Full of Energy - Energie AG Oberösterreich

ANNUAL REPORT2007/2008THE GROUPGROUP MANAGEMENT REPORTTHE ENERGY SEGMENTTHE WASTE MANAGEMENT SEGMENTTHE WATER SEGMENTCONSOLIDATED FINANCIAL STATEMENTS22. LONG-TERM PROVISIONS30/09/2008 30/09/2007in EUR 1,000 in EUR 1,000Pension provisions 80,861.1 78,978.4Provisions for pension payments 46,660.3 38,037.8Provisions for anniversary bonuses 13,505.5 12,229.8Provisions for early retirement payments 18,857.2 25,837.2Provisions for landfills and other provisions 41,513.2 33,996.0201,397.3 189,079.22007/2008 2006/2007in EUR 1,000 in EUR 1,000Present value of pension commitment (DBO) 94,424.2 95,033.4- fair value of fund assets - 7,983.1 - 7,092.386,441.1 87,941.1- non-realized actuarial loss - 5,580.0 - 8,962.7Pension provision as at 30/09, shown in the balance sheet 80,861.1 78,978.4+ current service costs 684.1 744.7+ interest expense 5,059.2 4,562.5- expected investment result - 389.3 - 332.4Expenses shown in the income statement 5,354.0 4,974.8PROVISIONS FOR PENSIONSOn account of company agreements and commitments under individual contracts, pensions must be paidupon retirement to staff members who joined the company before 30 September 1996 and have acceptedneither full nor partial compensation of their claims to direct payments. Moreover, there is an obligation to paypensions to certain staff members who retired before 01 July 1998.A pension provision has been formed for this group of persons pursuant to IAS 19 (Employee Benefits) accordingto the actuarial valuation method (projected unit credit method).Pension provisions as at 01/10, shown in the balance sheet 78,978.4 81,140.9+ change in consolidated group 3,648.2 —+/- realized actuarial loss/profit 143.0 - 187.6+ expenses as above 5,354.0 4,974.8- allocation to fund assets - 213.2 191.1+ actual payments (fund assets) 225.9 188.9- pension payments - 7,275.2 - 7,329.7Pension provisions as at 30/09, shown in the balance sheet 80,861.1 78,978.4The company must pay additional contributions for the defined-benefit pension commitments that were transferredto the company’s pension fund.The calculation was based on the following parameters:PENSIONS FOR SEVERANCE PAYMENTSSeverance payments are made to staff members at the time of retirement or on dismissal, on the basis of statu -tory obligations and collective-agreement commitments. The amount of this one-off payment is determinedby the most recent remuneration and the number of service years.2008 2007Assumed interest rate 6.00% 5.25%Trend regarding salaries 3.50% 2.80%Trend regarding pensions 2.25% 2.00%Expected income from pension fund assets 6.00% 5.25%A provision is formed on the basis of these stipulations under labor law and collective agreements, which iscalculated by applying the projected unit credit method.By including the corridor arrangements pursuant to IAS 19 (Employee Benefits), the same parameters weretaken as a basis as are used for the pension provisions:122"AVÖ 1999-P Rechnungsgrundlagen für die Pensionsversicherung – Pagler & Pagler" were used as the biometricbasis for the calculations.The statutory retirement age was taken as a basis.Fluctuation was not taken into account for the "energy" segment. Depending on the period of employment,a fluctuation rate of 2 to 10% is assumed for the "waste management" segment.All expenses and revenues connected to the provisions are shown under personnel expenses.2007/2008 2006/2007in EUR 1,000 in EUR 1,000Provisions for severance payments,shown in the balance sheet, as at 01/10 38,037.8 33,923.8+ change in consolidated group 5,322.4 177.4+ current service cost 2,270.5 2,217.9+ interest expense 2,625.7 2,236.6- severance payments - 1,877.3 - 963.1+ realized actuarial losses 281.3 445.2Severance provision as at 30/09, shown in the balance sheet 46,660.4 38,037.8+ non-realized actuarial loss 9,594.0 8,133.812356,254.4 46,171.6