Consolidated Financial Statements of the Stadtwerke Leipzig Group ...

Consolidated Financial 

Statements of the 

Stadtwerke Leipzig Group 

Annual Financial 

Statements of 

Stadtwerke Leipzig GmbH

Stadtwerke Leipzig GmbH in Figures 

STAFF AND TRAINEES (BALANCE SHEET DATE) 

2009 2008 2007 2006 2005 

[Number] 1,158 1,162 1,144 1,172 1,192 

PROFIT AND LOSS ACOUNT 

Turnover [€ m] 2,812 2,946 2,086 1,743 973 

of which: trading/exchange trading [€ m] 2,172 2,346 1,506 1,118 453 

of which: other [€ m] 640 601 580 625 520 

EBITDA [€ m] 99 60 79 82 71 

EBITA [€ m] 60 37 53 53 45 

EBIT [€ m] 70 52 67 64 60 

Adjusted EBIT [€ m] 68 48 65 60 48 

EBT [€ m] 60 36 47 54 54 

EBITDA margin [%] 3.5 2.0 3.8 4.7 7.3 

EBIT margin [%] 2.5 1.8 3.2 3.7 6.2 

BALANCE SHEET 

Fixed assets [€ m] 581 628 639 653 659 

Current assets 1 [€ m] 326 279 235 222 160 

Balance sheet total [€ m] 907 907 874 875 819 

Net working capital [€ m] –43 35 13 46 –18 

Operational assets [€ m] 537 663 652 699 641 

Equity capital [€ m] 250 250 250 250 250 

Equity ratio [%] 27.6 27.6 28.6 28.6 30.5 

ROCE [%] 12.6 7.3 10.0 8.6 7.5 

Return on equity [%] 24.1 14.2 18.8 21.6 21.6 

CASH FLOW STATEMENT 

Cash flows from operating activities [€ m] 158 17 76 98 132 

Cash flows from investment activities [€ m] –16 –17 –21 –31 –50 

Cash flows from financing activities [€ m] –33 –26 –76 –14 –76 

FINANCE 

Financial debt [€ m] 263 248 254 287 245 

Net financial debt [€ m] 135 235 232 270 232 

1 

including Prepaid expenses 

EBITDA 

Sales revenues + Inventory changes + Internally 

produced and capitalised assets + Other operating 

income – Cost of materials – Staff costs 

– Other operating expenses 

EBITA 

EBITDA – Amortisation of tangible fixed assets 

and intangible assets 

EBIT 

EBITA + Income from affiliated companies 

Adjusted EBIT 

EBIT – Income from the release of special 

items with partial reserve character 

EBT (profit on ordinary EBIT + Interest income – Interest paid 

activities) 

Net working capital Tiede up operational assets (Inventories + 

Receivables and other assets + Prepaid 

expenses) – Financed via interest free debt 

capital (Short-term provisions + Short-term 

liabilities without banks + Deferred income) 

Operational assets 

Financial debt 

Net financial debt 

Fixed assets + Net working capital 

Bank loans and overdrafts 

Financial debt – Cash and cash equivalents 

(incl. securities) 

Turnover – Cost of materials 

Adjusted EBIT/Operational assets 

Gross margin 

ROCE 

Equity ratio Equity capital/Balance sheet total x 100 

Return on equity EBT/Equity capital x 100 

EBITDA margin EBITDA/Turnover x 100 

EBIT margin EBIT/Turnover x 100 

Trading/exchange trading Turnover from wholesale electricity trading, 

wholesale gas trading and EuKG 

II

2009 

Consolidated Financial 

Statements of the 

Stadtwerke Leipzig Group 

Annual Financial 

Statements of 

Stadtwerke Leipzig GmbH

Table of content 

04 Report of the Supervisory Board of Stadtwerke Leipzig GmbH 

05 Management report of Stadtwerke Leipzig GmbH 

05 Business climate and general conditions 

12 Income situation, financial position, net worth position 

25 Risk report 

31 Forecast report 

36 Annual financial statements 

36 Assets 

37 Equity and liabilities 

38 Profit and loss account 

39 Cash flow statement 

40 Notes to the financial statements of Stadtwerke Leipzig GmbH 

40 General remarks 

Accounting and valuation methods 

44 Notes to the balance sheet 

53 Notes to the profit and loss account 

56 Other information 

60 Movements in fixed assets 

62 Audit certificate 

64 List of abbreviations 

66 Credits 

Annual Financial Statements of Stadtwerke Leipzig GmbH | 03

Report of the Supervisory Board 

of Stadtwerke Leipzig GmbH 

In the 2009 financial year, up until 30 September 

2009 the company Stadtwerke Leipzig GmbH 

had a 20-member Supervisory Board, of which 

all 20 places were filled; it was composed of an 

equal number of employee and management 

representatives. The Supervisory Board consisted 

of ten shareholder representatives from 

the City of Leipzig/Leipziger Versorgungs- und 

Verkehrsgesellschaft mbH and ten employee 

representatives from Stadtwerke Leipzig GmbH. 

Following a resignation, after 1 October 2009 

the Supervisory Board was made up of only 

nine company representatives and ten employee 

representatives. 

Four ordinary meetings of the Supervisory 

Board were held during the 2009 financial year 

on the following dates: 16 April, 25 June, 

5 No vember and 10 December. The Supervisory 

Board also met for five extraordinary meetings 

on 27 April, 25 June, 30 July and 27 August 

(2 meetings). 

The Supervisory Board formed a staff committee. 

This committee is composed of an equal 

number of employee and management representatives 

and met on 13 February, 27 February, 

6 March, 27 March, 15 April, 8 May, 13 May, 

22 May, 25 May, 8 June and 30 July 2009. 

At its meetings, the Supervisory Board was 

comprehensively informed by the management 

in oral and written reports about the course of 

business, the company’s position and development, 

and fundamental business policy issues, 

and in this way supervised management. Significant 

business transactions were the subject of 

thorough discussions. 

The annual financial statements of the GmbH, 

including the management report, for the 2009 

financial year prepared by the management 

were audited and given an unqualified audit 

certificate by the Leipzig branch office of KPMG 

AG Wirtschaftsprüfungsgesellschaft, which had 

been appointed as auditor by the Shareholders’ 

Meeting. The Supervisory Board took note of, 

and approved, the result of the audit. 

The Supervisory Board inspected the annual 

financial statements and the management report. 

No objections were raised. The Supervisory 

Board approved the annual financial statements 

and recommended that they be adopted by the 

Shareholders’ Meeting. The Supervisory Board 

also approved the balance sheet and the profit 

and loss account from the consolidated financial 

statements. 

Leipzig, 22 April 2010 

Mr. Josef Rahmen 

Chairman of the Supervisory Board 

04 | Annual Financial Statements of Stadtwerke Leipzig GmbH


Management report of Stadtwerke Leipzig GmbH 

Business climate and general conditions 

Income situation, fi nancial position, net worth position 

Risk report 

Forecast report 

Annual fi nancial statements 

Notes to the fi nancial statements of Stadtwerke Leipzig GmbH 

List of abbreviations 

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1 Business climate and general conditions 

1.1 Business fields, products and services 

Stadtwerke Leipzig GmbH (Stadtwerke Leipzig) 

is one of the largest municipal energy service 

providers of electricity, natural gas and district 

heating in eastern Germany. The company’s 

business activities focus on providing the energy 

infrastructure for the city of Leipzig, supplying 

customers all over Germany with energy and 

services, efficiently generating power, and supplying 

heating to the Pomerania region of Poland. 

As one of the few independent German utilities, 

Stadtwerke Leipzig actively trades in power and 

natural gas. The company’s range of products and 

services targets in particular small and mediumsized 

enterprises (SMEs) nationwide, supplemented 

by further energy-related services and 

extensive activities in wholesale energy trading. 

Stadtwerke Leipzig GmbH has a number of subsidiaries 

and holdings. Its corporate activities are 

grouped into three segments: Trading, Networks 

and Services. The Trading segment is by far the 

largest. It includes Energy Marketing (former 

known as Retail Energy Trading), Wholesale 

Energy Trading and Generation. The Networks 

segment includes the Network Service business 

unit. The Services segment includes the business 

units Energy-Related Services, Holdings, and 

Energy Supplies Pomerania/Poland. 

Segment reporting is a management defined 

control view of Stadtwerke Leipzig GmbH. 

1.2 Sales markets and competitive position 

Stadtwerke Leipzig is the market leader in 

electricity and heating in Leipzig. Stadtwerke 

Leipzig faces aggressive price competition as a 

service-oriented company. The company operates 

all over Germany as a partner for SMEs 

on all energy issues. The basis for its success is 

laid by its existing generation portfolio, which 

is supplemented by professional procurement 

on the major energy markets. In its wholesale 

energy trading, which it has been engaged in for 

ten years, Stadtwerke Leipzig is recognised by its 

business partners as an innovative and successful 

energy service provider. 

Stadtwerke Leipzig’s energy networks for electricity 

and gas offer both customers and competitors 

an efficient infrastructure in a regulated 

market environment. 

Moreover, its subsidiary HL komm Telekommunikations 

GmbH, Leipzig (HL komm), 

among others, is active in the telecommunications 

market as an innovative infrastructure 

developer and provider. As part of the company’s 

operations in Poland, the subsidiary Gdańskie 

Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o., 

Gdańsk, Poland (GPEC), is the market leader 

in the regulated supply of heating in the city of 

Gdańsk. 


1.3 Main legal and economic factors 

Energy policy – focusing on climate change: 

With the European Council’s agreement on a 

revision of emissions trading for the next trading 

period and the adoption of the Renewable 

Energy Directive, European regulators have laid 

the foundations for the development of energy 

policy over the coming years. The principle of 

the full auctioning of CO 2 certificates in the 

power generation sector means that efforts to reduce 

emissions will largely depend on the power 

utilities. The Directive on the Promotion of the 

Use of Energy from Renewable Sources has set 

the target that one fifth of the EU’s energy needs 

should be met by renewable energies by 2020. 

Against this background, the Federal Republic 

of Germany has an obligation to increase the 

percentage of the overall demand for energy that 

is covered by renewable energies to at least 18% 

by 2020. 

At the national level, too, discussions in 2009 

after the national elections were characterised by 

different ideas on energy issues in Germany. This 

was one reason why there were failed attempts to 

pass bills to introduce a national law on carbon 

capture storage and an energy efficiency bill. 

However, there was agreement on reforming the 

redistribution mechanism under the EEG (German 

Renewable Energies Act). With effect from 

January 2010, the previous system of purchasing 

rigid monthly bands was replaced by the direct 

marketing of power from renewable sources 

(“EEG-Strom”) on the exchange. If the proceeds 

are too low to fund the promotion of renewable 

energies, the power suppliers will collect an EEG 

levy from customers that is fixed centrally and 

nationwide. 

1.4 General economic climate and industry-specific conditions 

General economic climate 

German economy marked by the financial and 

economic crisis: The impact of the financial and 

economic crisis was a dominant theme throughout 

2009. The government was unable to prevent 

negative trends in many industries despite 

comprehensive support measures. Declining 

sales figures put considerable pressure on many 

companies to cut costs and in some cases led to 

corporate insolvencies. 

Natural gas and power consumption in Germany 

fell markedly in the first nine months of 

2009, despite cooler weather in the first quarter. 

Demand for both electricity and gas was 5% 

down on the same period of the previous year. 

The main reason for the decline in electricity and 

natural gas consumption was the fall in industrial 

production. Stadtwerke Leipzig GmbH, while 

only marginally affected by this development in 

Leipzig, recorded a drop in its nationwide energy 

sales due to the overall economic development. 

Economic prospects remain uncertain: It is still 

impossible to predict exactly how the economy 

will develop in 2010 and the following years. Initial 

indicators, including those from abroad, suggest 

a slight recovery, or at least a stabilisation of 

the economic situation. The fact that consumer 






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behaviour in Germany has been very stable up to 

now is also having a supporting effect. However, 

economic growth will be restrained by the fact 

that the euro is still strong and oil prices are 

rising again. After a decline in gross domestic 

product (GDP) of provisionally –5% in 2009 

(2008: +1.3%), positive growth rates of between 

1.2% and 2.1% are expected in 2010. This margin 

of possible fluctuation shows that a lot of uncertainty 

remains about the expected after-effects of 

the financial and economic crisis, with different 

industries being affected to varying degrees. 

The development in Poland looks quite different. 

Poland was the only EU member state to achieve 

positive economic growth (1.7%) in 2009. The 

EU Commission forecasts GDP growth of 

around 1.9% in 2010. Poland itself has set its 

economic growth targets much higher, however, 

at up to 3%. 

Industry-specific conditions – energy markets 

Oil price remains below last year’s level despite 

recovery: At the end of 2008, the price of Brent 

crude oil reached US$36.49 per barrel, the lowest 

level since the beginning of the financial and 

economic crisis. Six months earlier, the contract 

price had stood at $146. The commodity price of 

oil rose steadily from the beginning of 2009. By 

the end of December, front month oil was trading 

at $77.93 a barrel. 

Falling prices on the electricity markets: Electricity 

prices on the futures market followed a 

similar movement, after a delay, to the price of 

oil. In February, electricity prices fell by about 

€16 per MWh compared to the beginning of the 

year, reaching their lowest level at €42.65 per 

MWh (base) and €61.58 per MWh (peak). With 

the economy and capacity utilisation still weak, 

electricity prices continued falling up to November 

and ended up only slightly above February’s 

price level. Electricity prices on the spot market 

declined markedly from mid-year on. By the 

end of December, the spot prices were averaging 

€35.69 per MWh (base) and €48.30 per MWh 

(peak). As in the case of gas and CO 2 , the price 

level was determined by the lower capacity utilisation 

in industry. 

Natural gas prices no longer dependent on the 

oil price: On the futures market for gas, prices in 

2009 became completely separated from crude 

oil, which had otherwise been its determinant. 

Whereas crude oil recovered throughout 2009, 

gas prices fell further as a result of the poor economic 

situation and the lower degree of capacity 

utilisation in many industries. In December 2009, 

the contract for the 2010 front year in the Net- 

Connect Germany (NCG) market region reached 

its lowest point so far at €12 per MWh. The weak 

economy was especially noticeable on the spot 

market. Gas for next-day delivery cost €12.75 per 

MWh at the end of December. 

Mergers of market regions in gas trading: Since 

1 October 2009, there have only been six market 

regions for gas trading in Germany, as a result of 

mergers between market regions. The fusion of 

gas market regions simplifies market access and 

thus stimulates the market and increases liquidity. 

CO 2 certificate prices temporarily below €10: 

The CO 2 prices were also largely determined by 

the economic crisis. The lower level of utilisation 

of production capacity meant that factories 

used less energy. A sharp drop in prices was the 

result. Prices fell to €8.10 per tonne in February 

2009, but recovered to a level of €16 per tonne in 


mid-year. Thereafter, the price of CO 2 fluctuated 

between €12.42 and €15.50 per tonne. 

Declining timber supply during the year: The 

poor economic situation also made itself felt on 

the timber market. Up to mid-2009, plentiful 

supplies of wood led to a drop in price of around 

15% for industrial timber (measured using the 

Federal Statistical Office’s industrial timber index 

for the whole of Germany), which can be regarded 

as an indicator for the other types of wood. 

The described market movements can vary 

considerably from region to region. The timber 

price stagnated from mid-2009. However, the 

demand for wood – especially by the recycling 

industry – picked up again towards the end of 

the year because of an improved economic situation 

and empty warehouses. Towards the end 

of 2009, the timber market was characterised by 

weak supply combined with strong demand for 

material recycling. 

Dynamic competition in the electricity and 

gas market for private customers: Competition 

intensified further in 2009. Since the electricity 

market was opened up in 2005, 21% of German 

households (2008: 19%) have switched to a different 

power supplier. The number of competitors 

has risen further since then. In the market 

for domestic customers, the average electricityprice 

components in 2009 were as follows: 

government charges and levies made up approx. 

39%, use of system charges 24%, and the combined 

cost of energy procurement, distribution 

and service 37%. After gas market liberalisation 

made competition possible between gas suppliers 

in early 2007, 10% of households (2008: 7%) 

had already switched to a different natural gas 

supplier by the autumn of 2009, according to the 

Federal Association of the German Energy and 

Water Industries (BDEW). On average, 30% of 

the price of natural gas is made up of government 

charges and levies; production, transportation, 

storage and distribution together account 

for 70%. 

Influence of the weather – 2009 slightly cooler 

than the previous year: Energy consumption by 

the domestic customers supplied is greatly influenced 

by weather conditions, i.e. heating and 

natural gas sales increase when outside temperatures 

are cold during the heating season. Overall, 

the weather was slightly cooler in the 2009 financial 

year than in the previous year. The mean 

annual temperature in Leipzig was 10.7°C, i.e. 

lower than the previous year’s figure of 11.2°C. 

Measured by the number of degree days, which 

is the indicator of the need for heating energy, 

weather-induced energy consumption was 2.3% 

higher than in the previous year. 






