Full of Energy - Energie AG Oberösterreich

ANNUAL REPORT2007/2008THE GROUPGROUP MANAGEMENT REPORTTHE ENERGY SEGMENTTHE WASTE MANAGEMENT SEGMENTTHE WATER SEGMENTCONSOLIDATED FINANCIAL STATEMENTSStatement by theBoard of ManagementWhile in the past, the Energie AG Group consisted ofthe business areas electricity, heating, waste man -age ment and water, another historic milestone wasbuilt during the 2007/2008 business year. By takingover the majority share of OÖ. Ferngas AG, Energie AGsucceeded in obtaining the lead on the natural-gasmarket of Upper Austria. It thus succeeded in furtherstrengthening and expanding its position as the leadinginfrastructure group in Upper Austria.The stronger commitment in the field of natural gaswas assumed against the background of building thenew 400 MW combined-cycle gas turbine power plantat Timelkam, which is a production site of Energie AGthat is rich in tradition. With this power plant, theelectricity generation portfolio of the Group has ob -tained a new structure, which considerably increasesthe rate of own electricity generation, as well as thereliability of supplies, while reducing the dependenceupon fluctuations on the electricity market. The powerplant serves as proof that with this new technologyone can generate the electricity – in a manner thatprotects the climate and is cost-efficient – which isneeded in a dynamically growing economic regionsuch as Upper Austria. With an investment sum ofabout EUR 200 million, the combined-cycle gas turbinepower plant at Timelkam is the largest investmentinto energy efficiency in the history of UpperAustria.the number of inhabitants supplied with drinkingwater by more than 30 per cent to the current levelof 930,000.When considering the main events of the expired businessyear, it is therefore not without pride that wepresent the financial statements for the 2007/2008business year. In spite of increasingly tougher overallconditions, both from the perspective of competitionand the perspective of legal framework conditions,as well as against the background of the worldwidefinancial crisis, Energie AG succeeded not only inreaching its objective concerning expansion of sales,but also in presenting figures and results that are inline with our value-based growth strategy. An EBIT ofEUR 163.7 million and sales of EUR 1.5 billion speaka clear language.It is with a look back upon the expired business year,focusing on the special highlights of the year, thecompleted major projects and the good results, thatthe Board of Management expresses its thanks to allstaff members for their work and commitment whichhelped achieve this performance. It is with a good consciencethat we can say that the business year wasan excellent year for the Group. We will continue towork energetically to reach the corporate targetswhich we have set ourselves for 2008/2009.ROLAND PUMBERGER,MEMBER OF THE BOARDOF MANAGEMENTLEO WINDTNER,CHAIRMAN OF THE BOARDOF MANAGEMENTWERNER STEINECKER,MEMBER OF THE BOARDOF MANAGEMENTDuring the 2007/2008 business year, the Group’s subsidiaryAVE successfully continued its growth strategyin the waste-management segment.20The 2007/2008 business year has been a year for theEnergie AG Group in which decisive and long-lastingevents took place. First and foremost, it was possibleto bring the ten-year discussion concerning our ownershipstructure to a successful conclusion for the companyand the majority stakeholder, the province ofUpper Austria, with a private placement in the summerof 2008. The private placement also provided thecom pany a capital increase which supports im portantin vestments into infrastructure projects, as well as thefurther pursuit of the successful growth and inter -nationalization course.In addition to this decision concerning ownership structure,which is of major importance for the company,the completion of the Power Tower is certainly themost visible sign of the development of the companyduring the year under review. In early September, staffmembers were able to move into the new corporatehead office at the Böhmerwaldstrasse location in Linz,which is steeped in tradition. More than 620 workstationsof the various corporate entities can be ac -commodated under one common roof. The activitiesof the Group in currently eight European countriesare controlled from the Power Tower.The Power Tower is more than just a workplacefor the staff members of Energie AG. With its construction,the company has realized today the technologiesof tomorrow, while – at the same time –building a striking monument in the urban land scapeand to energy technology. It proves that energy efficiencyis not merely a vision but a practical, manage -able reality.With the acquisition of the waste-paper group ofMayr-Melnhof in the spring of 2008, AVE becamethe biggest waste-paper management operator inAustria. By processing 430,000 tons of waste paperper year, AVE increased its market share in this businessarea to 26 per cent.In September 2008 the pelletizing plant at Wels wastaken into operation, which further strengthens thepo sition of AVE as a fully integrated waste-managementcompany. The pellets from high-caloric wastematerials are supplied to an industrial partner as substitutefuel.Towards the end of the expired business year, wewere able to acquire 1.JVS a.s., located at ČeskéBudějovice in southern Bohemia, for the water segment,which marked one further major growth step.By taking over this company, we were able to increaseLeo WindtnerChairman of the Board of Management21