Annual Report • Nov 28, 2016
Annual Report
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| (Mio. EUR) | 2015 | 2014 | |
|---|---|---|---|
| Sales | 174.9 | 142.9 | |
| Germany | 127.8 | 114.0 | |
| Abroad | 47.1 | 28.9 | |
| Gross result | 66.5 | 61.0 | |
| EBITDA | 21.0 | 19.8 | |
| EBIT | 3.4 | 4.7 | |
| Net income | 1.4 | 2.6 | |
| Earnings per share | 0.08 | 0.19 | |
| Employees | 363 | 350 | |
| Orders on hand | 77.9 | 37.3 | |
| thereof Own Plant Operation | 7.6 | 0.9 | |
| thereof abroad | 70.3 | 27.5 | |
| Incoming orders | 95.8 | 52.3 | |
| Cancellation of orders | 0 | 27.9 | |
| Orders completed | 55.2 | 54.7 | |
| Capacity installed (MWel) | 372 | 366 | |
| thereof abroad | 98.4 | 95.8 | |
| Capacity under construction (MWel) | 13.8 | 1.1 | |
| thereof abroad | 13.8 | 1.1 |
003
| Annual Magazine of EnviTec Biogas | 002 |
|---|---|
| Financials | 003 |
| Content | 005 |
| Foreword of the Board of Executive Directors | 007 |
|---|---|
| Report of the Supervisory Board | 011 |
| The Share | 015 |
| Combined Management Report of the | |
| EnviTec Group and EnviTec Biogas AG | 019 |
| Consolidated Financial Statements | 041 |
| Notes to the 2015 Consolidated Financial Statements | 053 |
| Glossary | 073 |
| Financial Calendar | 078 |
|---|---|
| Imprint | 078 |
For many years, the international biogas industry has been exposed to substantial fluctuations and regulatory cuts. In response to these difficult conditions, we have revised our strategy and our business model from scratch since 2013. The reorganisation of our corporate structure including the spin-off of the plant construction activities and the efficient focusing on international growth markets played an important role in this context. Today, EnviTec's presence in 16 countries through its own subsidiaries, sales offices, strategic cooperations and joint ventures enables the company to tap into new potential in the international growth markets efficiently and at an early stage. The UK is currently the most important market for plant construction. EnviTec is also well-positioned in France, where the agricultural sector plays an important role. The company furthermore managed to enter the Danish market in 2015, and has started several new projects in China. Moreover we are placing a stronger focus on such South-East Asian markets as Indonesia. Germany used to be the most important market for EnviTec in the past but is no longer relevant for plant construction due to the coming into force of the 2014 Renewable Energy Sources Act (EEG). The currently discussed regulations of a new EEG will not provide any stimulation for the construction of new biogas plants in the
foreseeable future. Right on the contrary, the amended EEG may possibly force EnviTec to reconsider existing business models in the Energy segment and to adjust its positioning.
By contrast, the Own Plant Operation segment, a high cash flow generating business, and the Service segment, which continues to grow in Germany as well, offer room for our ongoing internationalisation. Consequently, we have expanded our service organisation in Italy and the Czech Republic, in particular.
After the strong performance in 2014, the trend in the fiscal year 2015 was more moderate, as the Plant Construction segment was unable to break even. Nevertheless all our segments were able to raise their revenues in a difficult market environment, which resulted in consolidated sales revenues of EUR 174.9 million, up 22.4% on the previous year. The EnviTec Group's bottom line results were positive in spite of volatile market conditions and postponed orders. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose from EUR 19.8 million to EUR 21.0 million.
This was essentially due to the good earnings trend in the Own Plant Construction segment. The Group's earnings before interest and taxes (EBIT) amounted to EUR 3.4 million in the reporting period, compared to EUR 4.7 million in the previous year. The decline is due not only to increased write-downs of own plants but also, and particularly so, to the unsatisfactory performance of the Plant Construction segment. Net income after taxes for the year 2015 amounted to EUR 1.4 million. The financial foundation of EnviTec Biogas remains very solid. The Group's equity ratio climbed to 57.4% as of the reporting date, not least due to the continued repayment of liabilities, especially of the note loan issued in 2012. It should be noted that we have changed our accounting standards from International Financial Reporting Standards (IFRS) to German Generally Accepted Accounting Principles (HGB). This change is primarily attributable to financial aspects and reflects the mostly domestic shareholder base of EnviTec Biogas.
Notwithstanding some uncertainty, we are optimistic about the year 2016. As some plant construction orders were postponed in 2015, the segment had an order backlog of EUR 77.9 million at the end of the year, which has led to very good capacity utilisation in the year to date. Besides the established markets such as France and the UK, we also see opportunities in up-and-coming Asian markets such as China, Malaysia and Indonesia as well as in the USA and Denmark in the medium term. At Group level, we expect a moderate increase in sales revenues and an improvement in the operating result (EBIT). We remain poised to seize opportunities across all our segments rapidly and efficiently and to develop new markets and products in order to achieve solid revenue and earnings growth.
Olaf von Lehmden Jürgen Tenbrink Jörg Fischer
from left to right
Jörg Fischer Finance Director (CFO), Weyhe-Erichshof Olaf von Lehmden Chairman of the Board (CEO), Lohne Jürgen Tenbrink Technical Director (CTO), Steinfurt
as in the previous year, conditions in the international biogas markets remained difficult in 2015. The situation is especially dramatic in Germany, where the market for the construction of new biogas plants came to a complete standstill in the context of the amendment of the German Renewable Energy Sources Act (EEG) in 2014. EnviTec responded at an early stage, adjusted its business model and pushed ahead the Group's internationalisation, especially in the Plant Construction segment. The past fiscal year demonstrated EnviTec's ability to successfully cope with the continued volatile conditions in the international biogas markets. This is reflected in the fact that all segments were able to increase their sales revenues, boosting the Group's total revenues by 22.4% to EUR 174.9 million. At EUR 3.4 million (previous year: EUR 4.7 million), the Group again generated a solid operating result (EBIT) in 2015. The decline on the previous year is partly attributable to increased write-downs of own plants. At the same time, the results in the Plant Construction segment were unsatisfactory in spite of the continued successful internationalisation; however, the unsatisfactory results were mainly due to postponed orders. An order backlog of EUR 77.9 million at the end of the fiscal year 2015 means that the segment's outlook for the full year 2016 is positive. Political interventions in the biogas sector remain a major factor of uncertainty, though. The future of the Energy segment, for instance, will depend on whether and to what extent the currently discussed regulatory changes in Germany will require a strategic realignment. Nevertheless, EnviTec believes it is well positioned for the future thanks to a strong technological and financial foundation as well as its very good market position. The focus will be on attractive foreign markets for plant construction, the
selective expansion of the Own Plant Operation segment, which generates high cash flows, and the accelerated expansion of the Service segment. The aim is to consistently seize opportunities that arise in attractive markets, to develop new markets and to achieve solid revenue and earnings growth.
In the context of our Supervisory Board activity, we again executed all controlling and advisory tasks imposed on us by law, the statutes and the rules of procedure in 2015. We continuously monitored the Executive Board and provided it with assistance and advice in steering the company. We were directly involved in all decisions that were of fundamental importance for the company at an early stage. To allow us to execute our advisory and supervisory tasks, the Executive Board provided us with written and verbal information on all relevant issues in a regular, timely and comprehensive manner. These include, in particular, planning and budgeting as well as strategic development, the development of new business fields, the business trend and the situation of the Group as well as the risk position, risk management and compliance. After thorough examination, the Supervisory Board approved all business events requiring its approval. The Executive Board and the Supervisory Board liaised regularly also in between the meetings. Due to the detailed reports provided by the Executive Board, we are convinced that the company and the Group are managed lawfully, correctly and efficiently. We saw no need to exercise our audit rights pursuant to section 111 para. 2 of the German Stock
Corporation Act. No conflicts of interest of members of the Executive Board or the Supervisory Board that require immediate reporting to the Supervisory Board and must be disclosed to the Annual General Meeting occurred in the past fiscal year.
As the Supervisory Board consists of only three members, no committees were formed in 2015. All issues that would have been addressed by committees were discussed by the full Supervisory Board. Moreover, the Supervisory Board is convinced of the efficiency of its work. Pursuant to section 100 para. 5 of the German Stock Corporation Act, at least one independent member of the Supervisory Board must have special accounting or auditing knowledge. This task is performed by our member Hans-Joachim Jung.
The Supervisory Board held four ordinary meetings on 30 April, 25 June, 6 October and 15 December 2015. All meetings were attended by all members of the Supervisory Board. Topics addressed at all meetings included the business trend, the net worth, financial and earnings position, investment projects as well as the risk situation and risk management of EnviTec Biogas.
In addition, the following topics were on the agenda and addressed and discussed with the Executive Board:
Audit for 2014
Planning and budgeting for 2015
Current market situation in the biogas sector
Competitive situation
New developments in the electricity marketing sector as well as the business model of EnviTec Energy
Overview of the Group's international activities
Structures and future positioning of the Plant Construction segment
Early repayment of the note loan
Report on R&D projects / development of new business fields
At the Annual General Meeting on 25 June 2015, the shareholders again elected Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft, Munich, auditors of the separate and the consolidated financial statements for the fiscal year 2015. After having obtained a declaration of independence from the auditor, the Chairman of the Supervisory Board commissioned the auditor to perform the audit, agreed the audit fee and determined the focal points of the audit. On this basis and including the company's accounts, Rödl & Partner GmbH audited the financial statements of EnviTec Biogas AG prepared by the Executive Board in accordance with the German Commercial Code (HGB) as well as the consolidated financial statements, which were the first since the IPO to be prepared to the provisions of the German Commercial Code (HGB), both for the period ended 31 December 2015, the combined management report of EnviTec Biogas AG and of the Group as well as the risk management system. As the audits led to no objections, the auditor issued an unqualified audit certificate (see page 71). The auditor also audited the Executive Board's related party disclosures ("dependency report"), which also received an unqualified audit certificate.
All Supervisory Board members received the management report, the financial statements and the audit reports in good time. These documents were thoroughly reviewed by the Supervisory Board at the meetings on 10 May 2016 and 13 May 2016. The meetings were also attended by the auditor of Rödl & Partner GmbH, and by the Executive Board, who discussed the key results of the audits and answered additional questions of the Supervisory Board members. No objections were raised after our own audit and the talks with the Executive Board and the auditor. The Supervisory Board therefore joined the audit result of Rödl & Partner GmbH and
approved the separate financial statements prepared by the Executive Board for the period ended 31 December 2015 as well as the consolidated financial statements. The financial statements of EnviTec Biogas AG have thus been endorsed. Having scrutinised the Executive Board's proposal for the allocation of the retained profit, we have endorsed this proposal as well.
We would like to thank all employees and the Executive Board for their great commitment in the fiscal year 2015. The coming year will also be a challenging one, but we have laid the requisite foundations for operating successfully in this market environment.
Lohne, 13 May 2016
Bernard Ellmann Chairman of the Supervisory Board
from left to right Hans-Joachim Jung Vice Chairman Bernard Ellmann Chairman Michael Böging
German shares gained strongly in 2015 although the previous year's high volatility continued. Driven by the European Central Bank's monetary easing measures, Germany's DAX picked up sharply in the first half of the year and reached a new all-time high of 12,374 points in April. As the year progressed, the DAX got under pressure because of concern about the Chinese economy and the stability of the eurozone. The DAX closed the year at 10,743 points, 10% higher than at the beginning of the year.
The German technology index, TecDAX moved in sync with the DAX. Following on from a good start to the year, the index passed the 1,800 points mark for the first time in July, driven by the expansionary monetary policy and a good economic outlook, and reached a high of 1,873.66 points in early December. The TecDAX closed the year more than 32% higher.
Unlike the German stock market, not all markets were able to continue the mostly positive performance of the previous year. The Dow Jones Index was under pressure as the Fed announced interest rate hikes and closed the year 2015 a moderate 2.3% lower. The S&P 500 Index, which covers a broader range of shares, closed the year almost unchanged compared to the previous year. After temporary strong increases, the European EuroStoxx 50 and the Japanese Nikkei 225 closed the year 2015 only slightly higher, whereas the Chinese Hang Seng Index recorded moderate losses.
The ÖkoDAX showed a much more positive performance over the course of the year. In the previous year, the index for Germany's largest renewable energy shares came under strong pressure because of the adoption of the Renewable Energy Sources Act (EEG). In 2015, the ÖkoDAX was able to recoup the previous year's losses almost entirely. The index reached a high of 47.29 points in August and closed the year at 42.95 points, up more than 32% on the end of the previous year.
Compared to the market as a whole, the EnviTec share showed a slightly negative performance in 2015. The share opened the year at a price of EUR 7.00 and reached a high of EUR 7.10 on 14 January. The share price then declined slightly and moved between EUR 6.00 and EUR 7.00 in the remaining course of the year. Hitting a low of EUR 5.70 on 23 October, the share recovered and closed the year at EUR 6.40 on 30 December 2015, the last day of trading, i.e. close to 9% lower. With 15 million shares outstanding, this is equivalent to a market capitalisation of EUR 96 million. The average share price in 2015 amounted to EUR 6.38.
The ordinary Annual General Meeting of EnviTec Biogas AG was held in Vechta on 25 June 2015. The main items on the agenda, e.g. the release from liability of the Executive Board and the Supervisory Board, were approved by a large majority of the shareholders. In addition, the shareholders approved the proposal to carry most of the profit generated in 2014 forward to new account and to pay out a dividend of EUR 0.35 per eligible share.
| Basic information on | |
|---|---|
| ISIN | DE000A0MVLS8 |
| Stock exchange symbol | ETG |
| Stock exchange segment | Entry Standard (Open Market) |
| Sector | Renewable energy |
| Annual high | EUR 7.10 |
| Annual low | EUR 5.70 |
| Year-end price | EUR 6.40 |
| Number of shares | 15,000,000 shares |
| Market capitalisation at end of year | EUR 96 million |
| Earnings per share | EUR 0.08 |
| Dividend proposal per share | EUR 0.80 |
stakeholders with equal information. We also attach great importance to a regular exchange of views with all interested investors.
In the fiscal year 2015, we again placed great store by continuous, timely and comprehensive communication. Our aim is to provide our shareholders and other
As the new Market Abuse Regulation comes into force on 3 July 2016, OTC issuers such as EnviTec Biogas AG will also be obliged to publish ad-hoc announcements and directors' dealings.
| Shareholder structure (as at 12/31/2015) | ||
|---|---|---|
| von Lehmden Beteiligungs GmbH | 8,638,317 shares | 57.60 % |
| TS Holding GmbH | 3,880,000 shares | 25.90 % |
| Free float | 2,331,683 shares | 15.50 % |
| Own shares | 150,000 shares | 1.00 % |
| Total number of shares | 15,000,000 shares | 100 % |
of the EnviTec Group and EnviTec Biogas AG In accordance with section 298 para. 3 in conjunction with section 315 para. 3 of the German Commercial Code (HGB), the management report for the separate financial statements of EnviTec Biogas AG for the year ended 31 December 2015 was combined with the management report for the consolidated financial statements for the year ended 31 December 2015.
The EnviTec Biogas Group, headquartered in Lohne, Germany, is one of the leading manufacturers and operators of biogas and biomethane plants. We cover the entire value chain for the production of biogas. This includes planning and turnkey construction of biogas plants and biogas upgrading plants as well as their taking into operation. Where required, the company also provides biological and technical services and offers the full range of plant management and plant operation services. In addition, EnviTec operates its own plants, making the company one of the largest biogas producers in Germany.
Our customer-oriented construction has set standards in terms of reliability and profitability. EnviTec plants can produce clean energy from all types of feedstock materials – from organic waste to renewable resources. Established in 2002, the company is today active in 15 countries besides Germany. EnviTec expanded its business activities by establishing EnviTec Energy and EnviTec Stromkontor, the latter's wholly-owned subsidiary, which market upgraded biomethane as well as green and balancing electricity.
Our high quality standards are confirmed not only by satisfied customers and the impressive efficiency of the plants served by us but also by internationally acknowledged certifications. We have implemented our quality management system to DIN EN ISO 9001:2008 at EnviTec Biogas AG, EnviTec Anlagenbau GmbH & Co. KG and EnviTec Service GmbH & Co. KG.
The Group is structured into four business segments: Plant Construction, Own Plant Operation, Service and Energy. All segments are closely integrated in strategic, technical and financial terms. The parent operates as a holding company, which provides services such as controlling, HR management, legal consulting, treasury and marketing for the four business segments. The business purpose of the parent company also includes the holding of equity investments in the Own Plant Operation segment as well as start-up financing of the respective project companies. In 2015, the basis of consolidation comprised 123 fully-consolidated companies, ten less than in the previous year.
The Plant Construction segment builds biogas and biomethane plants for customers such as farmers, industrial enterprises and investors. We plan the plant, build it and start up the production of biogas. Our product portfolio covers the complete value chain of biogas plant engineering for plants from 75 kW. We rely on a modular design approach using standardised elements, which can be combined to meet the respective local requirements. This means that we offer customised solutions and tried-and-tested technology at the same time. The advantages include faster plant start-up, high operational safety and low operating costs. Besides large-scale plants, EnviTec also launched a compact plant design in 2014, which is marketed under the name of "EnviFarm Compact". The compact plants in the 75 to 450 kW range are primarily targeted at the German and Italian markets. At the end of 2015, EnviTec had an installed base of approx. 372 MW (previous year: 366 MW).
The Own Plant Operation segment handles the generation of electricity, heat and gas in the company's own biogas plants in Germany and abroad. This is usually done in cooperation with local partners from the agricultural or energy sectors. These partnerships are characterised by a clear division of tasks, with every partner concentrating on their respective strengths. The local partner makes available the site, procures the feedstock materials and assumes responsibility for the operation of the plant. EnviTec is in charge of project planning and turnkey plant construction. Once the plant is in operation, we perform all maintenance work, provide biological services and take care of commercial management.
Our partners usually are farmers who operate the plants on their farms. We also cooperate with local authorities, investment companies, industrial corporations and energy utilities. The integration of our technological knowledge with the expertise of our regional partners results in high efficiency and attractive margins for EnviTec and its partners. The Own Plant Operation segment ideally complements the Plant Construction segment thanks to its steady cash flows.
EnviTec Energy offers heat customers what we call "contracting models". Under these models, we sell heat which is generated locally from internally produced biomethane in efficient CHP plants under long-term supply contracts. The buyers, such as industrial and commercial enterprises or local authorities with high heat requirements, are supplied with green heat at attractive terms under long-term contracts, thereby improving their carbon footprint.
EnviTec Stromkontor also operates under the umbrella of EnviTec Energy. This subsidiary combines the capacity of a large number of biogas plants into a virtual power plant and directly markets the energy generated in combined heat and power (CHP) plants at the electricity exchange on behalf of its customers. The plants can also be placed in the balancing energy market in order to increase the stability of the German power grid. The energy is marketed in cooperation with AXPO Deutschland GmbH, a subsidiary of Swiss electricity company AXPO Holding AG.
* Various project companies of biogas plants. Details of participation and minimum holding requirement see notes.
EnviTec's Service segment provides all services related to the operation of biogas plants. Our experts take care of starting up the plant and constantly control the biological processes. In our lab, feedstock materials and fermentation residues are checked for optimum quality so as to make recommendations on boosting the plant's efficiency. Our range of services also includes regular plant inspections and training of the operators and their employees. EnviTec Biogas also offers partial maintenance services, which are charged by actual expense, or full maintenance including assumption of the repair cost risk. Regular maintenance reduces the downtimes and is therefore key to the profitable long-term operation of a biogas plant. Our customers benefit from the expertise of our highly qualified experts, who are available 24/7.