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1.5 Business development 

Positive development of results at Stadtwerke 

Leipzig: Stadtwerke Leipzig GmbH’s sales 

revenues (turnover) totalled €2,812 million 

during the 2009 financial year (2008: €2,946 

million). Stadtwerke Leipzig GmbH completed 

the 2009 financial year with Net earnings before 

profit transfer of €60 million (2008: €36 million). 

The lower Net earnings in 2008 had been 

largely caused by the transfer of €12.6 million to 

the provision for the elimination of additional 

revenues. 

Please refer to the “Segments” section for an 

analysis of the composition and development of 

sales revenues. 

Major events affecting business development 

The Trading segment made a considerable contribution 

to the overall positive development in 

the 2009 financial year. The development of the 

Leipzig gas and steam turbine plant (GuD) in the 

Generation business unit was especially positive 

in this context. This was primarily due to the 

improved procurement terms for power station 

gas and the gas purchases made in the market at 

the lower price level. 

The changes in market conditions made it impossible 

to repeat the unusually good result in 

Wholesale Energy Trading in the previous year. 

The result reached the level of the preceding 

financial years. Our risk management in energy 

trading closely monitored the financial crisis that 

had begun in 2008 – also against the background 

of existing trading agreements – and introduced 

measures which limited the risks for 2009. 

Energy Marketing is another important pillar of 

Stadtwerke Leipzig’s results. The improvement 

in this business unit was largely due to higher 

sales in the Leipzig heating market as a result of 

the weather, and to price adjustments caused by 

the development of the price of heating oil. The 

market for final customers remains intensely 

competitive, especially in the electricity field. 

In nationwide energy marketing the economic 

crisis led to lower sales volumes. 

The Networks segment made a stable, positive 

profit contribution, despite the high standards 

demanded by incentive-based regulation. 

At Stadtwerke Leipzig Netz GmbH, Leipzig 

(Stadtwerke Leipzig Netz), the revenue ceilings 

for electricity were fixed by the Federal Network 

Agency and for gas by the Land (regional) Regulatory 

Authority. The individual efficiency figures 

are above the industry average in each case. The 

improvement in the electricity efficiency figure 

was partly offset by the non-recognition of 

higher upstream network costs, which reduced 

the positive effect. 

Results in the Services segment were dominated 

by revenues of the subsidiaries HL komm, perdata 

Gesellschaft für Informationsverarbeitung 

mbH, Leipzig (perdata), and LAS GmbH, Leipzig 

(LAS). The slightly lower result compared to 

the previous year was a result of the implementation 

of the FTTx pilot project by HL komm, who 

are planning the construction of a fibre-optic cable 

network in Leipzig. In the Pomerania business 


unit, dividend payments were made by Zakład 

Energetyki Cieplnej Sp. z o.o., Tczew, Poland 

(Zec Tczew), and Zakład Energetyki Cieplnej 

STAR-PEC Sp. z o.o., Starogard-Gdański, Poland 

(STAR-PEC). The profits generated by GPEC in 

2008 are being reinvested in the company. 

The company’s competitive environment 

Successful procurement strategy for the 

Generation business unit: Market purchases 

(“third party amounts”) were made for the 

Leipzig gas and steam turbine plant (GuD) for 

the 2009/2010 gas business year. The resulting 

cost advantage had a positive effect on the results 

of the Generation business unit. The power plant 

gas contract and municipal gas contract with the 

supplier Verbundnetz Gas Aktiengesellschaft 

(VNG) were renegotiated. Both contracts were 

extended. An option was purchased to hedge 

power plant gas costs against rising HEL prices 

in 2010. 

New market access in Wholesale Energy Trading: 

We made further progress with improving 

our market access to broaden our trading base 

for Stadtwerke Leipzig in 2009 by launching 

CO 2 trading on the European Climate Exchange 

(ECX), London. The ECX is the world’s leading 

CO 2 exchange and offers Stadtwerke Leipzig 

extensive opportunities for trading in emission 

certificates. 

Introduction of new products for natural gas 

in wholesale distribution: The product portfolio 

in wholesale distribution was rounded off with 

three new products for natural gas. Stadtwerke 

Leipzig is now in a position to offer an extensive 

product portfolio in the gas field in addition to 

the existing portfolio in the electricity field. 

Implementation of the heating market concept 

in Energy Marketing: By moving on to the 

implementation phase of its heating market 

concept, Stadtwerke Leipzig GmbH has further 

developed its heating market strategy, taking 

into account changes both in energy legislation 

and in customer needs (e.g. their enhanced 

awareness in the areas of environmental protection, 

convenience and price). The aim of the 

heating market concept is to develop an efficient 

and environment-friendly supply of heating 

in Leipzig by 2030, to be achieved by making 

intensive efforts to expand the district heating 

network and to make it more dense. As part 

of the implementation of the heating market 

concept, we successfully introduced the product 

Wärme21.komfort and reached the planned 

number of new connections. 

Implementation of incentive-based regulation 

in the Networks segment: The background here 

is the switch from cost- to incentive-based regulation 

of German electricity- and gas network 

operators, which came into force on 1 January 

2009. The essence of incentive-based regulation 

lies in the unbundling of revenue development 

from the development of costs. Based on the efficiency 

comparison of the first regulatory period 

– from 2009 to 2013 for gas network operators 

and from 2009 to 2014 for electricity network 

operators – an individual development of revenues 

is laid down for each operator. Efficiency 

figures at the subsidiary Stadtwerke Leipzig Netz 

GmbH were confirmed to be above the industry 

average for both media. 






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1.6 Staff and employment policy 

Development of the headcount: At the end of 

the year, Stadtwerke Leipzig GmbH had 1,064 

employees (2008: 1,071) and 94 apprentices, 

young skilled workers and trainees (2008: 91). 

The main cause of the change in the number of 

employees (–7) was the staff reduction in the 

control and support operations (–8). On the 

other hand, there was an increase in staff in the 

business units (+1). 

HR policy geared to the competency model: 

Stadtwerke Leipzig GmbH has a systematic 

system of competency management. Strategic 

HR policy is geared to the business units 

and necessary processes. It covers not only the 

number of jobs, but also the job specifications 

for future tasks in the context of medium-term 

competency planning. The introduction of a 

continuous improvement process, which is being 

implemented in project form, contributes to 

ongoing improvements in efficiency. 

Future-oriented training: The initial training 

of staff in commercial and technical occupations 

is given a high priority at Stadtwerke 

Leipzig GmbH. The development of commercial 

expertise is continued in a dual course of study 

leading to a Bachelor of Science degree. We are 

ensuring the availability of long-term engineering 

know-how by increasing the amount of 

training we offer in the engineering field. Moreover, 

the trainee programme implemented in 

2009 is a component of the long-term development 

of young talent at Stadtwerke Leipzig. 

Advanced training is provided in cooperation 

with the HHL: Staff and executives were 

offered new training courses in 2009 aimed at 

further enhancing their entrepreneurial thinking, 

analytical skills and ability to act. Other 

related staff development courses promote a 

common identity within the Stadtwerke Leipzig 

Group. A new series of seminars was introduced 

in 2009 to hone managerial skills in cooperation 

with the HHL, the Leipzig Graduate School of 

Management. 

Occupational safety and health management: 

The accident rate (i.e. the number of notifiable 

accidents per 1,000 employees) was 13.4 in 2009, 

again below the target rate of 17.4 laid down by 

the Employers Liability Insurance Association 

(Energy Textiles Electrical). 

1.7 Environmental protection 

Environmental protection as part of our 

strategic orientation: Environmental protection 

and energy generation at Stadtwerke Leipzig 

GmbH are consistent with the corporate strategy 

in which environmental management is an 

integrated element codetermining the company’s 

strategic orientation. At all company levels there 

are concrete targets on reducing emissions and 

conserving natural resources. Investment decisions 

always take environmental protection into 

account. Among other things, this is illustrated 

in Stadtwerke Leipzig GmbH’s commitment to 

the use of wood biomass and combined heat and 

power generation. 


Electronic verification of hazardous waste 

disposal: By law, Stadtwerke Leipzig GmbH 

must introduce an electronic system to verify 

the disposal of hazardous waste by 31 March 

2010. All the necessary preparations for a timely 

introduction were made in 2009 as part of an 

extensive project. Defined IT interfaces will 

ensure the electronic exchange of data between 

waste producers, transport companies and waste 

disposers called for by the authorities. 

No contaminated sites needed remediation 

in 2009: Stadtwerke Leipzig GmbH owns land 

on which the soil or groundwater could be 

polluted as a result of previous industrial use. 

Possible contamination is investigated under 

the “notice of exemption from responsibility for 

the remediation of contaminated sites” in close 

coordination with the authorities. In 2009, the 

groundwater was monitored at two sites (Arno- 

Nitzsche-Strasse 35 and Eutritzscher Strasse 

14b), and initial investigations were made at the 

former Mitte and Lindenau heating stations and 

the Lausen transformer substation. The investigations 

showed that there was no short-term 

need for remediation measures on this land in 

2009. However, Stadtwerke Leipzig GmbH has 

made provisions to cover any future remediation 

of contaminated sites. 

1.8 Changes in the holdings portfolio 

In the course of the restructuring of the holdings 

portfolio, SWL Anlagenvermögensverwaltungs 

GmbH, Leipzig (AVV), and SWL Kapitalvermögensverwaltungs 

GmbH, Leipzig (KVV), 

were merged with Stadtwerke Leipzig GmbH 

with effect from 1 January 2009. Furthermore, 

Stadtwerke Leipzig GmbH increased its holding 

in Heizkraftwerk Eutritzscher Strasse GmbH & 

Co. KG, Leipzig from 0.05% to 25.16%. 

2 Income situation, financial position, 

net worth position 

2.1 Income situation 

Sales development in the Trading segment: 

In Energy Marketing the development of sales 

in terms of the amount of electricity sold fell by 

3.6% from 1,915 GWh in 2008 to 1,847 GWh in 

2009. During the same period, natural gas sales 

were down 7.4% from 1,578 GWh in 2008 to 

1,461 GWh in 2009. These figures largely reflected 

the cyclical fall in demand and the intense 

competition. In the heating market, sales volumes 

for district heating increased, mainly due 

to the cooler weather. Sales of district heating 

rose by 4.1% from 1,284 GWh to 1,332 GWh. 

Sales in Wholesale Energy Trading increased in 

line with the trading market: electricity trading 

from 33,462 GWh to 35,082 GWh, gas trading 

from 6,421 GWh to 7,504 GWh. 





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Turnover and income development: After 

aggregating and offsetting certain items, the 

profit and loss accounts of the last two financial 

years can be combined to give the following 

operational information on the development of 

income: 

Income situation 

[€ m] 

2009 2008 Change 

Operating sales revenues 2,809 2,945 –136 

Inventory changes –3 2 –5 

Internally produced and capitalised assets 1 1 – 

Operating income 59 57 2 

Operating cost of materials –2,623 –2,803 180 

Operating staff costs 1 –62 –59 –3 

Operating expenses –83 –77 –6 

Operating profit before depreciation/amortisation 98 66 32 

Regular depreciation –23 –23 – 

Operating profit 75 43 32 

Financial result – –1 1 

Non-operating result 1 –16 –6 –10 

Profit or loss on ordinary activities 59 36 23 

Extraordinary profit or loss 1 – 1 

Net earnings before profit transfer 60 36 24 

Transfer of profits –60 –36 –24 

Net income – – – 

1 

Figure for 2008 adjusted – expenses relating to part-time employment schemes for older employees allocated to operating profit 

Development of Operating profit: Stadtwerke 

Leipzig GmbH’s operating profit amounted 

to €75 million in the 2009 financial year (2008: 

€43 million). 

The main reason for the increase in Operating 

profit was the development of business in the 

Trading segment. This was primarily due to the 

improved procurement terms for power station 

gas and the gas purchases made in the market at 

the lower price level. In the Energy Marketing 

business unit, a weather-related increase in sales 

and price adjustments caused by the development 

of the heating oil price had a positive effect 

on the Leipzig heating market. In the Networks 

segment, the technical service and lease agree- 


ments between Stadtwerke Leipzig Netz and 

Stadtwerke Leipzig GmbH were adjusted. As 

a result, Stadtwerke Leipzig’s network service 

posted a higher income and thus a higher 

operating profit. However, this adjustment led, 

in turn, to higher expenses at Stadtwerke Leipzig 

Netz and thus to an increase in expenses relating 

to the transfer of losses for Stadtwerke Leipzig 

GmbH. The effect was balanced out under Stadtwerke 

Leipzig’s item Profit on ordinary activities. 

Development of the main positions on the income situation 

Operating sales revenues: Operating sales revenues 

(operating turnover) were about 5% down 

in the financial year. This development was essentially 

due to the decline in Wholesale Energy 

Trading caused by much lower prices. During 

the financial year the operating turnover was made 

up of sales of energy amounting to €2,716 million 

(2008: €2,864 million) and Other income 

totalling €93 million (2008: €81 million). 

Operating income: Operating income in the 

financial year was primarily made up of income 

from network lease agreements, other rental 

income, income from ancillary business and 

capital investment bonuses. 

Operating cost of materials: The operating cost 

of materials fell by approx. 6% to €180 million in 

the financial year. This reduction was mainly a 

result of the lower turnover in Wholesale Energy 

Trading and lower procurement costs. The gross 

margin (turnover minus cost of materials) improved 

by €44 million. 

Operating staff costs: In the financial year, the 

operating staff costs rose by about 5% or €3 million; 

the number of people employed fell slightly. 

This was essentially the result of higher wages 

and salaries, as well as other personnel-related 

expenses such as arrangements on part-time 

employment for older employees. 

Operating expenses: Operating expenses during 

the financial year consisted mainly of franchise 

fees, expenditure on invoicing services, data 

processing, leasing instalments, customer care 

and marketing costs and expenses of operating 

activities. 

Regular depreciation: The write-down of intangible 

assets and tangible fixed assets remained 

unchanged compared to the previous year 

(€23 million). 

Financial result: The improvement in the financial 

result over the previous year was mainly a 

result of the increase in net interest income (€8 

million). This positive trend was due to €3 million 

higher interest income, €5 million less interest 

paid and a lower write-down of financial assets 

(€2 million). A contrary effect was generated 

in particular by a higher transfer of losses from 

Stadtwerke Leipzig Netz (€4 million) and lower 

income from profit/loss transfer agreements 

(€4 million).The latter was essentially caused by 

the merger of AVV and KVV with Stadtwerke 

Leipzig, with which profit/loss transfer agreements 

also existed. 

Non-operating result: The non-operating result 

contains the Result of fiscal measures, Unscheduled 

depreciation and Non-operating expenditures 

and income. The Result of fiscal measures 






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relates to the scheduled release to income of 

the Special item with partial reserve character 

amounting to €2 million (2008: €4 million). Unscheduled 

depreciation amounted to €3 million 

on non-necessary real estate and buildings and 

€13 million on buildings and outside facilities for 

power stations during the financial year. The Balance 

of other non-operating income and expenditures 

of -€1 million was essentially made up of 

turnover unrelated to the accounting period 

(€3 million), income from the release of provisions 

(€5 million), the release of allowances for 

doubtful debt (€4 million), other income unrelated 

to the accounting period (€3 million), and 

income from the sale of fixed assets (€1 million) 

minus expenditure on allowances for doubtful 

debt and written-off receivables (€8 million), 

expenditure on the formation of provisions 

(€13 million), expenditure on power purchases 

unrelated to the accounting period (€5 million), 

and energy taxes unrelated to the accounting 

period (€1 million). Compared to the previous 

year, the Networks segment had a markedly 

positive effect on results at the level of the nonoperating 

result, because in 2008 the provision 

for the elimination of additional revenues 

(–€13 million) had had to be formed. 


2.2 Financial position 

Cash flow statement 

The following summarised cash flow statement 

shows the changes in financial resources and the 

movements of funds that caused them: 

Financial position 

[€ m] 

2009 2008 

Cash flows from business operations 72 66 

Change in the working capital 1 86 –49 

Cash flows from operating activities 158 17 

Investment –31 –37 

Disinvestment/subsidies 15 20 

Cash flows from investment activities –16 –17 

Increase/reduction in capital – – 

Payment to the shareholder –38 –45 

Increase in loans received 20 25 

Payments relating to the repayment of loans –15 –6 

Cash flows from financing activities –33 –26 

Net change in financial resources 108 –27 

Change in financial resources caused by merger 1 – 

Financial resources at beginning of period 2 26 53 

Financial resources at end of period 135 26 

1 

Working capital = Current assets minus securities minus cash-pool credit balance minus cash resources minus short-term borrowed capital plus short-term bank loans 

and overdrafts plus cash-pool liabilities 

2 

Change in reporting in 2009. The figures for 2008 were adjusted to ensure comparability. Financial resources now include cash-pool credit balances and securities in 

addition to cash resources (cash at bank and in hand). 

