanatory notes.
The Company's management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the EU. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with laws and regulations applicable in Austria and in accordance with International Standards on Auditing, issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Our audit did not give rise to any objections. Based on the results of our audit in our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the group as of December 31, 2006, and of its financial performance and its cash flows for the financial year from January 1, 2006 to December 31, 2006 in accordance with International Financial Reporting Standards as adopted by the EU.
Laws and regulations applicable in Austria require us to perform audit procedures whether the consolidated management report is consistent with the consolidated financial statements and whether the other disclosures made in the consolidated management report do not give rise to misconception of the position of the group.
In our opinion, the consolidated management report for the group is consistent with the consolidated financial statements.
Vienna, March 23, 2007
Wirtschaftsprüfungsgesellschaft mbH
(Chartered Accountant) (Chartered Accountant)
Gerhard Schwartz m.p. Johanna Hobelsberger-Gruber m.p.
On disclosure or reproduction of the financial statements all consolidated accounts in a form (e.g. shortened and/or translated into other language) differing from the confirmed setting, the auditor's opinion may neither be quoted nor referred to without approval.
Including shipping and commission revenues
Equity plus interest-bearing outside capital minus interest-bearing assets
Consolidated profit minus minority interest divided by the number of shares
Operating result
EBIT margin EBIT divided by revenues
Profit before tax
Average size of the workforce during the period under review
Share capital plus capital and other reserves, accumulated results and minority interest (until 2005: subordinated mezzanine capital)
Gearing ratio (in %) Net debt divided by the interest-bearing capital
Interest-bearing outside capital Non-current and current interest-bearing liabilities
Equity plus interest-bearing liabilities minus cash and short-term deposits minus securities
Additions to tangible and intangible assets
Share price at year-end multiplied with the number of shares issued
Interest-bearing liabilities minus cash and short-term deposits minus securities
Share price at year-end divided by the earnings per share
Return on equity (ROE in %) EBT divided by the average equity
Indefinitely paid-up capital. The profit-sharing rights are subordinated to those of the company's remaining creditors. The profit-sharing rights do not confer any corporate or voting rights.
| Rosenbauer International AG Paschinger Strasse 90 4060 Leonding, Austria |
P +43 732 6794 0 F +43 732 6794 89 |
[email protected] www.rosenbauer.com |
|---|---|---|
| Rosenbauer Österreich GmbH Paschinger Strasse 90 4060 Leonding, Austria |
P +43 732 6794 0 F +43 732 6794 84 |
[email protected] www.rosenbauer.com |
| Rosenbauer Deutschland GmbH Bahnhofstrasse 16b 94032 Passau, Germany |
P +49 851 6096 0 F +49 851 72221 |
[email protected] www.rosenbauer.com |
| Rosenbauer Feuerwehrtechnik GmbH Rudolf-Breitscheid-Strasse 79 14943 Luckenwalde, Germany |
P +49 3371 6905 870 F +49 3371 6905 38 |
[email protected] www.rosenbauer.com |
| Metz Aerials GmbH & Co. KG Carl-Metz-Strasse 9 76185 Karlsruhe, Germany |
P +49 721 5965 0 F +49 721 5965 238 |
[email protected] www.metz-online.de |
| Rosenbauer AG Eichweg 4 8154 Oberglatt, Switzerland |
P +41 43 41112 12 F +41 43 41112 20 |
[email protected] www.rosenbauer.com |
| Rosenbauer Española S.A. Marqués de Monteagudo 24 28028 Madrid, Spain |
P +34 91 5939 822 F +34 91 4468 883 |
[email protected] www.rosenbauer.com |
82
| Rosenbauer America LLC. | P +1 605 543 5591 | [email protected] |
|---|---|---|
| 100 Third Street | F +1 605 543 5074 | www.rosenbaueramerica.com |
| Lyons, SD 57041, USA | ||
| Central States Fire Apparatus LLC. | P +1 605 543 5591 | [email protected] |
| 100 Third Street | F +1 605 543 5074 | www.rosenbaueramerica.com |
| Lyons, SD 57041, USA | ||
| General Safety Equipment LLC. | P +1 651 462 1000 | [email protected] |
| 5181 260th Street | F +1 651 462 1700 | www.rosenbaueramerica.com |
| Wyoming, MN 55092, USA | ||
| RK Aerials LLC. | P +1 402 721 7622 | [email protected] |
| 870 South Broad Street | F +1 402 721 7622 | www.rosenbaueramerica.com |
| Fremont, NE 68025-6099, USA | ||
| Rosenbauer Motors LLC. | P +1 651 462 1000 | [email protected] |
| 5181 260th Street | F +1 651 462 1700 | www.rosenbaueramerica.com |
| Wyoming, MN 55092, USA | ||
| SK Fire PTE Ltd. | P +65 68623 155 | [email protected] |
| 8, Tuas Drive 2 | F +65 68620 273 | www.skfire.com |
| Singapore 638643, Singapore | ||
| Rosenbauer YongQiang | P +86 769 8326 9778 | [email protected] |
| Fire Fighting Vehicles Ltd. | F +86 769 8326 9758 | www.rosenbauer.com |
| 523407 Tangchun Industrial Estate, Liaobu | ||
| Dongguan, Guangdong, China | ||
| Eskay Rosenbauer Sdn Bhd | P +673 234 5670 | [email protected] |
| Unit 18, Ground Floor | www.skfire.com | |
| Bangunan Desa Delima | ||
| Simpang 44, Jalan Muara BB4713 | ||
| Brunei Darussalam | ||
| Rosenbauer South Africa (PTY) Ltd. | P +27 11 805 7912 | www.rosenbauer.com |
| Unit 10 | F +27 680 511 6082 | |
| 997, Richards Drive | ||
| Half Way House 1685 | ||
| South Africa |
Rosenbauer International AG Paschinger Strasse 90, 4060 Leonding, Austria
Rosenbauer International AG Investor Relations Gerda Königstorfer Phone: +43 732 6794-568 Fax: +43 732 6794-94568 E-Mail: [email protected] Website: www.rosenbauer.com
Rosenbauer International AG
Layout Kreativstudio Marchesani
Photos Gerhard Heller
The English translation of the Rosenbauer Annual Report is for convenience. Only the German text is binding.
WWW.ROSENBAUER.COM
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