Over the past years, we have attained a leading position in the biogas market and operate plants in as many as thirteen countries. Our strategic objective is to achieve sustainable growth and to expand our market position as an integrated supplier and operator of biogas plants. In this context, we attach top priority to the satisfaction of our customers and their involvement in the ongoing development of our plants in accordance with their wishes and requirements. The short to medium-term strategic positioning is strongly influenced by the ongoing discussion about the legal framework in the individual markets. The individual markets are very heterogeneous, which is primarily due to the different subsidisation models. France, the UK and Asia (China, South-East Asia) are currently the most attractive markets for EnviTec. We are closely monitoring developments in the individual countries so as to be able to respond in a timely manner to changes in the operating environment. We have defined the following cornerstones for sustainable growth:
We closely monitor worldwide developments in the biogas sector. As soon as sustainable structures arise in a market, we review them thoroughly and then take a timely decision as to whether or not we should enter this market. When making inroads into new markets, we rely on regional partners; this way, we combine
our long-standing experience in plant construction and operation with their knowledge of the regional specifics. EnviTec pushed ahead its internationalisation at an early stage and today has a presence in 15 countries besides Germany through its subsidiaries, sales offices, strategic cooperations and joint ventures. The new EEG Act 2014 has brought the German market to a standstill, as a result of which international revenues from plant construction have reached the level of domestic revenues from the same activity and will exceed them in future. Apart from established markets such as France, the UK and Italy, we see the biggest opportunities in countries such as Malaysia, Indonesia, China and the USA in the medium term. Except for Malaysia and Indonesia, EnviTec has already erected plants in these markets and now hopes that these reference projects will lead to further successful transactions. The aim is to build plants profitably also in a difficult market environment while maintaining sufficient capacity to seize market opportunities as they arise.
EnviTec Biogas clearly expanded its own plant operation activities in the past years and this segment today makes the biggest contribution to total Group revenues. At the end of 2015, EnviTec Biogas operated 76 own biogas plants with a total electrical output of 59.3 MW in Germany, Belgium, France and Italy. In Germany, EnviTec primarily relies on optimising the existing plants. In addition, the company selectively develops new markets for its own plant operation activities. Generating regular cash flows, the segment ideally complements the plant construction activities for third parties. The purpose of this segment is to stabilise the Group's revenue streams. Going forward, the company plans to expand its capacity only selectively.
The Service segment has become a reliable income generator for EnviTec and is to be expanded further. It is the declared strategic objective to expand the biological and technical services on an international scale and to offer more services also for third-party plants. In the Energy segment, we aim to complete the value chain "from the renewable source to the domestic heating system". The direct feeding of upgraded biomethane
produced in EnviTec plants means that the green energy can be transported and later be used locally wherever needed. We intend to exploit this potential even more effectively and supply more customers with green heat and green, local electricity. Nevertheless, the amendment of the German Energy Sources Act and the "Zweite Gesetz zur Änderung des Energie- und des Stromsteuergesetzes" (2nd Act on the Amendment of the Energy and Electricity Tax Act) may lead to a reorientation of the Energy segment.
By consistently expanding our technological expertise, we aim to consolidate our leading position in the sector and to increase the ecological and economic attractiveness of our core product, biogas. Our objective is to continuously improve the operation of our plants and to reduce the amount of substrates they require without affecting their performance. We see great development possibilities to increase the cost efficiency of biogas especially at the upstream and downstream stages of the fermentation process. To strengthen our innovation and technological expertise, we also do research into the biobased economy. This concept not only revolves around the efficient use of vegetable matter for the production of biogas. Instead, we pursue an integrated approach aimed at ensuring maximum value creation from input materials (such as plants) through the intelligent combination of different uses (such as food, biogas, and fuel). Another key focus is on testing alternative feedstock materials such as organic waste. We are also working on improvements in the agricultural sector, e.g. optimised harvest times and the development of specific seeds.
The aim of our corporate activity is to grow profitably. From this basis, we derive our key performance indicators: sales revenues, EBIT and return on equity. The Group is managed operationally and strategically at regular meetings of the Executive Board members. Depending on the issues to be discussed and planned, these weekly meetings are usually attended by executive staff. Strategic management issues are discussed and adjustments implemented if necessary. Moreover, the Executive Board regularly receives the results of analyses of sales revenues, orders on hand, costs, liquidity and leverage. In this context, targets and actual results are compared. ERP (Enterprise Resources Planning) software is used throughout the Group for the fast and comprehensive presentation of all processes such as materials handling, finance and accounting, project controlling as well as sales and marketing. Our quality management system was certified to DIN EN ISO 9001:2008 in 2010. Revised in 2008, the DIN EN ISO 9001:2008 standard makes high demands on quality management systems. At EnviTec, it covers not only the construction and operation of biogas plants but also the biological and technical services provided by the company. In 2015, the accounting standards for the Group and for EnviTec Biogas AG were changed from International Financial Reporting Standards (IFRS) to German Generally Accepted Accounting Principles (HGB). This change is primarily attributable to financial aspects and reflects the mostly national shareholder structure of EnviTec Biogas AG.
Ongoing development is key to sustainable success. We take this very seriously and continue to improve our technologies in order to increase the gas yield while optimising our quality management and researching potential alternative feedstock materials at the same time. Our R&D activities also focus on process monitoring and the processing of digestates, which ensures even more efficient utilisation of our plants.
The "biobased economy" is another important element of our research activities, i.e. the production of resources from biomass with the aim of generating new sources of income. In this context, we focus on researching new applications and processes and developing new markets. For instance, we are trying to tap as yet unused product potential in the generation of energy in order to expand the biomass value chain by using raw materials repeatedly, more intensively and efficiently.
As of 31 December 2015, EnviTec Biogas operated 76 own biogas plants with an electrical output of 59.3 MW in Germany, Belgium, France and Italy. These facilities are an important knowledge pool for the further development, improvement and application of new plant technology. New processes and technologies are directly tested in practice in our own plants or in close cooperation with customers. Our own plant operation activities allow us to develop technical innovations at our own plants. Aside from plants wholly owned by EnviTec Biogas, it is possible to operate plants under cooperation agreements in order to actively support research; this possibility is normally used by partners from the agricultural sector or local industry, who operate their plants independently with assistance from EnviTec. The use of our own plants for research purposes has resulted, for instance, in the development of a new kind of hydrogen fermenter facilitating a higher energy yield and in the reduction of fermentation residues with the help of EnviTec's proprietary EnviStrip process.
Another research project was the development of a "Highgester", a new type of fermenter, which, in spite of its more compact size, produces the same amount of biogas while consuming less electricity and heat. This reduces the operating and maintenance costs for the operator. The first Highgester was taken into operation in December 2015. The results to date confirm that the Highgester helps to greatly improve overall efficiency. We are already working on the next projects to realise further Highgesters.
EnviTec focuses on practice-oriented research and development. Besides Executive Board member Jürgen Tenbrink, the R&D Department has two permanent employees, who are supported primarily by colleagues from the Service segment. In addition, we cooperate with universities, also with a view to promoting young talent. We work closely with students and faculty, both in the context of research projects and the writing of
Bachelor and Master's theses. Total investments in research and development in the fiscal year amounted to approx. EUR 2 million.
According to the International Monetary Fund (IMF), the world economy grew by 3.1% in 2015. At the beginning of last year, the IMF's economic experts still projected 3.5% growth. As in the previous years, the emerging and developing countries again made the biggest contribution to global economic growth in 2015. At 4.0%, however, the growth momentum in these countries continued to decline. The industrialised economies expanded by a moderate 1.9% in 2015, according to the IMF. The US and UK economies grew at above-average rates of 2.5% and 2.2%, respectively. The eurozone economy expanded by approximately 1.6%, with the French GDP increasing by 1.1%. The IMF estimates that the German economy grew by a solid 1.5% in 2015.
Due to good harvests in the past two years, the global agricultural industry has built up sufficient inventories and achieved a comfortable supply of resources. As a result, the prices of the agricultural resources used as feedstock materials by EnviTec were moderate in 2015.
The German biogas market is strongly influenced by the legal framework; besides the German Gas Grid Access Directive (Gasnetzzugangsverordnung), the German Renewable Energy Sources Act (EEG) plays an extremely important role for the biogas industry.
Since the fourth amendment of the German Renewable Energy Sources Act came into force on 1 August 2014, new plant construction activity in Germany has been at a very low level due to the much lower feed-in tariff. The impact on existing plants from the fixing of the maximum rated output ("Höchstbemessungsleistung") as well as the upcoming additional approval requirements have caused great uncertainty among many plant operators, leading to a lack of investments in new biogas technology. According to the Federal Ministry for Economic Affairs and Energy (BMWi), the EEG 2016 will stipulate that the compensation for renewable electricity will be determined by market tenders and no longer be fixed by the government. It is safe to assume, however, that the currently discussed regulations for biomass will not provide any stimulation for the construction of new biogas plants and/or the protection of existing ones in the foreseeable future. According to the BMWi, the regulations of the EEG 2014 will continue to apply until a final decision is made.
According to a preliminary forecast by the German Biogas Association, 202 new biogas plants with a total capacity of 272 megawatts (MW) were built in Germany in 2015 (2014: 163 plants). This figure includes new reserve capacity; operationally relevant biogas plants added only 19 MW of new capacity. This represents a significant decline compared to the period from 2008 to 2013, when almost 1,300 new plants per year were built on average. At the end of 2015, a total of about 8,928 biogas plants with an installed capacity (incl. electricity feed-in from biomethane) of 4,177 MW were in operation in Germany. This is equivalent to an electricity output of 32.67 billion kWh or 9.3 million households supplied with biogas. According to the BMWi, biomass accounted for 6.8% of Germany's total electricity consumption (2014: 6.9%).
Italy is the second largest biogas producer in Europe behind Germany, the biogas pioneer. But Italy also introduced a new law in June 2014 which reduced the subsidies for renewable energies. Consequently, the Italian market for biomass plants is currently almost saturated. According to the European Biogas Association (EBA), the UK, France and Belgium are also among the largest European growth markets for biogas production.
Due to the reduction in the feed-in tariff for electric-
ity, the UK biogas industry is moving from smaller to larger biogas plants (>250 kW). Moreover, biogas plants producing renewable heat continue to benefit from increased subsidisation. In July 2015, France adopted a law for the move towards green energy, which provides for the construction of 1,500 additional biogas plants for the use of agricultural waste by 2020. The aim is to gradually substitute France's natural gas imports. France also plans an amendment of the feed-in tariff for electricity from photovoltaic and biogas plants including an extension of the compensation period from 15 to 20 years.
The North American and Asian markets still have great potential, with use of biogas in the USA still at a low level. According to the US Environmental Protection Agency, only some 2,000 biogas plants existed in the United States in early 2015. The general framework conditions – in most states only very low compensation is paid for electricity from biogas – have made the production of biogas rather unattractive so far. At the same time, the Agency has identified a potential of 11,000 additional plants, which is to be exploited by 2030 with the help of the "Biogas Opportunities Roadmap" adopted in 2014. Renewable energies are also gaining importance in China, where the government plans to achieve an installed bioenergy capacity of approx. 30 GW by 2030.
By respecting our employees and developing their skills and potentials, we open up future perspectives for each individual and increase the value of the Group as a whole. Well trained, motivated employees are the most important asset and the basis for the success of the EnviTec Biogas Group. In the past fiscal year 2015, the number of employees increased moderately and
stood at 363 as of 31 December 2015. At 273, most of the staff continued to work in Germany (previous year: 262), while 90 employees worked at EnviTec's foreign locations as of the balance sheet date (previous year: 88). The Service segment employs most people (126), followed by the Plant Construction segment (102) and the Own Plant Operation segment (98).
We continue to attach top priority to sustainable human resources development and want to give young graduates the opportunity to start their career in an interesting industry of the future. Due to the rapidly changing environment in which we operate, we need flexible employees who are willing to work abroad, to embrace other cultures and to represent the company appropriately. The human resources policy of EnviTec aims to not only meet our own requirements but to also cater to the interests and potential of our employees. This includes monetary incentive systems in some areas, e.g. performance-based additional compensation. Our internal training and further education measures give employees opportunities for ongoing development and aim to retain them in the long term. These job-oriented measures are complemented by activities fostering the team spirit and communicating our corporate culture, which is characterised by reliability and fairness.
The Executive Board and the Supervisory Board expressly thank all employees of the EnviTec Group. Thanks to their commitment, the company reached most of the economic targets it had set itself for the past fiscal year and will embrace the future challenges from a stronger position.
At the end of the fiscal year 2015, EnviTec Biogas' Plant Construction segment had an order backlog of EUR 77.9 million (previous year: EUR 37.3 million). Of this total, an amount of EUR 36.8 million is already reflected in changes in inventories. The increase is primarily attributable to the positive trend in the UK and France. As of the balance sheet date, the number of projects with foreign customers increased sharply from EUR 27.5 million to EUR 70.3 million. The UK, France and China account for most of the orders placed by foreign customers. Other important markets include Denmark and the USA. EnviTec Biogas has a very broad customer base, which means that the company is not dependent on individual customers. 75.9% of the orders were placed by customers from the agricultural sector (previous year: 59.1%). Industrial customers accounted for approx. 23.7% (previous year: 37.8%). The remaining orders were placed by project developers and the Own Plant Operation segment.
EnviTec Biogas operates in four segments, Plant Construction, Own Plant Operation, Service and Energy. As in the previous year, the Own Plant Operation segment made the biggest contribution to Group sales, at 40.1% (previous year: 45.4%). The contribution from the formerly biggest contributor, the Plant Construction segment, rose to 29.3% (20.9%). The Energy segment accounted for 15.7% of total Group revenues in the fiscal year 2015 (previous year: 19.0%). The figures and developments presented in this paragraph have been adjusted for intra-Group transactions.
| SEGMENT REVENUE CONTRIBUTIONS |
||
|---|---|---|
| Own Plant Operation |
40.1 % | |
| Plant Construction |
29.3 % | |
| Energy | 15.7 % | |
| Service | 14.9 % | |
The change from International Financial Reporting Standards (IFRS) to German Generally Accepted Accounting Principles (HGB) in the fiscal year 2015 had a material impact on the Plant Construction segment's accounting. Sales revenues can now be recognised only after completion of a plant, while IFRS allowed the value of semi-finished plants to be recognised in revenues in accordance with construction progress. As a result, sales revenues to HGB increased from EUR 29.9 million in the previous year to EUR 51.3 million in 2015. At the same time, final accounting of projects that were largely completed in 2014 led to a strong reduction in inventories. Moreover, some projects could not be finally accounted for due to postponed orders at the end of the year. Total output consequently declined from EUR 51.3 million to EUR 43.1 million. The segment's earnings before interest and taxes (EBIT) deteriorated to EUR -5.1 million (previous year: EUR -4.0 million). In the year 2016 to date, EnviTec recorded very good capacity utilisation in the Plant Construction segment and therefore
expects earnings to improve notably on an annual basis. In view of the unattractive conditions in the German market, EnviTec increasingly focuses on opportunities in foreign markets. The success of this strategy is reflected in the high share of international revenues of 48.8%. In 2015, the UK, France, Italy, Denmark as well as the USA and China were the most important foreign markets for EnviTec, with South-East Asia also gaining importance. The aim is for the Plant Construction segment to operate profitably on the basis of the new, optimised cost structures in a challenging market.
The Own Plant Operation segment makes the highest contribution to the Group's revenues. In 2015, EnviTec continued to expand the segment on a selective basis and further increased the revenue contributions. Accordingly, sales revenues climbed from EUR 64.8 million in the previous year to EUR 70.1 million in the reporting period. This was essentially attributable to the acquisition of another plant at the end of the year as well as to the full capacity contribution of a plant completed in 2014. At the end of 2015, EnviTec had 76 own plants with a capacity of 59.3 MW connected to the grid, including 10.7 MW outside Germany. The Own Plant Operation segment's operating result (EBIT) improved by an impressive 10.1% from EUR 9.9 million in the previous year to EUR 11.0 million. The EBIT margin stood at 15.6% (previous year: 15.3%). EnviTec is confident that the construction of new plants abroad, the optimisation of existing plants and the acquisition of new plants in Germany will open up further revenue and profit potential in this segment.
We will continue to make selective investments in new and/or existing biogas plants in the current fiscal year in order to continue the moderate capacity expansion.
| OWN PLANT OPERATION REVENUES |
||
|---|---|---|
| 12/31/2014 | EUR 64.8 million | |
| 12/31/2015 | EUR 70.1 million | |
The Service segment provides services related to the operation of biogas plants - from the start-up and ongoing control of plant operation and the biological processes to regular plant inspections and the training of plant operators and their employees.
As the segment continued to gain importance in the fiscal year, sales revenues rose by 23.7% to EUR 26.0 million in 2015.
At the end of 2015, the Service segment provided biological services for plants with a total electrical output of 85 MW (previous year: 78 MW) and technical services for plants with an electrical output totalling 235 MW (previous year: 211 MW) in Germany. Outside Germany, the EnviTec Group provided services for plants with a total electrical output of 88 MW (previous year: 77 MW), which break down into technical services for 50 MW (previous year: 41 MW) and biological services for 37 MW (previous year: 36 MW). The segment's operating result (EBIT) amounted to EUR -2.4 million in the reporting year (previous year: EUR -1.7 million). As in the previous year, the negative result is primarily attributable to a further increase in revenues generated with Own Plant Operation companies, which have a negative consolidation effect on the Service segment's result in the consolidated financial statements. On a stand-alone basis, the Service segment's operating result remains positive.
In the Energy segment, we aim to complete the value chain "from the renewable source to the domestic heating system". The direct feeding of upgraded biomethane produced in EnviTec plants means that the green energy can be transported and later be used locally wherever needed. The segment also offers our customers services related to the direct marketing of the electricity produced in biogas plants. At EUR 27.5 million in 2015, the Energy segment's sales revenues were more or less on a par with the previous year's EUR 27.1 million. Earnings before interest and taxes were slightly negative at EUR -0.04 million (previous year: EUR 0.3 million). The future performance of this segment will depend on the currently still discussed parliamentary bills, i.e. EEG 2016 and the "Zweite Gesetz zur Änderung des Energieund des Stromsteuergesetzes" (2nd Act on the Amendment of the Energy and Electricity Tax Act), as these will change the market situation in Germany.
Group
The EnviTec Group's business trend in 2015 was satisfactory. Sales revenues increased by 22.4% from EUR 142.9 million to EUR 174.9 million. The company thus exceeded the forecast for 2015 published in the 2014 Annual Report, which projected sales revenues to reach the previous year's level. This was due to the fact that all segments posted growing revenues. Most importantly, the Plant Construction segment's revenues soared by 71.6% to EUR 51.3 million. Revenues in the Group's largest segment, Own Plant Operation, climbed 8.2% to EUR 70.1 million, while sales revenues in the Service segment and the Energy segment rose by 23.7% to EUR 26.0 million and by 1.2% to EUR 27.5 million, respectively.
Domestic revenues totalled EUR 127.8 million in 2015 (previous year: EUR 114.0 million), while revenues generated outside Germany climbed from EUR 28.9 million in 2014 to EUR 47.1 million in 2015. At EUR 16.4 million and EUR 19.8 million, respectively, the UK and Italy made the biggest contribution to international sales revenues in 2015.