Cash flows from operating activities: The Cash 

flow statement shows that, compared to the previous 

year, Cash flows from operating activities rose 

by €141 million to €158 million. This significant 

increase was mainly the result of returns on 

working capital (€86 million). This offset the high 

increase in working capital as per the balance 

sheet date in 2008. In particular, the reduction in 

Trade debtors made a major contribution here 

(€44 million). Cash flows from business operations 

without working capital, which represents 

operating activities, also improved by €6 million 

compared to the previous year. The main source 

of this increase was the better income situation. 






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Cash flows from investing activities: Cash flows 

from investing activities included investment 

in intangible assets and tangible fixed assets 

amounting to €12 million (2008: €18 million) 

and were essentially made up of ongoing capital 

investment in replacement and new plant capacity. 

Investment in financial assets amounted to 

€19 million (2008: €13 million); it was essentially 

made up of the purchase of shares worth 

€10 mil lion in Heizkraftwerk Eutritzscher Strasse 

GmbH & Co. KG, Leipzig (EuKG), and loans to 

affiliated companies amounting to €6 million. 

The disinvestment of €13 million related primarily 

to the repayment of loans that had been 

extended to affiliated companies of Stadtwerke 

Leipzig GmbH (€12 million). Income from subsidies 

(in the form of building cost subsidies and 

house connection costs) amounted to €2 million. 

Please refer to the “Segments” section for a detailed 

breakdown of the investments. 

Cash flows from financing activities: Cash 

flows from financing activities (–€33 million) 

essentially consisted of the transfer of profits to 

LVV Leipziger Versorgungs- und Verkehrsge sellschaft 

mbH, Leipzig (LVV) (–€38 million), the 

repayment of bank loans and overdrafts and the 

repayment of cash-pool liabilities (–€15 million). 

A borrowers’ note loan for €20 million was 

taken up for the purpose of long-term corporate 

financing. 

Financial position and financial management 

Liquidity: On 31 December 2009, Stadtwerke 

Leipzig GmbH had financial resources amounting 

to €135 million, as shown in the cash flow 

statement. The Financial resources were made up 

of cash in hand, bank balances and Stadtwerke 

Leipzig’s credit balances on cash-pool accounts. 

Liquidity needs were covered at all times during 

the 2009 financial year. 

Financial management: Stadtwerke Leipzig’s 

financial strategy is based on maintaining the 

company’s high credit standing. In line with our 

active interest rate management, financing costs 

are specifically controlled by the design and use 

of derivatives and hedged against the risk of 

changes in interest rates. The aim of this strategy 

is on the one hand to reduce the financing costs 

by means of variable interest terms, and on the 

other to ensure an interest rate ceiling by means 

of hedging products. Borrowers’ note loans and 

operational leasing are used in addition to classic 

bank loans to meet the financing needs generated 

by investment activity. 

Covenants: On signing unsecured long-term 

financing contracts, Stadtwerke Leipzig GmbH 

agreed covenants containing certain financial 

relations on indebtedness, cash flows from 

operating activities, and the equity ratio. The 

contractually agreed ratios correspond to the 

Group’s financing strategy, which is aimed at 

maintaining its existing investment grade status 

(credit rating) in the future. Data on compliance 

with the covenants is gathered at the level of the 

Stadtwerke Leipzig Group. 

The agreement of covenants also serves to secure 

transactions in wholesale energy trading contracts 

(EFET contracts). Data on compliance with 

these covenants is gathered at the Stadtwerke 

Leipzig GmbH level and shown in the Stadtwerke 

Leipzig consolidated financial statements. 


Analysis of finance: Long-term assets are 

financed by equity and borrowed capital. Bank 

loans and overdrafts rose from €248 million in 

the previous year to €263 million. 

Off-balance sheet financial instruments: 

Operational leasing agreements were concluded 

to finance the Piesteritz and Bischofferode 

biomass power stations. Using this form of 

financing helped maintain long-term financial 

flexibility and enabled liquidity to be used for the 

implementation of other investment projects. 

2.3 Net worth position 

Analysis of assets and liabilities structure: 

After aggregating certain items, each financial 

year’s balance sheet can be combined to give the 

following overview. Liabilities and provisions 

with a remaining time to maturity of more than 

one year are treated as long-term. 

Net worth position 

31 Dec. 2009 31 Dec. 2008 

€ m % € m % 

Fixed assets 581 64.1 628 69.2 

Inventories 14 1.5 17 1.9 

Receivables and other assets 182 20.1 247 27.2 

of which: cash pool 8 0.9 12 1.3 

Securities – – – – 

Cash in hand 127 14.0 13 1.4 

Prepaid expenses 3 0.3 2 0.2 

Total assets 907 100.0 907 100.0 

Equity capital 250 27.6 250 27.6 

Special items 68 7.5 74 8.2 

Provisions 160 17.6 186 20.5 

of which long-term provisions 45 5.0 104 11.5 

of which short-term provisions 115 12.7 82 9.0 

Liabilities 429 47.3 397 43.8 

of which long-term liabilities 254 28.0 241 26.6 

of which short-term liabilities 175 19.3 156 17.2 

of which: cash pool 16 1.8 36 4.0 

Deferred income – – – – 

Total liabilities 907 100.0 907 100.0 






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Balance sheet total: The balance sheet total of 

€907 million was virtually constant compared 

to the previous year. The €47 million decline in 

fixed assets was almost offset by a €46 million 

increase in Current assets. 

Assets: Stadtwerke Leipzig has a high capitalisation 

ratio. Fixed assets made up 64% of the 

balance sheet total in 2009. The decline in fixed 

assets compared to the previous year was a result 

of the €27 million fall in tangible fixed assets 

and the €19 million fall in long-term financial 

assets. The latter was essentially a consequence 

of the merger of AVV and KVV with Stadtwerke 

Leipzig GmbH. The figure for the depreciation 

of tangible fixed assets was higher than investment 

during the financial year. Receivables and 

other assets in 2009 were markedly down on the 

previous year, falling €65 million. This fall was 

offset by a €114 million increase in cash in hand, 

which was essentially caused by a marked reduction 

in working capital. 

The €6 million fall in the Special items on the 

liabilities side was due to scheduled releases to 

income. 

Long-term provisions fell, essentially as a result 

of the reclassification of the provision for the 

elimination of additional revenues to Short-term 

liabilities and the reclassification of the provision 

for the repurchase of the gas and steam 

turbine generator to Short-term provisions. The 

increase in long-term liabilities was caused by 

the increase in long-term borrowings. 

Short-term liabilities rose by €19 million. This 

was essentially caused by higher liabilities in 

connection with the transfer of profits (€24 million) 

and amounts owed to Stadtwerke Leipzig 

Netz GmbH because of the elimination of 

additional revenues (€15 million). These were 

offset by lower trade creditors (€5 million) and 

lower liabilities from the cash pool with affiliated 

companies (€20 million). 

Liabilities – capital: On the liabilities side, 

Equity was unchanged in 2009 at €250 million. 

43% of fixed assets was covered by equity 

capital (2008: 40%), 106% by long-term capital 

(2008:106%). 

2.4 Value-oriented management 

The use of control ratios raises the transparency 

of economic development at Stadtwerke Leipzig 

GmbH. At the same time they serve as a basis 

for business decisions by management. 


Control ratios 

2009 2008 Veränderung 

Sales revenues (turnover) [€ m] 2,812 2,946 –134 

EBIT [€ m] 70 52 18 

Special tax-allowable reserves [€ m] 2 4 –2 

Adjusted EBIT [€ m] 68 48 20 

Operational assets [€ m] 537 663 –126 

Margin as % (adjusted EBIT/sales revenues) 2.4 1.6 0.8 

Capital turnover as sales revenues/year 

(sales revenues/operational assets) 5.2 4.4 0.8 

ROCE as % (adjusted EBIT/operational assets) 12.6 7.3 5.3 

Operational assets 

Net working capital 

EBIT 

= Fixed assets plus Net working capital 

= Short-term current assets minus short-term liabilities and provisions 

(except short-term borrowings and short-term provisions caused by reclassifications) 

= Profit on ordinary activities minus interest income plus interest paid 

The ROCE (Return on Capital Employed) shows 

how effectively a company uses its capital and/ 

or operational assets. The 5.4 percentage-point 

improvement in the ROCE was the result of a 

€20-million-higher adjusted EBIT and €125-million-lower 

operational assets. This lower figure 

was essentially caused by a €65 million fall in 

Receivables and other assets and a €47 million 

reduction in fixed assets. 

In 2009, the control ratio EBITDA (profit on 

ordinary activities without financial result and 

depreciation) rose from €60 million in 2008 to 

€99 million in 2009. This positive development 

is explained in the notes on the Operating profit. 

Further explanations are given under Income 

situation. The return on equity also developed 

positively, rising from 14% last year to 24% in 

2009. 






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2.5 Segments 

Segments 

[€ m] 

Turnover 

Income from/ 

expenditure on holdings 

and profit-and-losstransfer 

agreements 

Investment 

in fixed assets 

2009 2008 2009 2008 2009 2008 

Trading 1 2,742 2,888 – – 15 12 

Networks 61 50 –4 –7 7 8 

Service 2 3 3 10 11 5 2 

All segments 2,806 2,941 6 4 27 22 

Others 6 5 – 10 4 10 

Total 2,812 2,946 6 14 31 32 

1 

The credit entry for avoided network costs was reallocated to the Trading segment (2008: Others) according to the proper allocation. Figures for 2008 were adjusted 

accordingly to ensure comparability. 

2 

Deviating from the previous year, in 2009 only energy-related services for contracting are shown in the Services segment. Figures for 2008 were adjusted accordingly 

to ensure comparability. 

Stadtwerke Leipzig runs thermal power stations 

to produce electricity and heat using conventional 

and regenerative energy sources. In the 

Trading segment, we have access to approx. 

214 MW of electricity and 665 MW of thermal 

power output. In 2009, our own heat generation 

amounted to 835 GWh (2008: 840 GWh); our 

gross electricity generation totalled 1,055 GWh 

(2008: 918 GWh). Energy Marketing in the 

Trading segment supplied about 279,316 (2008: 

289,334) points of consumption with power, 

31,276 (2008: 33,772) with natural gas and 5,279 

(2008: 5,334) with district heating. 

The Network segment operates Leipzig’s electricity, 

natural gas and district heating networks 

with a total length of approx. 4,964 kilometres. 

They supply power to 39,921 housing units, gas 

to 22,915 housing units, and district heating 

to 5,279 points of consumption. The networks 

again guaranteed a highly stable supply in 2009. 

The number of supply outages in the three networks 

was reduced by 17% from 464 to 383. 

In the Services segment, the Energy-Related 

Services business unit operates local heating 

systems, heating stations and heating plants with 

a thermal capacity of approx. 53 MW. 


2.5.1 Trading 

Most of the segment’s external turnover of 

€2,742 million in the 2009 financial year (2008: 

€2,888 million) came from the business units 

Wholesale Energy Trading and Energy Marketing. 

Wholesale Energy Trading: In 2009, turnover 

in Wholesale Trading totalled €2,041 million 

(2008: €2,193 million) in electricity trading and 

€131 million (2008: €152 million) in gas trading. 

The gradual expansion of business continued 

in line with our growth strategy, leading in 

2009 to an increase in sales of 1,620 GWh in the 

electricity field and 1,083 GWh in the gas field. 

By contrast, turnover fell by €152 million in the 

electricity field and €21 million in the gas field as 

a result of the sharp fall in prices. 

The higher sales were caused by increases in 

physical trading volume and market liquidity. 

The turnover also contains income from the 

nationwide marketing of structured supply contracts 

and services to distributors and industrial 

customers. In addition to our own customer 

portfolio, we also serve and deliver to electricity 

and gas customers nationwide in cooperation 

with partners. 

By expanding distribution and trading activities 

and extending the company’s range of standardised 

and structured products, the Wholesale 

business unit is taking advantage of existing 

profit opportunities. Competitive advantages 

result in particular from our position as one of 

the leading traders in the municipal sector and 

as a distribution-oriented portfolio manager 

for small- to medium-sized distributors, major 

public clients and industrial customers. 

The electricity needed for wholesale and retail 

trading was purchased on the wholesale market 

during the financial year. The contractual relations 

with VNG on the supply of gas, and the 

district heating supply contract with Vattenfall 

Europe Generation AG & Co. KG, Berlin (Vattenfall), 

were continued. Increasing amounts were 

purchased on the wholesale market to supply 

customers with gas. The energy supply contract 

with EuKG on the procurement of electricity and 

district heating from the gas and steam turbine 

plant also remained unchanged as in previous 

years. Wholesale trading secured the supply of 

fuel (wood and oil) to the Generation business 

unit by concluding both framework and individual 

contracts with different suppliers. 

Energy Marketing: Stadtwerke Leipzig GmbH’s 

sales revenues in the Energy Marketing business 

unit totalled €485 million in 2009 (2008: 

€453 mil lion). Retail electricity trading business 

was the main source of turnover in this business 

unit with a share of 55% or €266 million 

(2008: €252 million). The increase in turnover 

was essentially price-induced, caused by higher 

procurement and network costs. 

The electricity market for private and commercial 

customers became increasingly dynamic in 

the 2009 financial year. A large number of new 

providers, volatile energy prices and a higher 

profile of the subject in public discussion led to a 

growing awareness among the customers. Incentives 

offered by competitors, such as bonus payments, 

influenced customer decisions. In 2009, 

necessary adjustments of prices to cost developments 

could only be enforced after a time delay. 

Measures aimed at adjusting to the changed 

market conditions concentrated on further 

expanding the new, regionalised distribution 

structures in nationwide sales, developing a new 

product concept with prices for medium-sized 

business customers adjusted to their individual 

consumption, and optimising procurement. 






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In 2009, turnover in the retail gas business 

amounted to €90 million (2008: €90 million). 

The contracts with private and commercial 

customers that were effective in 2009 were based 

in some cases on a markedly higher price level 

than in 2008. As a result, turnover remained 

constant, despite the competition-induced fall in 

sales in 2009 compared to 2008. Gas21.bestpreis 

was successfully launched on 1 June 2009. This 

scheme gives customers a choice between a 12- 

or 24-month term when signing the contract. 

Turnover in retail district heating totalled 

€129 million (2008: €110 million). The increase 

in turnover over 2008 followed the development 

of the heating oil price. 

Generation: Sales revenues in the Generation 

business unit amounted to €75 million (2008: 

€82 million). The service relations between 

Stadtwerke Leipzig GmbH and the holding 

EuKG (owner of the gas and steam turbine 

plant) were again posted under the Generation 

business unit. Stadtwerke Leipzig GmbH has a 

contract to provide the gas and steam turbine 

plant with extensive plant management, maintenance 

and investment services. In 2009, these 

business relations led to sales revenues from 

service charges amounting to €15 million (2008: 

€16 million) 

The Bischofferode biomass power station 

(BMKW Bischofferode) has been operating for 

two years. The new Piesteritz biomass cogeneration 

power station (BMHKW Piesteritz) began 

continuous operations on 3 July 2009. It has 

been generating power continuously since then 

and steam since August 2009. Because of several 

minor faults, the Bischofferode and Piesteritz 

biomass power stations did not reach full availability 

in 2009 and therefore did not make the 

planned contribution to Stadtwerke Leipzig’s 

results. 

Segment investment: The Trading segment 

invested €4 million (2008: €11 million) in intangible 

assets and tangible fixed assets during the 

financial year. The investment related primarily 

to the Piesteritz biomass cogeneration power 

station. Investments in financial assets totalled 

€11 million during the financial year (2008: 

€1 mil lion). The biggest item in this context was 

the purchase of shares in EuKG. 

2.5.2 Networks 

In 2009, the Networks segment realised external 

sales revenues amounting to €61 million (2008: 

€50 million). Service charges to Stadtwerke Leipzig 

Netz accounted for a substantial proportion 

of turnover and totalled €40 million (2008: 

€29 million). The contracts with Stadtwerke 

Leipzig Netz were adjusted to the terms of 

regulation without any effect on income, creating 

a potentially improved basis for starting the 

second regulation period, which begins in 2013 

for gas and 2014 for electricity. 

The service charges included income from the 

provision of extensive services to Fernwärmenetz 

Leipzig GmbH & Co. KG, Leipzig (FWNL) 

in the context of the plant management and 

maintenance of the district heating network. 

Segment turnover also included income from 


sums invested in the gas and district heating 

network which was on charged to GNL Gasnetz 

Leipzig AG, Leipzig (GNL), and FWNL 

pursuant to the existing general contractor 

agreements. 

Losses amounting to €11 million (2008: €7 million) 

were transferred with effect on expenses 

under a profit/loss transfer agreement between 

Stadtwerke Leipzig GmbH and Stadtwerke Leipzig 

Netz. The higher losses assumed for Stadtwerke 

Leipzig Netz GmbH compared to the previous 

year were largely a result of the adjustment 

of the technical service contracts. This effect was 

partially offset by higher income from gas due 

to the cold weather. Furthermore, income from 

transfer of profits by GNL amounted to €7 million 

during the 2009 financial year. 

