Quarterly Report • Aug 28, 2008
Quarterly Report
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Interim Report
Business Year 2008
| 4 |
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| 6 |
| 8 |
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| 9 |
| Overview | 4 |
|---|---|
| Preposition | 6 |
| Group interim business report | |
| General environment | 8 |
| Business trend in the second quarter | 9 |
| Earnings, net worth and financial position | 11 |
| The share | 14 |
| Opportunities and risks | 15 |
| Related party disclosures | 15 |
| Forecast report | 15 |
| Consolidated profit and loss account | 18 |
|---|---|
| Consolidated balance sheet | 19 |
| Consolidated equity capital change statement | 20 |
| Consolidated capital flow statement | 21 |
| Notes | 22 |
| Review report | 36 |
| Declaration of the legal representatives | 37 |
Calendar, Imprint 38
4
| (Million EUR) | Q2 2008 | Q2 2007 | ||
|---|---|---|---|---|
| Sales revenue | 17.0 | 32.8 | ||
| Gross result | 5.9 | 11.5 | ||
| EBITDA | 0.3 | 5.6 | ||
| EBIT | -0.6 | 5.3 | ||
| Surplus | 0.1 | 3.5 | ||
| Employees | 268 | 241 | ||
Business is starting to boom again. In the second quarter, we won several major contracts in the course of only a few weeks, thus further consolidating our leading industry position. The biggest contract ever in the history of our company was signed with a German customer. By mid-2010, we will deliver EUR 60 million worth of 500 KW plants to a German project developer. This contract clearly reflects the huge potential of the German market. But we were also successful abroad. For instance, we received several orders with a total volume of approx. EUR 37 million from Belgium and the Czech Republic. Most of them are planned to be filled before the end of the year, thus boosting our sales revenues from approx. EUR 32 million in the first six months of 2008 to over EUR 70 million in the second half of the year. We expect sales for the full year 2008 to total between EUR 105 and 115 million, with EBIT projected to amount to between EUR 5 and 8 million. This positive sales and earnings performance should continue next year.
Our optimism and the pick-up in demand are due to the fact that the environment for our industry has improved clearly in the past weeks. The record oil price and the announcement by many utilities to raise the prices of natural gas by over 50% has strengthened the focus on the global search for solutions to reduce the dependence on natural gas imports and other fossil energy sources. More and more countries realise that biogas can and must make a major contribution to the energy mix of the future on account of the many advantages it has over other energy sources. This has also been realised by the federal government, which has taken a step in the right direction. The adoption of the amendment of the German Renewable Energy Sources Act (EEG) means that a clear legal framework has been formulated. While we would have preferred residual matter to be included in the promotion scheme, as is the case in Belgium, the law is nevertheless a clear sign of the federal government's commitment to biogas. The Gas Grid Access Directive, which governs the feeding of biogas into the natural gas grid, was adopted already in February. These two laws open up excellent growth prospects for our company in Germany. On the one hand, the EEG makes the operation of small biogas plants very attractive. In response to this, we have added 190 KW plants to our portfolio. This allows us to address a new target group, who will benefit from greater planning certainty with regard to time and costs thanks to our standardised design. On the
other hand, the refinement of biogas and the subsequent feeding into the natural gas grid will become especially lucrative for large plants.
The trend in agricultural prices also benefited our industry in the past months. The upward price trend, which lasted into the first quarter, ended in the summer, when prices for maize and wheat began to drop significantly. Good harvests in the USA and Europe brought relief and made the production of biogas even more attractive. From our point of view this shows, that there is only very little competition between Biogas and food production and factual no impact on food prices. Needless to say, that we feel constrained to use land as efficiently as possible, and this is where biogas has a clear advantage over other forms of renewable energy.
The above shows that the environment is right. Our technological expertise, our distribution activities in more than 14 countries worldwide and our liquid funds in an amount of over EUR 80 million mean that we have got what it takes to take full advantage of our opportunities.
We would like to thank you very much for the confidence placed in us.
Cordially,
Olaf von Lehmden Jörg Fischer Kunibert Ruhe CEO CFO CTO
Olaf von Lehmden (CEO), Kunibert Ruhe (CTO) and Jörg Fischer (CFO)
9
for the period from 1 January to 30 June 2008 of EnviTec Biogas AG
The world economy continued to grow in the second quarter, albeit at a much slower pace. This is primarily attributable to the US property crisis, which is having a strong impact on the global financial system and the economy. At the end of June 2008, the German Institut für Weltwirtschaft (IfW) reported a noticeable slowdown in economic activity. Should the much-feared US recession materialise in the second half of the year, global economic growth would slow down even further.
The oil price marked a new record in the second quarter. For the first time ever, the price passed the USD 140 per barrel mark. This represented an increase by over 50% since the beginning of the year. The prices of electricity and gas followed this trend and rose sharply. Many utilities have announced further price increases for the second half of the year. By contrast, the prices of agricultural commodities declined. Following a sharp rise in 2007 and the first three months of 2008, the prices of grain and maize came down markedly towards the end of the reporting period in light of good harvest forecasts in the USA and Europe.
Important legal decisions taken in the first half of the year were immediately reflected in rising demand and should stimulate growth in the biogas market already in the second half of the year. On 6 June, the German Bundestag officially adopted the amendment of the Renewable Energy Sources Act (EEG), thus establishing a reliable legal framework for the German biogas industry. Under the amended EEG, biogas will benefit from higher promotion, which will take effect from 1 January 2009. Both the "NawaRo bonus" and the "KWK bonus" will be raised by one cent per kilowatt hour (kWh). In addition, two new bonuses will be introduced; first, the federal government will grant a bonus of up to 4 cents per kWh for the minimum usage of 30% by mass of liquid manure. The aim is to reduce methane emissions. This will make biogas plants even more attractive for livestock farmers. Second, there will be a bonus on one cent/kWh for plants meeting certain formaldehyde limits. Finally, the new law includes a positive list for input materials that are eligible for the "NawaRo bonus". In addition, the law also defines vegetable by-products
whose use entails only a partial reduction in the "NawaRo bonus". Overall, the amended law gives the operators of biogas plants sufficient legal certainty with regard to their remuneration and thus greater flexibility in the procurement of raw materials.
Together with the new Gas Grid Access Directive, the amended EEG also supports the feeding of biogas into the natural gas grid. The federal government's decision to promote biogas more strongly is a clear signal and an important step towards an environmentally friendly local energy supply in Germany.
As had been expected, the second quarter was still marked by uncertainty about the future legal framework for the German biogas industry. Domestic demand picked up noticeably only after the official adoption of the amended EEG. The company's international operations performed well throughout the period. Numerous new contracts showed that it was the right decision to push ahead the internationalisation at an early stage. The company also expanded the activities of its Own Plant Operation and Service segments.
As of 30 June 2008, 254 EnviTec modules with a rated electrical output of 123 MW were in operation. Another 19 modules with an output of 14.9 MW were under construction.
The huge potential of the German market, which will clearly benefit EnviTec Biogas due to its leading market position, became evident only a few days after the amendment of the EEG. A leading German project developer ordered biogas plants worth EUR 60 million. This is the largest contract ever in the history of EnviTec Biogas. In the course of the next two years, the company will deliver individual modules with an electrical output of 500 KW each. The customer will operate the plants in cooperation with farmers throughout Germany.
Realising that biogas is an important element in the energy mix of the future, numerous countries have created an attractive environment for this form of energy. As a result, international demand for biogas plants is growing. The most recent examples are Belgium and the Czech Republic.
