Full of Energy - Energie AG Oberösterreich

ANNUAL REPORT2007/2008THE GROUPGROUP MANAGEMENT REPORTTHE ENERGY SEGMENTTHE WASTE MANAGEMENT SEGMENTTHE WATER SEGMENTCONSOLIDATED FINANCIAL STATEMENTSThe Waste Management SegmentTHE BUSINESS ENVIRONMENT INTHE WASTE MANAGEMENT MARKETWASTE VOLUME HANDLEDIN 1,000 TONS56GermanyGersthofenVilsÖtztalZirlLocationsInnernzell/HilgenreithOsterhofenBřeclavLandauPassauEggenfeldenSt. Martin/MühlkreisRotthalmünsterAdrichsfurtBraunauLinzKatsdorfSt. PöltenAttnang-Puchheim HörschingViennaTimelkamWelsSteyrLenzing RegauElixhausenParndorfBad IschlBad ReichenhallMüllendorfSalzburgKlausBad MitterndorfKitzbühlMühldorfRumburkÚstí nad Labem Česká LípaMšenoBenátkyNejdek Žatek nad JizerouCheb Karlovy VaryLysá nad LabemMariánské LázněKolín Čáslav PardubicePrahaDašiceJílovéHoŕovice Kutna Hora MohelnicePlzeňNasavrkyPŕíbramOlomoucKlatovyTřebíčJindřichův HradecČeské BudějoviceAustriaSpittal an der DrauVillachKapfenbergGleisdorfGrazCzech RepublicBrnoRajhradStudénkaFrýdlant nadOstravicíBratislavaKomáromTatabányaWaste Management Segment – Overviewin 2007/2008 Change 2006/2007 2005/2006Total waste volume handled 1,000 tons 4,610 8.0% 4,270 3,474Thermally processed waste 1,000 tons 602 0.8% 597 577Total sales EUR mill. 335.6 26.3% 265.8 214.5EBITDA EUR mill. 63.9 6.1% 60.2 51.5EBIT EUR mill. 20.6 - 20.5% 25.9 25.0Investments into tangible fixed assetsand intangible assets EUR mill. 65.8 41.8% 46.4 97.0Employees FTEs 2,695 23.1% 2,190 1,814BelušaSlovakiaBudapestZamárdi SiófokFonyódBalatonszabadiBalatonkeresztúr BalatonboglárOrdacsehjOsztopánHőgyészKaposmérőDombóvárKaposvárCsökölyHarkányTornaľaErdőkürtNyergesújfalu LőrinciHungaryJasovKošiceKechnecCigándDemecserMiskolc IbrányNyíregyházaHejőpapiSzakolyHevesDebrecenNádudvarBerettyóújfalu OradeaSalontaTincaLwiwWynohradiwZalăuKolomyjaSnjatyninCâmpia TurziiCristuru SecuiescRomaniaPetrillaUkraineOderheiu SecuiescMiercurea CiucBucarestiMoldovaUngheniIn June 2008 the European Parliament agreed, in asecond reading, on an amendment of the FrameworkDirective on Waste Disposal of the European Union.It thus established essential objectives of a sustainablemodern waste management policy, which includessignificant sections on waste prevention and wasteprocessing, as well as providing the necessary precisionof terms in the waste sector.The market environment of the waste managementsector in Europe is characterized by enormously volatileprices for primary raw materials, which led toconsiderable fluctuations in the field of secondary rawmaterials, such as paper, recycling plastics, and scrapmetal in recent months. A growing number of illegaldumping sites in Germany, as well as legal but alsoillegal cross-border shipments have led to a continuousrise of competitive pressure and pressure on prices onthe market. At the same time, the waste managementsector was confronted with a persistent cost pressureas a result of the still high price level for fuels, as wellas with higher charges on transport logistics.In addition to these factors, over-capacities of wasteincineration plants are being built up on a mediumtermbasis, which are additional major challenges inAustria and Germany. The driving forces behind ris ingquotas in connection with thermal processing andrecycling are the permanent quest, especially of themetal, paper, and pulp industry for alternative, morecost-efficient fuels in order to substitute primaryenergy sources.As to the structures and ownership relations in thewaste management industry, the concentration processcontinues in Germany and Austria. It involvesthe take-over of small and medium-sized companiesin particular. In the CEE countries the market for wastemanagement services continues to show higher, partlytwo-digit growth rates, which are also due to theenvironmental deficits of these countries, which mustbe compensated in the wake of the EU accession. Atpresent, sometimes instable political conditions in theCEE countries have a postponing effect on decisions toprivatize municipal services. The growth of AVE in theEast therefore comes mainly from acquiring privatecompanies, building new projects and structures, andexpanding existing PPPs.5,0004,0003,0002,0001,0003,4742005/20064,2702006/20072007/20084,610BUSINESS DEVELOPMENT INTHE WASTE MANAGEMENT SEGMENTWith the brand name AVE the waste managementsegment is the second largest segment of the EnergieAG Group. Activities are bundled under AVEEnergie AG Oberösterreich Umwelt GmbH, the leadenterprise. During the expired business year, the AVEgroup consistently continued its growth course. Inthe meantime, it operates in eight countries (Austria,southern Germany [Bavaria], Czech Republic, Hungary,Slovakia, Romania, western Ukraine, Moldova),due to its regional diversification.By taking over the waste paper operations of the Mayr-Melnhof Group in spring 2008, AVE became thelargest processing company for waste paper in Aus -tria and raised its market share in this business fieldto 26%. Its position as a fully integrated wasteman agement company is highlighted by the start upof the pelletizing plant at Wels, where substitutefuels are produced from high-caloric waste materialsfor an industrial partner.During the 2007/2008 business year, AVE achievedtotal sales of EUR 335.6 million and an EBIT of EUR20.6 million.The increase in total sales of EUR 70.4 million or 26.5%over the previous year (EUR 265.2 million) is due bothto organic growth and numerous acquisitions, as wellas the first consolidation of the country organi za -57