Segment investment: The Networks segment 

invested €4 million (2008: €5 million) in intangible 

assets and tangible fixed assets. The main 

investments were in the medium- and low-voltage 

electricity mains, including local network 

stations, to maintain the stability of supply. 

Moreover, Stadtwerke Leipzig GmbH granted 

the companies GNL and FWNL long-term loans 

amounting to €3 million in 2009 to finance 

investment; these were posted as long-term 

financial investments. 

2.5.3 Services 

Energy-Related Services: In the Services 

segment, turnover from contracting services 

totalled €3 million (2008: €3 million). Among 

other things this included the erection or installation 

of generation plants, cogeneration plants 

and heat pumps, as well as the construction of 

new compressed-air and lighting systems. 

Holdings: The Holdings business unit reported 

investment earnings and profit-transfer income 

amounting to €9 million in 2009 (2008: €10 million). 

The income was generated by HL komm 

(€4 million), LAS (€1 million) and perdata 

(€4 million). 

Pomerania: Income from holdings in the Pomerania 

business unit amounted to €0.5 million 

during the financial year (2008: €0.5 million); 

the biggest contributions came from ZEC Tczew 

and STAR-PEC. 

Segment investment: All the investment in intangible 

assets and tangible fixed assets amounting to 

€3 million (2008: €0.5 million) went to Energy-Related 

Services, specifically investment in contracting 

plant. The Services segment’s investment in 

financial assets amounted to €2 million in 2009 

(2008: €2 million). The main item was a capital 

increase at STAR-PEC (Pomerania business unit). 






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2.5.4 Others 

The mergers of AVV and KVV with Stadtwerke 

Leipzig GmbH led to a profit for KVV amounting 

to €0.6 million and a loss for AVV of €7k. 

These profit effects were posted by Stadtwerke 

Leipzig GmbH under Extraordinary profit/loss. 

The merger AVV and KVV with Stadtwerke 

Leipzig GmbH led to a fall in income from profit 

transfers. 

in HL komm (€2 million) and LAS (€1 million) 

in the context of group financing. 

Income unrelated to the accounting period and 

remaining other income was also posted here. 

No events of special importance took place after 

the end of the financial year. 

€3 million was invested in financial assets during 

the financial year (2008: €8 million). This essentially 

related to long-term financial investments 

3 Risk report 

3.1 Risk management system 

A comprehensive, systematic and efficient risk 

management system (RMS) was installed in 

2000 and extended to the whole of the Stadtwerke 

Leipzig Group in 2008. Risk management 

aims to identify risks that could prejudice the 

continued existence or business results of the 

Group. 

The overall responsibility for Group-wide risk 

management lies with the Stadtwerke Leipzig 

GmbH’s executive management, while operational 

management in the business units and 

subsidiaries is directly responsible for the early 

detection, analysis, control and communication 

of risks. The RMS has a decentralised structure, 

and the main structural features are the functions 

of the risk owner, the divisional/departmental 

risk manager, central risk management 

(risk controlling) and the Stadtwerke Leipzig 

GmbH Risk Commission. 

Risk communication proceeds from the risk 

owners to the responsible heads of the business 

units or managing directors of the subsidiary 

companies – and then in aggregated form to the 

management of Stadtwerke Leipzig GmbH. The 

subject and frequency of reports are determined 

by the analysis-related rules of the risk portfolio, 

which is regularly reviewed and confirmed by 

the Risk Commission. 

Stadtwerke Leipzig GmbH’s business units and 

its majority-owned direct subsidiaries are involved 

in the RMS in an identical manner. For 

direct subsidiaries that are not majority-owned 

by Stadtwerke Leipzig GmbH or have no business 


operations, and for investment companies with 

no staff, the RMS has uniform but separate arrangements 

based on the respective cost-benefit 

ratio. 

Wholesale Energy Trading: Due to the increased 

dynamics of European energy trading 

and the resultant large number of potential individual 

risks, a separate risk management system 

has been implemented in Wholesale Energy 

Trading at Stadtwerke Leipzig GmbH. To ensure 

the conscientious implementation and responsible 

handling of the risk management process, 

Energy Trading implements the requirements 

and specifications of the Minimum Requirements 

for Risk Management (MaRisk) issued 

by the Federal Financial Supervisory Authority 

(BAFin). In addition, the business unit has its 

own Risk Management Manual laying down the 

organisational framework and responsibilities. 

Furthermore, a Risk Commission and a Risk 

Committee are fixed parts of the organisation. 

The Risk Commission regularly reports to the 

Risk Committee on energy trading activities 

relating to all traded raw materials and markets. 

The Risk Committee meets once a quarter and 

is involved in decisions on matters of market 

and product release, the distribution of risk 

capital, and limit allocation. In addition, the Risk 

Committee regularly monitors compliance with 

the defined risk policy and ensures that the risk 

strategy is observed in the execution of business 

processes. 

A review of Trading’s activities has shown that 

the current volume of business does not trigger 

the need for a licence pursuant to section 32 of 

the German Banking Act (KWG). Similarly, a 

review of current and planned marketing activities 

and special cases has revealed no business 

activities or services requiring regulation. 

Finance: In the course of its operational business 

activities, Stadtwerke Leipzig GmbH is also 

exposed to financial risks – particularly liquidity, 

non-payment and price risks. The main aim of 

risk management is to limit these risks using appropriate 

management and monitoring systems. 

Risk limitation does not mean the complete exclusion 

of financial risks, but rather the economic 

control of these risks within a documented 

action framework and strict limits. 

The main financial instruments we currently 

use include cash and cash equivalents, financial 

investments, trade debtors and creditors, and 

borrowings. The derivative financial instruments 

we use are mainly interest rate and foreignexchange 

derivatives in the financial sphere, and 

commodity derivatives in the energy trading 

sphere. For further information on derivatives, 

please see Stadtwerke Leipzig GmbH’s Notes to 

the financial statements. 






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3.2 Individual risks 

3.2.1 Business environment risks und industry risks 

Business environment risks: Stadtwerke Leipzig 

GmbH is prepared for a rising pace of change 

in the economic, legal and social environment. 

Particular importance is therefore attached to 

observing the legal and political environment. 

This includes regulatory risks in the broadest 

sense, for example from the Federal Network 

Agency (BNetzA), or industry-wide investigations 

by the antitrust authorities. For example, 

Stadtwerke Leipzig GmbH was included in three 

sectoral investigations by the Federal Cartel Office 

in the course of 2009. 

Industry risks: The liberalisation of the energy 

market and growing competitive pressure in the 

procurement and sales markets have exposed 

Stadtwerke Leipzig GmbH to greater price and 

volume risks. 

Changes in the prices of primary energy sources 

also pose a potential risk to profits. Wholesalemarket 

prices cannot always be passed on swiftly 

and in full to final customers. A regular management 

report makes sure that this risk to margins 

is monitored. The risk is also countered by costoptimising 

and efficiency measures. 

Stadtwerke Leipzig GmbH limits these risks, too, 

with a targeted customer loyalty strategy and by 

expanding nationwide electricity- and gas-trading 

activities. We are also optimising our costs by 

means of our own gas trading and gas portfolio 

management in Wholesale Energy Trading. 

3.2.2 Corporate strategy risks 

Corporate strategy risks consist mainly in the 

assessment of future technological, market and 

political developments and the company’s reactions 

to these changes. The risks are countered 

by intensively observing both the market and the 

competition and by holding regular closed-door 

meetings on strategy. 

3.2.3 Risks from the operational task areas 

Stadtwerke Leipzig is subject to a market price 

risk in its business activities. This risk comprises 

fluctuations in the market value of traded products 

and contracts as a result of changes in the 

specific market risk factors on which the respective 

products and contracts are based. 

Generation: The energy sources for power 

generation are procured both on the basis of 

long-term delivery contracts and in the short 

to medium term on the market at the current 

terms. 


As from October 2008, the EEX has been allowing 

negative prices. This can lead to a price having 

to be paid for feeding in power if the gas and 

steam turbine plant is operated to guarantee the 

security of supply of district heating. This risk 

did not occur in 2009 and is largely excluded by 

the sale of amounts of electricity. 

The demand for natural, unprocessed timber 

has risen markedly in the catchment areas of our 

biomass power stations. At times our contracting 

parties are unable to meet their contractual 

delivery obligations. In order to ensure a secure 

supply for the Bischofferode and Piesteritz 

biomass power stations, therefore, it is necessary 

to buy timber pro rata at the currently high 

regional price level. 

Profit and valuation risks for the biomass power 

stations (in excess of the economic risks already 

covered in the balance sheet) can arise as a result 

of a larger than expected rise in the price of 

timber or smaller (in terms of volume) steam deliveries 

to third parties. On the other hand, there 

are opportunities from a further improvement 

in our own wood procurement, the stabilisation 

of procurement costs, and higher payments for 

cogenerated electricity. 

Wholesale Energy Trading: The value of the 

portfolios in own-account trading and portfolio 

management is subject to an electricity- and 

gas-price risk arising from open positions. 

The prices of heating contracts – and also the 

bilateral medium-term gas contracts – are tied to 

the price of oil, resulting in an oil price risk for 

the company. The methods used for the day-today 

monitoring of the market risk to the open 

positions in the individual portfolios include a 

value-at-risk approach and different scenario 

calculations and stress tests. 

Credit risks: In energy trading, Stadtwerke 

Leipzig GmbH is primarily confronted with the 

credit risk. Another potential risk is that prices 

may change when energy deliveries have to be 

replaced or resold, e.g. if a supplier or customer 

defaults. A further risk arises from the loss of 

receivables outstanding if a trading partner 

becomes insolvent. 

To minimise such risks, every business or 

trading partner is assigned a credit limit using 

internal balance sheet and creditworthiness 

assessments or based on external credit ratings; 

compliance is monitored daily. Furthermore, the 

creditworthiness of trading partners is subject 

to permanent review. Standardised contracts 

of the European Federation of Energy Traders 

(EFET) are generally used to limit credit risks in 

off-board trading. 

Energy Marketing: Competition in district 

heating comes from substitutes such as heating 

oil and liquid gas. Since the gas market was 

liberalised in 2007, competition has increased 

considerably and has been developing much 

faster as a result of experience on the electricity 

market. Competition is expected to intensify in 

the future. Sales opportunities in the field of gas 

supplies for new buildings are lower due to the 

Renewable Energies Heat Act (EEWärmeG). 

Medium-sized business customers are reacting 

in an increasingly price-sensitive way. The 

related higher requirements demand an increasingly 

professional approach. In our dealings 

with business and private customers, we counter 

sales risks by active distribution and marketing 

activities. Newly designed products counter the 

restrictions on unilateral price changes in the 

electricity and gas field demanded by the courts. 






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3.2.4 Financial risks 

A liquidity risk is defined as the risk of being 

unable to meet one’s payment obligations on the 

due date. Financing risks essentially consist of 

the loan-prolongation risk and the financingcost 

risk caused by a worsening of the company’s 

credit standing. 

Stadtwerke Leipzig GmbH’s cash management 

is based on a rolling system of monthly liquidity 

planning for the following twelve months 

respectively. Liquidity planning is a component 

part of monthly corporate risk reporting. On 

31 December 2009, the amount of liquidity that 

was available to Stadtwerke Leipzig GmbH at 

short notice was several times larger than the internally 

laid-down minimum liquidity reserves. 

Financing risk: The financing of Stadtwerke 

Leipzig GmbH is based on compliance with 

covenants on the level of the Stadtwerke Leipzig 

Group, which are also influenced by the situation 

regarding the operating result. 

Price risks: The risk of price changes can come 

from fluctuations in exchange rates, interest 

rates or energy prices. Stadtwerke Leipzig 

GmbH uses derivative financial instruments to 

hedge against such price changes. 

Foreign-exchange risks: Stadtwerke Leipzig 

GmbH has hedged against the foreign-exchange 

risks related to an existing borrower’s note in 

US dollars by concluding a cross-currency swap 

over the entire term of the loan. In 2009, a crosscurrency 

swap was agreed for a euro-denominated 

financing package of the Polish subsidiary 

GPEC to hedge the foreign-exchange risks for 

GPEC. This hedging transaction was passed on 

to GPEC as an intragroup covering transaction. 

Interest rate risk: In line with our interest 

rate management, most of Stadtwerke Leipzig 

GmbH’s credit portfolio is subject to variable 

interest. The resultant risks of changes in interest 

rates are limited for a substantial part of the 

overall portfolio by transacting interest rate 

swaps and options. 

Risk of non-payment: In the case of financial 

derivatives, risks of non-payment by the contracting 

party amount to the positive fair values. 

Stadtwerke Leipzig GmbH hedges against these 

risks by spreading risk, i.e. by concluding derivative 

transactions with several first-class European 

financial institutions. Stadtwerke Leipzig 

GmbH’s Holdings Management systematically 

monitors our subsidiaries’ liquidity and profit 

development to protect the company against the 

risk of the non-payment of loans extended to 

subsidiaries. If risks emerge, we counter them 

in good time by taking active restructuring 

measures. 


3.2.5 Personnel risks 

Personnel risks are caused mainly by fluctuation 

among employees in key positions. These risks 

are assessed by regular employee surveys and 

staff-appraisal interviews; they are reduced by 

systematic medium-term competency planning 

and staff development. Furthermore, a strategic 

core measure of staff development in the 

Stadtwerke Leipzig Group deals with personnel 

marketing and retention instruments. 

3.2.6 IT risks 

Availability risk: The failure of IT systems over 

a critical period of time can impair essential 

business processes and cause economic damage. 

Stadtwerke Leipzig protects itself from 

this risk by concluding agreements on availability 

with the operators of the IT systems in 

line with the importance of the respective IT 

system. Technical and organisational measures 

are regularly reviewed in consultation with the 

operators. 

Confidentiality risk: Stadtwerke Leipzig pro - 

cesses personal data in its IT systems, for example 

in the form of customer data. This data requires 

appropriate technical and organisational protection 

measures. These have been taken accordingly 

and are regularly reviewed. 

Integrity risk: Economic damage can be caused, 

for example, by the manipulation of data that 

is processed in IT systems. This risk can be 

precluded by effective authorisation concepts, 

among other methods. 

Overall, these risks are countered by regular 

investments in hardware and software, as well as 

complementary organisational measures. 

3.2.7 Production risks 

Stadtwerke Leipzig GmbH invests in and operates 

complex technical plants to promote its 

business development. The company’s use of 

technological production plants exposes it to 

risks of equipment failure and loss of output. 

Permanently maintaining the high quality 

standard of these plants and ensuring that they 

are operated by qualified members of staff is of 

key importance for Stadtwerke Leipzig GmbH. 

In order to avoid potential risks in this field, the 

members of staff deployed there are integrated 

into a continuous training system to consolidate 

and extend their high level of qualification in 

the field of security-relevant measures. Furthermore, 

the effects of potential damage or loss are 

substantially limited by corresponding insurance 

policies. 






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3.2.8 Overall risk 

We are currently not aware of any risks that 

could prejudice the continued existence of 

Stadtwerke Leipzig GmbH. 

4 Forecast report 

4.1 Future economic conditions and industry outlook 

Climate protection at the focus of political 

debate: The future development of general 

energy policies will significantly impact on the 

further development of the energy industry. The 

German government’s energy plan for 2010 aims 

to lay the foundations for a clean, reliable and 

affordable energy supply. In particular, it is not 

yet clear what effects the proposed extensions of 

the service lives of nuclear power stations will 

have on the structure of power generation and 

competition. 

In addition to the political objective of continuing 

resolutely expanding power generation using 

renewable energies and maintaining the unlimited 

priority of renewables as a power source, 

the amendment of the Renewable Energies 

Act (EEG) is to be brought forward by a year, 

putting it high on Germany’s political agenda. 

This will mean adjustments to the statutory feedin 

tariffs. 

Potential areas for emissions-reducing targets 

are becoming visible both in the heating market 

and in the design of energy-efficient buildings, 

and these will have an impact in the years to 

come. 

Subdued price development on the commodity 

markets: The current financial crisis and 

associated recession fears are curbing the prices 

of fuels, electricity and CO 2 and, at least in the 

short term, easing production costs in many 

sectors. In the long term, electricity prices can be 

expected to start rising again due to the development 

of the prices of fuels and CO 2 certificates 

and the continuing shortage of generation 

capacity. 

Balancing the extra costs caused by the Renewable 

Energies Act: With effect from 1 January 

2010, the Federal Government enacted an 

ordinance under the Renewable Energies Act 

(EEG) to replace the previous physical delivery 

of renewable electricity to power distributors 

with a system that simply reallocates the extra 

costs caused by the EEG via a redistribution 

mechanism. The idea now is that renewable 

energy purchased by the transmission system 

operators (TSOs) will be sold on the exchange. 

As a result, electricity suppliers no longer have 

to buy any more EEG power bands as from 

January 2010. Instead, the entire demand for 

electricity has to be purchased in the market. 