625 KW plant in cooperation with a local farmer. Both partners have equal shares in the plant. EnviTec Biogas is in charge of plant construction as well as technical and biological service, while the farmer will supply liquid manure and maize and operate the plant. The plant will not only generate revenues from the sale of approx. 4.9 million kWh of electricity per year but also serve as a door-opener, as it allows potential customers from the region to become acquainted with the operation of a biogas plant.
The biogas industry is still young and offers huge potential for innovation. With a view to further expanding its leading position, EnviTec Biogas is building a Technology Centre at its Lohne headquarters. The Technology Centre will comprise not only a biogas plant that will process biogas to natural gas quality and feed it into the natural gas grid but also a training centre including a research lab as well as a biogas filling station. Also, the company wants to promote dialogue with the public. Scheduled for completion in 2009, the Centre will be open to everybody seeking information on renewable energy and biogas.
As of 30 June, EnviTec Biogas employed 268 people, 27 more than at the end of the second quarter 2007. 18 of them work abroad.
The growing domestic and international demand for biogas plants is also reflected in the company's orders on hand and forms the basis for the sales growth projected for the second half of the year. At the half-year stage, the company's orders on hand totalled EUR 190.8 million, which represents an increase of over 40% as compared to the three-month stage. EUR 55.5 million of the total order volume came from abroad.
In the second quarter of 2008, EnviTec Biogas generated sales of EUR 17.0 million (Q2 2007: EUR 32.8 million). The positive effect of the EEG amendment was reflected in incoming orders only towards the end of the reporting period.
Before the end of the year, EnviTec biogas will erect plants with a rated electrical output of 12.6 MW for several Belgian agricultural and industrial businesses as well as institutional investors. The total order volume for the 1 - 3 MW plants is approx. EUR 30 million. The excellent conditions prevailing in Belgium allow to exploit the full potential of biogas. In contrast to common practice in other countries primarily relying on renewable resources for input materials, Belgian biogas plants make extensive use of residual matter such as solid manure, glycerine, food waste and vegetable fats. This gives plant operators much greater flexibility in the choice of input materials and allows them to respond swiftly to rising prices of renewable resources. Moreover, the plants are based on concepts for the use of exhaust heat and the processing of fermentation residues.
In the Czech Republic, there are many agricultural businesses that are much larger on average than their German counterparts and that have sufficient input materials. This also applies to their livestocks, which produce large amounts of liquid manure. Up to now, liquid manure has been stored in open lagoons, from which large quantities of environmentally hazardous methane gas escaped into the atmosphere. This can be reduced through the production of biogas and additionally leads to a new source of income. The first Czech contracts were signed with three large agricultural businesses which ordered plants in a total amount of EUR 7 million. The first of the three plants with a total electrical output of approx. 2.6 MW is scheduled to be taken into service in late summer of this year. Two of the plants will be realised as turnkey projects, which means that EnviTec Biogas will take care of all project stages - from planning and infrastructure to the construction of the technology building to the start-up of the plant - and hand the turnkey plants over to the customer.
Besides the ongoing internationalisation, the expansion of the Own Plant Operation segment is an important element of the growth strategy of EnviTec Biogas. Here, too, the company made good progress and generated sales revenues of EUR 4 million in the first half of the year.
Following a 12-month construction phase, a biogas plant with a rated electrical output of 2.1 MW was connected to the grid in Friedland, Mecklenburg-Vorpommern. The cogeneration plant generates annual revenues of approx. EUR 3 million. The electricity generated is fed into the public grid and the heat produced in the process is supplied to a neighbouring district heat grid operator. This allows to reduce the heating costs incurred by the population of Friedland.
An important strategic step was the start of construction of the first companyowned plant abroad. In the Dutch town of Bergharen, EnviTec Biogas is building a
Orders on hand at 06/30/2008
million. This was mainly due to the investments made by the Own Plant Operation segment, which are financed at favourable terms on a long-term basis. Current liabilities were reduced by a moderate EUR 1.3 million to EUR 12.7 million.
In the second quarter, EnviTec Biogas invested EUR 13.6 million in property, plant and equipment. Of this amount, EUR 8.4 million referred to additions resulting from initial consolidation. As in the first three months of the year, the funds were primarily invested in the expansion of the Own Plant Operation segment. As a result, property, plant and equipment increased by EUR 11.9 million to EUR 34.4 million. Total fixed assets rose from EUR 23.8 million to EUR 38.6 million.
Sales revenues in the first six months of 2008 totalled EUR 32.1 million (H1 2007: EUR 65.6 million). At EUR 25.9 million, the Plant Construction segment made the biggest contribution to total sales. Own Plant Operation and Service accounted for EUR 4.0 million and EUR 2.2 million, respectively. This means that the share of the latter two segments in total sales increased from less than 1% in the first half of 2007 to approx. 19%.
EnviTec Biogas has relied on lean and flexible structures from the very beginning. This was one of the main reasons why no capacity cuts were necessary during the difficult phase. This means that the company has the resources that are needed to respond immediately to the pick-up in demand. This will have a positive effect on sales and earnings already in the second half of the year.
In line with the decline in the business volume, the cost of materials dropped from EUR 22.1 million to EUR 11.6 million in the second quarter. The cost of materials as a percentage of sales stood at 67.8%, which was more or less on a par with the previous year's level (Q2 2007: 67.2%). Due to the increase in the workforce, personnel expenses rose from EUR 2.4 million to EUR 2.9 million.
As a result of the larger number of company-operated plants, depreciation climbed from EUR 0.3 million to EUR 0.9 million. Other expenses were reduced from EUR 3.5 million to EUR 2.7 million. Earnings before interest and taxes (EBIT) amounted to EUR -0.6 million in the second quarter (Q2 2007: EUR 5.3 million).
The high liquid funds led to a positive financial result also in the second quarter, when it reached EUR 1.1 million, up from EUR 0.1 million in the same period of the previous year. This resulted in a positive net profit of EUR 93k (Q2 2007: EUR 3.5 million).
First-half EBIT amounted to EUR -1.4 million (H1 2007: EUR 11.2 million), while net profit for the first six months stood at EUR 0.3 million (H1 2007: EUR 7.1 million). This represents earnings per share of EUR 0.02.
At the half-year stage, the net worth and financial position of EnviTec Biogas remained sound, giving the company the necessary scope to exploit opportunities as they arise. As of 30 June, the company's equity capital amounted to EUR 174.4 million. At 85.8%, the equity ratio was only slightly lower than at the beginning of the year (87%). Non-current liabilities increased from EUR 12.1 million to EUR 16.2
Expenses compared to the second quarter of 2007
Sales compared to the second quarter
Half year sales of the segments
As of the reporting date, the company had liquid funds in an amount of EUR 81.4 million. Current assets declined from EUR 176.4 million to EUR 164.7 million in the first six months of the year. The relation between current assets and current liabilities was approx. 13:1. Operating cash flow amounted to EUR -24.7 million, compared to EUR -3.0 million in the first half of 2007. This primarily reflects the increase in trade receivables and financial assets.
The international capital markets continued to be affected by the property and financial crisis in the second quarter. Concern about a recession in the USA and the consequences for the world economy led to high volatility. The DAX and TecDAX closed the second quarter at almost the same level as in the previous quarter.
