Full of Energy - Energie AG Oberösterreich

ANNUAL REPORT2007/2008THE GROUPGROUP MANAGEMENT REPORTTHE ENERGY SEGMENTTHE WASTE MANAGEMENT SEGMENTTHE WATER SEGMENTCONSOLIDATED FINANCIAL STATEMENTS50in the Czech Republic and in Slovakia. We succeededin closing several acquisition projects during the periodunder review.We acquired a share of 66% in the district heatingsystem of Rakovnik and took over 91.7% in the dis -trict heating system of Šumperk. By setting up EnergieAG Teplo Vimperk, a 100% subsidiary, and takingover the heat supply for the town of Vimperk, it wasalso possible to take an important step in southernBohemia. If one also considers the 95% share inMTH Kolín, the company thus incorporates now foursupply networks in the Czech Republic, which havebeen integrated into Energie AG Teplo Bohemia.In Slovakia an 80% share in the heat supply systemof Kremnica was acquired.Altogether the amount of heat sold was increased byabout 120 GWh on account of the new holdings.In the course of reorganizing the ownership of OÖ.Ferngas AG, the ownership proportions in Cogeneration-KraftwerkeManagement OberösterreichGmbH (CMOÖ) were also newly organized. AfterOMV Power International GmbH, the previous coowner,sold its 50% share, Energie AG took over100% in CMOÖ.At the site of Laakirchen, CMOÖ operates a combinedheat and power unit, which mainly delivers steam (processheat) and electricity to an industrial partner. Inaddition, several industrial and commercial companiesin the vicinity are provided with district heat. With afuel utilization rate of more than 75%, this companygenerates more than 500 GWh of heat and over400 GWh of electricity.THE COMBINED HEAT AND POWERPLANT OF CMOÖ SUPPLIES STEAM ANDELECTRICITY MAINLY TO AN INDUSTRIALPARTNER. SEVERAL INDUSTRIAL ANDCOMMERCIAL COMPANIES IN THEVICINITY ARE ALSO SUPPLIED WITHDISTRICT HEAT.CMOÖ was included at equity in the present consolidatedfinancial statements of Energie AG for 2007/2008 for the first three quarters, and it was fully consolidatedfor the fourth quarter.CMOÖ had a truncated business year in the period01 January 2008 to 30 September 2008 and is changingits reporting date from 31 December to 30 September.QUALITY AND MARKETORIENTATION IN THE INTRA-GROUPSERVICE COMPANIESThe four intra-Group service companies provide theoperating entities of the Group with services of highquality and at optimized costs. The resources avail -able to these companies are geared to their tasksand to the needs of their intra-Group counterparts.Orders by external customers are accepted for thesake of optimizing capacity.During the year under review several projects werecompleted successfully or started in order to furtheroptimize the service companies and orient them tomarket requirements.●Energie AG Oberösterreich Tech Services GmbH(Tech Services) provides the technical services forfacilities in the electricity and data network of EnergieAG. Netz GmbH and Data GmbH are the mainbusiness partners.The expired business year was characterized by avery gratifying utilization of the available capacities.Additional orders from Netz GmbH came inthe wake of maintenance jobs following hurri cane●●"Emma". Data GmbH commissioned Tech Servicesas a subcontractor for a large-scale order to connect310 bank outlets to the fiber optic networkof the Group. The project had to be finished inless than one year. The full utilization of the teamwas therefore ensured throughout the year, last,but not least, on account of a number of externalorders.Energie AG Oberösterreich Customer ServicesGmbH (Customer Services) offers billing and customerservices, including collection management.Netz GmbH and Vertrieb KG are the main businesspartners. Data GmbH, the heating business area,and the water segment are other intra-Group customers.Since the expired business year ENAMOGmbH has also been receiving the full productportfolio of customer services.For the province of Upper Austria the service providedby this company is a "crisis hotline". Duringthe period under review two operations were completedsuccessfully. In March 2008 a total of almost9,000 calls were handled in connection with hurri -cane "Emma" and a large-scale traffic accident onhighway A1.Altogether the staff members of the call centerhandled more than 570,000 telephone calls duringthe 2007/2008 business year.Energie AG Oberösterreich Business ServicesGmbH (Business Services) has bundled the servicesfor procurement and logistics, facility management,information technology, accounting, andlegal advice.During the year under review the activities of BusinessServices were mainly characterized by thecompletion and relocation to the new corporatehead office. In the course of one weekend 620work stations were successfully moved from thetemporary quarters to the Power Tower.A new billing model for intra-Group products andservices was developed during the 2007/2008business year in the course of further customerand market orientation. It has been used by allservice companies since 01 October 2008. More -over, the prices charged within the Group arebeing examined in the course of a benchmarkingproject.●By applying the "one stop" principle, Energie AGOberösterreich Personal Services GmbH (PersonalServices) is in a position to offer its customersa single contact point in all staff-related matters.The services comprise staff management, personnelaccounting, staff training, and apprentices’training. Customers benefit from the existing knowhow,as well as from the established network ofcontacts within the Group.A regular exchange of experience with other personnelservice providers is maintained for the purposeof a continuous further development. Forexample, the Apprenticeship Trainers Meeting inMay 2008, which Personal Services organized andwhich experts from all parts of Austria attended,was a great success.In the future, a pro-active approach to counselingservices, as well as strengthening quality awarenesswill be in the foreground of the performanceof Personal Services.MAJOR STRATEGIC PARTICIPATIONSThe strategic participations of the Energie AG Groupcomprise companies associated at equity, i.e. EnnskraftwerkeAG, Wels Strom GmbH, LIWEST KabelmedienGmbH (LIWEST), and Salzburg AG für Energie,Verkehr und Telekommunikation (Salzburg AG),as well as other unconsolidated companies.OÖ. Ferngas AG and CMOÖ, in each of which EnergieAG previously held a share of 50%, were accountedat-equity for the first three quarters (01/10/2007 to30/06/2008) of the present consolidated financialstatements. Given that the share in OÖ. Ferngas AGwas increased and CMOÖ was taken over, both companieshave been fully consolidated since the fourthquarter of the business year (as of 01/07/2008).The portfolio of the various participations along thevalue-added chain provide the Energie AG Group withsynergy effects, on the one hand, and a reduced businessrisk in its operations, on the other hand.The contribution to the result of the companies associatedat-equity (including the operating companyKaposvári Városgazdálkodási Rt. in Hungary and GuDTimelkam GmbH) amounted to EUR 15.4 million forthe 2007/2008 business year, after EUR 19.2 millionthe year before.51