Other operating income declined slightly from EUR 12.4 million to EUR 12.0 million. Total output increased by a moderate 1.4% to EUR 174.6 million.
EnviTec Biogas AG prepares its separate financial statements in accordance with the provisions of the German Commercial Code (HGB). Sales revenues amounted to EUR 4.6 million in 2015, down EUR 17.2 million on the previous year's EUR 21.8 million. The company thus exceeded the previous year's forecast, according to which no material revenues would be generated because of the spin-off of the plant construction operations. Most of the revenues represent intra-Group revenues, however. Other operating income was up by EUR 1.1 million on the previous year's EUR 1.7 million to EUR 2.8 million. Total output declined from EUR 40.8 million in the previous year to EUR 7.4 million. These effects are attributable to the spin-off of the plant construction operations into EnviTec Anlagenbau GmbH & Co. KG. EnviTec Biogas AG now acts as a holding company for the four business segments, namely Plant Construction, Service, Own Plant Operation and Energy.
The cost of materials is the main expense item of EnviTec Biogas. In the fiscal year 2015, the cost of materials declined by 2.8% to EUR 108.1 million (previous year: EUR 111.1 million). The reduction was primarily due to the greatly reduced expenses in the Plant Construction segment, which, in turn, were attributable to postponed orders. As a result, gross profit improved by 9% to EUR 66.5 million.
Personnel expenses were up by 9.4% on the previous year to EUR 18.8 million. Personnel expenses as a percentage of sales revenues declined from 12.1% to 10.8%. Other operating expenses, which comprise operating, administrative and selling expenses, rose by 11.4% from EUR 24.0 million to EUR 26.7 million. The increase is essentially attributable to higher R&D spending, write-downs on developed projects in Germany as well as higher guarantee expenses.
After the spin-off of the plant construction operations, no cost of materials is recognised in the separate financial statements (previous year: EUR 27.5 million).
Personnel expenses dropped by a strong EUR 3.4 million from EUR 5.3 million to EUR 1.9 million due to the spin-off. Other operating expenses were reduced by EUR 3.1 million from EUR 8.4 million in the previous year to EUR 5.3 million. Due to the spin-off of the plant construction operations into EnviTec Anlagenbau GmbH & Co. KG, the comparison with the previous year is only of limited relevance.
Although the market remained volatile and some orders were postponed, the EnviTec Group closed the fiscal year with a positive result. Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed from EUR 19.8 million to EUR 21.0 million. This increase was primarily due to the good earnings trend in the Own Plant Operation segment. Earnings before interest and taxes (EBIT) amounted to EUR 3.4 million in the reporting period, compared to EUR 4.7 million in the previous year. This means that the EnviTec Group did not meet its guidance for the fiscal year 2015, according to which earnings before interest and taxes (EBIT) were expected to remain stable or increase moderately. Besides increased write-downs of own plants, this is primarily attributable to the unsatisfactory results in the Plant Construction segment. An EBIT margin of 2.0% (previous year: 3.3%) still reflects solid profitability, however, given the industry environment. Due to the ongoing repayment of the note loan, of which an amount of EUR 14.5 million was outstanding as of 31 December 2015 (31 December 2014: EUR 23.5 million), interest expenses were reduced by 12.0% to EUR 3.3 million in the reporting period. Because of lower interest income and increased writedowns of financial assets, the financial result amounted to EUR -1.0 million, compared to EUR -0.3 million in the previous year. The EnviTec Group's consolidated profit declined from EUR 2.8 million to EUR 1.1 million. This is equivalent to earnings per share of EUR 0.08 for the year 2015 (previous year: EUR 0.19).
EnviTec Biogas AG's gross result declined from EUR 13.2 million by EUR 5.8 million to EUR 7.4 million in 2015. A result from ordinary activities of EUR 7.0 million was posted in the separate financial statements prepared in accordance with the provisions of the German Commercial Code (HGB). This represents an increase of EUR 1.2 million on the previous year's EUR 5.8 million. Net income rose by EUR 0.6 million from EUR 5.1 million to EUR 5.7 million. The financial result contributed EUR 7.4 million to net income. This amount includes income from investments of EUR 3.4 million as well as incomereducing write-downs of financial assets of EUR 1.3 million. As projected in the 2014 financial statements, the positive result from ordinary activities was exclusively attributable to the financial result. The spin-off of the Plant Construction segment into EnviTec Anlagenbau GmbH & Co. KG had no material effect on the result. On balance, the business performance of EnviTec Biogas AG in the past fiscal year was favourable, which is primarily due to the increase in income from investments as well as to lower interest on potential loans.
As of 31 December 2015, total assets were down by 6.8% on the previous year to EUR 292.9 million. On the assets side, non-current assets of EUR 176.6 million were 6.3% below the previous year's EUR 188.4 million. The decline in other loans from EUR 19.6 million to EUR 13.1 million, which was due to scheduled repayments, had a material effect. At the same time, lower investments and a planned increase in depreciation/amortisation reduced the value of property, plant and equipment from EUR 138.0 million to EUR 132.8 million. Current
assets also declined in the reporting period, with the reduction in inventories by EUR 5.6 million having the strongest effect. At approx. EUR 29.1 million, trade receivables were up by EUR 1.0 million on year-end 2014. By contrast, other assets dropped by approx. EUR 5.6 million to EUR 11.8 million.
As of 31 December 2015, EnviTec Biogas AG's total assets amounted to EUR 206.3 million, down by EUR 17.4 million compared to the previous year. On the assets side, financial assets were reduced by EUR 12.9 million from EUR 177.4 million to EUR 164.5 million. Shares in affiliated companies, which are included in financial assets, increased by EUR 13.8 million from EUR 50.0 million to EUR 63.8 million, while loans to affiliated companies dropped sharply from EUR 97.7 million to EUR 79.2 million.
Current assets declined by EUR 4.0 million from EUR 39.4 million to EUR 35.4 million; this is essentially attributable to the drop in receivables from affiliated companies. The balance sheet of EnviTec Biogas AG now merely reflects its function as a holding company.
On the liabilities side, equity amounted to EUR 168.2 million at the end of 2015, down EUR 4.7 million on the previous year. This is primarily attributable to the reduced profit resulting from the 2015 dividend payment. As liabilities declined as well, the balance sheet contracted by a total of roughly 21.5 million. At 57.4%, the equity ratio thus exceeded the prior year level and again illustrates the EnviTec Group's very solid capital structure.
Liabilities totalled EUR 109.4 million as of the balance sheet date (previous year: EUR 126.4 million), including approx. EUR 75.1 million in liabilities to banks. Liabilities were reduced by EUR 16.9 million (18.4%) compared to the previous year, which is primarily attributable to the continued repayment of the note loan in the amount of EUR 9.0 million. The strong cash position supported the scheduled, and partly accelerated, repayment of the note loan, with an amount of EUR 14.5 million now outstanding. The company has also reduced its credit lines.
Current liabilities declined by EUR 3.1 million to EUR 51.2 million, which primarily reflects the reduction in trade liabilities by EUR 5.3 million. At approx. EUR 58.1 million, non-current liabilities were much lower than at the end of 2014 (EUR 72.2 million) and included approx. EUR 17.1 million in long-term loans (previous year: EUR 22.5 million).
In the separate financial statements, equity increased by a moderate EUR 0.5 million from EUR 179.3 million to EUR 179.8 million, as the profit for the year and the profit distribution in 2015 more or less balanced each other out. At EUR 25.2 million, liabilities were down by EUR 16.0 million on the previous year and included approx. EUR 23.1 million in liabilities to banks. Liabilities in the amount of EUR 7.2 million are due within one year and liabilities of EUR 17.6 million have a remaining term of one to five years.
The Group's investments totalled EUR 14.1 million in 2015, compared to EUR 46.8 million in 2014. As in the previous years, most of the investments (EUR 12.3 million) related to the Own Plant Operation segment (previous year: EUR 44.4 million).
The decline is mainly attributable to reduced investment activity in Germany in view of the much poorer conditions for the construction of new biogas plants. New plants with a combined electric output of 1.4 MW were added to the portfolio in 2015 (previous year: 5.9 MW). Investments in the amount of EUR 1.0 million (previous year: EUR 0.5 million) related to the Plant Construction segment, while an amount of EUR 0.7 million (previous year: EUR 2.0 million) was invested in the Service and Energy segments.
As the expansion of the own plant operation activities will remain moderate, investments in 2016 will reach a similar level as in 2015.
In 2015, EnviTec Biogas AG primarily invested in financial assets in the form of investments in affiliated companies. Due to the repayment of loans, income from investments, at EUR 26.2 million (previous year: EUR 18.4 million), thus clearly exceeded new investments in financial assets.
The cash position of EnviTec Biogas was very solid as of 31 December 2015. Cash and cash equivalents totalled EUR 19.3 million (previous year: EUR 20.1 million) and other current assets amounted to EUR 11.8 million (previous year: EUR 17.4 million). This total amount of EUR 31.1 million covers the current liabilities to banks of EUR 17.0 million (previous year: EUR 19.9 million) 1.8 times and reflects a comfortable financial position. In addition, EnviTec Biogas had unused overdraft facilities of EUR 9.5 million as of the balance sheet date.
EnviTec Biogas AG had a cash position of approx. EUR 2.8 million at the end of 2015. The increase by approx. EUR 2.3 million (previous year: EUR 0.5 million) is essentially attributable to the repayment of loans.
The EnviTec Group's net cash flow was up by EUR 0.1 million on the previous year to EUR 38.5 million in 2015. The continued high net cash flow is primarily attributable to the cash inflow resulting from the reduction in inventories in the amount of EUR 5.6 million and the cash inflow from the decline in other receivables and other assets in the amount of EUR 11.9 million in conjunction with the repayment of loans. Net cash also resulted from the increase in other payables and other liabilities in the amount of EUR 6.9 million. By contrast, the reduction in trade liabilities resulted in a net outflow of cash of EUR 5.3 million. Net cash used in investing activities dropped sharply from EUR 43.4 million to EUR 13.9 million due to reduced investments in the Own Plant Operation segment. Net cash used in financing activities amounted to EUR 25.4 million in the reporting period and was essentially attributable to the repayment of the note loan. In the previous year, financing activities provided net cash in the amount of EUR 6.1 million as loans were raised.
Current operating activities provided EnviTec Biogas AG with net cash of EUR 35.9 million in the fiscal year 2015 (previous year: EUR 31.9 million). This was mainly due to the decline in loans and other receivables from third parties and affiliated companies. Net cash in the amount of EUR 13.8 million (previous year: EUR 17.2 million) was used in investing activities, which related to investments in subsidiaries. Net cash used in financing activities totalled EUR 19.8 million (previous year: cash inflow of EUR 1.7 million). This outflow of cash is primarily related to the repayment of the note loan (EUR 9.0 million) and the profit distribution of EUR 5.2 million in 2015. On balance, cash and cash equivalents increased by EUR 2.3 million.
The conscious and controlled management of risks and opportunities is the basis for successful long-term corporate development. The changing global energy market opens up opportunities for EnviTec Biogas which the company wants to exploit. Opportunities naturally entail risks, which must be adequately managed and minimised in order to ensure successful corporate development. EnviTec Biogas has therefore introduced a management system which systematically identifies potential risks and shows measures to minimise these risks. All executive staff are trained in identifying risks and taking appropriate responses. They encourage their employees to think in an entrepreneurial manner and to avoid risks. Risk management forms the basis for corporate control and helps to achieve the company's objectives. It is an integral element of all business processes and business units.
The growing global demand for energy and the challenges of climate change open up opportunities for the biogas industry. As a renewable energy source which can cover base load and peak load requirements, biogas will continue to gain importance going forward. Moreover, the production of biogas facilitates the intelligent use of biological waste, which opens up additional opportunities for EnviTec. In the coming years, EnviTec will endeavour to expand and strengthen its market position by continuing to internationalise into the most promising biogas and biomethane markets. We see opportunities not only in established markets such as France and the UK but above all in emerging markets such as China, Malaysia and Indonesia as well as the USA and Denmark in the medium term.
In established markets, opportunities arise where competitors are unable to respond appropriately to short-term changes in the general framework or to successfully face the competition. The German market, in particular, will continue to consolidate. This will open up opportunities primarily for EnviTec's Service and Own Plant Operation segments to win new customers as well as market share.
Strategic corporate opportunities result from the ongoing development of the product portfolio – with regard to both scope and quality – and the expansion of the technological leadership. We therefore focus on investments in research and development, quality assurance and employee qualification. In this context, the focus has increasingly shifted to the concept of the "biobased economy", which stands for as yet unused, innovative uses of organic resources. The holistic approach of a biobased economy is aimed at sustainable operation on the basis of renewable resources and wastes and to create alternatives to the oil-based industry. EnviTec is increasingly conducting research into this field, looking for new processes and products which could open up new opportunities in new markets for the company.
Performance-related opportunities arise for EnviTec Biogas along the value chain from purchasing to production to sales and marketing. Analysis and optimisation open up opportunities to increase the profitability.
EnviTec Biogas has laid down the tasks, reporting and organisational structures in a Risk Management Manual. This Manual defines risks and describes the complete risk management process. The task of the Risk Officers is to assess, monitor and counter-act all risks in accordance with defined categories. Based on a regularly updated risk inventory, these are reviewed at quarterly intervals. Any risks which arise all of a sudden and have a notable impact on the company's business performance and earnings position as well as on the enterprise value are immediately reported to the Executive Board, which will then take the necessary decisions. In the context of its reports to the Supervisory Board, the Executive Board continuously informs the latter about the main risks and outlines the measures taken to manage these risks.
We are a company operating in a dynamically changing international market environment. This gives rise to risks which are inextricably linked with our business activities. As a matter of principle, risks cannot be entirely avoided by changing the basic framework or through technological development. Our risk management system is therefore constantly being adapted to the latest developments. The Group does not take risks that are unrelated to the key objectives of corporate development.
These key objectives include:
development and implementation of the business model and sustainable corporate value creation,
defending the technological leadership,
securing liquidity.
The Executive Board has no knowledge of any risks jeopardising our continued existence. Individual risks capable of jeopardising our business performance and corporate value are described below.
The financial success of the products and services offered by EnviTec Biogas is dependent on the promotion of renewable energy sources under appropriate policies and regulations. In Germany, these include, for instance, the German Renewable Energy Sources Act (EEG
Most of the other EU member states and a number of non-EU countries have also put in place regulations comparable to the German Renewable Energy Sources Act (EEG). These regulations are of decisive importance for the success of the biogas sector in these countries. Regulations under construction law and pollution control law must be observed both when building or enlarging biogas plants and when operating such plants. Some of these regulations place biogas plants in a privileged position in relation to other plants; in particular, they provide for size-related simplification of the licensing procedure when erecting such plants in outdoor areas as defined by construction law. Any changes in the statutory conditions governing the erection, enlargement and operation of biogas plants, both in Germany and in other countries, may have a negative effect on the net worth, financial and earnings position of EnviTec Biogas. As a result of the amended EEG 2014, the German biogas market has come to a virtual standstill. Now and in the future, EnviTec's plant construction activities will focus primarily on foreign growth markets.
Apart from the legal framework, some parts of the general public as well as certain special interest groups have reservations about biogas plants and their construction. This is why, in June 2009, EnviTec Biogas and other companies established the German Biogas Council, which acts as a source of advice and port of call for policy-makers, the corporate sector and special interest groups and aims to eliminate prejudices. The aim is to promote the agricultural and industrial orientation of biogas technology and to represent the industry's shared interests with regard to legislation and products. EnviTec Biogas intends to expand its international activities, which gives rise to a number of risks. These include potential changes in the political, economic, social, legal, cultural and fiscal conditions prevailing in individual countries. In addition, there is the risk of unexpected changes in local laws and regulations, which may have an adverse impact on the business activity of EnviTec Biogas. Some countries in which we are already active or plan to become active are considerably less stable in economic, political and legal terms than the member states of the European Union. This applies to Asia, in particular. Inadequate legal and administrative systems may make it more difficult or even impossible to obtain official permits, hamper the completion of customers' orders or jeopardise the enforcement of financial and
other claims. The company has built up substantial know-how in the foreign representative offices and the Group management team and aims to anticipate potential changes and to prepare itself and its customers accordingly. Moreover, the processes and documents needed to obtain local approvals are optimised with regard to specific local requirements. Management will not contemplate investments in countries in which EnviTec Biogas sees no opportunities following close and continuous monitoring; existing investments in such countries will be terminated.
In summary, EnviTec classifies the above environmental and industry risks as strategic risks, whose occurrence is likely but whose impact on the business activity as well as the financial and earnings position of the Group would be moderate if such a risk occurred.
The effects of macroeconomic developments on the company's customers and its order and sales situation are difficult to assess. A decline in the order backlog due to cancellations or a lack of new orders would have an impact on the future sales and earnings position. EnviTec Biogas has intensified its communication with its customers to anticipate any potential postponement of orders and supports its customers in the approval processes. The company's Energy segment takes out long-term sales and purchase positions. These positions might incur significant losses in an oversupplied (long) or undersupplied (short) market environment combined with a negative market trend. At this time, all relevant positions are covered either by counterparties from within the Group or counterparties of excellent credit standing. With a view to preventing the loss of receivables, the company has optimised its receivables management process as well as the creditworthiness review. The open positions are reported to the Executive Board in a weekly report. Moreover, every responsible project manager is informed of the outstanding receivables at 14-day intervals so that dunning can be initiated.
In summary, EnviTec currently classifies the order and sales risk as a strategic risk, whose occurrence is unlikely. Moreover, the potential impact on the business activity as well as the financial and earnings position of the Group are considered to be low. Overall, EnviTec sees no material risks arising from order and sales management.
All sales and purchases are made in the Group currency, the euro. This does not entail major currency risks. Currency risks may arise in conjunction with transactions of the subsidiaries in the UK and the USA. Exchange rates are therefore monitored on an ongoing basis to ensure that currency hedging measures can be taken at an early stage. To hedge risks in conjunction with contracts in the UK and the USA, currency forward contracts in an amount of EUR 9.7 million were signed. They are used to hedge payments expected to be received by the subsidiaries, for which no hedge accounting was performed. Accordingly, the changes in value were recognised in other expenses and other operating income, respectively.
In summary, EnviTec currently classifies currency risks as operational risks, whose occurrence is unlikely because of the conservative hedging strategy and whose impact on the Group would be moderate if they occurred.
Existing or future competitors may try to win market share by pursuing an aggressive pricing or acquisition policy. This competition is made even fiercer by the continuous reduction in the minimum remuneration paid for electricity which is fed into the public grid from biogas plants in accordance with the German Renewable Energy Sources Act (EEG) and the associated imperative to permanently cut costs, as well as by similar trends in other countries.
In summary, EnviTec currently classifies competitive risks as strategic risks, whose occurrence is likely but whose impact on the Group would be low if they occurred.
Biogas plants are subject to rapid technological change. The market for biogas plants is driven by constantly improved products and services and is characterised by short product lifecycles and frequently changing customer requirements. We assume that this will continue to be the case going forward. By introducing new products or services earlier or at more favourable conditions than our company, our competitors could gain a lead or secure exclusive rights to new technologies. The future
success of EnviTec Biogas therefore depends on its ability to continuously develop new products and services and to enter into technology partnerships.
In summary, EnviTec currently classifies technological risks as strategic risks, whose occurrence is likely, but whose impact on the Group would be low if they occurred.
