Shareholders, Supervisory Board and management bodies ...

Annual Report
2008 2008
Shareholders,
Supervisory Board
and management bodies
––––––––– 6 –––––––––
Management report
––––––––– 10 –––––––––
Financial statements
––––––––– 36 –––––––––
Credits and
contact details
––––––––– 42 –––––––––

From ARC to AIT
Austrian Institute of Technology (AIT)
the Austrian research institution
of European calibre
Five specialist departments with a research focus on tomorrow‘s key infrastructure issues
The objective of AIT‘s five departments — Mobility, Energy, Health & Environment, Safety &
Security, and Foresight Policy & Development — is to give a technological lead, and develop
methods and solutions for industrial and public sector clients.
The new strategic thrust, ownership structure, governance system and scientific quality assurance
processes at the Austrian Institute of Technology are designed to position AIT as a
research institution of European calibre. This will enhance our partners’ innovative potential
and strengthen Austria‘s competitive position as a business location.

00
Contents
Annual Report
2008

Contents
Section Page
01 Shareholders, Supervisory Board and management bodies 6
1.1 Shareholders 8
1.2 Supervisory Board and management bodies 9
02 Management report 10
2.1 Structural report 12
2.2 Business performance in 2008 26
2.3 Risk report 32
2.4 Outlook report
Financial and non-financial performance indicators
2.5 Post balance sheet date events 35
03 Financial statements 36
3.1 Consolidated balance sheet 38
3.2 Consolidated profit and loss account 40
04 Credits and contact details 42
34
00
Annual Report 2008
Contents

01
Shareholders,
Supervisory Board
and management
bodies
Annual Report
2008

01
Annual Report 2008
Shareholders,
Supervisory Board and
management bodies
As at 31. Dec. 2008
01 Shareholders, Supervisory Board and management bodies Page
1.1 Shareholders 8
1.2 Supervisory Board and management bodies 9
7
Annual Report 2008

01
Annual Report 2008
Shareholders,
Supervisory Board and
management bodies
As at 31. Dec. 2008
8
Annual Report 2008
1.1 Shareholders
As at 31 December 2008
A Republic of Austria (50.46%)
BMVIT (Federal Ministry of Transport,
Innovation and Technology)
B Industry (49.54%)
ABB AG
Alcatel-Lucent Austria AG
Allianz Elementar Versicherungs-
Aktiengesellschaft
APC Advanced Pollution Control AG
Austria Metall Aktiengesellschaft
BAWAG P.S.K. Bank für Arbeit und
Wirtschaft und Österreichische
Postsparkasse Aktiengesellschaft
Berndorf Aktiengesellschaft
BÖHLER-UDDEHOLM Aktiengesellschaft
BSM Diagnostica Gesellschaft m.b.H
Erste Bank der österreichischen
Sparkassen AG
EVN AG
Gerot Pharmazeutika Gesellschaft.m.b.H
GrECo International AG
HENKEL CENTRAL EASTERN EUROPE
GESELLSCHAFT MBH
Hirtenberger Aktiengesellschaft
Investkredit Bank AG
KELAG-Kärntner Elektrizitäts-
Aktiengesellschaft
Kommunikations- & Sicherheitssysteme
Gesellschaft m.b.H
Mag. Dietbert Kowarik (trustee)
Kwizda Holding GmbH
New shareholder structure as at 25 March 2009:
Austrian government 50.46%
BMVIT (Federal Ministry for Transport, Innovation and Technology)
Federation of Austrian Industries Verein zur Förderung von Forschung und Innovation
(Association for the Promotion of Research and Innovation) 49.54%
Lafarge Perlmooser AG
MAGNA STEYR Fahrzeugtechnik AG &
Co KG
Mediscan GmbH & Co KG
OMV Refining & Marketing GmbH
PKE Electronics AG
PLANSEE Aktiengesellschaft
Siemens Aktiengesellschaft Österreich
Steirische Wasserkraft- und Elektrizitäts-
Aktiengesellschaft
Telekom Austria TA Aktiengesellschaft
T-Mobile Austria GmbH
UniCredit Bank Austria AG
VA TECH HYDRO GmbH
Verband der Elektrizitätsunternehmen
Österreichs (Association of Austrian
Electricity Companies)
VERBUND-Austrian Renewable Power
GmbH
Vereinigung der österreichischen Industrie
(Federation of Austrian Industries)
voestalpine Stahl GmbH
Vorarlberger Illwerke Aktiengesellschaft
WBB Stahl- und Maschinenbau AG (in
liquidation)
WIENSTROM GmbH