The price of the EnviTec share was also marked by high volatility in the second quarter. This was attributable not only to the general capital market situation but also to the uncertainty about the future of biogas in Germany, which prevailed until early June. Following a low of EUR 12.50 at the end of May, the share price rose to over EUR 18 in the course of only two weeks, as investors expressed their relief about the amendment of the German Renewable Energy Sources Act. This level was not maintained, however; at the end of the reporting period, the share price stood at EUR 16.
| ISIN | DE000A0MVLS8 |
|---|---|
| WKN | A0MVLS |
| Stock exchange symbol | ETG |
| Number of shares | 15,000,000 shares |
| First day of trading | July 12. 2007 |
| Highest price (07.07.08) | 20.20 euros |
| Lowest price (27.05.08) | 12.50 euros |
| Price at the end of the reporting period (30.06.08) | 16.00 euros |
| All figures refer to XETRA prices | |
| von Lehmden Beteiligungs GmbH | 5,661,994 Stk. | 37.6 % |
|---|---|---|
| TS Holding GmbH | 3,280,000 Stk. | 21.9 % |
| Ruhe Verwaltungs GmbH | 1,756,696 Stk. | 11.6 % |
| Freefloat | 4,301,310 Stk. | 28.9 % |
Now that clear and positive conditions for the biogas sector are in place and the Executive Board is convinced that the prospects for the future are excellent, EnviTec Biogas will intensify its investor relations activities in the second half of the year. The analysts from SES Research will begin to cover the share in the third quarter. In addition, the company plans to participate in additional investors conferences, including the German Equity Forum in November.
The opportunities and risks of EnviTec Biogas AG were presented in detail in the Group Management Report and the Management Report for the period ended 31 December 2007. Typical risks were listed and described in detail in these reports. Besides attractive foreign markets, EnviTec Biogas sees many opportunities also in Germany.
The Executive Board currently sees no risks that could jeopardise the continued existence of the company.
Transactions that were made with related parties in the reporting period and have a material impact on the net worth, financial and earnings position are described in detail in the notes to the interim consolidated financial statements.
EnviTec Biogas is optimistic about the future. Following a difficult first half-year, the market environment has improved noticeably. Thanks to the lean and flexible structures and the very sound financial situation, no capacity cuts were necessary
in the past months. This means that the company is now able to exploit the market opportunities that arise. The Executive Board therefore projects a positive sales and earnings performance for the second half of 2008, which should continue in 2009.
On the one hand, the positive outlook is based on the high order backlog of approx. EUR 191 million. Moreover, the environment for the German biogas market has improved in the past weeks and months. The Gas Grid Access Directive and the amendment of the EEG will give the biogas sector the planning certainty it needs. Under the new EEG, biogas will be promoted more effectively than before. Additional and increased bonuses as well as a higher basic remuneration will increase incentives for smaller plants, in particular, thus highlighting the importance of biogas for the local energy supply. In response to these amendments, EnviTec Biogas has added 190 KW plants to its product portfolio, permitting the company to meet the demands for smaller plants made by agricultural businesses.
In addition, the gas price increases announced for the third quarter will make biogas an even more attractive alternative. The world's largest plant for the refinement of biogas to natural gas standards, which is currently being built in Güstrow, illustrates the expertise of EnviTec Biogas in this sector.
The fact that the prices of agricultural commodities that are needed for the production of biogas have dropped clearly from the mid-Q2 record levels also helps to make biogas plants even more attractive. The broad product portfolio, which ranges from 190 KW plants to 4 MW modules, enables EnviTec Biogas to satisfy the demand of farmers, institutional investors and utilities in Germany and abroad. In addition, the company will push ahead the expansion of its Own Plant Operation segment.
The Executive Board continues to project sales of EUR 105 to 115 million as well as earnings of EUR 5 to 8 million for the full year 2008. This means that sales would more than double in the second half of the year as compared to the first six months.
| Jun. 30th, 2008 | Dec. 31st, 2007 | ||
|---|---|---|---|
| ASSETS | Fixed assets | ||
| > Intangible assets | 2,724,307 | 109,112 | |
| > Tangible assets | 34,432,678 | 22,491,043 | |
| > Shares in at-equity valuation of participations | 932,307 | 1,041,868 | |
| > Other long-term receivables | 35,160 | 24,103 | |
| > Deferred taxes | 437,926 | 163,864 | |
| Total fixed assets | 38,562,378 | 23,829,990 | |
| Current assets | |||
| > Stocks | 4,070,111 | 3,543,633 | |
| > Receivables from long-term construction contracts | 31,818,991 | 40,728,523 | |
| > Trade receivables | 20,294,275 | 8,014,518 | |
| > Other short-term financial assets | 13,610,829 | 8,230,692 | |
| > Tax receivables | 1,498,856 | 786,631 | |
| > Held for trading financial assets | 10,033,852 | 0 | |
| > Available for sale financial assets | 2,002,000 | 0 | |
| > Liquid funds | 81,346,073 | 115,103,036 | |
| Total current assets | 164,674,987 | 176,407,033 | |
| Total assets | 203,237,365 | 200,237,023 | |
| EQUITY AND | Equity | ||
| LIABILITIES | > Subscribed capital | 15,000,000 | 15,000,000 |
| > Capital reserves | 134,927,281 | 134,927,281 | |
| > Revenue reserves | |||
| 1. Currency translation reserves | -8,797 | -384 | |
| 2. Other reserves | 508,563 | 508,563 | |
| > Retained earnings brought forward | 23,625,067 | 9,268,465 | |
| > Minority interests | 68,115 | 135,042 | |
| > Consolidated profit | 282,098 | 14,356,602 | |
| Total equity | 174,402,327 | 174,195,569 | |
| Non-current Liabilities | |||
| > Long-term provisions | 502,145 | 346,635 | |
| > Long-term financial liabilities | 12,528,555 | 6,421,031 | |
| > Deferred taxes | 3,128,370 | 5,332,323 | |
| Total non-current liabilities | 16,159,070 | 12,099,989 | |
| Current liabilities | |||
| > Short-term provisions | 2,461,246 | 2,839,378 | |
| > Short-term financial liabilities | 1,770,425 | 1,618,633 | |
| > Trade payables | 5,760,824 | 5,962,838 | |
| > Liabilities from long-term construction orders | 5,151 | 0 | |
| > Other short-term liabilities | 913,424 | 3,072,503 | |
| > Tax liabilities | 1,764,898 | 448,113 | |
| Total current liabilities | 12,675,968 | 13,941,465 | |
| Total equity and liabilities | 203,237,365 | 200,237,023 |
| 04/01-06/30/2008 | 01/01-06/30/2008 | 04/01-06/30/2007 | 01/01-06/30/2007 | ||
|---|---|---|---|---|---|
| 1, | Sales | 17,045,841 | 32,108,627 | 32,819,100 | 65,620,234 |
| 2. | Other operating income | 376,659 | 566,876 | 712,388 | 772,577 |
| Total performance | 17,422,500 | 32,675,503 | 33,531,488 | 66,392,811 | |