The components needed to build biogas plants are to a large extent purchased from suppliers. Particularly the combined heat and power units are only produced and supplied by a small number of manufacturers worldwide. This could give rise to supply bottlenecks or rising prices for the components. We aim to prevent this by maintaining close business relationships and signing fixed-price agreements. Supply bottlenecks may also result from environmental disasters or poor weather conditions affecting large areas. The latter may lead to lost harvests of the substrates used in the operation of biogas plants, i.e. renewable or organic resources and waste. Prices for the required feedstock materials may rise as a result of the high demand. This could jeopardise the cost-efficiency of the biogas plants operated by EnviTec's Own Plant Operation segment. Among other things, long-term delivery contracts are concluded with regional agricultural operations in order to reduce this risk.
Particularly outside Germany, the strategy of EnviTec Biogas is to involve regional farmers directly in the operation of the plants, as partners, and thus assure the supply of raw materials.
In summary, EnviTec currently classifies procurement risks as operational risks, whose occurrence in the Own Plant Operation segment and in the Plant Construction segment is unlikely and very unlikely, respectively. The potential impact on the Group is considered to be moderate for the Own Plant Operation segment and low for the Plant Construction segment.
EnviTec Biogas has established internal organisational structures and management processes that must keep pace with the volatile environment. These include the organisation for financial accounting according to IFRS, the necessary IT systems and strict receivables management. The EnviTec Group has an internal controlling and risk management system regarding the accounting process, which defines suitable structures that are implemented in the organisation. This system is designed to ensure timely, consistent and correct accounting of all business processes and transactions. It also guarantees compliance with legal standards, accounting regulations and internal instructions. The consolidated accounts are produced centrally on the basis of the data of the consolidated subsidiaries. Specially trained employees are responsible for consolidation. The management teams of the Group's member companies are responsible for implementing and monitoring the local internal controlling systems. Generally, it should be noted that an internal controlling system, irrespective of the size and structure, does not provide 100% security that material misstatements in the accounts are avoided or identified
However, it serves to prevent with sufficient certainty that corporate risks have a material effect. The future processes will make high demands on our organisation and will tie down substantial management resources. There is a risk that the company's organisation and structure will be unable to keep pace with the company's requirements. The company therefore attaches top priority to developing and refining the necessary organisational, information and management structures.
In summary, EnviTec currently classifies risks arising from corporate growth as well as internal risks as risks which are unlikely to occur and whose impact on the Group would be low if they occurred.
The growth of EnviTec Biogas depends first and foremost on highly qualified employees. Growth will be slowed if it is not possible to hire well trained employees in a timely manner or to retain key qualifications in the company. The company makes consistent and intensive use of recruitment tools and constantly coordinates the company's hiring needs with the individual departments. At the same time, the company continues to train and educate its employees and expands its knowledge by cooperating with the scientific departments of technical colleges.
In summary, EnviTec currently considers personnel risks to be unlikely to occur and their impact on the Group to be moderate if they occurred.
In September 2012, EnviTec Biogas AG received a EUR 30 million note loan. In this context, EnviTec undertook to meet certain financial covenants such as a minimum equity ratio (economic equity capital / total assets) and maximum leverage (net liabilities /EBITDA). The agreed covenants are met by EnviTec. A violation of these covenants would entitle the banks to terminate the note loan. So far, the note loan has been repaid on schedule (EUR 3.5 million) and partly prematurely (EUR 12.0 million) because of the good cash position, with an amount of EUR 14.5 million now outstanding. A total amount of EUR 9.0 million was repaid in the fiscal year 2015.
The other non-current liabilities also carry fixed interest rates and are therefore exposed to a fair-value risk, which means that potential interest rate increases do not represent a risk to the company.
In summary, EnviTec currently considers risks from the above financing instruments to be unlikely to occur and their impact on the Group to be moderate if they occurred.
No events of material importance occurred after the balance sheet date on 31 December 2015.
In accordance with section 312 of the German Stock Corporation Act (AktG), the company published related party disclosures, which ended with the following statement: "Each of the transactions mentioned in the related party disclosures was made on terms equivalent to those that prevail in arm's length transactions, based on the circumstances known to us at the time when such transactions were made. There were no reportable measures at the instigation or in the interest of the controlling company." The auditors of EnviTec Biogas AG, Rödl & Partner GmbH, audited the related party disclosures and issued an unqualified audit certificate.
The IMF expects the world economy to grow by 3.2% in 2016. The moderate growth is primarily attributable to the continued slowdown in the Chinese economy and declining momentum in the emerging and developing countries, for which the IMF projects a growth rate of 4.1%. Solid growth of 1.9% is projected for the industrialised countries. While loose monetary policy and a low oil price will have a positive effect on consumer spending, the exchange rate fluctuations resulting from the financial crisis and the low overall productivity will have a dampening effect on economic activity in these countries.
Stable growth of around 2.4% is projected for the USA. The IMF expects both the eurozone and the German economy to grow by 1.5% each. While the French economy is expected to grow by 1.1%, the IMF projects a growth rate of 1.9% for the UK.
With the construction of new biogas plants in Germany having dropped sharply in the past two years in response to the adoption of the amended EEG in 2014 and the share of biomass in renewable energies having declined by 2.7% in 2015, the German Biogas Association does not expect the situation to change materially in 2016. The present draft bill of the Federal Economics Ministry for the EEG 2016 does not fulfil the association's hopes for an improvement of the situation.
By contrast, France and the UK remain attractive biogas markets. The law for the move towards green energy adopted in France provides for the construction of a total of 1,500 new biogas plants over the next three years. The British biogas market has also been growing for several years. While the British Biogas Association (ADBA) projects major challenges for the sector, it sees a potential for 500 additional plants by 2020. With Denmark having stepped up its subsidies for biogas plants since 2012, the number of such investment projects has increased notably. The Danish government plans to become entirely independent of fossil energy sources by 2050. Biogas production from liquid manure, especially from pig farming, plays an important role in this context.
The USA, China, Indonesia and Malaysia are the biggest growth markets outside Europe. In the USA, the production of biogas is on the rise primarily as a result of the "Biogas Opportunities Roadmap" published by the US government in 2014 and increasingly stricter environmental protection regulations. In China, the government's Five Year Plan promotes the use of biogas systems. Other Asian biogas markets, especially in South-East Asia, are also gaining importance.
EnviTec Biogas rests on a very solid financial foundation. This has enabled us to cope with the slump in the German biogas market and to defy the general industry trend. The successful internationalisation strategy of the past years allows the Group to effectively seize the opportunities that arise in foreign markets. At the end of 2015, the cash position of EnviTec Biogas was very solid. The Group had cash and cash equivalents in the
amount of EUR 19.3 million (previous year: EUR 20.1 million) and other current assets of EUR 11.8 million (previous year: EUR 17.4 million). The sum total of EUR 31.1 million covers the current liabilities to banks of EUR 17.0 million (previous year: EUR 19.9 million) by a wide margin. In addition, EnviTec Biogas had unused overdraft facilities of approx. EUR 9.5 million. We nevertheless aim to further reduce the level of outstanding receivables in 2016 in order to improve the overall cash position even further.
Due to the adverse market conditions, the German market will no longer play a role for new business in EnviTec's Plant Construction segment. The currently discussed regulations for biomass will not provide any stimulation for the construction of new biogas plants in Germany in the foreseeable future, either. The market will consequently continue to consolidate in 2016. In Germany, the company will therefore focus on reconstruction measures and portfolio optimisations. At the same time, EnviTec will continue its internationalisation, which started at an early stage, and plans to expand its strong position in the markets that are most promising for biogas and biomethane in the coming years. The UK is currently the most important foreign market for EnviTec, followed by France, Denmark and China. Experience has shown, however, that both domestic and international framework conditions may change quickly. We must therefore seize opportunities quickly and with determination and manage the risks associated with doing business abroad – e.g. different legal systems, building regulations and language barriers – efficiently. The basis for this has been laid in the past years, which saw us adjust our corporate and personnel structures and innovate our product range. Nevertheless, we must permanently monitor the regulatory environment in all markets and assess every change with regard to its effect on our business model. As a result of orders being postponed in the Plant Construction segment in 2015, EnviTec Anlagenbau GmbH & Co. KG had an order backlog of EUR 77.9 million at the end of the fiscal year 2015 and has recorded very good capacity utilisation also in the year to date. The Executive Board of EnviTec Biogas AG is therefore confident that sales revenues will continue to grow and a balanced result will be posted in the current fiscal year.
EnviTec expects additional revenue and profit potential to arise for the Own Plant Operation segment from the construction of new plants, the aquisition of plants and the optimisation of existing sites. Where opportunities arise, EnviTec will expand its production capacity on a selective basis also in 2016, with the focus on Germany and the UK. Moreover, a plant acquired by EnviTec at the end of 2015 will fully contribute to revenues and earnings in 2016. At the same time, costs will rise sharply due to scheduled maintenance of existing plants. Accordingly, the Executive Board expects moderately higher revenues and a positive result slightly below the prior year level for the Own Plant Operation segment.
The Service segment will continue to grow in 2016. Our experts remain in high demand when it comes to the biological processes and the operation of the plants. New cooperations will open up opportunities for growth also in Germany. Outside Germany, further growth is expected not least thanks to the expansion of our human and technical resources. On balance, the Executive Board projects a moderate increase in sales revenues and earnings for the Service segment.
Stable sales revenues and earnings at the prior year level are expected for the Energy segment. Depending on the changes in the legal framework in Germany resulting from the upcoming EEG 2016, however, EnviTec will have to review its business models in this segment.
In view of the above sector developments, EnviTec projects slightly higher revenues and a moderate improvement in the operating result (EBIT) at Group level. The performance in 2016 will largely depend on international market developments, especially in the UK, where we are currently very active in several projects.
For the separate financial statements, the Executive Board of EnviTec Biogas AG projects sales revenues and earnings at the prior year level.
The EnviTec Group will benefit from considerable opportunities in the coming years. The future of EnviTec primarily lies in plant construction in attractive foreign markets such as France, Denmark, the USA, China or Malaysia, the selective expansion of the own plant operation activities, which generate high cash flows, and the intensification of the complementary service activities. As the regulatory environment is changing continuously, however, medium-term planning remains difficult. The future development of the Energy segment, for instance, will depend on whether the regulatory changes will require a strategic reorientation. At the same time, management believes that EnviTec is well positioned for the future thanks to its strong technological and financial foundation. The positive development since 2014 confirms EnviTec's ability to successfully cope with volatile market conditions. Our aim is to capitalise on opportunities arising in attractive markets, to develop new markets and to achieve continuous revenue and earnings growth.
| A. | Fixed assets | 12/31/2015 in EUR | 12/31/2014 in TEUR |
|---|---|---|---|
| I. | Intangible assets | ||
| Purchased concessions, industrial property rights and related rights and assets as well as licences for such rights and assets |
2,779,169.09 | 2,385 | |
| Goodwill | 8,742,438.52 | 8,471 | |
| Payments on account | 11,088.00 | 248 | |
| 11,532,695.61 | 11,104 | ||
| II. | Tangible assets | ||
| 1. Land and leasehold rights and buildings, including buildings on third-party land |
35,009,376.98 | 35,132 | |
| 2. Technical equipment and machinery | 86,022,004.83 | 88,520 | |
| 3. Other fixtures, tools and equipment | 8,430,678.71 | 8,202 | |
| 4. Payments on account and plants under construction | 3,386,013.10 | 6,148 | |
| 132,848,073.62 | 138,003 | ||
| III. | Financial assets | ||
| 1. Shares in at-equity investments | 10,965,766.57 | 9,951 | |
| 2. Equity holdings | 22,540.00 | 23 | |
| 3. Loans to companies in which an interest is held | 8,101,433.00 | 9,647 | |
| 4. Other loans | 13,079,691.90 | 19,625 | |
| 32,169,431.47 | 39,245 |
| B. | Current assets | 12/31/2015 in EUR | 12/31/2014 in TEUR |
|---|---|---|---|
| I. | Inventories | ||
| 1. Raw materials and supplies | 35,896,053.11 | 38,489 | |
| 2. Work in progress | 15,927,288.30 | 31,265 | |
| less payments on account | -12,108,419.92 | - 24,481 | |
| 3,818,868.38 | 6,785 | ||
| 3. Finished goods | 431,448.05 | 58 | |
| 4. Payments on account | 1,936,988.40 | 2,387 | |
| 42,083,357.94 | 47,719 | ||
| II. | Receivables and other assets | ||
| 1. Trade receivables | 29,059,688.63 | 28,062 | |
| 2. Receivables from companies in which an interest is held | 4,011,683.09 | 3,151 | |
| 3. Receivables from shareholders | 37,500.00 | 38 | |
| 4. Other assets | 11,750,681.60 | 17,390 | |
| 44,859,553.32 | 48,640 | ||
| III. | Cash in hand, cash at Bundesbank, cash at banks and cheques | 19,283,792.25 | 20,132 |
| C. | Prepaid expenses | 2,506,384.82 | 3,033 |
| D. | Deferred tax assets | ||
| 7,625,876.18 | 6,531 | ||
| 292,909,165.21 | 314,408 |
| A. | Equity capital | 12/31/2015 in EUR | 12/31/2014 in TEUR |
|---|---|---|---|
| I. | Subscribed capital | 15,000,000.00 | 15,000 |
| Less nominal amount of own shares | -150,000.00 | - 150 | |
| Issued capital | 14,850,000.00 | 14,850 | |
| II. | Capital reserve | 139,328,633.67 | 139,329 |
| III. | Revenue reserves | ||
| Other revenue reserves | 10,150,000.00 | 10,150 | |
| IV. | Equity difference from currency translation | -83,515.28 | 27 |
| V. | Profit | 1,282,942.64 | 5,334 |
| VI. | Adjustment item for minority interests | 2,687,760.68 | 3,215 |
| 168,215,821.71 | 172,904 |
| B. | Provisions | ||
|---|---|---|---|
| 1. Tax provisions | 934,175.43 | 3,168 | |
| 2. Other provisions | 10,585,459.57 | 9,967 | |
| 11,519,635.00 | 13,135 |
| C. | Liabilities | ||
|---|---|---|---|
| 1. Liabilities to banks | 75,107,734.98 | 92,048 | |
| 2. Trade liabilities | 14,566,427.69 | 19,857 | |
| 3. Liabilities towards companies in which an interest is held | 2,315,584.08 | 1,901 | |
| 4. Liabilities to shareholders | 629,787.45 | 509 | |
| 5. Other payables | 16,751,513.80 | 12,101 | |
| 109,371,048.00 | 126,417 | ||
| D. | Deferred income | 3,802,660.50 | 1,952 |
| 292,909,165.21 | 314,408 |
| 2015 in EUR | 2014 in EUR | ||
|---|---|---|---|
| 1. | Sales revenues | 174,911,873.62 | 142,897,404.67 |
| 2. | Decrease/increase in finished goods and work in progress | -12,318,998.67 | 16,896,836.58 |
| 3. | Other operating income | 11,986,927.62 | 12,378,413.78 |
| Total output | 174,579,802.57 | 172,172,655.03 | |
| 4. | Cost of materials a) Costs of raw materials and supplies and purchased goods b) Costs of purchased services |
98,097,284.23 9,957,226.02 |
104,298,161.31 6,844,682.41 |
| 108,054,510.25 | 111,142,843.72 | ||
| Gross result | 66,525,292.32 | 61,029,811.31 | |
| 5. | Personnel expenses a) Wages and salaries b) Social security contributions and expenditure for pensions and social welfare thereof for pensions: 86,282.33 (previous year: 120,844.83) |
15,220,609.34 3,629,383.69 |
13,806,348.92 3,420,236.51 |
| 18,849,993.03 | 17,226,585.43 | ||
| 6. | Depreciation and amortisation of intangible and tangible fixed assets | 17,510,940.74 | 15,171,082.57 |
| 7. | Other operating expenses | 26,714,287.81 | 23,972,447.32 |
| 8. | Income from at-equity investments | 1,183,021.71 | 890,101.07 |
| 9. | Other interest and similar income | 2,366,147.46 | 2,732,045.01 |
| 10. | Write-down of financial assets | 1,296,623.73 | 180,000.00 |
| 11. | Interest and similar expenses | 3,282,575.78 | 3,731,094.83 |
| 12. | Result from ordinary activities | 2,420,040.40 | 4,370,747.24 |
| 13. | Income taxes | 916,081.99 | 1,728,272.69 |
| 14. | Other taxes | 85,347.53 | 21,624.00 |
| 13. | Consolidated net loss | 1,418,610.88 | 2,620,850.55 |
| 14. | Profit carried forward | 5,333,859.01 | 2,532,540.72 |
| 15. | Profit distribution | -5,197,500.00 | 0.00 |
| 16. | Profits allocated to minority shareholders | 272,027.25 | -180,467.75 |
| 17. | Consolidated profit | 1,282,942.64 | 5,333,859.01 |
| 2015 in EUR | 2014 in EUR | |
|---|---|---|
| Consolidated net profit | 1,146,584 | 2,801,318 |
| Income tax expenses | 916,082 | 1,728,273 |
| Interest result | 916,428 | 999,050 |
| Profit (-) / losses (+) from at-equity companies | -1,009,035 | -765,458 |
| Income tax paid | -4,717,649 | -1,122,732 |
| Depreciation of tangible fixed assets | 17,510,941 | 15,171,083 |
| Write-down of financial assets | 1,296,624 | 180,000 |
| Decrease (-) / increase (+) in provisions | 1,296,641 | 4,250,427 |
| Profit (-) / losses (+) on the sale of tangible assets | 1,043,638 | 89,083 |
| Gross cash flow | 18,400,253 | 23,331,043 |
| Decrease/increase in inventories | 5,635,683 | -13,042,741 |
| Increase/decrease in trade receivables | -997,790 | 8,415,596 |
| Decrease/increase in trade liabilities | -5,291,009 | 4,676,660 |
| Increase in other payables and other liabilities | 6,855,833 | 1,662,471 |
| Decrease in other receivables and other assets | 11,893,743 | 9,726,625 |
| Interest income | 2,366,147 | 2,732,045 |
| Other non-cash transactions | -375,285 | 920,689 |
| Cash inflow from operating activities (net cash flow) | 38,487,576 | 38,422,389 |
| 2015 in EUR | 2014 in EUR | |
|---|---|---|
| Proceeds from disposals of tangible assets | 223,701 | 743,706 |
| Payments for intangible assets | -1,689,463 | -8,694,596 |
| Payments for tangible assets | -12,444,649 | -38,805,689 |
| Payments for at-equity investments | -117,671 | -237,500 |
| Proceeds from increases in at-equity investments | 0 | 2,206,405 |
| Proceeds from partnership drawing for at-equity investments | 112,050 | 22,050 |
| Inflow of cash and cash equivalents due to business combinations | 0 | 1,325,242 |
| Outflow of cash from investing activities | -13,916,032 | -43,439,804 |
| Cash received from bank loans | 11,598,127 | 28,615,306 |
| Payments for debt redemption | -28,538,117 | -18,691,258 |
| Payments to shareholders | -5,197,500 | 0 |
| Interest expenses | -3,282,576 | -3,731,095 |
| Outflow / inflow from financing activities | -25,420,066 | 6,192,953 |
| Total cash changes | -848,522 | 1,175,539 |
| Cash and cash equivalents on 1 January | 20,132,314 | 18,956,775 |
| Cash and cash equivalents on 31 December | 19,283,792 | 20,132,314 |
| As at 1 Jan. 2015 |
Additions 2015 |
Disposals 2015 |
Disposals due to deconsolidation |
Reclassifications 2015 |
As at 31 Dec. 2015 |
|
|---|---|---|---|---|---|---|
| Acquisition and manufacturing costs | ||||||
| A. FIXED ASSETS |
||||||
| Intangible assets | ||||||
| 1. Concessions, industrial property rights and related rights and assets as well as licences for such rights and assets |
4,435,674 | 754,833 | 0 | 0 | 241,808 | 5,432,315 |
| 2. Goodwill |
9,905,568 | 929,701 | 0 | 0 | 0 | 10,835,269 |
| 3. Payments on account |
247,968 | 4,928 | 0 | 0 | -241,808 | 11,088 |
| 14,589,211 | 1,689,463 | 0 | 0 | 0 | 16,278,673 | |
| II. Tangible assets |
||||||
| 1. Land and leasehold rights and buildings, including buildings on third-party land |
42,887,239 | 2,372,876 | 158,103 | 30,238 | 7,082 | 45,078,855 |
| 2. Technical equipment and machinery |
126,785,545 | 4,063,223 | 218,578 | 0 | 5,352,650 | 135,982,840 |
| 3. Other fixtures, tools and equipment |
17,297,077 | 2,528,333 | 497,045 | 0 | 23,359 | 19,351,724 |
| 4. Payments on account and plants under construction |
6,887,189 | 3,480,217 | 818,734 | 370,226 | -5,383,090 | 3,795,356 |
| 193,857,051 | 12,444,649 | 1,692,460 | 400,464 | 0 | 204,208,776 | |
| III. Financial assets |
||||||
| 1. Shares in at-equity investments |
10,730,409 | 1,151,705 | 112,050 | 0 | 0 | 11,770,064 |
| 2. Equity holdings |
22,540 | 0 | 0 | 0 | 0 | 22,540 |
| 3. Loans to companies in which an interest is held* |
10,554,317 | 14,335,000 | 15,880,000 | 0 | 136,000 | 9,234,248 |
| 4. Other loans* |
22,074,814 | 322,167 | 5,804,595 | 0 | 475,534 | 17,067,920 |
| 43,382,080 | 15,808,872 | 21,796,645 | 0 | 700,464 | 38,094,772 | |
| 251,828,342 | 29,942,983 | 23,489,104 | 400,464 | 700,464 | 258,582,221 | |
* The figures in the "Reclassifications" column show reclassifications from current assets to fixed assets and vice versa.