Instead of being obliged to purchase EEG 

power bands at the average EEG price, the 

electricity suppliers must pay a fixed EEG cost 

allocation in cents per kWh. The allocation 

for the following calendar year must be fixed 

by the TSOs by the 31 October each year. The 


allocation for 2010 has been set at 2.047 cents 

per kWh. 

Nationwide use of system charges remain 

subject to change: The use of system charges for 

2009 were higher than in 2008 on average. Many 

distribution network operators (DNOs) have appealed 

against the fixed revenue ceiling, so that 

the reported use of system charges might be subject 

to a back-dated increase. The use of system 

charges for the upstream networks, e.g. transmission 

systems, have not yet been adjusted. The 

DNOs are being asked to create ways of passing 

on the expected higher costs to the network users 

either retroactively or on an accrual basis. 

4.2 Future development of business conditions 

The current situation on the financial markets 

could impact on Stadtwerke Leipzig GmbH’s 

corporate development. Up to now, the capital 

market has recognised Stadtwerke Leipzig 

GmbH as a modern energy service provider. If 

the banks continue their extremely restrictive 

lending policy because of the financial market 

crisis, we will have to consider adjusting our 

financing structure in 2010. This could then 

lead to shifts in investment in new plant and 

equipment. 

4.2.1 Trading segment 

Energy Marketing: The “City East Redevelopment 

Scheme”, the demographic development 

of Germany’s population, and, not least, the 

consequences of climate change will exert a considerable 

influence on the development of profits 

from the Leipzig heating market. In order to 

ensure positive long-term heating results, more 

connections are again being added to the district 

heating network in 2010; this is being complemented 

by the extension of the network in 

Leipzig-Plagwitz and in the Waldstrasse district. 

The target in this context is an output of 18.7 

MW. The price of the Wärme21.komfort product 

will again be virtually stable in 2010 compared to 

2009. The products Wärme21.klas sik (condensing 

gas boiler) and Wärme21.klima (gas plus renewable 

energies) are being developed in 2010 to 

further develop the heating network. 

The keener price competition for private and 

commercial customers from the many discounters 

in the electricity market will lead to an increase 

in customer fluctuation in Leipzig. However, 

the liberalised electricity market also offers 

distribution opportunities in the nationwide 

retail business with small- and medium-sized 

enterprises. The needs-oriented products are 

marketed via a network of distribution partners 

which is controlled by regional managers. 

Wholesale Energy Trading: Wholesale Energy 

Trading has developed competitive advantages 

on the basis of an extensive and innovative 

product portfolio for wholesale customers. We 

are making the most of growth opportunities 

that have emerged since the liberalisation of the 

gas market by establishing and developing gas 

trading, gas portfolio management and whole- 






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sale distribution. Further growth potential can 

be tapped by expanding our range of services. 

This will mean in particular developing delivery 

management, marketing power station capacity, 

the plant management of power generation 

plants belonging to third parties, and balancearea 

and schedule management for other 

suppliers. 

Energy Trading is also focusing on gas spot and 

futures trading on the Dutch TTF (Title Transfer 

Facility) trading point; we are applying for 

admission in 2010. 

Generation: EuKG has a contractually agreed 

right to offer the gas and steam turbine plant 

(which it owns) for sale to Stadtwerke Leipzig at 

a fixed price on 31 December 2010. At present 

it can be assumed that EuKG will exercise its 

option to sell. Stadtwerke Leipzig GmbH is currently 

analysing the various options for financing 

the purchase of the gas and steam turbine 

plant. 

We plan to upgrade gas turbine GT 82 at the gas 

and steam turbine plant in 2010. The aim is to 

secure an economical long-term operation of the 

power station; the investment measure will to 

some extent raise the level of efficiency and thus 

reduce the specific costs of heat generation. 

The investment in new generation plant planned 

for 2010 aims to help hedge the sales and trading 

positions of Energy Trading by achieving a 

corresponding level and flexibility of installed 

output. These investments will be linked to the 

development of the sales portfolio and make a 

lasting contribution to minimising risks and ensuring 

the independence of our energy procurement. 

Studies for initial concrete projects were 

conducted in 2009, including the possibility of 

buying shares in existing power stations. 

4.2.2 Networks segment 

The Federal Network Agency (Bundesnetzagentur, 

BNetzA) fixed Stadtwerke Leipzig Netz 

GmbH’s electricity revenue ceilings for the 

years 2009 to 2013 in its administrative decision 

dated 5 February 2009. The individual efficiency 

figure determined by the BNetzA is above the 

industry average. The Land (regional) Regulatory 

Authority informed the company about the 

gas revenue ceilings for the years 2009 to 2012 

in an administrative decision dated 9 February 

2009. Here, too, the individual efficiency figure is 

above the industry average. The revenue ceilings 

took into account certain peculiarities that affect 

Leipzig, such as the cost of replacing the crumbling 

grey cast-iron mains. 

The legality of the levy on additional revenues up 

until the issue of the first notices on the approval 

of prices has been confirmed by the judgement 

by the Federal Supreme Court (BGH). 

Implementing this levy, Stadtwerke Leipzig has 

decided to accept the package offer made by the 

BNetzA and to pay the levy in 2010. Now that 

the application for the consideration of an expansion 

factor in the electricity field in 2009 has 

been approved, the costs of expansion measures 

can be deducted from the revenue ceilings for 

the years 2010 to 2013. A new cost audit will be 

conducted and a new efficiency figure determined 

for the second regulation period. On the 

basis of the experience gathered by the BNetzA 

in the first regulation period, this figure is expected 

to turn out lower. The renewed recognition 

of special structural characteristics is also 

uncertain. As a result, we expect the permitted 

revenues to be lower, leading to a corresponding 


fall in profits. The introduction of a quality element 

in incentive-based regulation planned by 

the BNetzA in the electricity field (probably on 

1 January 2011) will exert an additional influence 

on the revenue ceiling and thus on the profits of 

Stadtwerke Leipzig Netz. Nevertheless, a stable 

profit contribution from the Networks segment 

is expected in 2010. 

FWNL holds a right to offer the district heating 

network (which it owns) for sale to Stadtwerke 

Leipzig. Under this right, FWNL is entitled to 

sell the district heating network to Stadtwerke 

Leipzig GmbH on 30 June 2010. At present it can 

be assumed that FWNL will exercise its option 

to sell. Stadtwerke Leipzig GmbH is currently 

analysing the various possibilities for financing 

the purchase of the district heating network. 

4.2.3 Services segment 

Energy-Related Services: Innovative technologies 

in the field of multiple media contracting 

(heating, refrigeration, compressed air, light) 

have tapped into a market that will in future support 

profitable investments in concrete projects. 

In the market for renewable energies, a profitable 

biogas plant erected in a joint venture has 

formed the basis for the construction of further 

biogas plants. An additional growth opportunity 

for the Energy-Related Services business unit lies 

in combining contracting projects with the use 

of renewable energies. We expect projects relating 

to the biogas programme to be developed 

and prepared in 2010. 

Holdings: Telecommunications, information 

technology and accounting are at the focus of 

our Holdings business unit. These fields have 

the advantage of being closely linked to Stadtwerke 

Leipzig GmbH’s business units; they 

therefore meaningfully complement the value 

chain of a multi-utility energy service provider. 

The development in the individual subsidiaries 

will lead in 2010 to a temporary decline in the 

income from the holdings in the business unit. 

This development will be largely determined by 

the planned development of the FTTx network 

by HL komm. 

Pomerania: In the Pomerania business unit, 

Stadtwerke Leipzig GmbH has been consistently 

implementing measures aimed at successfully 

seeking access to the Polish district heating and 

services market, as well as the strategic core 

measures derived from them. In this way we 

have taken a decisive step towards stabilising 

our portfolio of holdings in the dynamic growth 

market of Pomerania and laid the foundations 

for improving profitability, raising market share 

and securing the long-term heating supply 

infrastructure. Rising investment earnings are 

expected in 2010, essentially as a result of the 

process of growth and consolidation of the company 

GPEC in Gdańsk. 






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4.3 General statement on future development – Corporate outlook 

Stadtwerke Leipzig GmbH has long-since established 

itself as a major energy service provider 

in the region. The aim for the future is to further 

consolidate and gradually expand this position 

in the liberalised and increasingly competitive 

energy market. As an environment-oriented 

company, Stadtwerke Leipzig will remain committed 

to climate protection and energy efficiency 

in the future. 

The uncertain overall conditions – relating to 

economic, regulatory and competitive developments 

– make a well-founded forecast very difficult. 

For example, Stadtwerke Leipzig is highly 

dependent on developments in the volatile energy 

markets and the price level on the markets; 

the company therefore sets high standards when 

it comes to its sales and procurement strategy. 

The statements in this management report 

reflect the current state of knowledge and are 

based on the information that is available. 

On-balance sheet investments totalling €181 million 

are planned for 2010. The volume of investment 

mentioned also includes the repayment 

of the long-term fund financing of the EuKG 

amounting to €110 million. The fund financing 

company FWNL is to be restructured in 2010. 

One financing option being examined in this 

context is operational leasing. Investments in addition 

to these are an important building block 

for securing the company’s long-term income 

situation. 

Among the investment planned is the expansion 

of generation capacity and the lengthening of 

the value chain through participation in a gas 

mining company. These projects will require 

large volumes of investment in 2010 and the 

following years. Stadtwerke Leipzig will borrow 

long-term funds to finance them, while complying 

with financial ratios. 

The crisis on the capital market has created a 

general financing risk which could, in principle, 

also impact on Stadtwerke Leipzig, especially on 

maturity periods, terms and conditions. 

The City of Leipzig has made a clear commitment 

to the municipally-owned companies of 

the LVV Group and hedged against the risks 

from the financial transactions of Kommunale 

Wasserwerke Leipzig GmbH, Leipzig, with a 

statement on capital endowment. No effect on 

the operational economic development of Stadtwerke 

Leipzig is therefore to be expected from 

these transactions. 

On the basis of current medium-term planning, 

Stadtwerke Leipzig GmbH’s target for 2010 is 

a Net income before profit transfer of at least 

€46 million. In addition, the expectations on 

the prospective development of profits in the 

subsequent years will be re-adjusted in the first 

quarter of 2010. The aim for the 2011 financial 

year will be an adequate profit development. 

Leipzig, 31 March 2010 

The Management 

Thomas Prauße 

Raimund Otto 


Balance sheet – assets 

[€ k] 

Number in Notes 31 Dec. 2009 31 Dec. 2008 

FIXED ASSETS 

I. Intangible assets 7,330 8,713 

Land access rights, licences and software 

II. Tangible assets 250,030 276,909 

1. Real estate, rights equivalent to real estate, and buildings 

including buildings on third-party land 70,414 79,653 

2. Technical equipment and machines 165,822 174,906 

3. Other equipment, factory and office equipment 3,616 3,616 

4. Payments on account and assets under construction 10,178 18,734 

III. Financial assets [1] 323,728 342,626 

1. Shares in affiliated companies 193,969 248,095 

2. Loans to affiliated companies 114,632 93,754 

3. Associated undertakings 10,629 202 

4. Loans to associated undertakings 3,903 – 

5. Other loans 483 575 

6. Payments on account for financial assets 112 – 

Total fixed assets 581,088 628,248 

CURRENT ASSETS 

I. Inventories [2] 13,274 16,479 

1. Raw materials and supplies 11,948 12,329 

2. Work in progress 1,326 4,150 

II. Receivables and other assets [3] 181,869 246,935 

1. Trade debtors 81,033 125,375 

– of which with a remaining term of more than one year €0k (2008: €0k) 

2. Receivables from affiliated companies 45,017 64,185 


3. Receivables from associated undertakings 5,178 9,493 


4. Other assets 50,641 47,882 

– of which with a remaining term of more than one year €2,068k (2008: €2,248k) 

III. Securities 

Other securities 163 163 

IV. Cheques, cash at bank and in hand 127,180 13,202 

Total current assets 322,486 276,779 

PREPAID EXPENSES [4] 3,006 1,913 

Balance sheet total, assets 906,580 906,940 




Annual financial statements 

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Balance sheet – equity and liabilities 

[€ k] 

Number in Notes 31 Dec. 2009 31 Dec.2008 

EQUITY [5] 250,029 250,015 

I. Subscribed capital 22,000 22,000 

II. Capital reserve 184,411 184,397 

III. Revenue reserves 43,618 43,618 

IV. Net income – – 

SPECIAL ITEMS 67,761 74,091 

1. Special item with partial reserve character [6] 13,839 15,573 

2. Special item for fixed assets 5,.628 6,563 

3. Special item for building cost subsidies 48,294 51,955 

PROVISIONS [7] 159,641 186,156 

1. Provisions for pensions and similar obligations 13,902 14,341 

2. Provisions for taxation 124 138 

3. Other provisions 145,615 171,677 

LIABILITIES [8] 428,914 396,466 

1. Bank loans and overdrafts 262,544 247,662 

– of which with a remaining term of up to one year €8,982k (2008: €8,406k) 

2. Payments received on account of orders 674 1,047 

– of which with a remaining term of up to one year €674k (2008: €1,047k) 

3. Trade creditors 69,302 74,665 


4. Amounts owed to affiliated companies 74,279 49,764 


5. Amounts owed to associated untertakings – 5,226 

– of which with a remaining term of up to one year €0k (2008: €5,226k) 

6. Other liabilities 22,115 18,102 


– of which tax liabilities €7,219k (2008: €7,627k) 

– of which social security liabilities €0k (2008: €0k) 

DEFERRED INCOME 235 212 

Balance sheet total, liabilities 906,580 906,940 


Profit and loss acount 

[€ k] 

Number in Notes 2009 2008 

1. Turnover [9] 2,812,375 2,946,419 

Turnover without wholesale energy trading 640,234 600,701 

Wholesale energy trading turnover 2,172,141 2,345,718 

2. Increase/reduction in work in progress –2,824 1,852 

3. Other internally produced and capitalised assets 940 801 

4. Other operating income [10] 83,476 80,514 

5. Cost of materials [11] –2,627,822 –2,804,523 

a) Costs of raw materials and supplies and purchased goods –2,584,714 –2,760,660 

b) Cost of purchased services –43,108 –43,863 

6. Staff costs –65,323 –59,411 

a) Wages and salaries –55,067 –49,348 

b) Social security costs, expenditure on old-age pensions 

and other benefits –10,256 –10,063 

– of which on old-age pensions €1,633k (2008: €1,499k) 

7. Amortisation of intangible and tangible fixed assets [12] –39,421 –22,970 

8. Other operating expenses [13] –101,880 –105,532 

9. Income from holdings 522 816 

– of which from affiliated companies €487k (2008: €561k) 

10. Income from profit/loss transfer agreements 16,068 19,854 

11. Income from long-term financial investments 5,385 4,087 

– of which from affiliated companies €5,194k (2008: €4,048k) 

12. Other interest earned and similar income 8,225 6,386 

– of which from affiliated companies €1,741k (2008: €1,741k) 

13. Write-down of financial assets and marketable securities [14] –936 –2,531 

14. Interest and related expenses –18,224 –22,811 

– of which to affiliated companies €198k (2008: €712k) 

15. Expenses associated with transfer of losses [15] –10,849 –7,360 

16. Profit or loss on ordinary activities 59,712 35,591 

17. Extraordinary profit or loss [16] 594 – 

18. Profit transfer –60,306 –35,591 

19. Net income – – 




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[€ k] 

2009 2008 

Net earnings before profit transfer 59,712 35,591 

Depreciation (+)/reinstated depreciation (–) of tangible/intangible assets 39,421 22,955 

Write-down (+)/write-up (–) of financial assets 936 2,531 

Increase (+)/reduction (–) in pension provisions –439 –396 

Increase (+)/reduction (–) in other long-term provisions –19,345 17,679 

Increase (+)/reduction (–) in special items –8,055 –10,032 

Losses (+)/profits (–) from disposals of fixed assets –224 –2,294 

Cash flows from business operations 72,006 66,034 

Increase (+)/reduction (–) in provisions for taxation –14 –282 

Increase (+)/reduction (–) in other short-term provisions –6,717 13,100 

Reduction (+)/increase (–) in inventories 3,205 –4,888 

Reduction (+)/increase (–) in trade debtors 44,342 –25,417 

Reduction (+)/increase (–) in receivables from affiliated companies 21,919 –12,969 

Reduction (+)/increase (–) in receivables from associated undertakings 4,315 –3,314 

Reduction (+)/increase (–) in other assets 14,645 –16,400 

Increase (+)/reduction (–) in trade creditors –5,393 2,051 

Increase (+)/reduction (–) in liabilities for advance payments received –373 521 

Increase (+)/reduction (–) in amounts owed to associated undertakings –5,226 4,857 

Increase (+)/reduction (–) in amounts owed to affiliated companies 12,001 –7,068 

Increase (+)/reduction (–) in amounts owed to Other liabilities 4,014 1,628 

Extraordinary other expenses (+)/income (–) with no cash effect –1,072 –873 

Change in the working capital 85,646 –49,054 

Cash flows from operating activities 157,652 16,980 

(+) Sales revenues/income from the disposal of fixed assets 843 10,185 

(–) Investment in tangible fixed assets –10,558 –16,016 

(–) Investment in intangible fixed assets –1,185 –2,034 

(–) Investment in financial assets (not including loans) –12,373 –2,491 

(–) Investment in financial assets (only loans) –6,864 –17,093 

(+) Increase in loans repaid and receipts from financial assets 12,458 8,741 

(+) Other receipts, transfers to Special item for building cost subsidies 1,725 1,450 

Cash flows from investing activities –15,954 –17,258 

Increase (+)/reduction (–) in capital 14 – 

(–) Payment to the shareholder –37,591 –45,272 

(+) Borrowing from banks 20,000 – 

(+) Increase in borrowing in the cash pool – 24,781 

Loans received 20,000 24,781 

(–) Repayments to banks –5,118 –5,957 

(–) Repayments by the cash pool –10,139 – 

Payments relating to the repayment of loans –15,257 –5,957 

Cash flows from financing activities –32,834 –26,448 

= Net change in financial resources 108,864 –26,726 

(+) Change in financial resources caused by merger 606 – 

(+) Financial resources at beginning of period 25,691 52,417 

= Financial resources at end of period 135,161 25,691 

Composition of financial resources 

Securities 163 163 

Cash in hand 127,181 13,202 

Cash-pool balances 7,817 12,326 

Financial resources at end of period 135,161 25,691 


1 General remarks 

The regulations of the German Commercial 

Code (HGB) and the relevant regulations of the 

German Limited Liability Company Act (GmbHG) 

and the DM Balance Sheet Act (DMBilG) were 

used in the preparation of the annual financial 

statements of Stadtwerke Leipzig GmbH (abbreviated 

here to “the GmbH”). 