1.2 Supervisory Board and management bodies
As at 31 December 2008
Board of Management
Wolfgang KNOLL
Anton PLIMON
Authorised signatories
Josef FRÖHLICH
Heinrich GARN
DGeorg HABERHAUER
Thomas KADI
Alexander SVEJKOVSKY
Alfred WANSCH
Supervisory Board
President
Hannes ANDROSCH
Vice Presidents
Robert BÖHM
Gerhard RIEMER
from 25 July 2008
Members
Robert BÖHM
Peter EGGER
Silvia JANIK
Maria KUBITSCHEK
Gerhard RIEMER
from 2 July 2008
Norbert ROZSENICH
Ingolf SCHÄDLER
Peter SCHWAB
Edeltraud STIFTINGER
from 2 July 2008
Franz VIEHBÖCK
Members delegated by the Works Council
Karl Heinz ASCHBACHER
Karl FARTHOFER
Heinrich HUMER
Philip LEOPOLD
Rudolf ORTHOFER
Eva WILHELM
Scientific Advisory Boards
NES
Helmut BÖCK (Chairman)
Kathrin EBERL-SVOBODA
Brigadier Norbert FÜRSTENHOFER
Viktor KARG (stellvertretender Vorsitzender)
Wolfgang PFEIFER
Jirina RADY
Horst REICHER
Silvia VARGA
Gabriele VOIGT
All other advisory boards and the holding company advisory board were dissolved at the end of 2008.
01
Annual Report 2008
Shareholders,
Supervisory Board and
management bodies
As at 31. Dec. 2008
9
Annual Report 2008

02
Management report
Annual Report
2008

02 Management report Page
2.1 Structural report 12
2.2 Business performance in 2008 26
2.3 Risk report 32
2.4 Outlook report
Financial and non-financial performance indicators
2.5 Post balance sheet date events 35
34
11
Annual Report 2008

02
Annual Report 2008
Management report
Structural report
12
Annual Report 2008
2.1 Structural report
2.1.1 Strategic realignment of Austrian Research Centers (ARC)
The 2008 financial year witnessed a wide-ranging realignment of Group structures and activities
at ARC. Under the stewardship of Managing Directors Anton Plimon (appointed as Chief Executive
Officer on 1 April 2008) and Wolfgang Knoll (Chief Research Officer since 1 April 2008), a
comprehensive change process was introduced and a raft of other measures were taken.
The organisational and strategic changes were accompanied by a simplification of the ownership
structure. 2008 thus marked the starting point for an complete repositioning of Austrian Research
Centers.
The new Austrian Institute of Technology (AIT) which has emerged from ARC will focus on
improving efficiency by means of restructuring and spin-offs, on new fields of research and on the
development of a new governance system. To this end, in 2008 Austrian Research Centers laid
the foundations for significant changes in the future portfolio, the organisational structure and the
institution’s role in the domestic and international innovation systems.
2.1.2 Ownership structure
The process of streamlining the ownership structure was initiated in 2008. The assignment
procedures notified by the Company by way of the contract of assignment signed on 18 December
2008 were registered on 25 March 2009, following an application to the register of companies filed
on 23 March 2009. As a result, the shareholders as of the reporting date were as follows:
Austrian government (Ministry of Transport, Innovation and Technology);
Federation of Austrian Industries (Association for the Promotion of Research and Innovation).
2.1.3 Organisational structure and research focus
The new organisational structure of the ARC Group is shown in the organisational chart below.
The new structure came into effect on 12 January 2009. It is derived from the four existing strategic
divisions: Health Technologies, Materials Technologies, Information Technologies and Mobility &
Energy. In future, our strategic research thrusts will be the responsibility of five departments: Foresight
& Policy Development, Health & Environment, Safety & Security, Mobility, and Energy.
Additional structural changes in 2008 resulted from the sale of some operations of the Research
Studios Division to Research Studios Austria Forschungsgesellschaft mbH (34 employees) with
effect from 1 June 2008 and to EOX-IT Services GmbH (four employees) as of 2 July 2008. The
continued operation of ECHEM GmbH — a former Kplus competency centre with 38 employees —
was assured by its partial sale to CEST GmbH. The latter is a K1 centre financed under the FFG
(Austrian Research Promotion Agency) COMET programme.
These disposals marked a major advance towards streamlining ARC’s strategic portfolio, and
aligning its activities with its new organisational structure and objectives. The change of name
from Austrian Research Centres to Austrian Institute of Technology (AIT) will serve to highlight the
Company’s transformation.