| As at As at 31 Dec. 2014 |
31 Dec. 2015 | As at 31 Dec. 2015 |
Reclassifications 2015 |
Disposals due to deconsolidation |
Disposals 2015 |
Additions 2015 |
As at 1 Jan. 2015 |
|---|---|---|---|---|---|---|---|
| Carrying amounts | Depreciation/Amortisation | ||||||
| 2,779,169 2,384,986 |
2,653,146 | 0 | 0 | 0 | 602,458 | 2,050,688 | |
| 8,742,439 8,471,303 |
2,092,831 | 0 | 0 | 0 | 658,566 | 1,434,265 | |
| 11,088 247,968 |
0 | 0 | 0 | 0 | 0 | 0 | |
| 11,532,696 11,104,257 |
4,745,977 | 0 | 0 | 0 | 1,261,024 | 3,484,953 | |
| 35,009,377 35,132,227 |
10,069,478 | 0 | 0 | 0 | 2,314,468 | 7,755,011 | |
| 86,022,005 88,520,104 |
49,960,835 | 0 | 0 | 105,672 | 11,801,065 | 38,265,442 | |
| 8,430,679 8,202,752 |
10,921,046 | 0 | 0 | 307,663 | 2,134,384 | 9,094,325 | |
| 3,386,013 6,147,857 |
409,343 | 0 | 0 | 329,989 | 0 | 739,332 | |
| 132,848,074 138,002,939 |
71,360,703 | 0 | 0 | 743,324 | 16,249,917 | 55,854,110 | |
| 10,965,767 9,951,111 |
804,297 | 0 | 0 | 0 | 24,999 | 779,298 | |
| 22,540 22,540 |
0 | 0 | 0 | 0 | 0 | 0 | |
| 8,101,433 9,646,433 |
1,132,815 | 136,000 | 0 | 0 | 88,930 | 907,884 | |
| 13,079,692 19,624,814 |
3,988,228 | 355,534 | 0 | 0 | 1,182,694 | 2,450,000 | |
| 32,169,431 39,244,898 |
5,925,340 | 491,534 | 0 | 0 | 1,296,624 | 4,137,183 | |
| 176,550,201 188,352,094 |
82,032,021 | 491,534 | 0 | 743,324 | 18,807,564 | 63,476,245 | |
| in EUR | Subscribed capital |
Capital reserves | Own share | Currency translation reserves |
|---|---|---|---|---|
| Equity capital on 1 Jan. 2014 | 15,000,000 | 139,328,634 | -150,000 | 63,270 |
| Minority interests in equity capital | 0 | 0 | 0 | 0 |
| Other changes | 0 | 0 | 0 | -36,368 |
| Changes in the basis of consolidation | 0 | 0 | 0 | 0 |
| Consolidated net profit | 0 | 0 | 0 | 0 |
| Equity capital on 31 Dec. 2014 | 15,000,000 | 139,328,634 | -150,000 | 26,902 |
| Equity capital on 1 Jan. 2015 | 15,000,000 | 139,328,634 | -150,000 | 26,902 |
| Minority interests in equity capital | 0 | 0 | 0 | 0 |
| Other changes | 0 | 0 | 0 | -110,417 |
| Profit distribution | 0 | 0 | 0 | 0 |
| Consolidated net profit | 0 | 0 | 0 | 0 |
| Equity capital on 31 Dec. 2015 | 15,000,000 | 139,328,634 | -150,000 | -83,515 |
| Total | Minority interest | Total shareholders interests Parent company |
Consolidated equity generated |
Other revenue reserves |
|---|---|---|---|---|
| 169,182,274 | 2,363,736 | 168,818,538 | 2,426,634 | 10,150,000 |
| 1,031,619 | 1,031,619 | 0 | 0 | 0 |
| -36,368 | 0 | -36,368 | 0 | 0 |
| 105,907 | 0 | 105,907 | 105,907 | 0 |
| 2,620,851 | -180,468 | 2,801,318 | 2,801,318 | 0 |
| 172,904,282 | 3,214,887 | 169,689,395 | 5,333,859 | 10,150,000 |
| 172,904,282 | 3,214,887 | 169,689,395 | 5,333,859 | 10,150,000 |
| -799,154 | -799,154 | 0 | 0 | 0 |
| -110,417 | -110,417 | 0 | 0 | |
| -5,197,500 | 0 | -5,197,500 | -5,197,500 | 0 |
| 1,418,611 | 272,027 | 1,146,584 | 1,146,584 | 0 |
| 168,215,822 | 2,687,760 | 165,528,061 | 1,282,943 | 10,150,000 |
EnviTec Biogas Annual Rep ort 2015
EnviTec Biogas AG is a Germany-based company operating on an international scale whose activities range from the construction and sale of biogas plants through its subsidiaries and the operation of own biogas plants to technical and biological services to the marketing of electricity.
As of the reporting date 31 December 2015, EnviTec Biogas AG is a medium-sized corporation within the meaning of section 267 para. 2 of the German Commercial Code (HGB). The company's shares are traded in the Entry Standard market of the Frankfurt Stock Exchange, Deutsche Börse AG.
These are the first consolidated financial statements since the 2007 IPO to have been prepared in accordance with the provisions of sections 290 et seqq. of the German Commercial Code instead of International Financial Reporting Standards (IFRS). The prior year figures have been adjusted to reflect the provisions of the German Commercial Code.
The consolidated balance sheet follows the structure stipulated in section 266 HGB, with relevant notes being provided in an appendix. The consolidated financial statements for the period ended 31 December 2014, which were prepared to IFRS, were based on a structure that was guided by the maturity of financial instruments. The changeover to HGB accounting rules results in a material change compared to the previous year. Most importantly, liabilities are not broken down into current and noncurrent liabilities. The remaining maturities of the liabilities are shown in the liabilities schedule under point 4.8.
Explanations regarding differences and/or the comparability of individual items with the IFRS consolidated financial statements for the period ended 31 December 2014 are provided in the notes to the consolidated balance sheet and the consolidated income statement under points 4 and 5.
EnviTec Biogas AG and the companies included in the consolidated financial statements prepared their financial statements with effect from the same reporting date as the consolidated financial statements, i.e. 31 December 2015. The only exception is EnviTec Biogas (India) Private Limited, whose reporting date is 31 March because of national regulations.
The type of expenditure format was used for the income statement.
The following changes in the basis of consolidation occurred between 1 January 2015 and 31 December 2015:
| Germany | Abroad | Total | |
|---|---|---|---|
| EnviTec Biogas AG and consolidated companies | |||
| 31 Dec. 2014 | 100 | 33 | 133 |
| Additions of subsidiaries | 5 | 0 | 5 |
| Disposal of subsidiaries | 6 | 9 | 15 |
| 31 Dec. 2015 | 99 | 24 | 123 |
| Germany | Abroad | Total | |
|---|---|---|---|
| Companies valued at equity | |||
| 31 Dec. 2014 | 59 | 8 | 67 |
| Additions of companies valued at equity | 0 | 0 | 0 |
| Disposal of companies valued at equity | 0 | 0 | 0 |
| 31 Dec. 2015 | 59 | 8 | 67 |
As of the balance sheet date, the EnviTec Group comprised 190 entities including EnviTec Biogas AG (31 December 2014: 200), of which 123 (31 December 2014: 133) were fully consolidated.
The disposals of fully consolidated entities in Germany result from the merger of the following entities into Zweite Biogas Anklam Betriebs GmbH & Co. KG:
Dritte Biogas Anklam Betriebs GmbH & Co. KG
Vierte Biogas Anklam Betriebs GmbH & Co. KG
Fünfte Biogas Anklam Betriebs GmbH & Co. KG
Sechste Biogas Anklam Betriebs GmbH & Co. KG
Biogas Quakenbrück GmbH & Co. KG
Biogas Kalefeld GmbH & Co. KG
The disposals of fully consolidated entities outside Germany result from the liquidation of the following Italian entities from the partnership projects segment:
Rolo Biogas a.r.l.
Brazzolo Biogas a.r.l.
Malombra Biogas a.r.l.
Latina Biogas a.r.l.
Farbrico Biogas a.r.l.
Foresti Biogas a.r.l.
Cona Biogas a.r.l.
Pressana Biogas a.r.l.
Massa Fiscaglia Biogas a.r.l.
With effect from 19 November 2015 and 18 November 2015, respectively, EnviTec Biogas AG established Biogas Neuburg Steinhausen GmbH & Co. KG and its general partner, Biogas Neuburg Steinhausen Verwaltungs GmbH, through EnviTec Biogas Betriebs GmbH & Co. KG. As of the reporting date, EnviTec is the sole shareholder of the two companies.
In the first half of 2015, EnviTec Biogas AG also established OxFa GmbH, of which EnviTec Biogas AG holds 51%.
The remaining additions of fully consolidated entities related to the acquisition of Biogas Landscheid Verwaltungs GmbH and ET Energie Elsteraue GmbH & Co. KG (formerly Biogas Landscheid GmbH & Co. KG).
In the reporting period, EnviTec Biogas AG acquired another 35% in EnviTec France sarl, resulting in full ownership of this subsidiary.
In addition, EnviTec Biogas AG acquired another 8.50% in EnviTec Biogas Betriebs GmbH & Co. KG, making it the sole shareholder of the company. Zweite EnviTec Beteiligungs GmbH & Co. KG acquired another 8.50% each in Biogas Groß Warnow GmbH & Co. KG and Biogas Herzberg GmbH & Co. KG as well as 8.60% of the shares in Biogas Groß Warnow Verwaltungs GmbH. Zweite EnviTec Beteiligungs GmbH & Co. KG is now the sole shareholder of all three entities. The goodwill resulting from these acquisitions is detailed under point 4.2.
Moreover, EnviTec acquired additional shares in several entities accounted for using the equity method. All of these acquisitions were below 5% and are therefore of minor importance.
The following entities are fully consolidated in the consolidated financial statements of EnviTec Biogas AG:
| Name and head offices of the company | Group share in % | Equity capital in EUR | Result in EUR | |||
|---|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |
| EnviTec Service GmbH & Co. KG, Lohne | 100 | 100 | 6,782,684 | 7,340,479 | 1,291,658 | 1,167,549 |
| EnviTec Service Verwaltung GmbH, Lohne | 100 | 100 | -95,754 | -94,341 | -1,412 | -1,495 |
| Zweite EnviTec Beteiligungs GmbH & Co. KG, Lohne | 100 | 100 | 27,196,715 | 26,709,822 | 486,893 | 1,351,224 |
| Zweite EnviTec Verwaltungs GmbH, Lohne | 100 | 100 | 43,636 | 40,601 | 3,035 | 2,966 |
| ET Agro Trade GmbH i.L., Lohne | 100 | 100 | 0 | 0 | 0 | 0 |
| EnviTec Biogas Nederland B.V., Enter/Netherlands | 100 | 100 | -389,947 | -403,057 | 13,110 | 9,498 |
| EnviTec Baltic SIA, Riga/Latvia | 100 | 100 | 76,703 | 131,268 | -53,199 | 189,073 |
| EnviTec Italia GmbH, Lohne | 100 | 100 | -839,591 | -440,691 | 0 | 0 |
| EnviTec Biogas Italia s.r.l., Sommacampagna/Italy | 100 | 100 | 1,233,614 | 1,273,782 | -1,140,167 | -651,425 |
| EnviTec Energy GmbH & Co. KG, Lohne | 100 | 100 | -638,236 | 336,350 | -974,587 | 1,457 |
| EnviTec Energy Verwaltungs GmbH, Lohne | 100 | 100 | 31,870 | 32,880 | -1,010 | 1,990 |
| EWS Biogas Projektentwicklungs-GmbH & Co. KG i.L., Lohne |
100 | 100 | 0 | 0 | 0 | 0 |
| EWS Biogas Projektentwicklung Verwaltungs GmbH i.L., Lohne |
100 | 100 | 0 | 0 | 0 | 0 |
| Biogas Anklam Verwaltungs GmbH, Lohne | 100 | 100 | 1,393,892 | 1,275,412 | 118,480 | -53,826 |
| Erste Biogas Anklam Betriebs GmbH & Co. KG, Anklam | 93.85 | 93.85 | 783,220 | 735,562 | 47,659 | 243,408 |
| Zweite Biogas Anklam Betriebs GmbH & Co. KG, Anklam |
100 | 100 | 3,238,968 | 604,007 | 140,753 | 218,240 |
| Pieve D'Olmi Biogas Soc. Agricola a.r.l., Bozen/Italy | 100 | 100 | 55,318 | -55,747 | 46,143 | -31,435 |
| Stagno Lombardo Biogas Soc. Agricola a.r.l., Bozen/Italy | 100 | 100 | 355,080 | 117,340 | 193,438 | 51,675 |
| EnviTec Beteiligungs GmbH & Co. KG, Lohne | 98.6 | 98.6 | 4,543,041 | 3,408,902 | 1,134,138 | 1,042,786 |
| EnviTec Verwaltungs GmbH, Lohne | 98.6 | 98.6 | 42,581 | 40,890 | 1,691 | 1,701 |
| Biogas Falkenberg GmbH & Co. KG, Falkenberg | 100 | 100 | 174,754 | 173,832 | 922 | -211,482 |
| Biogas Falkenberg Verwaltungs GmbH, Falkenberg | 100 | 100 | 36,730 | 33,067 | 3,663 | 1,838 |
| Biogas Groß Warnow GmbH & Co. KG, Karstädt | 100 | 91.5 | 854,410 | 11,000 | -156,590 | -138,697 |
| Biogas Groß Warnow Verwaltungs GmbH, Karstädt | 100 | 91.5 | 34,377 | 32,630 | 1,748 | 1,746 |
| EnviTec Biogas Betriebs GmbH & Co. KG, Lohne | 100 | 91.5 | 11,309,350 | 11,742,790 | -433,440 | -195,443 |
| ET Energie Quakenbrück GmbH & Co. KG, Lohne | 100 | 100 | 1,968 | 86,999 | -85,031 | -23,861 |
| Biogas Herzberg GmbH & Co. KG, Lohne | 100 | 91.5 | 366,685 | 119,931 | 75,754 | 82,770 |
| Biogas Lüchow GmbH & Co. KG, Lohne | 100 | 91.5 | 946,269 | 832,254 | 114,015 | 22,429 |
| EnviTec Projektentwicklung GmbH, Lohne | 87.5 | 87.5 | 482,676 | 466,651 | 14,022 | 24,966 |
| Biogas Friedland GmbH & Co. KG, Lohne | 87.5 | 87.5 | 4,889,147 | 3,693,331 | 1,195,816 | 1,026,085 |
| Biogas Friedland Verwaltungs GmbH, Lohne | 87.4 | 87.4 | 142,607 | 134,121 | 8,485 | 17,832 |
| Biogas Böddenstedt GmbH & Co. KG, Salzwedel | 100 | 100 | 882,436 | 823,613 | 58,823 | 9,906 |
|---|---|---|---|---|---|---|
| Biogas Böddenstedt Verwaltung GmbH, Salzwedel | 100 | 100 | 32,771 | 31,281 | 1,490 | 1,666 |
| EnviTec Biogas d.o.o., Zagreb/Croatia | 85 | 85 | -43,162 | -43,162 | 0 | 0 |
| Biogas Schönthal GmbH & Co. KG, Willebadessen | 79 | 79 | 89,056 | 133,848 | -44,791 | -11,108 |
| Biogas Schönthal Verwaltungs GmbH, Willebadessen | 79 | 79 | 38,520 | 36,935 | 1,585 | 1,650 |
| Baura Biogas Soc. Agricola a.r.l., Bozen/Italy | 75 | 75 | 252,341 | 69,123 | 166,293 | 31,231 |
| Formignana Biogas Soc. Agricola a.r.l., Bozen/Italy | 100 | 100 | 74,147 | -66,746 | 65,320 | -165,342 |
| Biogas Operating Holding s.r.l., Sommacampagna/Italy | 100 | 100 | 113,949 | 291,088 | -101,665 | -91,695 |
| Urbana Biogas Soc. a.r.l., Sommacampagna/Italy | 100 | 100 | -121,281 | 9,331 | -130,613 | -7,002 |
| Schio Biogas Soc. a.r.l., Sommacampagna/Italy | 100 | 100 | 1,110,851 | -17,635 | -114,734 | -23,185 |
| Caldogno Biogas Soc. a.r.l., Sommacampagna/Italy | 100 | 100 | 63,882 | -17,115 | 54,743 | -36,857 |
| Merlara Biogas Soc. a.r.l., Sommacampagna/Italy | 100 | 100 | 161,476 | 57,654 | 76,640 | 58,725 |
| A3 Water Solutions GmbH, Gelsenkirchen | 70 | 70 | 977,797 | 928,383 | 49,414 | 25,093 |
| MMF MaxFlow Membran Filtration GmbH, Gelsenkirchen | 70 | 70 | -412,719 | -508,350 | 95,631 | 2,076 |
| Biogas Heilemann GmbH & Co. KG, Rotenburg/Wümme | 70 | 70 | 861,733 | 705,264 | 156,469 | 204,017 |
| Biogas Heilemann Verwaltungs GmbH, Rotenburg/Wümme | 70 | 70 | 45,869 | 42,997 | 2,872 | 2,825 |
| Biogas Heilemann-Holsten GmbH & Co. KG, Rotenburg/ Wümme |
100 | 100 | -41,956 | -40,007 | -1,950 | -82,260 |
| Second Biogas Operating Holding s.r.l., Sommacampagna/Italy |
70 | 70 | -327,093 | 741,249 | -245,531 | -216,058 |
| Envitec France sarl, Tregueux/France | 100 | 65 | -729,791 | -536,790 | -193,001 | 222,748 |