| 3. | Cost of materials | 11,559,197 | 21,491,210 | 22,051,977 | 45,411,883 |
| Gross result | 5,863,303 | 11,184,293 | 11,479,511 | 20,980,928 | |
| 4. | Staff costs | ||||
| > Wages and salaries | 2,336,816 | 4,645,307 | 1,948,048 | 3,791,978 | |
| > Social security, pensions and | |||||
| other benefits | 551,838 | 1,077,416 | 432,969 | 815,074 | |
| 2,888,654 | 5,722,723 | 2,381,017 | 4,607,052 | ||
| 5. | Depreciation | 889,358 | 1,587,997 | 311,466 | 596,109 |
| 6. | Other operating expenses | 2,666,026 | 5,225,431 | 3,478,202 | 4,528,846 |
| Operating income | -580,735 | -1,351,858 | 5,308,826 | 11,248,921 | |
| 7. | Result from at-equity valued participations | -291,528 | -168,127 | 128,476 | 145,301 |
| 8. | Interest earnings | 1,354,188 | 2,310,988 | 227,344 | 265,678 |
| 9. | Interest expenses | 303,464 | 432,342 | 118,581 | 200,266 |
| Pre-tax income | 178,461 | 358,661 | 5,546,065 | 11,459,634 | |
| 10. | Income tax expense | 140,706 | 168,871 | 2,096,772 | 4,358,114 |
| Net income | 37,755 | 189,790 | 3,449,293 | 7,101,520 | |
| 11. | Income inputable to minority interests | -55,291 | -92,308 | 0 | 0 |
| 12. | Consolidated profit | 93,046 | 282,098 | 3,449,293 | 7,101,520 |
| Earnings per share in EUR | ||||
|---|---|---|---|---|
| Earnings per share in EUR (basic) | 0,01 | 0,02 | 3,05 | 47,34 |
| Earnings per share in EUR (diluted) | 0,01 | 0,02 | 3,05 | 47,34 |
| Weighted average shares outstanding | ||||
| Basic | 15,000,000 | 15,000,000 | 1,132,044 | 150,000 |
| Diluted | 15,000,000 | 15,000,000 | 1,132,044 | 150,000 |
| Subscribed capital |
Capital reserves |
Reserves from first-times appli– cation of IFRS |
Currency translation reserves |
Retained earnings brought forward |
Consoli dated profit |
Minority interests |
Total | |
|---|---|---|---|---|---|---|---|---|
| Balance at 01/01/2007 |
150,000 | 0 | 508,563 | 0 | 3,618,632 | 11,549,833 | 0 | 15,827,028 |
| Reclassifications | 0 | 0 | 0 | 0 | 11,549,833 | -11,549,833 | 0 | 0 |
| Increase of capital from company funds |
3,900,000 | 0 | 0 | 0 | -3,900,000 | 0 | 0 | 0 |
| Increase of non-cash capital |
7,950,000 | 0 | 0 | 0 | 0 | 0 | 0 | 7,950,000 |
| Contribution EnviTec Beteiligungs GmbH & Co. KG |
0 | 1,423,800 | 0 | 0 | 0 | 0 | 0 | 1,423,800 |
| Contribution EnviTec Verwaltungs GmbH |
0 | 24,350 | 0 | 0 | 0 | 0 | 0 | 24,350 |
| Transaction costs | 0 | -12,701 | 0 | 0 | 0 | 0 | 0 | -12,701 |
| Consolidated profit first half year 2007 |
0 | 0 | 0 | 0 | 0 | 7,101,520 | 0 | 7,101,520 |
| Profit distribution | 0 | 0 | 0 | 0 | -2,000,000 | 0 | 0 | -2,000,000 |
| Balance at 06/30/2007 |
12,000,000 | 1,435,449 | 508,563 | 0 | 9,268,465 | 7,101,520 | 0 | 30,313,997 |
| Balance at 01/01/2008 |
15,000,000 | 134,927,281 | 508,563 | -384 | 9,268,465 | 14,356,602 | 135,042 | 174,195,569 |
| Reclassifications | 0 | 0 | 0 | 0 | 14,356,602 | -14,356,602 | 0 | 0 |
| Translation of foreign currencies |
0 | 0 | 0 | -8,413 | 0 | 0 | 0 | -8,413 |
| Minority interests | 0 | 0 | 0 | 0 | 0 | 0 | 25,381 | 25,381 |
| Consolidated profit first half year 2008 |
0 | 0 | 0 | 0 | 0 | 282,098 | -92,308 | 189,790 |
| Balance at 06/30/2008 |
15,000,000 | 134,927,281 | 508,563 | -8,797 | 23,625,067 | 282,098 | 68,115 | 174,402,327 |
| Consolidated net income before minority interests | 189,790 | 7,101,520 |
|---|---|---|
| Income tax expenses | 168,871 | 4,358,114 |
| Net interest income | -1,878,646 | -65,412 |
| Profit (-) losses (+) from at-equity companies | 168,127 | -145,301 |
| Paid income tax | -1,547,775 | -575,439 |
| Depreciation on tangible and intangible assets | 1,587,997 | 596,109 |
| Increase of other provisons | -389,269 | 1,275,810 |
| Profit (-) losses (+) on the sale of tangible assets | 15,320 | 0 |
| Gross cash flow | -1,685,585 | 12,545,401 |
| Increase of stocks | -199,544 | -52,708 |
| Decrease/increase of receivables from long-term construction contracts | 8,909,532 | -9,363,019 |
| Decrease/increase of liabilities from long-term construction contracts | 5,151 | -1,053,534 |
| Increase of trade receivables | -11,303,962 | -2,408,399 |
| Decrease/increase of trade payables | -673,168 | 1,487,289 |
| Increase/decrease of other short-term financial assets | -4,510,328 | -1,897,688 |
| Increase of other long-term receivables | -11,057 | -4,579 |
| Increase of deferred taxes | -274,062 | 0 |
| Increase of financial assets | -12,035,852 | 0 |
| Decrease/increase of other long-term liabilities | -24,706 | 0 |
| Decrease/increase of other short-term liabilities | -5,141,185 | -1,676,707 |
| Increase of tax receivables | -452,889 | -104,517 |
| Increase/decrease of liabilities from transaction tax and tax deductions | 454,439 | -302,430 |
| Other non-cash payments | -95,996 | -399,114 |
| Interest received | 2,310,988 | 265,678 |
| Flow from operative activities (net cash-flow) | -24,728,224 | -2,964,327 |
| Proceeds from disposals of tangible assets | 69,666 | 0 |
| Payments for tangible assets | -5,207,080 | -1,372,549 |
| Payments for consolidated companies | -4,114,911 | 1,303,831 |
| Payments for shares in affiliated companies | -58,566 | 0 |
| Out-payments for investments in participations | 0 | -310,033 |
| Flow from investment activities | -9,310,891 | -378,751 |
| Proceeds from bank loans | 1,364,859 | 251,030 |
| Payments for debt redemption | -414,144 | -360,885 |
| Proceeds from shareholders | 0 | 3,100,400 |
| Payments to shareholders | 0 | -2,000,000 |
| Decrease of other short-term financial liabilities (without short-term bank loans and overdrafts) |
-236,221 | -772,552 |
| Interest paid | -432,342 | -200,265 |
| Inflow from financial activities | 282,152 | -17,728 |
| Change in cash and cash equivalents | -33,756,963 | -3,325,350 |
| 01/01-06/30/2008 | 01/01-06/30/2007 | |
|---|---|---|
| Consolidated net income before minority interests | 189,790 | 7,101,520 |
| Income tax expenses | 168,871 | 4,358,114 |
| Net interest income | -1,878,646 | -65,412 |
| Profit (-) losses (+) from at-equity companies | 168,127 | -145,301 |
| Paid income tax | -1,547,775 | -575,439 |
| Depreciation on tangible and intangible assets | 1,587,997 | 596,109 |
| Increase of other provisons | -389,269 | 1,275,810 |
| Profit (-) losses (+) on the sale of tangible assets | 15,320 | 0 |
| Gross cash flow | -1,685,585 | 12,545,401 |
| Increase of stocks | -199,544 | -52,708 |
| Decrease/increase of receivables from long-term construction contracts | 8,909,532 | -9,363,019 |
| Decrease/increase of liabilities from long-term construction contracts | 5,151 | -1,053,534 |
| Increase of trade receivables | -11,303,962 | -2,408,399 |
| Decrease/increase of trade payables | -673,168 | 1,487,289 |
| Increase/decrease of other short-term financial assets | -4,510,328 | -1,897,688 |
| Increase of other long-term receivables | -11,057 | -4,579 |
| Increase of deferred taxes | -274,062 | 0 |
| Increase of financial assets | -12,035,852 | 0 |
| Decrease/increase of other long-term liabilities | -24,706 | 0 |
| Decrease/increase of other short-term liabilities | -5,141,185 | -1,676,707 |
| Increase of tax receivables | -452,889 | -104,517 |
| Increase/decrease of liabilities from transaction tax and tax deductions | 454,439 | -302,430 |
