Consolidated Financial Statements of the Stadtwerke Leipzig Group ...

Report of the Supervisory Board
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
04
05
05
12
25
31
36
40
64
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
Annual Financial Statements of Stadtwerke Leipzig GmbH | 35