The items in the balance sheet and the profit 

and loss account have been summarised to make 

the presentation clearer. These items are broken 

down and explained in the following. 

The “total cost” type of short-term results accounting 

was chosen as the format for the profit 

and loss account. 

The annual financial statements of the GmbH 

are incorporated into the consolidated financial 

statements of its parent company – LVV Leipziger 

Versorgungs- und Verkehrsgesellschaft 

mbH, Leipzig (LVV) – which are published in 

the Electronic Federal Gazette. 

The financing companies SWL Anlagenvermögensverwaltungs 

GmbH (AVV) and SWL 

Kapitalvermögensverwaltungs GmbH (KVV) 

were merged with Stadtwerke Leipzig GmbH 

with retroactive effect from 1 January 2009. 

As a result, Stadtwerke Leipzig GmbH is the 

legal successor of AVV and KVV in all existing 

contracts. 

In contrast to previous years, the voluntary posting 

of notional taxes on corporate income and 

business profits has been discontinued in the 

present annual financial statements. The previous 

year’s statement was adjusted in this point. 

2 Accounting and valuation methods 

2.1 Assets 

Fixed assets 

Purchased intangible assets and tangible fixed 

assets are valued at acquisition or production 

cost minus regular and unscheduled depreciation. 

The production costs of assets constructed 

by the company for its own use include not 

only direct costs, but also appropriate overhead 

(without interest paid on borrowings). Real 

estate additions within the meaning of the Assets 

Allocation Act (Vermögenszuordnungsgesetz) 

are shown on the balance sheet at a flat rate land 

value. 

Fixed assets taken over free of charge were 

reported in previous years at their fair market 

value on the date of transfer. 

Most regular depreciation is carried out on a 

straight-line basis over the asset’s useful life and 

using the highest rates permissible under tax 

law. Assets purchased in the course of the year 

are written off pro rata temporis. Low-value 

assets in the fiscal sense are included in a collective 

item at acquisition or production costs of 





Notes to the financial statements of Stadtwerke Leipzig GmbH 

General remarks 


Notes to the balance sheet 

Notes to the profi t and loss account 

Other information 

Movements in fi xed assets 

Audit certifi cate 


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between €150 und €1,000 per asset. One fifth of 

the collective item is released, reducing profit, in 

the financial year in which it was formed and the 

following four financial years respectively (pursuant 

to section 6 subsection 2a of the Income 

Tax Act [EStG]). 

€2,741k of the unscheduled depreciation in the 

2009 financial year related to non-necessary real 

estate and buildings belonging to the company. 

Depreciation requirements were mostly determined 

on the basis of expert opinions. 

A further €5,959k of unscheduled depreciation 

related to buildings of the biomass power station 

at Bischofferode. The depreciation volume 

was determined with the help of a net present 

value model, which took account of all expected 

future cash flows relating to the project in 

Bischofferode. 

A further €7,474k of unscheduled depreciation 

related to buildings and outside facilities of the 

biomass cogeneration power station at Piesteritz. 

A net present value model was used here, too, as 

in the case of the project in Bischofferode. 

Financial assets are stated at acquisition cost. 

Shares in foreign companies are translated at the 

current exchange rate that applied on the date of 

the transaction. Interest-free loans are shown on 

the balance sheet at their present value. Where 

necessary, items were written down to lower fair 

value on the balance sheet date. 

Current assets 

All raw materials and supplies are reported at 

average cost prices, applying the principle of the 

lower of cost or market. 

Emission certificates allocated free of charge are 

posted under Inventories at the memo value. 

Purchased emission certificates are shown on the 

balance sheet under Inventories at acquisition 

cost. Where necessary, items were written down 

to the lower fair value on the balance sheet date. 

Work in progress is valued loss-free at production 

cost. 

Receivables and other assets are valued at their 

nominal value. Recognisable risks are taken into 

account by making appropriate write-downs. 

Itemised general bad debt provisions were made 

according to the age structure of the receivables 

to cover general non-payment risks. Furthermore, 

a general bad debt provision of 1% was 

made to cover general credit risks. Under 

receivables from gas, electricity and district heating 

supplied, received payments on account were 

set off against our customers’ deferred consumption 

that has not yet been read. 

Taking section 246 subsection 2 of the HGB into 

consideration, receivables and liabilities were 

netted out where netting contracts had been 

agreed with wholesale trading partners. 

The Other assets include, among other items, 

financial derivatives that must be shown on the 


alance sheet. See the information provided 

on financial derivatives for more details on the 

valuation of interest rate options shown on the 

balance sheet (point 3). 

Cash resources (cheques, cash at bank and 

in hand) are shown at their nominal value. 

Amounts in foreign exchange are translated at 

the exchange rate on the reporting date or at 

their current fair value, whichever is lower. 

Prepaid expenses 

Prepaid expenses include expenses paid before 

the balance sheet date if they cause work for a 

certain time after this date. 

2.2 Equity and liabilities 

Equity capital 

The subscribed capital is reported at its nominal 

value. The retained earnings contain the special 

reserves pursuant to section 27 subsection 2 of 

DMBilG. 

Special items 

The Special item with partial reserve character 

is released to income according to plan. The 

Special item is always released to income at the 

end of each preferential period on a straight-line 

basis, either for the remaining useful life of the 

fixed asset or on retirement of the subsidised 

fixed assets. Release begins at the latest, however, 

when the sum of total regular depreciation 

and special depreciation exceeds the amount of 

the original and production cost. 

Capital investment grants and bonuses are 

shown under Liabilities as a Special item for 

fixed assets. Capital investment grants are fully 

released to income, either over the useful life 

of the fixed assets or on their retirement. The 

release of the capital investment bonuses to income 

is based on the across-the-board assumption 

of a twenty-year useful life. 

The annual release of the Special item for building 

cost subsidies amounts to 5% for building 

cost subsidies received up to 31 December 2002. 

Building cost subsidies received after 1 January 

2003 are released over the useful life of the 

subsidised assets. 














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Provisions 

Selected provisions for staff as well as provisions 

for pensions and similar obligations are 

formed on the basis of actuarial expert opinions 

according to the going-concern-value method 

at an interest rate of 5.5% and 6% respectively. 

The computation of the going-concern values is 

based on the 2005 G guideline tables compiled 

by Klaus Heubeck. 

The provision for the repurchase of the gas and 

steam turbine plant posted under Other provisions 

was valued with the help of a net present 

value model which took account of all receipts 

and payments relating to the purchase and 

future operation of the plant. 

Other provisions includes the emission certificates 

allocated free of charge, which are posted at 

the memo value. In order to meet the obligation 

to return the certificates, a provision amounting 

to the acquisition cost or the market value 

on the balance sheet date of the certificates to be 

used was formed for the additional certificates 

required. 

Recognisable risks and uncertain obligations 

are taken into account in the determination of 

Other provisions. 

Liabilities 

Liabilities are reported at their repayment 

value. 

Deferred income 

Deferred income includes income received 

before the balance sheet date if it continues to 

represent revenue for a certain time after this 

date. 


3 Notes to the balance sheet 

As a result of the merger of AVV and KVV with 

Stadtwerke Leipzig GmbH carried out in the 

2009 financial year, all contractual receivables 

and liabilities were eliminated or set off against 

each other. To illustrate these effects, last year’s 

figures in the balance sheet and the profit and 

loss account are shown in the following as 

though the merger had already taken place one 

year earlier: 

Merger of AVV and KVV with Stadtwerke Leipzig GmbH 

Balance sheet [€ m] 

Individual accounts 2008 

Stadtwerke 

Leipzig 


GmbH incl. 

Leipzig Consoli- AVV and 

GmbH KVV AVV Total dation KVV 

Intangible assets 8.7 – – 8.7 – 8.7 

Tangible assets 276.9 – – 276.9 – 276.9 

Financial assets 342.6 134.6 130.2 607.4 –257.5 349.9 

Total fixed assets 628.2 134.6 130.2 893.0 –257.5 635.5 

Inventories 16.5 – – 16.5 – 16.5 

Receivables and other assets 246.9 29.2 5.4 281.5 –51.9 229.6 

Securities 0.2 – – 0.2 – 0.2 

Cheques, cash at bank and in hand 13.2 – 0.6 13.8 – 13.8 

Total current assets 276.8 29.2 6.0 312.0 –51.9 260.1 

Prepaid expenses 1.9 – – 1.9 – 1.9 

Balance sheet total, assets 906.9 163.8 136.2 1,206.9 –309.4 897.5 

Equity capital 250.0 98.9 55.0 403.9 –153.8 250.1 

Special items 74.1 – – 74.1 – 74.1 

Provisions 186.2 – – 186.2 – 186.2 

Liabilities 396.4 64.9 81.2 542.5 –155.6 386.9 

Deferred income 0.2 – – 0.2 – 0.2 

Balance sheet total, liabilities 906.9 163.8 136.2 1,206.9 –309.4 897.5 














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Merger of AVV and KVV with Stadtwerke Leipzig GmbH 

Profit and loss account [€ m] 

Individual accounts 2008 




GmbH incl. 

Leipzig Consoli- AVV and 

GmbH KVV AVV Total dation KVV 

Turnover 2,946.4 – – 2,946.4 – 2,946.4 

Increase/reduction in work in progress 1.9 – – 1.9 – 1.9 

Other internally produced and capitalised assets 0.8 – – 0.8 – 0.8 

Other operating income 80.5 – – 80.5 – 80.5 

Cost of materials –2,804.5 – – –2,804.5 – –2,804.5 

Staff costs –59.4 – – –59.4 – –59.4 

Amortisation –23.0 – – –23.0 – –23.0 

Other operating expenses –105.5 –0.1 – –105.6 – –105.6 

Income from holdings 0.8 7.2 – 8.0 – 8.0 

Income from profit/loss transfer agreements 19.9 – – 19.9 –9.9 10.0 

Income from long-term financial investments 4.1 1.8 5.6 11.5 –5.8 5.7 

Other interest earned and similar income 6.4 1.1 0.2 7.7 –0.3 7.4 

Write-down of financial assets –2.5 – – –2.5 – –2.5 

Interest and related expenses –22.8 –2.5 –3.4 –28.7 6.1 –22.6 

Expenses associated with transfer of losses –7.4 – – –7.4 – –7.4 

Profit or loss on ordinary activities 35.7 7.5 2.4 45.6 –9.9 35.7 

Profit transfer –35.7 –7.5 –2.4 –45.6 9.9 –35.7 

Net income – – – – – – 

Fixed assets 

Changes in individual fixed asset items and 

depreciation in the financial year are shown in 

Stadtwerke Leipzig GmbH’s “Movements in the 

fixed assets in the 2009 financial year” schedule. 


[1] Financial assets 

On the balance sheet date, the GmbH had a share 

of at least 20% in the following undertakings: 

Affiliated companies 

Share Equity capital Profit/loss 

[as %] [€k] [€k] 

HL komm Telekommunikations GmbH, Leipzig (HL komm) 1 100.00 12,604 4,438 

perdata – Gesellschaft für Informationsverarbeitung mbH, Leipzig (perdata) 1 100.00 2,512 3,817 

ENDICO Sp. z o.o., Jelenia Góra, Poland (ENDICO) 4 100.00 2,036 –474 

Stadtwerke Leipzig Netz GmbH, Leipzig 1 100.00 1,009 –10,849 

Innvo Innovationsgesellschaft mbH & Co. KG, Leipzig (Innvo) 3 100.00 700 –1,240 

LAS GmbH, Leipzig (LAS) 1 100.00 499 876 

SWL Polska Sp. z o.o., Gdańsk, Poland (SWL Polska) 4 100.00 250 55 

SWL Beteiligungs GmbH, Leipzig 3 100.00 74 22 

GNL Gasnetz Leipzig GmbH, Leipzig 1 100.00 55 6,936 

Innvo Innovationsgesellschaft-Management mbH, Leipzig 3 100.00 30 1 

Zakład Energetyki Cieplnej Sp. z o.o., Tczew, Poland (ZEC Tczew) 4 99.85 4,646 301 

Zakład Energetyki Cieplnej “STAR-PEC” Sp. z o.o., Starogard-Gdański, 

Poland (STAR-PEC) 4 89.51 6,656 171 

Gdańskie Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o., Gdańsk, 

Poland (GPEC) 4 83.66 50,477 3,467 

PROMETHEUS – Gesellschaft für Erdgasanwendungsanlagen mbH, Leipzig 51.00 268 6 

Associated untertakings 

Share Equity capital Profit/loss 

[as %] [€k] [€k] 

Erdgasversorgung Industriepark Leipzig Nord GmbH, Leipzig (EVIL) 3 50.00 501 123 

Energy Services GmbH i. L., Leipzig 2 50.00 117 –5 

WABIO ® Biokraftwerk Managementgesellschaft mbH, Leipzig 3 50.00 25 –16 

Heizkraftwerk Eutritzscher Straße GmbH & Co. KG, Leipzig (EuKG) 3 25.16 –41,540 3,978 

1 

Net income/loss for the year before profit transfer 

2 

Deviating financial year and/or incomplete financial year 

3 

Annual financial statements for 2008 

4 

Conversion rate on the balance sheet date 

Stadtwerke Leipzig GmbH is a general partner 

of FWNL Fernwärmenetz Leipzig GmbH & Co. 

KG, Leipzig (FWNL). 

Pursuant to the existing general contractor and 

energy supply agreements with GNL Gasnetz 

Leipzig AG (GNL), FWNL and Heizkraftwerk 














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Eutritzscher Strasse GmbH & Co. KG (EuKG), 

Stadtwerke Leipzig GmbH provides investment 

services and sells them to the three companies. 

Stadtwerke Leipzig GmbH grants the companies 

long-term loans to finance these investment 

services. Up until the merger, these loans were 

extended via AVV. 

Current assets 

[2] Inventories 

Inventories on the balance sheet date include 

returnable emission certificates worth a total of 

359,432 tonnes of CO 2 that were allocated free 

of charge for the second trading period (2008- 

2012) with a market value on 31 December 2009 

of €4,547k. Inventories also contain emission 

certificates worth 306,372 tonnes of CO 2 with a 

market value of €3,836k that were purchased at 

acquisition cost. 

[3] Receivables and other assets 

The Trade debtors essentially contain invoices 

for sales of electricity, gas and district heating. 

€115,190k (in 2008: €163,582k) of these are 

receivables relating to energy consumption between 

the date of the last meter reading and the 

balance sheet date, which is charged to subsequent 

periods; these receivables were netted off 

against payments received on account amounting 

to €98,971 (in 2008: €128,349k). 

The Receivables from affiliated companies 

essentially consist of short-term receivables 

relating to trade debtors, turnover tax and cash 

pooling from affiliated companies (€23,481k), 

receivables from profit/loss transfer agreements 

(€16,068k), and receivables from the shareholder 

LVV amounting to €5,775k (of which from cash 

pooling: €5,475k). 

Receivables from associated undertakings 

consist mainly of Trade debtors from EuKG 

(€5,140k). 

Receivables and other assets include (among 

other items) receivables relating to not-yetdeductible 

tax prepayments amounting to 

€21,893k, a portfolio of receivables consisting 

of a large number of individual loans to limited 

partners of FWNL amounting to €14,750k, and 

the variation margin from EEX transactions 

totalling €7,147k. 