| Other non-cash payments | -95,996 | -399,114 |
| Interest received | 2,310,988 | 265,678 |
| Flow from operative activities (net cash-flow) | -24,728,224 | -2,964,327 |
| Proceeds from disposals of tangible assets | 69,666 | 0 |
| Payments for tangible assets | -5,207,080 | -1,372,549 |
| Payments for consolidated companies | -4,114,911 | 1,303,831 |
| Payments for shares in affiliated companies | -58,566 | 0 |
| Out-payments for investments in participations | 0 | -310,033 |
| Flow from investment activities | -9,310,891 | -378,751 |
| Proceeds from bank loans | 1,364,859 | 251,030 |
| Payments for debt redemption | -414,144 | -360,885 |
| Proceeds from shareholders | 0 | 3,100,400 |
| Payments to shareholders | 0 | -2,000,000 |
| Decrease of other short-term financial liabilities | ||
| (without short-term bank loans and overdrafts) | -236,221 | -772,552 |
| Interest paid | -432,342 | -200,265 |
| Inflow from financial activities | 282,152 | -17,728 |
| Change in cash and cash equivalents | -33,756,963 | -3,325,350 |
| Cash and cash equivalents balance on january 01 | 115,103,036 | 4,798,836 |
| Cash and cash equivalents balance on june 30 | 81,346,073 | 1,473,486 |
Notes to the consolidated financial statements for the period ended 30 June 2008 of EnviTec Biogas AG, Lohne
The consolidated financial statements of EnviTec Biogas AG for the fiscal year 2007 were prepared to the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), London, and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC). Accordingly, these interim financial statements for the period ended 30 June 2008 were also prepared in compliance with the provisions of IAS 34.
The interim financial statements were reviewed by the auditors.
The interim financial statements were prepared in euros. Unless otherwise stipulated, all amounts are rounded to full euros.
In the income statement, as well as in the balance sheet, individual items are combined for purposes of clarity; and explained in the Notes.
Being a manufacturer of biogas plants, EnviTec Biogas AG is exposed to weatherrelated seasonal influences. Due to the very mild winter and the growing internationalisation of the business, the weather had no influence on the company's business operation during the reporting period. EnviTec Biogas AG assumes that its profitability will remain subject to seasonal fluctuations in the future.
In preparing these interim financial statements and establishing the reference figures for the previous year, the company consistently applied the same accounting and valuation principles as in the preparation of the 2007 consolidated financial statements. A detailed description of these methods was published in the notes to the consolidated financial statements published in the Annual Report 2007 which can be downloaded from www.envitec-biogas.de. In contrast to the consolidated financial statements for the year 2007, financial instruments were classified as "held for trading" and "available for sale" in the financial statements for the period ended 30 June 2008. These financial instruments are securities and bonds.
The consolidated financial statements of EnviTec Biogas AG include those companies in which EnviTec Biogas AG has either directly or indirectly the majority of the voting rights (subsidiaries), insofar as their influence on the assets, profitability and financial position of the Group is not of subordinate significance. Inclusion is from that point in time when the possibility of control comes into existence. It is terminated when the possibility of control no longer exists.
The consolidated interim financial statements for the period ended 30 June 2007 included EnviTec Biogas AG, Lohne, as the parent company as well as nine fully consolidated subsidiaries and another 12 subsidiaries consolidated at equity. The changes in the basis of consolidation in the financial year 2007 were detailed in the notes to the consolidated financial statements published in the Annual Report 2007.
Biogas Wanzleben GmbH & Co. KG, which was entered in the Companies' Registry on 11 February 2008, is a new addition to the basis of consolidation.
Effective 1 January 2008, Zweite EnviTec Beteiligungs GmbH & Co. KG acquired 50% of the limited liability capital of EUR 650k in Fünfte Biogas Anklam Betriebs GmbH & Co. KG. The first-time inclusion of this company resulted in a difference of EUR 166k on the assets side which was recognised in accordance with IAS 28.23.
With effect from 1 April 2008, the Group acquired the remaining 50% of the limited liability capital of EUR 650k of Fünfte Biogas Anklam Betriebs GmbH & Co. KG at a price of EUR 425k. The latter was fully consolidated for the first time in the 2nd quarter of 2008. As a result of the acquisition, Group sales increased by EUR 206k in the reporting period. If the company had been acquired with effect from 1 January 2008, Group sales would have increased by approx. EUR 414k. The consolidated net profit for the reporting period includes a net profit of EUR 9k of Fünfte Biogas Anklam Betriebs GmbH & Co. KG. If the acquisition had been made with effect from 1 January 2008, consolidated net profit would have increased by approx. EUR 23k.
ETC EnviTec Technologie-Centrum GmbH & Co. KG, Lohne, was established on 6 February 2008. The company was entered in the Oldenburg companies' registry under No HRA 201216. Its registered business purpose is the construction (through subcontractors) and the operation of a technology centre for biogas products. EnviTec Biogas AG owns 50% of the limited liability capital of EUR 100k in this company through its subsidiary, Zweite EnviTec Beteiligungs GmbH & Co. KG.
E.V.S. BVBA, Belgium was established on 30 January 2008. The company is headquartered in Schilde/Belgium. EnviTec Service GmbH, a subsidiary, directly holds 50% of the latter company's paid-up capital. Its registered business purpose is the provision of technical and biological services related to the operation of biogas plants as well as the distribution of spare parts for biogas plants.
With effect from 15 May 2008, Zweite EnviTec Beteiligungs GmbH & Co. KG acquired 93,85% of the limited liability capital of EUR 650k of Erste Biogas Anklam Betriebs GmbH & Co. KG at a price of EUR 856k.
Also with effect from 15 May 2008, Zweite EnviTec Beteiligungs GmbH & Co. KG acquired the full limited liability capital of EUR 650k each of the following companies at a price of EUR 907k each:
Zweite Biogas Anklam Betriebs GmbH & Co. KG
Dritte Biogas Anklam Betriebs GmbH & Co. KG
Vierte Biogas Anklam Betriebs GmbH & Co. KG
As of 29 May 2008, Zweite EnviTec Beteiligungs KG acquired the remaining 70% of the share capital of EWS Biogas Projektentwicklung Verwaltungs GmbH of EUR 25k at a price of EUR 18k.
As a result of the acquisition of these companies, Group sales increased by EUR 265k. If they had been acquired with effect from 1 January 2008, Group sales would have been up by EUR 1,656k. Consolidated net profit for the reporting profit includes a net loss of EUR 36k incurred by these companies. If the acquisition had been made with effect from 1 January 2008, consolidated net profit would have increased by approx. EUR 110k.