| Envitec Biogas UK Ltd., Rugeley/Great Britain | 60 | 60 | 1,168,222 | 478,854 | 440,785 | 535,316 |
| Biogas Nordholz GmbH, Minden | 60 | 60 | 560,937 | 460,458 | 100,479 | 30,859 |
| EnviTec Biogas SK s.r.o., Levice/Slovakia | 100 | 100 | 446,456 | 446,456 | 0 | 0 |
| EnviTec Biogas Central Europe s.r.o., Velké Mezirici/ Czech Republic |
70 | 65 | -72,890 | 52,026 | -79,901 | -272,961 |
| ETBKN GmbH & Co. KG, Lohne | 75 | 75 | 981,339 | 1,044,681 | 22,337 | 29,532 |
| ETBKN Verwaltungs GmbH, Lohne | 75 | 75 | 23,262 | 30,325 | -141 | 1,714 |
| Biogas Ringleben GmbH & Co. KG, Lohne | 100 | 100 | -328,386 | -178,074 | -150,312 | 17,083 |
| Biogas Klein Mühlingen GmbH & Co. KG, Vogelsang | 100 | 100 | 588,702 | 544,441 | 44,261 | -6,314 |
| Biogas Schönwalde GmbH & Co. KG, Schönwalde | 100 | 100 | 647,371 | 601,105 | 46,266 | -22,180 |
| Biogas Schönwalde Verwaltung GmbH, Schönwalde | 100 | 100 | 34,369 | 32,602 | 1,767 | 1,754 |
| Biogas Sachsendorf GmbH & Co. KG, Schwarz Sachsendorf | 100 | 100 | 602,140 | 425,254 | 176,886 | 230,218 |
| eeMaxx Anlagen- und Betriebs GmbH & Co. KG, Garrel | 73 | 73 | 5,019,588 | 5,305,295 | -285,707 | -148,260 |
| eeMaxx Verwaltungs GmbH, Garrel | 73 | 73 | 26,802 | 25,857 | 944 | 567 |
| Biogas Schenkenhorst GmbH & Co. KG, Garrel | 85 | 85 | -261,281 | -309,832 | -8,749 | -228,928 |
| Biogas Schenkenhorst Verwaltungs-GmbH, Garrel | 100 | 100 | 34,252 | 32,458 | 1,795 | 1,344 |
| Biogas Brehna GmbH & Co. KG, Garrel | 90 | 90 | 351,031 | 342,439 | 8,592 | -57,286 |
| Biogas Brehna Verwaltungs-GmbH, Garrel | 100 | 100 | 32,387 | 30,760 | 1,627 | 1,345 |
| Biogas Kuck Verwaltungs-GmbH, Garrel | 100 | 100 | 33,521 | 31,743 | 1,778 | 1,513 |
| Biogas Dambeck GmbH & Co. KG, Garrel | 100 | 100 | 458,023 | 571,937 | -113,914 | -47,242 |
|---|---|---|---|---|---|---|
| Biogas Dambeck Verwaltungs- GmbH, Garrel | 100 | 100 | 34,870 | 33,276 | 1,594 | 1,462 |
| Biogas Kruse Verwaltungs- GmbH, Garrel | 100 | 100 | 27,020 | 26,363 | 658 | 544 |
| Biogas Kalbe GmbH & Co. KG, Garrel | 100 | 100 | 499,322 | 723,831 | -224,509 | -96,445 |
| Biogas Kalbe Verwaltungs- GmbH, Garrel | 100 | 100 | 34,582 | 32,787 | 1,795 | 1,403 |
| Vierte EnviTec Beteiligungs GmbH & Co. KG, Lohne | 88 | 88 | -278,203 | -133,701 | -144,502 | -183,243 |
| Vierte EnviTec Verwaltungs GmbH, Lohne | 88 | 88 | 31,219 | 29,367 | 1,852 | 1,636 |
| Biogas Trüstedt GmbH & Co. KG, Garrel | 100 | 100 | 911,531 | 884,668 | 26,863 | -63,234 |
| Biogas Trüstedt Verwaltungs- GmbH, Garrel | 100 | 100 | 30,781 | 28,915 | 1,866 | 1,739 |
| Biogas Neutrebbin GmbH & Co. KG, Garrel | 100 | 100 | 2,513,688 | 2,422,312 | 91,376 | 336,949 |
| Biogas Neutrebbin Verwaltungs- GmbH, Garrel | 100 | 100 | 31,746 | 29,937 | 1,809 | 1,492 |
| EnviTec Biogas USA Inc., Rochester/USA | 100 | 100 | -912,982 | -642,900 | -180,507 | -370,543 |
| EnviTec Stromkontor GmbH & Co. KG | 100 | 100 | 290,292 | 50,000 | 240,292 | 504,115 |
| EnviTec Biogas Service Italy s.r.l., Sommacampagna/Italy | 100 | 100 | 1,247,323 | 905,055 | 342,268 | -48,450 |
| EnviTec Biogas Service UK Ltd., Rugeley/Great Britain | 60 | 60 | 151,950 | 96,665 | 28,188 | -63,192 |
| Zweite Biogas Nesse Betriebs GmbH & Co. KG, Lohne | 100 | 100 | 477,157 | -416,498 | -60,660 | 542,179 |
| Dritte EnviTec Verwaltungs GmbH, Lohne | 100 | 100 | 82,831 | 89,960 | -7,129 | 35,606 |
| Erste Biogas Bützow GmbH & Co. KG, Bützow | 100 | 100 | -287,678 | -148,984 | -138,694 | 41,073 |
| Dritte Biogas Bützow GmbH & Co. KG, Bützow | 54.4 | 54.4 | -163,139 | -204,570 | 41,432 | 93,096 |
| Vierte Biogas Bützow GmbH & Co. KG, Bützow | 60.5 | 60.5 | -106,477 | -138,280 | 31,804 | 100,732 |
| Fünfte Biogas Bützow GmbH & Co. KG, Bützow | 100 | 100 | 394,481 | 234,464 | 160,017 | 135,482 |
| EnviTec Biogas Service s.r.o., Velké Mezirici/Czech Republic |
85 | 85 | 806,934 | 674,060 | 98,993 | 165,389 |
| Biogas Lampertheim GmbH & Co. KG, Lohne | 70 | 70 | 57,842 | 64,418 | -6,575 | -952 |
| Biogas Lampertheim Verwaltungs GmbH, Lohne | 70 | 70 | 29,545 | 27,947 | 1,598 | 1,949 |
| ET Energie Leipzig GmbH & Co. KG, Lohne | 100 | 100 | 163,909 | 83,398 | 80,511 | -14,202 |
| EnviTec Assekuranzmakler GmbH, Lohne | 75 | 75 | 36,154 | 200,755 | 85,399 | 107,557 |
| Biogas Wanzleben GmbH & Co. KG, Lohne | 70 | 70 | 151,815 | 164,017 | -12,201 | 71,951 |
| Biogas Wanzleben Verwaltungs GmbH, Wanzleben | 70 | 70 | 38,192 | 36,570 | 1,622 | 1,688 |
| Biogas Thomasburg GmbH & Co. KG, Lohne | 90.6 | 90.6 | 95,448 | -177,474 | 72,922 | 21,951 |
| Biogas Thomasburg Verwaltungs GmbH, Lohne | 90.6 | 90.6 | 38,998 | 37,384 | 1,614 | 1,665 |
| Biogas Nieheim GmbH & Co. KG, Lohne | 64.8 | 64.8 | 865,521 | 848,785 | 16,736 | -17,752 |
| Biogas Nieheim Verwaltungs GmbH, Lohne | 64.8 | 64.8 | 38,584 | 36,936 | 1,647 | 1,687 |
| RePro Beber GmbH & Co. KG, Lohne | 64.6 | 64.6 | 1,134,586 | 845,491 | 289,095 | 178,303 |
| RePro Beber Verwaltungs GmbH, Lohne | 64.6 | 64.6 | 39,701 | 38,104 | 1,597 | 1,613 |
| Biogas Hirl GmbH & Co. KG, Bresegard | 94 | 94 | 386,118 | 370,120 | 15,997 | -69,365 |
| Biogas Hirl Verwaltungs GmbH, Bresegard | 94 | 94 | 37,817 | 36,260 | 1,557 | 1,577 |
| Biogas Osterburg GmbH & Co. KG, Lohne | 100 | 100 | 988,760 | 1,185,127 | -96,367 | 46,989 |
| Biogas Angern GmbH & Co. KG, Lohne | 87.6 | 87.6 | 652,110 | 548,240 | 103,870 | 351,282 |
| Biogas Angern Verwaltungs GmbH, Lohne | 87.6 | 87.6 | 40,435 | 38,850 | 1,584 | 1,691 |
|---|---|---|---|---|---|---|
| Biogas Reinsfeld GmbH & Co. KG, Lohne | 100 | 100 | 426,866 | 495,340 | -68,475 | -138,846 |
| Biogas Reinsfeld Verwaltung GmbH, Lohne | 100 | 100 | 32,430 | 30,951 | 1,479 | 358 |
| Biogas Forst GmbH & Co. KG, Forst | 100 | 100 | 7,518,477 | 8,534,863 | -1,016,385 | -1,070,189 |
| Biogas Forst Verwaltungs GmbH, Forst | 100 | 100 | 11,095 | 12,500 | -2,035 | 0 |
| EnviTec Anlagenbau GmbH & Co. KG, Saerbeck | 100 | 100 | 13,405,183 | 15,312,329 | -1,907,146 | -306,964 |
| EnviTec Anlagenbau Verwaltungs GmbH, Saerbeck | 100 | 100 | 27,836 | 26,763 | 1,073 | 419 |
| EnviTec Biogas Ventures Ltd., Rugeley/Great Britain | 60 | 60 | -236,029 | -101,614 | -134,415 | -111,614 |
| ET Energie Elsteraue GmbH & Co. KG (former Biogas Landscheid GmbH & Co. KG), Lohne |
100 | 100 | 85,151 | 0 | 10,465 | 0 |
| Biogas Landscheid Verwaltungs GmbH, Lohne | 100 | 0 | 33,479 | 0 | 106 | 0 |
| OxFa GmbH, Scheßlitz | 100 | 100 | -346,575 | 0 | -596,575 | 0 |
| Biogas Neuburg Steinhausen GmbH & Co. KG, Lohne | 100 | 0 | 230,716 | 0 | 130,716 | 0 |
| Biogas Neuburg Steinhausen Verwaltungs GmbH, Lohne | 100 | 0 | 23,769 | 0 | -1,231 | 0 |
| ET Energie Lucka GmbH & Co. KG, Lohne | 100 | 100 | 137,035 | 121,874 | 15,161 | 4,174 |
The consolidated financial statements of EnviTec Biogas AG comprise the following associated companies:
| Name and head offices of the company | Group share in % | Equity capital in EUR | Result in EUR | ||||
|---|---|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||
| EnviTec Biogas kft., Hungary* | 51.14 | 51.14 | -223,704 | -223,704 | 0 | 0 | |
| EnviTec Biogas (India) Private Limited, India | 50 | 50 | 1,015,513 | 1,015,513 | 0 | 0 | |
| ETFT EnviTec Filtration Technik GmbH i.L., Lohne | 50 | 50 | -87,273 | -87,273 | 0 | -7,399 | |
| Envitec van de Velde Service B.V.B.A., Belgium | 50 | 50 | 59,316 | 59,316 | 0 | 0 | |
| EnviTec-Greten Behälterbau GmbH & Co. KG, Lohne | 50 | 50 | -200,258 | 63,192 | -263,451 | -136,808 | |
| EnviTec-Greten Behälterbau Verwaltungs-GmbH, Lohne | 50 | 50 | 26,787 | 25,789 | 998 | 879 | |
| Biogas Neu Sterley GmbH & Co. KG, Lohne | 50 | 50 | 282,721 | 587,572 | -34,850 | 231,358 | |
| Biogas Neu Sterley Verwaltungs GmbH, Lohne | 50 | 50 | 38,774 | 37,052 | 1,722 | 1,884 | |
| Biogas Spekendorf GmbH & Co. KG, Lohne | 50 | 50 | 542,469 | 408,644 | 133,825 | 61,284 | |
| Biogas Spekendorf Verwaltung GmbH, Lohne | 50 | 50 | 41,765 | 39,311 | 2,454 | 1,646 | |
| Biogas Golzow GmbH & Co. KG, Golzow | 50 | 48 | 1,308,552 | 1,076,854 | 231,698 | 16,974 | |
| Biogas Golzow Verwaltungs GmbH, Golzow | 50 | 48 | 35,822 | 34,635 | 1,187 | 2,034 | |
| Biogas Gut Rigterink GmbH & Co. KG, Bad Bentheim | 50 | 46 | 10,967 | -50,485 | 39,519 | -61,318 | |
| Biogas Gut Rigterink Verwaltungs GmbH, Bad Bentheim | 50 | 46 | 35,259 | 34,442 | 817 | 1,734 | |
| Biogas Putzar GmbH & Co. KG, Putzar | 50 | 50 | 755,874 | 576,141 | 179,734 | -7,853 | |
| Biogas Putzar Verwaltungs GmbH, Putzar | 50 | 50 | 36,280 | 34,489 | 1,791 | 1,973 | |
| Knipgas GmbH & Co. KG, Kleve | 50 | 50 | 688,520 | 676,739 | 211,781 | 174,437 | |
| Knipgas Verwaltungs GmbH, Kleve | 50 | 50 | 33,896 | 32,435 | 1,461 | 1,567 | |
| Biogas Löschenrod GmbH & Co. KG, Lohne | 44 | 44 | 220,733 | -112,727 | -108,006 | -116,605 | |
| Biogas Löschenrod Verwaltungs GmbH, Lohne | 44 | 44 | 38,746 | 37,157 | 1,589 | 1,716 |
| Biogas Dishley GmbH & Co. KG, Lohne | 50 | 50 | 1,080,891 | 990,440 | 90,451 | 3,742 |
|---|---|---|---|---|---|---|
| Biogas Dishley Verwaltungs GmbH, Lohne | 50 | 50 | 32,410 | 31,444 | 966 | 1,228 |
| Biogas Exter GmbH & Co. KG, Vlotho-Exter | 49 | 49 | 397,129 | 337,204 | 59,925 | -63,107 |
| Biogas Exter Verwaltungs GmbH, Vlotho-Exter | 49 | 49 | 33,970 | 32,901 | 1,069 | 1,718 |
| Biowatt Sarl, France | 50 | 50 | 827,277 | 770,278 | 115,634 | 90,096 |
| Biogas Ihorst GmbH & Co. KG, Holdorf | 30 | 27.5 | 239,375 | 539,375 | 131,452 | 115,005 |
| Biogas Ihorst Verwaltungs GmbH, Holdorf | 30 | 27.5 | 34,405 | 32,936 | 1,469 | 1,649 |
| Rentech Bioenergas S.A., Athens/Greece | 21 | 21 | 0 | 0 | 0 | 0 |
| Helianthus srl, San Dona di Piave/Italy | 50 | 50 | 0 | 0 | 0 | 0 |
| Biogas Potthast GmbH & Co. KG, Beverungen | 50 | 50 | 836,361 | 860,146 | 56,215 | 71,547 |
| Biogas Potthast Verwaltungs GmbH, Beverungen | 50 | 50 | 35,101 | 33,243 | 1,857 | 1,775 |
| Biogas Kleve GmbH & Co. KG, Kleve | 50 | 50 | 60,433 | 24,734 | 35,699 | 12,370 |
| Biogas Kleve Verwaltungs GmbH, Kleve | 50 | 50 | 33,916 | 31,962 | 1,954 | 1,924 |
| Biogas Medebach GmbH & Co. KG, Medebach | 50 | 50 | -93,373 | -84,827 | -8,546 | -10,697 |
| Biogas Medebach Verwaltungs GmbH, Medebach | 50 | 50 | 34,333 | 32,310 | 2,023 | 1,748 |
| Biogas Altentreptow GmbH & Co. KG, Altentreptow | 50 | 50 | 1,790,036 | 1,722,248 | 67,788 | 198,445 |
| Biogas Altentreptow Verwaltungs GmbH, Altentreptow | 50 | 50 | 33,872 | 32,222 | 1,650 | 1,643 |
| Biogas Roga GmbH & Co. KG, Datzetal | 50 | 50 | 1,332,743 | 1,333,860 | -1,118 | 72,077 |
| Biogas Roga Verwaltungs GmbH, Datzetal | 50 | 50 | 30,618 | 29,793 | 825 | 1,254 |
| Biogas Elm GmbH & Co. KG, Bremervörde | 49 | 49 | 623,523 | 434,339 | 189,184 | 120,012 |
| Biogas Elm Verwaltungs GmbH, Bremervörde | 49 | 49 | 36,614 | 35,422 | 1,192 | 2,121 |
| Biogas Brakel GmbH & Co. KG, Brakel | 50 | 50 | 628,738 | 626,656 | 82,082 | 42,576 |
| Biogas Brakel Verwaltungs GmbH, Brakel | 50 | 50 | 34,311 | 32,461 | 1,850 | 1,772 |
| Biogas Penzlin GmbH & Co. KG, Lohne | 50 | 50 | 760,686 | 659,054 | 101,631 | 242,278 |
| Biogas Penzlin Verwaltungs GmbH, Lohne | 50 | 50 | 30,679 | 29,071 | 1,609 | 585 |
| Biogas Dirkes GmbH & Co. KG, Südmerzen | 50 | 50 | 516,470 | 680,592 | 80,879 | 57,593 |
| Biogas Dirkes Verwaltungs GmbH, Südmerzen | 50 | 50 | 34,774 | 32,443 | 2,331 | 1,873 |
| Biogas Grieben GmbH & Co. KG, Grieben | 49 | 49 | 582,486 | 500,218 | 82,268 | 39,585 |
| Biogas Grieben Verwaltungs GmbH, Grieben | 49 | 49 | 33,120 | 31,421 | 1,699 | 1,778 |
| Biogas Rönnau GmbH & Co. KG, Ahlhorn | 50 | 50 | -836,087 | -763,197 | -72,890 | -488,187 |
| Biogas Rönnau Verwaltungs GmbH, Ahlhorn | 50 | 50 | 34,059 | 32,137 | 1,922 | 1,699 |
| Biogas Kruse GmbH & Co. KG, Garrel | 50 | 50 | 386,952 | 564,926 | -177,974 | -162,688 |
| Biogas Horst GmbH & Co. KG, Holdorf | 49 | 49 | -228,118 | 9,369 | -237,487 | 16,034 |
| Biogas Horst Verwaltungs GmbH, Holdorf | 49 | 49 | 30,194 | 29,890 | 304 | 2,211 |
| Biogas Talge Verwaltungs- GmbH, Garrel | 49 | 49 | 32,275 | 30,514 | 1,761 | 1,462 |
| Biogas Talge GmbH & Co. KG, Garrel | 49 | 49 | 678,652 | 534,405 | 144,247 | 58,794 |
| Biogas Kuck GmbH & Co. KG, Garrel | 49 | 49 | -1,220 | -15,013 | 13,793 | -156,974 |
| Saergas GmbH & Co. KG, Saerbeck | 33.33 | 33.33 | 1,289,096 | 1,021,408 | 267,688 | 76,408 |
| Zweite Biogas Bützow GmbH & Co. KG, Bützow | 46.5 | 46.5 | 110,084 | -173,970 | 63,886 | 94,796 |
| Biogas Gallin I GmbH & Co. KG, Gallin-Kuppentin, Gallin | 50 | 50 | 343,566 | 210,184 | 133,382 | 272,572 |
| Biogas Gallin I Verwaltungs GmbH, Gallin-Kuppentin, Gallin |
50 | 50 | 29,318 | 27,714 | 1,604 | 1,326 |
|---|---|---|---|---|---|---|
| Biogas Gallin II GmbH & Co. KG, Gallin-Kuppentin, Gallin |
50 | 50 | 645,627 | 942,997 | 102,630 | 245,745 |
| Biogas Gallin II Verwaltungs GmbH, Gallin-Kuppentin, Gallin |
50 | 50 | 29,025 | 27,588 | 1,437 | 1,107 |
| Biogas Eikeloh GmbH & Co. KG, Erwitte | 50 | 50 | 90,582 | 92,628 | -2,046 | -1,169 |
| Biogas Eikeloh Verwaltungs GmbH, Erwitte | 50 | 50 | 32,927 | 30,968 | 1,959 | -120 |
| Libramont Energie Vertes, Libramont-chevigny | 50 | 50 | -49,737 | -510,284 | 460,547 | -229,203 |
| Alternativ-Energie Priborn GmbH & Co. KG, Priborn | 50 | 50 | 317,838 | 357,504 | -39,665 | -42,497 |
| Alternativ-Energie Priborn Verwaltungs GmbH, Priborn | 50 | 50 | 32,255 | 37,320 | -5,064 | -1,169 |
EnviTec does not hold interests exceeding 20% in entities that are not fully consolidated or accounted for using the equity method in the consolidated financial statements.