The Other assets include receivables with a remaining 

time to maturity of more than one year 

amounting to €2,068k (2008: €2,248k); these are 

essentially for insolvency-insurance credit balances 

relating to part-time employment schemes 

for older employees. 


[4] Prepaid expenses 

Prepaid expenses include a debt discount of 

€406k. It is released with effect on expenses during 

the terms of the respective loans, i.e. five or 

eight years. 

[5] Equity 

The subscribed capital totalled €22,000k on the 

balance sheet date. LVV held 100% of the shares. 

The change in the Capital reserve was the result 

of real estate additions pursuant to the allocation 

plan procedure. 

The profit on ordinary activities amounting to 

€60,306k is transferred in full to LVV on the basis 

of a profit/loss transfer agreement. In the year 

under review there was an advance transfer of 

€36,000k of profits towards the 2009 result. The 

remaining amount of €24,306k is posted under 

Amounts owed to affiliated companies for the 

year ended 31 December 2009. 

[6] Special items 

On 31 December 2009, €1,724k of the Special 

item with partial reserve character was released 

to income according to the regular schedule pursuant 

to section 4 of the Development Area Act 

(FördGG); €10k was released as a result of fixed 

asset retirement. 

The planned amount of the Special item for fixed 

assets (€936k) was released to income. 

The Special item for building cost subsidies 

included subsidies for connection costs amounting 

to €48,294k (in 2008: €51,955k). The planned 

amount of the Special item (€5,375k) was released 

to income in the year under review. There 

was also a fixed asset retirement amounting to 

€10k. The additions amounted to €1,725k in the 

financial year. 














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60 

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[7] Other provisions 

Provisions 

[€k] 

Amount 

1 Jan. 2009 Additions used Releases 31 Dec. 2009 

Provision for the repurchase of the gas and steam 

turbine generator 49,787 – – 9,826 39,961 

Outstanding invoices for procurement expenditure 40,179 16,211 35,017 3,880 17,493 

Obligations to clean up ecological damage 16,694 295 161 21 16,807 

Provisions relating to staff and former employees 12,157 9,146 5,732 335 15,236 

Provisions for compensation for property-secured 

rights to run lines across third-party properties 

pursuant to section 9 of the GBBerG 12,706 – 116 – 12,590 

Provisions made up of ineffective valuation units – 6,215 – – 6,215 

Franchise fees 6,479 6,054 6,244 146 6,143 

Provisions for the elimination of additional revenues 12,600 – 12,600 – – 

Other provisions 21,075 18,890 7,898 897 31,170 

Other provisions 171,677 56,811 67,768 15,105 145,615 

Provisions for pensions and similar obligations, 

Provisions for taxation and Other provisions 

amounting to €115,119k will fall due within one 

year. 

[8] Liabilities 

Liabilities 

[€k] 

Remaining term 

31 Dec. 2009 up to 1 year over 5 years 31 Dec. 2008 

1. Bank loans and overdrafts 262,544 8,982 13,268 247,662 

2. Payments received on account of orders 674 674 – 1,047 

3. Trade creditors 69,302 69,302 – 74,665 

4. Amounts owed to affiliated companies 74,279 74,279 – 49,764 

(of which to shareholder LVV) 25,980 25,980 1,649 

5. Amounts owed to associated undertakings – – – 5,226 

6. 6. Other liabilities 22,115 21,399 – 18,102 

Liabilities 428,914 174,636 13,268 396,466 


Charges on associated undertakings or simple 

negative declarations have been issued for Bank 

loans and overdrafts amounting to €141,206k. 

The foreign-exchange positions of the US private 

placement ($110 million) are secured against US 

dollar currency risks for the entire term. 

No collateral requiring endorsement was granted 

for any of the remaining liabilities. 

Amounts owed to affiliated companies essentially 

contain amounts owed to the shareholder 

LVV in connection with the transfer of profits 

(€24,306), trade creditors, turnover tax and 

other liabilities (€23,104k), liabilities related to 

cash pooling (€16,020k), and amounts owed to 

Stadtwerke Leipzig Netz GmbH in connection 

with the transfer of losses (€10,849k). 

The Other liabilities contain €7,218k (2008: 

€7,627k) in tax liabilities and debtors with credit 

balances amounting to €11,520k. 

Contingent liabilities and contingencies 

On 31 December 2009 there were two letters of 

comfort in favour of associated undertakings. 

They serve as collateral for bank loans and overdrafts 

amounting to €24,423k (2008: €26,123k). 

Furthermore, the company has joint and several 

liability for lines of credit of the LVV Group up 

to €61,000k (2008: €61,000k). €39,517k (2008: 

€28,724k) of these lines had been used by 31 December 

2009 and relate to affiliated companies. 

Other financial commitments 

Purchase commitments from orders placed 

totalled €4,587k on 31 December 2009 (2008: 

€4,402k). 

Commitments relating to tenancy agreements 

amounted to €4,092k (2008: €5,001k). 

Furthermore, there were operational leasing 

commitments worth €81,684k. The two signed 

leasing agreements involve commitments up 

until 2021 and 2024 respectively. Operational 

leasing serves to finance the existing biomass 

power stations. The liquidity that remains within 

the company as a result is used to implement 

further planned investment projects. 

Financial commitments based on third-party 

optional rights of tender of delivery totalled 

€251,422k (2008: €241,596k), of which 

€186,122k (2008: €186,122k) were vis-à-vis affiliated 

companies. Fund financing was chosen 

for the long-term financing of the network and 

generation plant in Leipzig. Financing companies 

were formed to this purpose. The plan is to 

repurchase the plant when the EuKG and FWNL 

financing funds expire according to schedule in 

2010. At the GNL shareholders’ meeting on 

25 January 2010, it was decided to suspend for 

the time being GNL’s rights arising from the 

agreement on rights of tender of delivery and 

rights of pre-emption vis-à-vis Stadtwerke Leipzig 

GmbH amounting to €97,065k. 














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56 

60 

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There are also obligations towards affiliated 

companies to pay uncalled capital contributions 

relating to GmbH shares amounting to 

€98k (2008: €1,109k), and commitments to pay 

limited-partner capital contributions amounting 

to €9,252k (2008: €1,485k). 

Furthermore, there are possible obligations visà-vis 

subsidiaries based on existing profit/loss 

transfer agreements amounting to €20,760k. 

Financial derivatives 

Interest rate and foreign-exchange derivative 

transactions are made to limit interest rate 

and foreign-exchange risks. We hedge against 

energy-price risks with commodity derivatives 

in the form of options, forwards and futures. 

On the balance sheet date the nominal volumes, 

fair values and book values of the existing financial 

derivatives were as follows: 

Financial derivatives 

[€k] 

Nominal volume Fair value Book value 

Assets Liabilities 

31 Dec. 2009 31 Dec. 2008 31 Dec. 2009 31 Dec. 2008 31 Dec. 2009 31 Dec. 2008 

Interest rate derivatives 471,777 646,893 –11,049 –15,019 829 7,289 

Interest rate swaps 310,777 530,893 –11,878 –16,342 – 6,215 

of which: receiver swaps 75,777 295,893 2,518 –6,020 – – 

of which: payer swaps 1 2 

235,000 235,000 –14,396 –10,322 – 6,215 

Interest rate options 161,000 116,000 829 1,323 829 1,074 

Foreign-exchange derivatives 121,183 98,151 –17,750 –11,212 – – 

Foreign-exchange futures – 6,101 – 285 – – 

Cross-currency swaps 1 121,183 92,050 –17,750 –11,497 – – 

Commodity derivatives 5,596,518 4,977,934 511 488 321 – 

1 

These derivatives serve as hedging instruments in valuation units 

2 

Ineffective part of the hedging relationship 

The nominal volume is the sum of all the 

amounts of capital on which the derivative financial 

transactions are based. 

The fair value of the receiver swap was determined 

on the basis of a present-value model 

using the interest-structure curve calculated 


as per the balance sheet on the basis of market 

parameters. In line with the realisation principle, 

the positive market value was not posted on the 

balance sheet. 

The payer swaps are parts of a macro hedge 

that has been formed to hedge against interest 

rate risks. The designated underlying transactions 

were variable-interest leasing agreements, 

currently contracted variable-interest loans, 

and highly probable future follow-up financing 

arrangements that will also include a variable 

interest component. The market value of the 

underlying transactions, which was calculated 

using the hypothetical derivative method, 

amounted to €8,180k on the balance sheet date. 

The ineffective part of the hedging relationship 

(€6,215k), which was calculated by contrasting 

the market values of the underlying and hedging 

transactions, was taken into account in the form 

of a provision as per 31 December 2009. The fair 

values of the payer swaps and the underlying 

transactions were determined on the basis of a 

present-value model using the interest-structure 

curve calculated as per the balance sheet date on 

the basis of market parameters. 

The swaptions posted under interest rate options 

are capitalised at the time of acquisition as Other 

assets at acquisition cost (= option premium to 

be paid) and written off to the positive fair value 

on the balance sheet date 31 December 2009. 

Because their market value is zero, the caps 

are capitalised with a pro memoria item. If the 

premiums for the interest rate options are paid 

pro rata temporis, the outstanding payments are 

shown on the balance sheet separately under 

Other liabilities and have not affected the fair 

value. The fair values on the balance sheet date 

are determined on the basis of a generally recognised 

option-price model. 

The fair values of the foreign-exchange futures 

transactions and the cross-currency swaps were 

determined on the basis of the exchange rates on 

the balance sheet date, taking into account forward 

premiums/discounts using a present-value 

model. Each of the cross-currency swaps is part 

of micro hedges whose underlying and hedging 

transactions match in terms of the value-determining 

components, volumes and terms (criticalterm 

match). Accordingly, the cross-currency 

swaps were not posted on the balance sheet. 

The nominal volume of the commodity derivatives 

corresponds to the additive value of all 

agreed purchase (€2,796 million; 2008: €2,488 

million) and selling agreements (€2,800 million; 

2008: €2,490 million) for future delivery periods 

in the commodities electricity, gas and emission 

certificates. In the case of non-contingent 

commodity derivatives (forwards and futures) 

purchased for the purpose of own-account trading, 

balance sheet treatment follows the principles 

of portfolio hedging. The purchase and sale 

contracts are pooled separately by media and 

terms into sub-portfolios and the market values 

of the contracts added up. If this calculation 

leads to a negative market value, this is posted as 

a provision as per the balance sheet date. Positive 

market values are ignored on the basis of the realisation 

principle. No provisions were carried as 

liabilities on 31 December 2009. The fair values 

were determined at market prices on the balance 

sheet date based on externally recognised sources, 

e.g. the official closing prices on the European 

Energy Exchange AG, Leipzig (EEX). 









Notes to the profit and loss account 





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4 Notes to the profit and loss account 

[9] Turnover 

Turnover 

[€k] 

2009 2008 

Retail electricity business (gross) 298,170 285,082 

Electricity tax –32,595 –33,181 

Retail electricity business (net) 265,575 251,901 

Gas retail business 98,014 99,223 

Natural gas tax –8,118 –8,745 

Retail gas business (net) 89,896 90,478 

District heating retail business 129,134 110,272 

Wholesale electricity trading (gross) 2,041,118 2,193,735 

Electricity tax –141 –237 

Wholesale electricity trading (net) 2,040,977 2,193,498 

Wholesale gas trading (gross) 143,267 164,405 

Natural gas tax –12,104 –12,185 

Wholesale gas trading (net) 131,163 152,220 

Income from power stations 59,551 65,998 

Service charges to EuKG 15,291 15,750 

Credit entry for avoided network costs 1 10,308 8,116 

Subtotal: Trading segment 2,741,895 2,888,233 

Charges for services 54,790 44,532 

Income from building cost subsidies 5,937 5,605 

Income from heating stations –11 27 

Subtotal: Networks segment 60,716 50,164 

Energy-related services for contracting 2 3,415 2,687 

Subtotal: Services segment 3,415 2,687 

Other turnover 6,349 5,335 

Subtotal: Other turnover 6,349 5,335 

Turnover 2,812,375 2,946,419 

1 

The credit entry for avoided network costs was reallocated to the Trading segment (2008: Other turnover) according the proper allocation. Figures for 2008 were adjusted 

accordingly to ensure comparability. 

2 

Deviating from the previous year, in 2009 only energy-related services for contracting are shown in the Services segment. Other energy services are allocated to Other 

turnover. Figures for 2008 were adjusted accordingly to ensure comparability. 

The service charges in the Services segment 

include income from technical services rendered 

to Stadtwerke Leipzig Netz GmbH and plant 

management and maintenance services provided 

to the companies GNL und FWNL. 


Other turnover includes turnover unrelated to 

the accounting period amounting to €3,246k 

(2008: €1,770k). The turnover unrelated to the 

accounting period is the difference between deferred 

turnover for the year ended 31 December 

2008 and the invoiced turnover for the deferred 

period. 

[10] Other operating income 

Other operating income 

[€k] 

2009 2008 

Income from the release of provisions 15,202 8,154 

Release of allowance for doubtful debt 3,761 4,013 

Income from disposals of fixed assets 609 3,223 

Remaining income unrelated to the accounting period 2,906 3,556 

Subtotal: Income unrelated to the accounting period 22,478 18,946 

Release of Special item with partial reserve character 1,734 3,754 

Remaining other income 59,264 57,814 

Subtotal: Other income 60,998 61,568 

Other operating income 83,476 80,514 

The Remaining income unrelated to the accounting 

period is essentially made up of credit 

entries for energy purchases. 

Among other things, the Remaining other 

income includes income from the leasing of the 

electricity and gas network to Stadtwerke Leipzig 

Netz GmbH, income from on charging, rental 

income, and income from the release of Special 

items for capital investment bonuses and grants. 

[11] Cost of materials 

Costs of raw materials and supplies and costs 

of purchased goods include energy purchases 

amounting to €4,428k that are unrelated to the 

accounting period. 

which is charged to EuKG, GNL and FWNL, and 

expenditure based on the service contract with 

FWNL. 

The cost of purchased services in the 2009 

financial year essentially consisted of expenditure 

related to investment services, most of 









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[12] Amortisation 

In the 2009 financial year, unscheduled depreciation/amortisations 

amounted to €16,478k 

(2008: €15k). 

[13] Other operating expenses 

Other operating expenses 

[€k] 

2009 2008 

Elimination of additional revenues 1,754 12,600 

Taxes unrelated to the accounting period 1,230 1,898 

Remaining expenses unrelated to the accounting period 686 1,274 

Subtotal: Expenditure unrelated to the accounting period 3,670 15,772 

Franchise fees 20,109 20,419 

Expenditure on services and invoicing services 13,266 12,717 

Losses on receivables/Allowances for doubtful debt 7,855 12,076 

Expenditure on information technology 10,062 10,562 

Expenditure on customer care and marketing 4,714 5,305 

Remaining other expenditure 42,204 28,680 

Subtotal: Other expenditure 98,210 89,759 

Other operating expenses 101,880 105,531 

The Remaining expenses unrelated to the accounting 

period include losses from sales of 

fixed assets (€385k) and expenditure relating to 

the franchise fee in other accounting periods 

(€301k). 

Among other things, the Remaining other expenditure 

is made up of expenditure on auditing 

and consulting, expenditure on rent and leases 

for real estate and technical equipment, expenditure 

on legal costs, and Other taxes. 

[14] Write-down of financial assets 

The Write-down of financial assets essentially 

affects Innvo KG (€930k). 


[15] Expenses associated with transfer of losses 

On the basis of a profit/loss transfer agreement, 

the losses of Stadtwerke Leipzig Netz GmbH 

(€10,849k) were transferred to Stadtwerke Leipzig 

GmbH with effect on expenses. 

[16] Extraordinary profit or loss 

The Extraordinary profit or loss is made up of 

extraordinary income (€601k) and extraordinary 

expenditure (€7k). The income and expenditure 

stem from the merger of AVV and KVV with 

Stadtwerke Leipzig GmbH. 

5 Other information 

5.1 Special-purpose reserve pursuant to section 10 subsection 2 

of the Energy Industry Act (EnWG) 

In the course of the financial year, major business 

transactions were conducted with the following 

affiliated undertakings: 

Stadtwerke Leipzig Netz GmbH: 

– Income amounting to €132.3 million from the 

leasing of the electricity network, the maintenance 

of the electricity and gas networks, fees 

for fed-in cogenerated electricity, avoided use 

of system charges and other services 

– Expenses amounting to €138.3 million from 

use of system charges, expenditure on cogenerated 

electricity and other services 

LAS GmbH: 

– Expenses amounting to €12.3 million for 

invoicing services 

perdata – Gesellschaft für Informationsverarbeitung 

mbH: 

– Expenses amounting to €8.7 million for IT 

services 

FWNL: 

– Income from service charges and rental income 

totalling €15.4 million 

– Expenses amounting to €26.8 million for 

purchased services, essentially for capital costs 

and provision of staff 

EuKG: 

– Income amounting to €54.8 million from 

on charged purchased supplies and service 

charges 

– Expenses amounting to €68.5 million relating 

to energy supply contracts 

GNL: 

– Income amounting to €3.3 million from interest 

income for loans to financial assets and 

income from franchise fees 














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5.2 Annual average number of employees 

Annual average number of employees 

2009 2008 

Employees 1,068 1,063 

Trainees (incl. apprentices) 91 88 

Annual average number of employees total 1,159 1,151 

The GmbH employed a total of 1,158 staff 

on the balance sheet date including 94 trainees 

and apprentices. 