Goodwill totalling EUR 2,152k arose on the initial consolidation of the acquired subsidiaries and was treated in accordance with IFRS 3.51 et seq. This goodwill reflects the positive outlook of the company. The acquisition cost recognised includes the purchase prices paid and notary fees as directly attributable ancillary acquisition costs, which were fully reflected in cash.
Under an agreement signed 29 May 2008, Zweite EnviTec Beteiligungs GmbH & Co. KG acquired the remaining 70% of the limited partner's shares in EWS Biogas Projektentwicklungs-GmbH & Co. KG totalling EUR 25k at a price of EUR 18k. The effects of the acquisition on the Group's sales and net profit were negligible and are therefore not discussed in detail.
Under a notarised agreement, Zweite EnviTec Beteiligungs GmbH & Co. KG acquired 50% of the share capital of EUR 25k of Biogas Anklam Verwaltungs GmbH at the nominal value with effect from 1 April 2008. As a result, the company is now fully owned by EnviTec Group. Due to the acquisition, Group sales increased by EUR 510k. If the company had been acquired with effect from 1 January 2008, Group sales would have been up by approx. EUR 1,128k. The consolidated net profit for the reporting period includes a net loss incurred by Biogas Anklam Verwaltungs GmbH in an amount of EUR 8k. If the company had been acquired with effect from 1 January 2008, consolidated net profit would have increased by EUR 31k.
The full consolidation of the companies resulted in negative goodwill of EUR 113k. Following a renewed review of the acquired assets and liabilities and the acquisition cost, this negative goodwill was recognised in other operating income in accordance with IFRS 3.56 (b).
In accordance with IFRS 3.67 (f), the table below shows the amounts recognised at the time of acquisition and the carrying amounts determined immediately prior to the business combination for each asset and liability class:
| Fair value at time of acquisition |
Carrying amounts immediately prior to business combination |
|
|---|---|---|
| EUR k | EUR k | |
| Non-current assets | 8,391 | 8,391 |
| Current assets | 2,852 | 3,629 |
| Non-current liabilities | 5,030 | 5,030 |
| Current liabilities | 2,508 | 4,638 |
EnviTec Biogas Baltic SIA, Riga/Latvia, was established with effect from 2 June 2008. EnviTec Biogas AG directly holds 100% of the company's paid-up capital of EUR 10k. The company has primarily been founded to develop new output markets in the Baltic states.
On April 17th ,2008, EnviTec Biogas AG established EnviTec Biogas Iberica S.L. The company's subscriped capital amounts to EUR 10k and is held in full by EnviTec Biogas AG. The business purpose of the company is the development and construction of plants, especially biogas plants.
| Inland | Overseas | Total | |
|---|---|---|---|
| EnviTec Biogas AG and consolidated companies: | |||
| > 12/31/2007 | 26 | 3 | 29 |
| > Additions of subsidiaries | 9 | 2 | 11 |
| > Disposal of subsidiaries | 0 | 0 | 0 |
| > 06/30/2008 | 35 | 5 | 40 |
| Companies valued at equity: | |||
| > 12/31/2007 | 16 | 4 | 20 |
| > Additions of companies valued at equity | 2 | 1 | 3 |
| > Disposal of companies valued at equity | 4 | 0 | 4 |
| > 06/30/2008 | 14 | 5 | 19 |
| Capital share | |
|---|---|
| Germany | in % |
| > EnviTec Service GmbH, Lohne | 100.00 |
| > EnviTec Beteiligungs GmbH & Co. KG, Lohne |
94.92 |
| > EnviTec Verwaltungs GmbH, Lohne |
95.12 |
| > Zweite EnviTec Beteiligungs GmbH & Co. KG, Lohne | 100.00 |
| > Zweite EnviTec Verwaltungs GmbH, Lohne |
100.00 |
| Auressio GmbH. Rieste1) > |
87.50 |
| > O + E Projektentwicklungs GmbH, Lohne |
60.00 |
| > RePro Beber GmbH & Co. KG, Lohne |
64.60 |
| > RePro Beber Verwaltungs GmbH, Lohne |
64.60 |
| > Biogas Schönthal GmbH & Co. KG, Willebadessen | 79.00 |
| > Biogas Schönthal Verwaltungs GmbH, Willebadessen | 79.00 |
| > Biogas Thomasburg GmbH & Co. KG, Lohne |
65.60 |
| > Biogas Thomasburg Verwaltungs GmbH, Lohne |
65.60 |
| > Biogas Wanzleben GmbH & Co. KG, Wanzleben |
70.00 |
| > Biogas Wanzleben Verwaltungs GmbH, Wanzleben | 70.00 |
| > Biogas Nieheim GmbH & Co. KG, Lohne |
64.80 |
| > Biogas Nieheim Verwaltungs GmbH, Lohne |
64.80 |
| > Biogas Heilemann GmbH & Co. KG, Rotenburg/Wümme | 70.00 |
| > Biogas Heilemann Verwaltungs GmbH, Rotenburg/Wümme | 70.00 |
| > Biogas Friedland GmbH & Co. KG, Lohne |
87.50 |
| > Biogas Friedland Verwaltungs GmbH, Lohne |
87.40 |
| > Biogas Angern GmbH & Co. KG, Lohne |
87.60 |
| > Biogas Angern Verwaltungs GmbH, Lohne |
87.60 |
| > Biogas Hirl GmbH & Co. KG, Bresegard |
64.00 |
| > Biogas Hirl Verwaltungs GmbH, Bresegard |
64.00 |
| > ET Agro Trade GmbH, Lohne |
100.00 |
| > Erste Biogas Anklam Betriebs GmbH & Co. KG, Anklam | 93.85 |
| > Zweite Biogas Anklam Betriebs GmbH & Co. KG, Anklam | 100.00 |
| > Dritte Biogas Anklam Betriebs GmbH & Co. KG, Anklam | 100.00 |
| > Vierte Biogas Anklam Betriebs GmbH & Co. KG, Anklam | 100.00 |
| > Fünfte Biogas Anklam Betriebs GmbH & Co. KG, Anklam | 100.00 |
| > Biogas Anklam Verwaltungs GmbH, Anklam | 100.00 |
| > EWS Biogas Projektentwicklung Verwaltungs GmbH, Lohne | 100.00 |
| > EWS Biogas Projektentwicklungs-GmbH & Co. KG, Lohne | 100.00 |
| > EnviTec Service GmbH, Lohne | 100.00 |
|---|---|
| > EnviTec Beteiligungs GmbH & Co. KG, Lohne |
94.92 |
| > EnviTec Verwaltungs GmbH, Lohne |
95.12 |
| > Zweite EnviTec Beteiligungs GmbH & Co. KG, Lohne | 100.00 |
| > Zweite EnviTec Verwaltungs GmbH, Lohne |
100.00 |
| Auressio GmbH. Rieste1) > |
87.50 |
| > O + E Projektentwicklungs GmbH, Lohne |
60.00 |
| > RePro Beber GmbH & Co. KG, Lohne |
64.60 |
| > RePro Beber Verwaltungs GmbH, Lohne |
64.60 |
| > Biogas Schönthal GmbH & Co. KG, Willebadessen | 79.00 |
| > Biogas Schönthal Verwaltungs GmbH, Willebadessen | 79.00 |
| > Biogas Thomasburg GmbH & Co. KG, Lohne |
65.60 |
| > Biogas Thomasburg Verwaltungs GmbH, Lohne |
65.60 |
| > Biogas Wanzleben GmbH & Co. KG, Wanzleben |
70.00 |
| > Biogas Wanzleben Verwaltungs GmbH, Wanzleben | 70.00 |
| > Biogas Nieheim GmbH & Co. KG, Lohne |
64.80 |
| > Biogas Nieheim Verwaltungs GmbH, Lohne |
64.80 |
| > Biogas Heilemann GmbH & Co. KG, Rotenburg/Wümme | 70.00 |
| > Biogas Heilemann Verwaltungs GmbH, Rotenburg/Wümme | 70.00 |
| > Biogas Friedland GmbH & Co. KG, Lohne |
87.50 |
| > Biogas Friedland Verwaltungs GmbH, Lohne |
87.40 |
| > Biogas Angern GmbH & Co. KG, Lohne |
87.60 |
| > Biogas Angern Verwaltungs GmbH, Lohne |
87.60 |
| > Biogas Hirl GmbH & Co. KG, Bresegard |
64.00 |
| > Biogas Hirl Verwaltungs GmbH, Bresegard |
64.00 |
| > ET Agro Trade GmbH, Lohne |
100.00 |
| > Erste Biogas Anklam Betriebs GmbH & Co. KG, Anklam | 93.85 |
| > Zweite Biogas Anklam Betriebs GmbH & Co. KG, Anklam | 100.00 |
| > Dritte Biogas Anklam Betriebs GmbH & Co. KG, Anklam | 100.00 |
| > Vierte Biogas Anklam Betriebs GmbH & Co. KG, Anklam | 100.00 |
| > Fünfte Biogas Anklam Betriebs GmbH & Co. KG, Anklam | 100.00 |
| > Biogas Anklam Verwaltungs GmbH, Anklam | 100.00 |
| > EWS Biogas Projektentwicklung Verwaltungs GmbH, Lohne | 100.00 |
| > EWS Biogas Projektentwicklungs-GmbH & Co. KG, Lohne | 100.00 |
1) Fiscal year from 1 August to 31 July
Segment reporting for the period from January 1st to June 30th, 2008 (in mill.)