In fiscal 2015, the exemption rule provided for in section 264b of the German Commercial Code (HGB) was applied by the following fully consolidated German Group companies.
| Name and head offices of the company | |
|---|---|
| EnviTec Beteiligungs GmbH & Co. KG, Lohne | |
| Zweite EnviTec Beteiligungs GmbH & Co. KG, Lohne | |
| Biogas Schönthal GmbH & Co. KG, Willebadessen | |
| Biogas Heilemann GmbH & Co. KG, Rotenburg/Wümme | |
| Biogas Friedland GmbH & Co. KG, Lohne | |
| EnviTec Biogas Betriebs GmbH & Co. KG, Lohne | |
| Erste Biogas Anklam Betriebs GmbH & Co. KG, Anklam | |
| Zweite Biogas Anklam Betriebs GmbH & Co. KG, Anklam | |
| EWS Biogas Projektentwicklungs-GmbH & Co. KG i.L., Lohne |
|
| Biogas Herzberg GmbH & Co. KG, Lohne | |
| Biogas Lüchow GmbH & Co. KG, Lohne | |
| EnviTec Energy GmbH & Co. KG, Lohne | |
| Biogas Groß Warnow GmbH & Co. KG, Karstädt | |
| Biogas Falkenberg GmbH & Co. KG, Falkenberg | |
| EnviTec Service GmbH & Co. KG, Lohne | |
| Biogas Heilemann-Holsten GmbH & Co. KG, Rotenburg | |
| ETBKN GmbH & Co. KG, Lohne | |
| Biogas Sachsendorf GmbH & Co. KG, Schwarz | |
| Biogas Dambeck GmbH & Co. KG, Friesoythe | |
| Biogas Schenkenhorst GmbH & Co. KG, Garrel |
| Biogas Kalbe GmbH & Co. KG, Garrel |
|---|
| Biogas Brehna GmbH & Co. KG, Garrel |
| eeMaxx Anlagen- und Betriebs GmbH & Co. KG, Garrel |
| Biogas Klein Mühlingen GmbH & Co. KG, Vogelsang |
| Biogas Ringleben GmbH & Co. KG, Lohne |
| Biogas Neutrebbin GmbH & Co. KG, Neutrebbin |
| Biogas Trüstedt GmbH & Co. KG, Garrel |
| Biogas Böddenstedt GmbH & Co. KG, Salzwedel |
| Biogas Schönwalde GmbH & Co. KG, Schönwalde |
| EnviTec Stromkontor GmbH & Co. KG, Lohne |
| Biogas Lampertheim GmbH & Co. KG, Darmstadt |
| Erste Biogas Bützow GmbH & Co. KG, Bützow |
| Dritte Biogas Bützow GmbH & Co. KG, Bützow |
| Vierte Biogas Bützow GmbH & Co. KG, Bützow |
| Fünfte Biogas Bützow GmbH & Co. KG, Lohne |
| Zweite Biogas Neese GmbH & Co. KG, Vechta |
| Biogas Thomasburg GmbH & Co. KG, Lohne |
| Biogas Hirl GmbH & Co. KG, Bresegard |
| RePro Beber GmbH & Co. KG, Lohne |
| Biogas Nieheim GmbH & Co. KG, Lohne |
| Biogas Wanzleben GmbH & Co. KG, Wanzleben |
| Biogas Angern GmbH & Co. KG, Lohne |
| Biogas Osterburg GmbH & Co. KG, Lohne |
| EnviTec Anlagenbau GmbH & Co. KG, Saerbeck, |
| Biogas Reinsfeld GmbH & Co. KG, Lohne |
| Biogas Forst GmbH & Co. KG, Forst |
| ET Energie Lucka GmbH & Co. KG, Lohne |
| ET Energy Leipzig GmbH & Co. KG, Lohne |
scheid GmbH & Co. KG), Lohne
The consolidated financial statements cover those entities in which EnviTec Biogas AG directly or indirectly holds the majority of the voting rights (subsidiaries) unless their influence on the net worth, financial and earnings position of the Group is of subordinate importance. Consolidation starts at the time at which the possibility to control exists and ends when the possibility of control no longer exists.
Where required, the financial statements of the subsidiaries are adjusted to reflect the accounting and valuation methods used by the Group.
Business combinations are accounted for in accordance with section 301 HGB using the purchase method by netting the carrying amounts of the investments with the remeasured equity capital of the subsidiaries at the time of their acquisition. Assets, liabilities and contingent liabilities of acquired subsidiaries are recognised at their respective fair values. A positive difference remaining after the purchase price allocation is capitalised as goodwill.
Receivables and liabilities between the consolidated companies are netted.
Expenses and income between consolidated entities are netted in accordance with section 305 HGB.
Intercompany profits and losses from intragroup transactions are eliminated and deferred tax assets and liabilities resulting from consolidation recognised in profit or loss are taken into account. Intragroup sales as well as all intragroup income have been netted against the relevant expenses without being recognised in profit/loss.
The equity method is used to measure joint ventures and associated companies which are under the joint management (joint ventures) or controlling influence (associated companies) of EnviTec Biogas AG. Upon the initial consolidation of investments using the equity method, differences resulting from the initial consolidation are treated according to the principles of full consolidation. The changes in pro-rated equity which are recognised in profit or loss are shown separately in the income statement.
The consolidated financial statements were prepared in accordance with the general provisions of section 264 et seqq. HGB for medium-sized corporations as defined in section 267 para. 3 sentence 1 HGB, the provisions for consolidated financial statements stipulated in section 290 et seqq. HGB as well as the complementary provisions of the German Stock Corporation Act.
The financial statements of the entities covered by the consolidated financial statements are based on uniform accounting and valuation principles.
Receivables and liabilities generally arise on a euro basis, which means that no currency translation is required. The financial statements of the consolidated companies are prepared in euros save for six exceptions. Equity is translated at the historical rates, the assets and liabilities in the foreign-currency financial statements are translated at the mean rates on the balance sheet date. Expense and income items are translated at average annual exchange rates. Exchange differences are recognised in equity. For details, please refer to the statement of changes in equity. The foreign-currency financial statements of the companies valued at equity are translated using the closing rate method.
Purchased intangible assets are capitalised at cost. If they have a determinable useful life, they are written off over a period of up to ten years using the straight-line method, unless the actual depreciation requires a different depreciation period.
Goodwill is written off systematically over 14 to 20 years. Goodwill was capitalised in the consolidated financial statements of EnviTec Biogas AG only for acquisitions whose purpose is the operation of one or several biogas plants. The useful lives reflect the lifecycles of the acquired companies.
Property, plant and equipment are carried at acquisition or production costs less accumulated straight-line depreciation – with the exception of land and leasehold rights – and impairment losses.
Acquisition costs comprise the purchase price, ancillary costs and subsequent acquisition expenditure as well as cost reductions.
Production costs include all direct costs attributable to the production process and a reasonable portion of the production-related overheads. Financing costs are not recognised.
Accumulated depreciation of property, plant and equipment is performed according to the straight-line method or, where permissible, according to the declining balance method.
The useful lives on which depreciation is based reflect the estimated/anticipated useful lives for the Group and are shown in the table below:
| Useful life | |
|---|---|
| Buildings | 20 to 40 years |
| Other buildings | 10 to 20 years |
| Technical equipment | 6 to 20 years |
| Machinery and appliances | 6 to 12 years |
| Operating and office equipment | 3 to 11 years |
| vehicles | 5 to 8 years |
| IT equipment | 3 to 5 years |
Financial assets are recognised at cost or at the lower value as of the reporting date.
Raw materials and supplies are recognised at cost or at the lower value as of the reporting date.
Work in progress is recognised at production cost. Production cost includes material and manufacturing costs as well as appropriate overheads. Interest on borrowings is not included in the valuation.
Payments on account made are recognised at their nominal amount.
Payments on account received for work in progress are set off from work in progress to the extent that they do not exceed the latter.
Receivables and other assets are recognised at their nominal value or at the lower value as of the balance sheet date. Itemised allowances are established where required. Adequate general allowances are established for the general default risk of trade receivables.
Cash in hand and cash at banks are recognised at their nominal values.
Taking into account section 250 para. 1 HGB, prepaid expenses for payments made prior to the reporting date were recognised at the nominal value if they represented expenses for a certain period after this date.
Deferred taxes were recognised for temporary differences between the commercial balance sheet and the tax balance sheet as well as for tax losses carried forward that can be offset within five years. A tax rate of 28.08% is applied throughout the Group.
Equity capital is recognised at the nominal value. Reserves correspond to the resolutions adopted and/or the rules laid down in the articles of incorporation.
The provisions cover all discernible risks and contingent liabilities. They were recognised at their settlement values required according to prudent commercial judgement. Provisions with a remaining term of more than one year are discounted at the average market rate of the past seven fiscal years for the respective maturities.
Liabilities were recognised at their respective settlement amount.
The required disclosures regarding the items of the consolidated balance sheet is provided below and material changes compared to the balance sheet items in the IFRS consolidated financial statements for the period ended 31 December 2014 are explained. Where no explanation is given regarding the change from IFRS to HGB, the respective items have not changed materially.
For changes in fixed assets, please refer to the fixedasset movement schedule on page 48.
Due to the change in the accounting standards, the depreciation/amortisation method for various tangible fixed asset items has changed. Movable fixed asset items are now written off using the declining balance method if this is permissible at the time of capitalisation. The resulting effects on the carrying amounts as of 31 December 2014 are shown in accumulated depreciation in the fixed assets movement schedule. Compared to the IFRS consolidated financial statements for the period ended 31 December 2014, accumulated depreciation of technical equipment and machinery and of other plant, operating and office equipment increased by EUR 3,066k and EUR 52k, respectively, while accumulated depreciation of land and buildings declined by a moderate EUR 84k.
Compared to the IFRS financial statements for the period ended 31 December 2014, goodwill is written off systematically. Accumulated systematic write-offs as of 1 January 2015 amounted to EUR 1,434k.
Another difference exists with regard to historical costs, which are EUR 213k higher than in the consolidated financial statements to IFRS. The difference relates to the goodwill of Biogas Forst GmbH & Co. KG, which was capitalised in 2014, and results from different
approaches used for the elimination of intercompany profits/losses under HGB and IFRS, respectively.
Additions in the fiscal year relates to the acquisition of shares in EnviTec Biogas Betriebs GmbH & Co. KG (EUR 371k), Biogas Herzberg GmbH & Co. KG (EUR 92k), Biogas Groß Warnow GmbH & Co. KG (EUR 49k), ET Energie Elsteraue GmbH & Co. KG (EUR 118k) as well as the additional shares in EnviTec France sarl (EUR 300k). Systematic write-offs amount to EUR 659k in the reporting period.
As a result of different valuation and recognition provisions, the consolidated financial statements for the period ended 31 December 2015 differ materially from the IFRS consolidated financial statements for the period ended 31 December 2014 with regard to work in progress resulting from the construction of biogas plants. Instead of recognising a separate item on each the assets side and the liabilities side for construction orders whose balance, after deduction of payments on account, is either positive or negative, work in progress is now shown under inventories and the respective payments on account are set off against them. Valuation is no longer made according to the percentage of completion method, under which anticipated income is recognised in profit/loss, but according to the cost of production method.
In the 2014 income statement adjusted to HGB accounting standards, this effect would reduce sales revenues by EUR 20,499k and increase inventories by EUR 16,897k.
Other assets include receivables from refunds of input tax and advance tax payments in the amount of EUR 4,256k, which legally arise only after the reporting date.
Compared to the IFRS financial statements for the period ended 31 December 2014, potential differences resulting from the payment of loans (discount) are not deducted from liabilities and added in instalments but recognised in a prepaid expense item and released over the term of the loan. In the previous year, a difference of EUR 241k was deducted.
Besides discounts, the prepaid expense item essentially includes the payment of loan processing fees, leases and ground rent as well as insurance for periods after the reporting date.
Deferred taxes are determined on the basis of temporary differences between the values recognised of assets and liabilities and their tax values as well as for tax losses carried forward. In contrast to the IFRS statements for the period ended 31 December 2014, the company has opted to offset deferred tax assets and liabilities in the balance sheet. As a result and in contrast to the IFRS statements for the period ended 31 December 2014, no deferred tax liabilities have been recognised (deferred tax liabilities in the amount of EUR 1,054k and deferred tax assets in the amount of EUR 4,012k were recognised in the IFRS statements for the period ended 31 December 2014).
The company's tax rate of 28.08% was used for the valuation.
Deferred tax assets and liabilities are shown in the table below:
| 31 Dec. 2015 | 31 Dec. 2014 | |
|---|---|---|
| Deferred tax assets | ||
| Tax losses carried forward | 1,600 | 2,216 |
| Technical equipment and machinery |
4,158 | 3,401 |
| Trade receivables | 4,583 | 3,051 |
| 10,341 | 8,668 | |
| Deferred tax liabilities | ||
| Work in progress | 2,131 | 1,364 |
| Technical equipment and machinery |
584 | 773 |
| 2,715 | 2,137 |
Compared to the IFRS financial statements for the period ended 31 December 2014, the main change in this item is the increase in the capital reserve by EUR 6,333k. This is attributable to the different treatment of the costs incurred in conjunction with the IPO (EUR 4,520k), which were recognised in the capital reserve under IFRS. As a result of the change, the capital reserve increased and profit declined accordingly. Another effect results from the different treatment of the acquisition of own shares (EUR 1,932k). Under IFRS, the share premiums were deducted from the capital reserve, whereas they are set off against the profit carried forward under HGB. The
company holds 150,000 own shares in a total nominal amount of EUR 150k, which represents 1% of the share capital.
Another material difference between IFRS and HGB relates to minority interests in partnerships. In the financial statements for the period ended 31 December 2014, these were recognised under long-term financial liabilities, whereas they are recognised in the adjustment item for minority interests under HGB.
Liabilities are composed as follows:
| Remaining term up to 1 year |
Remaining term 1 to 5 years |
Remaining term more than 5 years |
Total | |||||
|---|---|---|---|---|---|---|---|---|
| 31 Dec. 2015 (EUR) | ||||||||
| Liabilities to banks | 16,967,740.54 | 41,035,622.76 | 17,104,371.68 | 75,107,734.98 | ||||
| Trade liabilities | 14,566,427.69 | 0.00 | 0.00 | 14,566,427.69 | ||||
| Liabilities towards companies in which an interest is held |
2,315,584.08 | 0.00 | 0.00 | 2,315,584.08 | ||||
| Liabilities to shareholders | 629,787.45 | 0.00 | 0.00 | 629,787.45 | ||||
| Other payables | 16,751,513.80 | 0.00 | 0.00 | 16,751,513.80 | ||||
| 51,231,053.56 | 41,035,622.76 | 17,104,371.68 | 109,371,048.00 | |||||
| thereof tax liabilities | 1,814,618.71 | |||||||
| thereof social security liabilities | 183,163.92 | |||||||
| 31 Dec. 2014 (TEUR) | ||||||||
| Liabilities to banks | 19,900 | 49,686 | 22,462 | 92,048 | ||||
| Trade liabilities | 19,857 | 0 | 0 | 19,857 | ||||
| Liabilities towards companies in which an interest is held |
1,901 | 0 | 0 | 1,901 | ||||
| Liabilities to shareholders | 509 | 0 | 0 | 509 | ||||
| Other payables | 12,101 | 0 | 0 | 12,101 | ||||
| 54,268 | 49,686 | 22,462 | 126,416 | |||||
| thereof tax liabilities | 2,502 | |||||||
| thereof social security liabilities | 184 |
In contrast to the IFRS consolidated financial statements for the period ended 31 December 2014, liabilities are no longer broken down into current and non-current liabilities under HGB accounting rules.
Liabilities to banks in the amount of EUR 51,227k are secured by the assignment of property, plant and equipment, the assignment of claims under existing contracts as well as a pledge on business assets. The items of property, plant and equipment furnished as collateral have a carrying amount of EUR 61,112k.
The required disclosures regarding the items of the consolidated income statement are provided below and material changes compared to the IFRS consolidated financial statements for the period ended 31 December 2014 are explained. Where no explanation is given regarding the change from IFRS to HGB, the respective items have not changed materially.
A breakdown of sales revenues by activities and geographic markets is provided below, reflecting the income and expense consolidation:
| in TEUR | Activities | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Plant Construction Service |
Own Plant Operation | Energy | Total | |||||||
| Geographic market | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| Germany | 26,271 | 21,405 | 19,092 | 15,061 | 54,953 | 50,410 | 27,471 | 27,139 | 127,787 | 114,015 |
| Italy | 669 | 315 | 3,930 | 3,521 | 15,191 | 14,424 | 0 | 0 | 19,790 | 18,260 |
| UK | 15,339 | 56 | 1,082 | 663 | 0 | 0 | 0 | 0 | 16,421 | 719 |
| Czech Republic | 1,047 | 634 | 1,880 | 1,768 | 0 | 0 | 0 | 0 | 2,927 | 2,402 |
| USA | 0 | 1,704 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,704 |
| France | 5,235 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5,235 | 0 |
| Japan | 1,546 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,546 | 0 |
| China | 0 | 5,232 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5,232 |
| Others | 1,206 | 565 | 0 | 0 | 0 | 0 | 0 | 0 | 1,206 | 565 |
| Total | 51,313 | 29,911 | 25,984 | 21,013 | 70,144 | 64,834 | 27,471 | 27,139 | 174,912 | 142,897 |
Due to the different rules applying to the accounting of construction contracts, the HGB income statements differs materially from the IFRS consolidated financial statements for the period ended 31 December 2014. While pro-rated income reflecting the construction progress was recognised in the IFRS consolidated financial statements for the period ended 31 December 2014 in accordance with the percentage of completion method, HGB rules dictate that revenues are recognised only at the time a service is delivered (i.e. final invoicing of a construction project).