5.3 Management 

Dr Anke Tuschek (until 6 May 2009) 

Mr Thomas Nautsch – Interim Managing Di rector 

(from 7 May 2009 until 31 August 2009) 

Mr Thomas Prausse (since 1 September 2009) – 

Management Chairman 

Mr Raimund Otto 

5.4 Auditor’s fee 

Stadtwerke Leipzig GmbH is exempt from the 

obligation to publish the overall fee charged by 

the auditor, because this information is incorporated 

into the consolidated financial statements 

of its parent company – LVV Leipziger 

Versorgungs- und Verkehrsgesellschaft mbH, 

Leipzig (LVV) – and into the subgroup financial 

statements of Stadtwerke Leipzig. 


5.5 Members of the Supervisory Board 

Members of the Supervisory Board 

Function Profession 

Shareholders’ representatives 

Mr Uwe Albrecht Chairman Mayor 

Mr Josef Rahmen 2nd Vice-Chairman Managing director 

Mr Detlev Kruse 

Managing director 

Mr Alexander Achminow 

Managing director 

of a publishing house 

Mr Reiner Engelmann 

Teacher 

Ms Ingrid Glöckner 

Certified engineer 

Ms Ursula Grimm 

Mayor (rtd.) 

Ms Bettina Kudla until 30 Sept. 2009 Mayor 

Mr Gunter Müller 

Lawyer 

Mr Roland Quester 

Library manager 

Employees’ representatives 

Mr Rainer Hartmann 1st Vice-Chairman Works council member 

Mr Michael Eberhard 

Trade union secretary 

Ms Ines Jahn 


Mr Bernhard Krabiell 


Mr Peter Lintzel 

Head of department 

Mr Uwe Lübeck until 31 Aug. 2009 Works council member 

Mr Jürgen Mackott 

Senior fitter 

Mr Reinhard Mathiebe since 1 Sept. 2009 Certified engineer 

Mr Peter Reichenbach 

Master electrician 

Mr Udo Schieritz 

Works council member 

Mr Thomas Washeim 

Shift supervisor, 

gas and steam turbine plant 

The total remuneration for the members of the 

Supervisory Board amounted to €44k in the 

2009 financial year. 














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60 

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[17] Advances and loans to members of the Supervisory Board and contingencies 

to the credit of members of the Supervisory Board 

A loan extended to a member of the Supervisory 

Board in previous years was fully repaid by 

31 December 2009. 


The Management 

Thomas Prauße 

Raimund Otto 


Movements in fixed assets: GmbH – 1 January to 31 December 2009 

[€k] 

I. INTANGIBLE ASSETS 

Acquisitions and production cost 

Additions rela- 

Disposals rela- 

1 Jan. 2009 Additions ting to merger Disposals ting to merger Transfers 31 Dec. 2009 

Land access rights, licences, software 42,488 1,185 – 8 – 1,120 44,785 

II. TANGIBLE FIXED ASSETS 

1. Real estate, rights equivalent to real estate, 

and buildings including buildings 

on third-party land 119,074 1,407 – 31 – 9,023 129,473 

2. Technical equipment and machines 433,739 3,853 – 2,294 – 2,847 438,145 

3. Other equipment, factory and office equipment 18,229 802 – 462 – 41 18,610 

4. Payments on account and assets 

under construction 18,734 4,496 – 21 – –13,031 10,178 

589,776 10,558 – 2,808 – –1,120 596,406 

III. FINANCIAL ASSETS 

1. Shares in affiliated companies 256,204 1,943 98,142 33 153,248 – 203,008 

2. Loans to affiliated companies 93,754 5,930 105,598 11,803 78,840 –7 114,632 

3. Associated undertakings 455 10,429 – 2 – – 10,882 

4. Loans to associated undertakings 272 729 3,644 743 – 7 3,909 

5. Other loans 575 93 – 185 – – 483 

6. Payments on account for financial assets – 112 – – – – 112 

351,260 19,236 207,384 12,766 232,088 – 333,026 

Total fixed assets 983,524 30,979 207,384 15,582 232,088 – 974,217 











Movements in fixed assets 



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Cumulative depreciation 

Book values 

1 Jan. 2009 Additions Disposals Transfers Attributions 31 Dec. 2009 31 Dec. 2009 1 Jan. 2009 

33,775 3,688 8 – – 37,455 7,330 8,713 

39,421 19,643 5 – – 59,059 70,414 79,653 

258,833 15,267 1,777 – – 272,323 165,822 174,906 

14,613 823 442 – – 14,994 3,616 3,616 

– – – – – – 10,178 18,734 

312,867 35,733 2,224 – – 346,376 250,030 276,909 

8,109 930 – – – 9,039 193,969 248,095 

– – – – – – 114,632 93,754 

253 – – – – 253 10,629 202 

272 6 272 – – 6 3,903 – 

– – – – – – 483 575 

– – – – – – 112 – 

8,634 936 272 – – 9,298 323,728 342,626 

355,276 40,357 2,504 – – 393,129 581,088 628,248 


Audit certificate 

“We have carried out an audit on the annual 

financial statements (consisting of the balance 

sheet, the profit and loss account and the notes 

to the annual financial statements) including 

the accounting, and on the management report 

of Stadtwerke Leipzig GmbH, Leipzig, for the 

financial year from 1 January to 31 December 

2009. Pursuant to section 10 subsection 4 of the 

German Energy Industry Act [EnWG], the audit 

also included an examination of compliance 

with the unbundling obligations in the internal 

rendering of accounts pursuant to section 10 

subsection 3 of the EnWG. Accounting, the 

preparation of the annual financial statements 

and the management report pursuant to the 

regulations of German commercial law, and 

compliance with the obligations pursuant to 

section 10 subsection 3 of the EnWG are the responsibility 

of the company’s management. Our 

task is to issue an assessment, on the basis of our 

audit, of the annual financial statements including 

the accounting, the management report and 

the internal rendering of accounts pursuant to 

section 10 subsection 3 of the EnWG. 

We performed our audit of the annual financial 

statements pursuant to section 317 of the (German) 

Commercial Code [HGB] and in accordance 

with the German principles on the orderly 

auditing of annual accounts issued by the (German) 

Institute of Chartered Accountants [IDW], 

according to which an audit must be planned 

and executed in such a way as to obtain reasonable 

assurance that any mistakes or infringements 

that seriously affect the view of the net worth, 

financial position and income situation presented 

by the annual financial statements according 

to the principles of orderly accounting, and by 

the management report, will be recognized, and 

to obtain reasonable assurance that the obligations 

pursuant to section 10 subsection 3 of the 

EnWG have been met in all essential aspects. In 

planning the audit, knowledge of the company’s 

business operations, economic circumstances 

and legal situation are taken into account, as are 

expectations of possible errors. In the course 

of the audit, the effectiveness of the internal 

accounting-control system and evidence backing 

up information given in the accounting, the 

annual financial statements and the manage- 












Audit certificate 


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ment report are assessed mainly on the basis of 

random samples. The audit includes assessments 

of the applied accounting principles; of the fundamental 

estimations made by the management; 

of the overall view of the company presented in 

the annual financial statements and the management 

report; of whether the valuations and the 

allocation of the accounts in internal accounting 

were carried out in a manner that was proper 

and comprehensible pursuant to section 10 

subsection 3 of the EnWG; and of whether the 

principle of consistency was observed. We believe 

that our audit provides a sufficiently sound 

basis for our assessment. 

accurately describes the opportunities and risks 

attending future development. 

The audit of compliance with the unbundling 

obligations relating to the internal rendering of 

accounts pursuant to section 10 subsection 3 of 

the EnWG did not lead to any objections.” 


KPMG AG 

Wirtschaftsprüfungsgesellschaft (auditing company) 

Our audit did not lead to any objections. 

On the basis of the information gained in the 

course of the audit, it is our assessment that the 

annual financial statements comply with the 

provisions of the law and present an accurate 

picture of the company’s net worth, financial 

position and income situation in accordance 

with the principles of orderly accounting. The 

management report is consistent with the annual 

financial statements and presents an accurate 

overall picture of the company’s position; it also 

Dr. Flascha 

Wirtschaftsprüfer (auditor) 

Dr. Steinbach 

Wirtschaftsprüfer (auditor) 



AG 

Aktiengesellschaft (public limited 

company according to German law) 

ARAP 

prepaid expenses 

At Equity method for valuating shares of 

companies whose business policies 

are subject to a controlling influence 

(associated undertakings) and in 

which the pro rata net income/loss 

for the year forms part of the book 

value of the shares. When dividends 

are paid out, the pro rata amount is 

deducted from the valuation. 

AusgleichMechV mechanism for redistributing the 

extra costs caused by the EEG 

AVV 

SWL Anlagenvermögensverwaltungs 

GmbH, Leipzig 

BaFin 

Federal Financial Supervisory 

Authority 

Base 

the Phelix Base is the hourly weighted 

average price per full day 

(00:00 – 24:00 hours). It is determined 

for all 365 days of the year. 

BDEW Federal Association of the German 

Energy and Water Industries (Bundesverband 

der Energie- und Wasserwirtschaft) 

BGH 

Federal Supreme Court 

(Bundesgerichtshof) 

BKZ 

building cost subsidies 

BMHKW biomass cogeneration power station 

BMKW biomass power station 

BNetzA Federal Network Agency 

CCS 

carbon capture storage 

CFI 

cash flows from investing activities 

Close-out Netting most important form of netting in 

the financial sector, also known as 

“liquidation netting” 

Contracting provision or delivery of supplies 

(heat, cold, power, steam, compressed 

air, etc.) and the operation of 

related plants 

Covenants (credit terms) non-standardized 

terms of a loan 

Cross Currency financial derivative in which two 

Swap 

contracting parties exchange interest 

rate and capital payments in different 

currencies 

DMBilG Deutsche Mark Balance Sheet Act 

DRS 4 German Accounting Standard no. 4 

DV 

data processing 

eANV 

electronic waste-verification process 

EAV 

profit/loss transfer agreement 

ECX 

European Climate Exchange 

(Europe’s biggest CO 2 exchange) 

EEG 

Renewable Energy Act 

EEWärmeG Renewable Energies Heat Act 

EEX 

European Energy Exchange 

EFET 

European Federation of Energy 

Traders 

EFET-Verträge wholesale energy trading contracts 

ENDICO ENDICO Sp. z o.o., Jelenia Góra, 

Poland 

EStG 

Income Tax Law 

EU 

European Union 

EUA 

European Union Allowances 

(European certificates) 

EuKG 

Heizkraftwerk Eutritzscher Strasse 

GmbH & Co. KG, Leipzig 

EVIL 

Erdgasversorgung Industriepark 

Leipzig Nord GmbH, Leipzig 

FTTx 

Fibre to the x (glass-fibre network) 

FWNL 

Fernwärmenetz Leipzig GmbH & Co. 

KG, Leipzig 

GBBerG Land Registry Adjustment Act 

GDP 

gross domestic product 

GmbH Gesellschaft mit beschränkter 

Haftung (limited liability company 

according to German law) 

GmbHG Law on Limited Liability Companies 

GNL 

Gasnetz Leipzig AG, Leipzig 

GPEC 

Gdańskie Przedsiębiorstwo Energetyki 

Cieplnej Sp. z o.o., Gdańsk, 

Poland 

GT 

gas turbine 

GuD 

gas and steam turbine plant 

GWh 

gigawatt hour 

HEL-Preise prices of light heating oil 

HGB 

German Commercial Code 

HL komm HL komm Telekommunikations 


HW 

heating station 







04 

05 

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40 

64 

Innvo 

Investment- 

Grade-Status 

IP-TV 

IT 

KG 

KLE 

KVV 

KWG 

kWh 

KWK 

KWKG 

KWL 

LAS 

LRegB 

LVV 

MaRisk 

MW/MWh 

NCG 

Net Working 

Capital 

NNE 

Peak 

perdata 

Phelix 

PRAP 

Risk Owner 

RMS 

Innvo Innovationsgesellschaft mbH 

& Co. KG, Leipzig 

creditworthiness status 

(Internet Protocol Television) digital 

transmission of TV channels and 

films via an IPTV provider’s closed 

broadband network 

information technology 

Kommanditgesellschaft (limited 

commercial partnership according to 

German law) 

AB Klaipėdos energija, Klaipėda, 

Lithuania 

SWL Kapitalvermögensverwaltungs 


German Banking Act 

kilowatt hour 

combined heat and power generation 

Law on the Combination of Heat and 

Power Generation 

Kommunale Wasserwerke Leipzig 


LAS GmbH, Leipzig 

Land (regional) Regulatory Authority, 

Dresden 

LVV Leipziger Versorgungs- und 

Verkehrsgesellschaft mbH, Leipzig 

Minimum Requirements for Risk 

Management 

megawatt/megawatt hour 

NetConnect Germany (company for 

market region cooperation formed 

jointly by bayernets and E.ON Gastransport) 

short-term current assets minus 

short-term liabilities and provisions 

use of system charges 

The Phelix Peak is the hourly weighted 

average price per day from 08:00 

to 20:00 hours. It is determined for 

every day of the year except weekends. 

perdata Gesellschaft für Informationsverarbeitung 

mbH, Leipzig 

(Physical Electricity Index) hourly 

weighted average price per day; Base 

and Peak prices are calculated 

deferred income 

risk owner 

risk management system, the systematic 

monitoring and assessment 

of risks, management of reactions to 

determined risks 

ROCE 

return on capital employed 

SHH 

SHH GmbH System-Haus Hemminger, 

Esslingen 

Stadtwerke Leipzig Stadtwerke Leipzig GmbH, Leipzig 

Stadtwerke Leipzig Stadtwerke Leipzig Netz GmbH, 

Netz 


STAR-PEC Zakład Energetyki Cieplnej STAR-PEC 

Sp. z o.o., Starogard-Gdański, Poland 

SWL Polska SWL Polska Sp. z o.o., Gdańsk, Poland 

Trainee university graduate who is systematically 

trained in a company as a versatile 

up-and-coming staff member 

TTF 

Title Transfer Facility (Dutch trading 

point for natural gas) 

ÜNB 

transmission system operator (TSO) 

URE 

Urząd Regulacji Energetyki 

(Polish regulator ) 

USD 

US dollars 

UW 

transformer station 

Vattenfall Vattenfall Europe Generation AG 

& Co. KG, Berlin 

VNG 

Verbundnetz Gas Aktiengesellschaft 

WABIO KG WABIO ® Bioenergietechnik GmbH & 

Co. Biokraftwerk KG, Bad Köstritz 

Wärme21.klassik under development: Stadtwerke 

Leipzig GmbH product offered to 

customers with existing buildings 

which cannot be connected to the 

district heating network: heat generated 

by natural gas in highly efficient 

condensing boilers. Stadtwerke Leipzig 

gives customers with an existing 

building a highly efficient condensing 

boiler for heating and/or for preparing 

hot water 

Wärme21.klima under development: Stadtwerke 

Leipzig GmbH product offered to 

customers with existing or new 

buildings which cannot be connected 

to the district heating network: heat 

generated by natural gas and renewable 

energies (e.g. heat pumps, solar 

water heating) 

Wärme21.komfort product offered by Stadtwerke Leipzig 

GmbH: automatic allocation to the 

lowest price category of Wärme21. 

komfort on the basis of current consumption 

in the respective calendar 

year 

ZEC Tczew Zakład Energetyki Cieplnej 

Sp. z o.o., Tczew, Poland 

ZUC 

Zakład Uslug Cieplowniczych 

Sp. z o.o., Gdańsk, Poland 


Credits 

Published by 

Stadtwerke Leipzig GmbH 

Address Postfach 10 06 14 

D-04006 Leipzig 

Tel.: +49 341 121-30 

Fax: +49 341 121-6240 

www.swl.de 

Legal domicile Eutritzscher Strasse 17–19 

D-04105 Leipzig 

Responsible for contents Stadtwerke Leipzig GmbH 

Editorial staff 

Frauke Riva, Nicole Rühl, Holger Schneidewind, 

Sylvia Peterle, Barbara Hurt 

Design and layout 

Picture credits 

Cover photograph 

PDF download 

komm.passion GmbH, 

www.komm-passion.de 

Peter Eichler 

Stadtwerke Leipzig, Head Office, 

Eutritzscher Strasse 17–19, 04105 Leipzig 

www.swl.de/geschaeftsbericht

Consolidated Financial Statements of the Stadtwerke Leipzig Group ...

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