| Plant Construction |
Service | Own Plant Operation |
|
|---|---|---|---|
| Segment revenues | 25.948 | 2.187 | 3.974 |
| Segment result (EBIT) | -1.915 | -41 | 604 |
IAS 14.3 obliges companies to include segment reporting in the notes to their consolidated financial statements. A segment is defined as a component of an enterprise that provides a single product or service or a group of related products and services and that is subject to risks and returns that are different from those of other business segments.
The EnviTec Group has identified Plant Construction, Own Plant Operation and Service as relevant segments which are also used for purposes of internal reporting. Plant Construction includes the general planning, approval planning and construction of biogas plants. The Service segment comprises the technical and biological maintenance of biogas plants. The Own Plant Operation segment covers the biogas plants operated by the company.
Given that the revenues, earnings and assets of the Own Plant Operation and Service segments represented less than 10% of the total in past periods, segment reporting by business areas was dispensed with for reasons of materiality. Due to the growing importance of the segments, EnviTec Biogas AG has decided to present segment reporting in accordance with IAS 14 for the first time. The provision of reference figures for the comparable prior-year period has been dispensed with, given that the Service segment accounted for only 1% of the total revenues during the reference period and the Own Plant Operation business was yet to be launched.
| Capital share | |
|---|---|
| Outside Germany | in % |
| > EnviTec Biogas France sarl, Tregueux/Frankreich |
65.00 |
| > Envitec Biogas Nederland B.V., Enter/Niederlande |
100.00 |
| > Envitec Biogas UK Ltd., Rugeley/Großbritannien |
60.00 |
| > EnviTec Biogas Baltic SIA, Riga/Lettland |
100.00 |
| > EnviTec Biogas Iberica S.L., Bilbao/Spanien |
100.00 |
| Germany | |
|---|---|
| > EnviTec Italia GmbH |
100.00 |
| > Biogas Lüken-Feldmann KG, Harkebrügge |
50.00 |
| > EnviTec Assekuranzmakler GmbH, Lohne |
50.00 |
| > Biogas Neu Sterley GmbH & Co. KG, Lohne |
50.00 |
| > Biogas Neu Sterley Verwaltungs GmbH, Lohne |
50.00 |
| > Biogas Spekendorf GmbH & Co. KG, Lohne |
50.00 |
| > Biogas Spekendorf Verwaltungs GmbH, Lohne |
50.00 |
| > ETC EnviTec Technologie-Centrum GmbH & Co. KG, Lohne |
50.00 |
| > ETFT EnviTec Filtration Technik GmbH, Lohne |
50.00 |
| > Biogas Güntner GmbH & Co. KG, Barßel-Harkebrügge |
44.00 |
| > Biogas Güntner Verwaltungs GmbH, Barßel-Harkebrügge |
44.00 |
| > Biogas Löschenrod GmbH & Co. KG, Lohne |
44.00 |
| > Biogas Löschenrod Verwaltungs GmbH, Lohne |
44.00 |
| > Biogas Anklam GbR, Wolgast |
30.00 |
| Outside Germany | |
| > EnviTec Biogas kft, Ungarn |
50.00 |
| > EnviTec Biogas Central Europe s.r.o., Tschechien |
50.00 |
| > EnviTec Biogas (India) Private Limited, Indien |
50.00 |
| > E.V.S. BVBA, Belgien |
50.00 |
| > Rentech Bioenergas S.A., Griechenland |
21.00 |
Property, plant and equipment increased by EUR 11,942k primarily because of the consistent expansion of the Own Plant Operation activities, especially as a result of purchases made in the 2nd quarter of 2008.
H1 2008 EUR
12/31/2007 EUR
| Land, similar rights and buildings including buildings on | ||
|---|---|---|
| third party land | 8,247,850 | 5,046,688 |
| 34,432,678 | 22,491,043 | |
|---|---|---|
| Prepayments and construction in process | 342,485 | 1,267,969 |
| Other equipment, operating and office equipment | 5,574,182 | 5,199,621 |
| Technical equipment and machinery | 20,268,161 | 10,976,765 |
The table below shows the construction contracts as of June 30th, 2008:
| H1 2008 EUR |
H1 2007 EUR |
|
|---|---|---|
| Gross amount due from customers for biogas plant contract work in progress |
||
| Contract revenue recognised in the period | 12,162,721 | 29,739,795 |
| Accumulated costs incurred | 56,136,897 | 73,876,935 |
| Accumulated profits recognised | 12,019,188 | 18,668,613 |
| Accumulated advance payments received including progress billings |
-36,337,094 | -64,270,211 |
| Gross amount due from customers for contract work | 31,818,991 | 28,275,337 |
| Gross amount due to customers for biogas plant contract work in progress |
||
| Contract revenues recognised in the period | 1,050 | 1,329,900 |
| Accumulated costs incurred | 35,874 | 8,530,206 |
| Accumulated profits recognised | 7,175 | 2,483,501 |
| Accumulated advance payments received including progress billings |
-48,200 | -11,518,740 |
| Gross amount due to customers for contract work | -5,151 | -505,033 |
Financial liabilities are composed as shown below:
| Thereof current |
||
|---|---|---|
| 06/30/2008 | 12/31/2007 | ||||
|---|---|---|---|---|---|
| Total | Thereof current |
Total | Thereof current |
||
| Liabilities to banks | 13,277,336 | 1,124,638 | 6,744,095 | 723,625 | |
| Liabilities to shareholders | 1,016,075 | 640,218 | 1,189,914 | 789,353 | |
| Other financial liabilities | 5,569 | 5,569 | 105,655 | 105,655 | |
| 14,298,980 | 1,770,425 | 8,039,664 | 1,618,633 |
| H1 2008 | H1 2007 | |
|---|---|---|
| Revenues from manufacturing orders | 25,947,732 | 64,629,570 |
| Revenues from from services and other revenues | 2,187,326 | 990,664 |
| Revenues from own plant operation activities | 3,973,569 | 0 |
| 32,108,627 | 65,620,234 |
Basic earnings per share are the quotient of the Group profit and the weighted average of the shares outstanding in the fiscal year. Their calculation is detailed in the profit and loss account.