Depreciation/amortisation in the 2015 consolidated financial statements prepared in accordance with the German Commercial Code comprises systematic amortisation of capitalised goodwill in the amount of EUR 659k. When comparing depreciation/amortisation in the 2014 consolidated IFRS statements with the prior-year figures in the consolidated HGB statements, it should be noted that the HGB depreciation/amortisation amounting to EUR 15,171k included EUR 522k in systematic amortisation of capitalised goodwill, compared to the IFRS depreciation/amortisation of EUR 15,502k.
No intangible asset items and items of property, plant and equipment were written down for impairment.
Cash and cash equivalents at the beginning and the end of the cash flow statement comprise cash in hand, cash deposits at the Bundesbank and cash at banks as well as cheques.
No material non-cash investment and financing transactions occurred in the fiscal year nor were there any additions to cash and cash equivalents resulting from company acquisitions.
The payments for at-equity investments relate to the acquisition of minor shares in entities in which the company had already held an investment.
The proceeds from partnership drawings for at-equity investments relate to drawings of minor importance which had no effect on the investment structure.
As of the reporting date on 31 December 2015, access to cash and cash equivalents in the amount of EUR 3,966k (previous year: EUR 2,629k) was restricted. These are reserve holdings set aside as per obligations under various debt capital agreements in connection with the construction of biogas plants.
As of the reporting date, the Group had extended a guaranty in the amount of EUR 200k (previous year: EUR 200k) towards Sparkasse Rotenburg-Bremervörde for obligations of a subsidiary accounted for using the equity method. The risk of claims being raised under this guaranty is below 50%.
The Group has also extended a guaranty of EUR 250k towards VR Bank Dinklage-Steinfeld eG for obligations of another company accounted for using the equity method. The risk of claims being raised under this guaranty is below 50%.
The company has undertaken to secure all receivables due to Bremer Landesbank from a non-Group entity in the amount of EUR 2,500k. The risk of claims being raised under this obligation is also below 50%.
In 2015, the Group issued a new guaranty of EUR 700k towards Oldenburgische Landesbank AG in favour of an entity accounted for using the equity method. The risk of claims being raised under this guaranty is estimated at below 50%.
Other financial obligations are shown below:
| in TEUR | Remaining term up to 1 year |
Remaining term 1 to 5 years |
Remaining term more than 5 years |
Total |
|---|---|---|---|---|
| From lease agreements | 12 | 4 | 9 | 25 |
| From license agreements | 77 | 154 | 0 | 231 |
| From purchase commit ments commitments |
37 | 0 | 0 | 37 |
| Total | 126 | 158 | 9 | 293 |
In addition, some of the own plants have lease agreements of minor importance.
The following fees were recognised as expenses for the services provided by the auditors of the consolidated financial statements, Rödl & Partner GmbH, Wirtschaftsprüfungsgesellschaft, Steuerberatungsgesellschaft, Munich:
| 2015 in TEUR |
2014 in TEUR |
|
|---|---|---|
| Audits of financial statements |
117 | 184 |
| Other advisory services | 3 | 30 |
| Total | 120 | 214 |
All transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions.
The table below shows the average staff numbers of the member companies of the EnviTec Group in 2015:
| 2015 | 2014 | |
|---|---|---|
| Blue-collar staff | 62 | 61 |
| White-collar staff | 296 | 284 |
| Total | 358 | 345 |
The Executive Board was composed of the following members in the past fiscal year:
Olaf von Lehmden, Lohne, businessman, Chief Executive Officer (CEO) since 1 July 2007
Jörg Fischer, Weyhe, businessman, Chief Financial Officer (CFO) since 1 July 2007
Roel Slotman, businessman, Chief Commercial Officer (CCO) from 1 October 2009 to 30 June 2015
Jürgen Tenbrink, Steinfurt, engineer Chief Technology Officer (CTO) since 1 July 2010
No other mandates are held by the members of the Executive Board.
The compensation of the Executive Board consists of the following components:
Fixed compensation in the form of a monthly salary
Variable compensation based on the operating result of the EnviTec Group and the achievement of personal targets
As compensation for a competition prohibition imposed on them following the regular end of their activity as a member of the Executive Board, the members of the Executive Board will receive an ex gratia payment equal to 50% of the fixed compensation last received for a period of up to one year. In the event of premature termination of their activity as a member of the Executive Board, the ex gratia payment depends on the circumstances of the termination pursuant to section 75 of the German Commercial Code.
The following compensation was paid to the members of the Executive Board in the fiscal year 2015:
| in EUR | Fixed compensation | Variable compensation | Other* | Total | ||||
|---|---|---|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |
| Olaf von Lehmden | 147,097 | 147,097 | 0 | 0 | 15,611 | 15,861 | 162,708 | 162,958 |
| Jörg Fischer | 136,000 | 136,000 | 0 | 0 | 10,417 | 10,667 | 146,417 | 146,667 |
| Roel Slotman | 63,000 | 126,000 | 0 | 0 | 4,818 | 10,386 | 67,818 | 136,386 |
| Jürgen Tenbrink | 124,466 | 124,466 | 0 | 0 | 12,961 | 13,403 | 137,427 | 137,869 |
*Other compensation includes benefits in money's worth resulting from the use of company cars as well as the portions of the D&O insurance attributable to the Executive Board members
Appointees to the Supervisory Board in the reporting period:
Mr Bernard Ellmann (Chairman), businessman, former Group Vice President of the Unilever Group, Rotterdam/London, Chairman of the Supervisory Board of Unilever Deutschland Holding GmbH, Hamburg, Chairman of the Supervisory Board of Finco Signature BV. Losser, Netherlands
Mr Hans-Joachim Jung (Vice Chairman), businessman, former member of the Executive Board of KELAG Kärntner-Elektrizität Aktiengesellschaft
Mr Michael Böging, businessman, Managing Director of Unternehmensgruppe Weiße Köpfe GmbH, Emstek
The expenses for the compensation of the Supervisory Board in the fiscal year 2015 include fixed compensation for the Supervisory Board activity at EnviTec Biogas AG in an amount of EUR 40,000 (previous year: EUR 40,000).
Other compensation (meeting attendance fees and refunds of expenses) totalled EUR 19,500 (previous year: EUR 18,000).
The Executive Board and the Supervisory Board of EnviTec Biogas AG will propose a dividend of EUR 0.80 per share to the shareholders at the ordinary Annual General Meeting on 28 June 2016. Including own shares held by the company, this is equivalent to a total dividend payout of EUR 11,880k.
Given that the profit distribution requires the approval of the Annual General Meeting, no liability has been recognised in the balance sheet.
Lohne, 10 May 2016
Olaf von Lehmden
Jürgen Tenbrink
Jörg Fischer
We have audited the consolidated financial statements prepared by EnviTec Biogas AG, Lohne, comprising the balance sheet, the income statement, the statement of changes in equity, the cash flow statement and the notes to the consolidated financial statements, together with the group management report which is combined with the management report of EnviTec Biogas AG for the fiscal year from 1 January to 31 December 2015. The preparation of the consolidated financial statements and the group management report in accordance with the requirements of German commercial law pursuant to § 315a (1) HGB and supplementary provisions of the articles of incorporation are the responsibility of the company's management. Our responsibility is to express an opinion on the consolidated financial statements and on the group management report based on our audit.
We conducted our audit of the consolidated financial statements in accordance with § 317 HGB and German generally accepted standards for the audit of financial statements promulgated by the Institute of Public Auditors in Germany (Institut der Wirtschaftsprüfer). Those standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the consolidated financial statements in accordance with the applicable financial reporting framework and in the group management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Group and expectations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the consolidated financial statements and the group management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the annual financial statements of those entities included in consolidation, the determination of entities to be included in consolidation, the accounting and consolidation principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated
financial statements and the group management report. We believe that our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the consolidated financial statements comply with the requirements of German commercial law and supplementary provisions of the articles of incorporation and give a true and fair view of the net assets, financial position and results of operations of the Group in accordance with these requirements. The group management report which is combined with the management report of the company is consistent with the consolidated financial statements and as a whole provides a suitable view of the Group's position and suitably presents the opportunities and risks of future development.
Munich, 10 May 2016
Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft
Hager German Public Auditor
Decker German Public Auditor EnviTec Biogas Annual Rep ort 2015
The oldest known and most important carbonic acid to this very day, it is an important base for methane accumulation.
The total acid in the fermenter. High loads in the fermenter in the starting phase lead to a very high concentration of acid.
Ability of microorganisms to adapt to an elevated ph level without experiencing sustained disturbances in the process biology.
A microorganism that grows in the presence of oxygen. See Anaerobe organisms.
Machine for the consistent mixing of substances in tanks.
In some countries it may be necessary to observe the emissions of odours, harmful substances and dust.
Any of the 20 basic building blocks of proteins. Composed of a free amino (NH2) end, a free carboxyl (COOH) end, and a side group (R).
Organisms which can temporarily or continuously live without free oxygen. Anaerobic bacteria convert biomass into fermentation (bio) gas.
Organic and inorganic components of the input material. Only the organic part of the anhydrous mass can be used for methane production.
Substances that can impair the functionality of the plant and are removed manually or mechanically.
A class of natural and synthetic compounds that inhibit the growth of or kill other microorganisms. Also used as feed additives that inhibit the process biology and aerosis similar to the inhibitors NH4 and NH3 as well as the heavy metals copper and zinc.
A single-celled, microscopic prokaryotic organism: a single-cell organism without a distinct nucleus.
Gas which develops during the anaerobe decomposition of organic substances.
Precipitation of humidity and corrosive gas from the biogas to protect the engine.
Energy source from organic substances, where scorched biomass releases only the amount of CO2 which it has taken from the atmosphere during growth. That's why the energy production does not contribute to the greenhouse effect.
Engine with an attached generator for production of electricity and heat.
Gas that develops when fossil combustibles like coal, oil or natural gas are used. CO2 is the main cause for the greenhouse effect that changes the climate.
Cell membranes which are hard to decompose microbially.
Fossil energy source with low energy content. Almost two thirds of the electricity used in Germany is produced in coal power plants. In comparison to all other energy sources, the coal causes the highest CO emissions.
Serve bacteria as location/surface habitat.
Engine for the production of electricity, steam, hot water and process heat.
Amount of energy from a BHKW that is necessary for a full load operation.
Humidity that is separated from biogas through condensation.
Shaft for collecting and pumping down of the accumulating condensate.
Transition from a gaseous to a fluid aggregate state.
Digestor load
Accepting technique for supply inventory and consistent feeding of a biogas plant with corn silage.
Chemical alterations in the material at the surface of solid bodies, i.e. the fermenter.
Conditioning method with the target to increase the accessible surface of the material.
D
Speed of decomposition of the organic substance. It depends on the condition, surface and composition of the basic substances as well as the temperature in the fermenter.
Removal of disturbing odours of odour-intensive substances to avoid emission.
Procedure that occurs especially in heterogeneous substances which tend to segregate and which can be avoided in a container with smooth walls, agitator and a flow temperature that is not too high.
Precipitation of hydrosulphide from biogas.
Fermenter
Amount of additives consisting of organic dry substances per cubic meter of fermenter volume and day.
Plant in which predominantly dry substrates are fermented to become compact and which cannot be agitated. This supplies less gas than wet fermentation.
Codes for the manufacturing of gas containers.
The study of the interactions of organisms with their environment and with each other.
The organisms in a plant population and the biotic and abiotic factors which impact on them.
Electricity requirement of the plant in order to hold up the operation.
Releasing of harmful substances, dust or odours into the environment.
Proteins that control the various steps in all chemical reactions.
Process of turning biomass into biogas with the aid of microorganisms.
Airtight heated tank for the anaerobe decomposition of organic substances.
Heating system in the fermenter for acceleration of decomposition of anaerobe substances.
Biochemical process in which organic sub-stances are decomposed through anaerobe microorganisms and energy is obtained.
Separation of the fermenting residue into solids, fertiliser concentrate and water in special treatment plants.
German law with the goal to protect people, animals, plants, soil, water, atmosphere, cultural and other real assets from harmful environmental effects.
Quality of the fermenting residue regarding certain substances of content, e.g., nitrate, phosphate or potash.
Safety device for safe combustion of excess gas.
Roof cover made of foil for fermenters and storage tanks with or without gas storage bubble.
Temperature in the heating water before the heat is withdrawn in heat usage.
Amount of different acids in the fermenter measured in mg/l.
Energy source which, in contrast to renewable raw materials, does not grow again. Brown coal, anthracite, natural gas and crude oil are such fossil energy sources.
It turns hydrogen and oxygen into water by releasing energy and heat.
Piston-power machine that is driven by combustible gas. It is used among other things for power- and heat generation in block heat and power plants and biogas plants as well as drives for vehicles.
Method for mixing different substances in the fermenter. Biogas is compressed by high pressure through injectors at the bottom of the fermenter.
Gastight foil for collecting and storing biogas.
Process that occurs during the production of biogas.
Time it takes for reproduction of bacterial cultures.
Electrical device for processing input substances by crushing the material.
Apparatus for conveying heat between two heating systems.
Energy contents of fuel gas; unit: kilowatt hour per norm cubic metre.
One of a total of four biochemical single processes in the fermenting of biomass. With the aid of microorganisms, amongst others, the biopolymers are separated into monomeric basic modules or other soluble decomposition products.
Type of gas that is generated during the biogas production and has to be separated from biogas through desulphurisation before it can be used, because it can cause corrosion damage in the engine.
Pasteurising, i.e. heating of the input material to 70 degrees centigrade for one hour to kill the bacteria and germs.
Regulation for plants for biological treatment of waste products. According to this regulation, it may not come to a dangerous impact on humans, animals or nature
Fast-running propellers which mix the input substances evenly at 300–400rpm. variable position within the fermenter.
Process which slows down the generation of methane, e. g. through acids.
Substances which are suitable for the operation of a biogas plant, like liquid manure, dung, bio waste, renewable raw products, etc.
Heat insulation of components against frost, protection against loss of heat and prevention of temperature fluctuation.
Wood substance or an element in the wood which cannot be decomposed in the anaerobe process
Heat that develops during the power production in heating- or block heat and power plants. It gets to the consumer by help of steam or hot water through pipelines.
Regular testing, replacing and servicing of plant components.
Inspection opening in the container wall
Filtration technique with pore-membranes for cleaning of waste water.
Combustible type of gas which is generated during the bacterial decomposition of biomass. Methane is the substance in biomass that can be used for energy production. The higher its proportion the more valuable i. e. higher in energy is the biogas.
Fossil fuel. Natural gas is considered the cleanest fossil energy source, because it contains the lowest amount of carbon in comparison to coal and crude oil and thus generates the least CO2 emissions.
In the process of licensing a plant, some countries have noise emission levels that should not be exceeded.
In some countries it may be necessary to consider the location, building materials and the execution of the construction because of the noise emission limitations.
Heat energy that is released when splitting uranium atomic nuclei. 27 % of the electricity in Germany comes from nuclear power plants. Because of the risks in splitting atomic nuclei and disposing of the fuel rods, the last German
nuclear power plant is planned to be taken off the net in 2025.
This is gas that is colorless, flavourless and odourless. Free oxygen is found as an element of the air. It makes approx. 20.8 % of the oxygen on earth. In its combined form, it can be found in water and many minerals. Altogether it makes 49.5 percent of the weight on the surface of the earth and is thus the most frequently found element.
Capacity of a plant in tonnes or time units per day.
Plant for the use of electricity from industrial waste heat using high-speed Organic Rankine cycle (ORC). An Organic Rankine Cycle uses a heated chemical instead of steam, as used in the original Rankine Cycle. Chemicals or refrigerants.
Pasteurising
Measured level for the concentration of the hydrogen ions in a solution. A ph range between 6.5 and 7.2 is ideal, higher or lower levels disrupt the process biology.
Energy production through solar energy with the aid of solar collectors that convert light into electrical power.
This is an engine on the basis of a diesel engine that was converted for biogas use. It needs backup firing equipment and is not as long living as a gas engine.
Official start of plants or parts of plants, as a general rule the beginning of the warranty period.
Particular demands on hazardous areas, e.g., combustible atmosphere in gasholders through establishment of fire breaks, etc. according to the VDE regulations.
Process in which electricity is produced and at the same time the waste heat of the BHKW is used. KWK plants, in comparison to conventional technologies, reduce emissions of CO2 and other harmful substances by 30– 40 %.
Safety equipment for pressure monitoring.
Calculation of the immission prognosis of pollutants and odours. It considers wind direction, wind velocity, vertical temperature layers, etc.
Type of acid which is not desired in the process. It is generally enriched in process failures and is an additional obstruction for the aerobic metabolism.
Proteins are generally based on amino acids, which are the most important input substances next to carbohydrates and fats.
Substance that accrues when biodiesel is made.
Insulated tank which holds fermenting substrate after it is taken from the fermenter. It is necessary, for example, when the fermenting substrate is used for mixing the fermenter input material.
Resources which are not limited in comparison to fossil energy sources, i. e. water, wind, photovoltaics and biomass. On top of this, they are climateand environment-friendly.
Regenerative energy sources
Products from agriculture or forestry operations used for industry or the production of heat, electricity and other forms of energy.
Time period that the substance remains in the fermenter and is incumbent to the organic decomposition.
Process in which the substances that are heated during hygienisation are cooled before being fed into the fermenter
Input material that cannot be used for fermenting because of its risk potential.
Device for inserting substances into the fermenter.
Sedimentation > Sedimentary deposition
Sewage sludge regulation Regulation which determines the limit value for the pollution of sewage sludge with heavy metal and other harmful substances, among other.
Substances that can retard the biogas production when overdosed.
Plant for production of hot steam and process steam.
Device for separating particulate material from suspension.
Location of the central control station of a biogas plant.
Technical manual for air pollution prevention.
Technical manual for the evaluation of sonic immissions .
Amount of the different acids in the fermenter, measured in milligramme per litre.
Procedure for the conditioning of fermenting residue. It normally takes place after the first compact/liquid separation and is the precursor of reverse osmosis.
Facility for vaporising water to lower the water contents in a product.
Vertical movements of substrates in a tank.
Natural power source for the electricity production. More than 20 % of the electricity worldwide originates from water power plants. Only 20 % of the water power assets worldwide are used.
Unit of measurement for electrical power capacity according to James Watt (1736 – 1819), the inventor of the steam engine. 1 kilowatt = 1,000 watts; 1 megawatt (mw) = 1,000,000 watts.
Reactor where substrates are fermented within liquids.
Inexhaustible energy source where the natural current energy of the wind is used for electricity production.
13 May 2016 Annual account 2015
28 June 2016 Annual General Meeting
30 September 2016 Interim report 2nd quarter 2016
EnviTec Biogas AG Industriering 10 a 49393 Lohne Tel.: +49 (0) 4442 / 8016-8100 Fax: +49 (0) 4442 / 8016-98100 E-Mail: [email protected] www.envitec-biogas.de
Katrin Selzer Tel.: +49 (0) 2574 / 8888-810 Fax: +49 (0) 2574 / 8888-100 E-Mail: [email protected]
Kreutzmann Unternehmenskommunikation, Hamburg
IR.on Aktiengesellschaft, Cologne
Sales:
Boschstraße 2 D-48369 Saerbeck Tel.: +49 (0) 25 74 / 88 88-0 Fax: +49 (0) 25 74 / 88 88-800
[email protected] www.envitec-biogas.com
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