Wiener Stadtwerke Annual Report 2012

achieve annual energy savings of at least 1.5 percent. This
directive also requires Member States to define national
energy-saving targets. The Energy Efficiency Directive was
passed by the European Commission on 25 October 2012.
Member States have until 5 June 2014 to adopt the provisions
of this directive in their national legislation.
As the assigning company (for tax purposes), Wiener
Stadtwerke Beteiligungsmanagement GmbH was retro-
spectively merged on 31 December 2011 by way of universal
succession with Wiener Stadtwerke Vermögensverwaltung
GmbH (as the acquiring company). Wiener Stadtwerke
Vermögensverwaltung GmbH shall in future undertake the
investment management activities associated with selected
holdings within the Group not associated with core business
operations (e.g. the TownTown project). This will provide a
better overview of the Group, simplify the management of
Group-level accounting, and also generate cost-savings.
In order to supplement the abovementioned influencing
factors, further factors specific to particular Group segments
will be explained in more detail (under Point 7) in the relevant
sections.
3. Economic environment
With the exception of Q1 2012, the global economic downturn
has continued unabated since the end of 2011. Although the
crisis in the euro area remains the key focus, economic growth
has also been limited in emerging markets, including China
and Brazil. The economic gains made by emerging markets
appear to have slowed somewhat and the focus has shifted
increasingly to domestic issues. The driving forces behind the
economic situation in industrialised countries continue to be
the consolidation of public sector budgets and the persistent
instability exhibited by the financial system. While the fiscal
policy consolidation is on track in the majority of countries, this
is being accompanied by markedly negative effects in terms of
demand.
Despite being able to avoid a sharper decline than was seen in
2011, the Austrian economy nonetheless stagnated in the
second half of 2012. As a result of the comprehensive public-
sector cost-cutting programmes in the euro area and the
challenging economic situation prevailing in its neighbouring
countries, growth remained modest during the period under
review. Early indications are visible of an end to the downwards
trend. There are therefore grounds to assume that the period
of economic weakness will not last much longer and the
domestic economy will soon return to its earlier growth
trajectory. The situation at present is being shaped in part by
the far-reaching recessions ongoing in certain euro-area
countries, as well as by the slowdown in global economic
growth. Although the domestic economic preconditions for a
sustained and broad-based economic upswing remain intact,
export-driven demand is a key factor for an open economy
such as that of Austria.
In 2012, economic growth in Austria amounted to
+0.6 percent, with growth forecast to accelerate to
+1.0 percent and +1.8 percent in 2013 and 2014 respectively.
This is dependent on the public-sector debt crisis not
significantly intensifying and assumes a gradual decline in the
uncertainty perceived by investors and consumers.
Employment and labour supply are currently expanding, while
unemployment remains high. The unemployment rate in
Austria increased from 4.2 percent in 2011 to 4.3 percent in
2012. A rate of 4.6 percent is forecast (Eurostat) for the years
2013 and 2014.
The inflation rate (CPI) rose during 2012 to 2.4 percent and is
expected to decline to 2.1 percent and 2.0 percent in 2013 and
2014 respectively. Besides a moderate yet steady rise in
private-sector consumption, investment activity in particular is
predicted to increase again sharply.
When the economic recovery in the euro area gathers pace
and the global economy accelerates, the Austrian economy
could expand more rapidly due to its solid basis. These
prospects should be seen in the light of numerous downward
risks such as the slower recovery of the global economy or a
re-intensification of the debt crisis in certain countries.
Sources: WIFO
4. Corporate strategy
The corporate strategy of the Wiener Stadtwerke Group is
defined principally by its being a public-sector company. This
means that the Group has a corporate mission which extends
beyond purely commercial success. Our key objectives:
• As a major provider of essential public services to the
population of Vienna
• As a guarantor of high quality of life
• As an important partner to the economy and a means of
securing considerable value added for the City of Vienna
• As an attractive employer and a responsible player in
society
The corporate strategy of Wiener Stadtwerke purposes two
overriding and equally important objectives: corporate social
responsibility and profitability.
Corporate social responsibility
As an enterprise owned by the City of Vienna active in the
social sphere and as a regional provider of essential public
services, values such as transparency, mutual respect, honesty
and trust have always been a natural and fundamental element
of our corporate culture.
Corporate social responsibility and ethical behaviour shape
our relations with employees, customers, business partners,
public authorities and the general public alike. In 2012, these
values were committed to paper in a code of conduct which,
with its ten fundamental rules, serves as a compass for all
employees of Wiener Stadtwerke with regard to responsible
and ethically appropriate behaviour and helps develop a
modern culture for dealing with mistakes.
In line with this fundamental approach, we also make a
contribution to protecting the environment, preserving our
cultural heritage within our sphere of influence, and safe-
guarding barrier-free access to our facilities and offices.
Consolidated Management Report | Annual Report 2012
11