No incidents that could lead to diluted earnings per share in a different amount occurred in the fiscal year.
According to the current version of IAS 32, puttable financial instruments which entitle the holder to a cash or otherwise financial consideration have to be classified as financial liabilities. This rule also covers the compensations which may be claimed by the minority partners in the individual project partnerships ("Projekt-KG's"). This right to compensation is laid down in the respective partnership statutes in
connection with their right to retire from the respective partnership. The liabilities have been valued on an actual cash value basis.
Given that partners have a right to terminate their partnership by giving six months' notice before the end of a fi nancial year, their rights to compensation are recognised as short-term liabilities in accordance with ISA 1.57.
However, past experience from the operation of biogas plants suggests that these rights to compensation have a long-term character from an economic point of view, given that individual partners are unlikely to make use of their right to terminate their partnership at short notice. No terminations are known at this time.
The Annual General Meeting of EnviTec Biogas AG of 10 July 2008 authorised the company to acquire and sell own shares representing no more than 10% of the share capital at the time the resolution was passed by the Annual General Meeting; this authorisation expires on 9 January 2010. At this stage, this is a general authorisation. The authorisation to acquire own shares is a fi nancial instrument which is customarily employed by international joint stock companies. Apart from this and the changes in the basis of consolidation described above, no events of particular importance occurred in the reporting period.
As of the balance sheet date, the Group had issued a letter of comfort to a foreign customer in an amount of EUR 1,100k.
As of the balance sheet date, the company had other fi nancial liabilities from purchase commitments in an amount of EUR 3,420k (previous year: EUR 20,720k) resulting from projects and the construction of biogas plants. They are due within one year.
No dividend was paid out in the reporting period. No dividend proposals were made.
7.4 Related party disclosures
Individuals in key positions
Please refer to "Disclosures on Corporate Offi cers".
Subsidiaries, joint ventures and associated companies
Please refer to "Basis of consolidation and consolidation methods" and to shareholdings.
In accordance with IAS 24, parties that have the ability to exercise infl uence over EnviTec Biogas AG or may be infl uenced by EnviTec Biogas AG are regarded as related parties.
In the context of its operations, EnviTec Biogas AG sources materials, inventories and services from numerous business partners. These also include companies that are related to controlling bodies or shareholders of the company. Transactions with these companies are made on terms equivalent to those that prevail in arm's length transactions. EnviTec Biogas AG was not involved in any material transactions whose conditions were unusual for the company itself or its related parties and does not intend to do so in future.
Related parties include the parties listed below. No material transactions with other related parties were made in the fi scal year.
| H1 2008 | H1 2007 | |||||
|---|---|---|---|---|---|---|
| Transaction | Receivable Amount |
Liability Amount |
Transaction | Receivable Amount |
Liability Amount |
|
| Shareholders | ||||||
| Ruhe Verwaltungs GmbH | -11,379 | 0 | 0 | -80,998 | 15,000 | 27,436 |
| von Lehmden Beteiligungs GmbH | -10,782 | 0 | 893 | -12,760 | 41,044 | 893 |
| Associated companies | ||||||
| Biogas Neu Sterley GmbH & Co. KG | 74,472 | 491,820 | 0 | 5,781 | 7,659 | 0 |
| Biogas Güntner GmbH & Co. KG | 1,321,973 | 377,141 | 0 | 0 | 0 | 0 |
| EnviTec Biogas Dél-kelet | 2,215,349 | 245,376 | -25,874 | 461,385 | 16,476 | 0 |
| Related parties | ||||||
| Schulz Systemtechnik GmbH | -2,090,833 | 0 | 201,871 | -5,289,168 | 0 | 1,203,052 |
| Agrico Handelsgesellschaft mbH | 11,756 | 4,161,481 | 5,675 | -115,979 | 71,458 | 106,678 |
| BGF GmbH & Co. KG | 771 | 78 | 0 | 480,123 | 128,062 | 0 |
The liabilities shown for the above transactions related to services, goods and interest invoiced.
Income from transactions with related parties mainly result from services provided by EnviTec Service GmbH as well as from the construction of plants.
Olaf von Lehmden, Lohne CEO
Kunibert Ruhe, Bakum CTO
Jörg Fischer, Bremen CFO
The members of the Executive Board held no other mandates.
Appointees to the Supervisory Board in the reporting period:
Bernard Ellmann (Chairman)
Hans-Joachim Jung (Vice Chairman)
Michael Böging
Lohne, August 14th, 2008
Olaf von Lehmden Jörg Fischer Kunibert Ruhe CEO CFO CTO
We have reviewed the condensed interim consolidated financial statements - comprising the condensed balance sheet, condensed statement of income, condensed statement of cash flows, condensed statement of changes in equity and selected explanatory notes - and the interim group management report of EnviTec Biogas AG, Lohne, for the period from January 1 to June 30, 2008 which are part of the half year financial report according to § 37 w WpHG (German Securities Trading Act). The preparation of the condensed interim consolidated financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and of the interim group management report which has been prepared in accordance with the regulations of the German Securities Trading Act applicable to interim group management reports is the responsibility of the Company's management. Our responsibility is to issue a review report on these condensed interim consolidated financial statements and on the interim group management report based on our review.
We performed our review of the condensed interim consolidated financial statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and conduct the review so that we can preclude through critical evaluation, with a certain level of assurance, that the condensed interim consolidated financial statements have not been prepared, in material aspects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material aspects, in accordance with the regulations of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor's report.
Based on our review, no matters have come to our attention that cause us to presume that the condensed interim consolidated financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and that the interim group management report has not been prepared, in all material respects, in accordance with the regulations of the German Securities Trading Act applicable to interim group management reports.
Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft
Prof. Dr. Markus Jordan Johannes Steiger Wirtschaftsprüfer Wirtschaftsprüfer
Declaration by the legal representatives in accordance with §§37 y in connection with 37 w Paragraph 2, No. 3 WpHG:
"To the best of our knowledge and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statement give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year."
Lohne, 14th August 2008
Olaf von Lehmden Jörg Fischer Kunibert Ruhe CEO CFO CTO
38 CALENDAR VORWORT LAGEBERICHT ZWISCHENABSCHLUSS FINANZKALENDER 39
| November 2008 | Analyst Conference |
|---|---|
| German Equity Forum, Frankfurt a. M. | |
November 27th, 2008 Interim Report 3rd Quarter 2008
EnviTec Biogas AG Industriering 10a 49393 Lohne Phone: +49 (0) 44 42 - 80 65 100 Fax: +49 (0) 44 42 - 80 65 110 mail: [email protected]
Olaf Brandes Phone: +49 (0) 44 42 - 80 65 118 Fax: +49 (0) 44 42 - 80 65 103 mail: [email protected]
In addition to the English version, the interim report is issued in German. Both versions can be found on our Website.
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