02
Annual Report 2008
Management report
Structural report
13
Annual Report 2008

02
Annual Report 2008
Management report
Organisational Structure
As at 31. Dec. 2008
14
Annual Report 2008
Corporate service functions
Department
Foresight & Policy
Development
Unit
Technology Policy
Unit
Spatial Systems
Unit
Technology Management
Auditing
Department
Health & Environment
Unit
Environmental Resources &
Technologies
Unit
Bioresources
Unit
Molecular Medicine
Unit
Biomedical Systems
Unit
Nano Systems
Austrian Research Centres (ARC)
Board of Management
Department
Corporate and Legal Services
Department
Safety & Security
Unit
Quantum Technologies
Unit
Video and Security
Technology
Sub-division
Neuroinformatics
Unit
High-Performance
Image Processing
Unit
Save and Autonomous
Systems
Unit
Information Management &
e-Health

Department
Finance & Controlling
Department
Mobility
Unit
Electric Drive Technologies
Unit
Transportation Infrastructure
Technologies
Unit
Dynamic Transportation
Systems
Subsidiary
Light Metal Competence
Center (LKR)
Department
Energy
Unit
Sustainable Thermal
Energy Systems
Unit
Electric Energy Systems
Unit
Sustainable Building
Technologies
Subsidiary
arsenal research
* The former AMAT Division will continue to exist with the previous organisational structure.
Unit
Infrastructure Certification
Subsidiary
02
Annual Report 2008
Management report
Organisational Structure
As at 31. Dec. 2008
arsenal research
Nuclear Engineering
Seibersdorf GmbH
Subsidiary
Seibersdorf Labor GmbH
Subsidiary
ISS Beteiligungsges. mbH
Business unit
Technology Transfer Centre
(TTZ) Leoben
Business unit
Portfolio to be defined*
15
Annual Report 2008

02
Annual Report 2008
Management report
Structural report
16
Annual Report 2008
2.1.4 Strategic positioning and development of research areas
AIT’s strategic focus on infrastructure reflects the central importance of this field for industry and the
public sector. The public sector itself is a key investor in transportation, energy, health, security and
innovation infrastructure, and consequently has an important role to play in innovative procurement
management. At the same time the development of innovative industrial solutions with a strong
systems orientation calls for an environment that is conducive to top quality research and
development.
In recognition of this the Austrian Institute of Technology will present itself as a highly specialised
R&D partner in its selected fields of technology. Its activities in these areas will focus on developing
technologies, methodologies and processes that will generate leading-edge innovations with an
implementation timeframe of five years or more. AIT will also act as a central node in the European
innovation network with outstanding foresight capabilities.
A cornerstone of AIT’s future work will be the ability to agree multi-year budgets with the Ministry.
This will lead to a secure flow of funding and enable AIT to focus on long-term research topics and
activities.
In order to align the focus and positioning of departments’ R&D portfolios with the new operating
framework, we have launched an internal strategy development process with a view to drawing up
the first four-year programme, for the 2010–2013 period. This process, to be completed by May
2009, will lay the groundwork for implementing AIT’s new strategy.
2.1.5 Restructuring the governance system
At the same time the ownership structure and governance system have been adjusted to the new
conditions and requirements faced by the Austrian Institute of Technology. AIT’s central goal is
achieving scientific excellence in its chosen areas of research. This will be the task of two new
bodies, to be established in 2009 (Figure 1). A Strategic Research Advisory Board is being created
to support the Supervisory Board by taking a forward-looking perspective on strategic and research
policy issues with implications for the organisation as a whole. This advisory board will be complemented
at departmental level by evaluation panels, which will assess the scientific quality of
research and report to the Board of Management (Figure 2).

Evaluation panels (EP)
Approx. five members
per department
Appointed by the
Supervisory Board
Reporting to AIT Board
of Management
Task: Examine the
quality of research at
departmental level
Figure 1: Austrian Institute of Technology (AIT) and its new advisory bodies
The following departmental research highlights in 2008 are illustrative of the recent changes at,
and repositioning of ARC/AIT.
EP Energy
EP
Health &
Environment
AIT
Board of Management
Figure 2: Evaluation panels (EP) at departmental level
EP
Mobility
AIT
AIT
Austrian Institute of
Technology
Safety & Security
Supervisory Board
Foresight & Policy
Development
EP
EP
Strategic Research
Advisory Board
Three to five members
Appointed by and reporting
to the Supervisory Board
Task: Provide opinions on
strategic issues and AIT’s
future direction
17
Annual Report 2008

02
Annual Report 2008
Management report
Structural report
18
Annual Report 2008
2.1.6 Development of departmental research areas
2.1.6.1 Health & Environment
The Health & Environment Department strives for excellence in applied research and for new
technological solutions benefiting the environment and health. The department‘s central research
thrust is understanding biological systems, opening the way for the development of new medical,
health and environmental technologies.
Imaging molecular processes
Molecular processes at the blood-brain barrier were investigated using micro-positron emission
tomography (PET) — a nuclear medicine imaging procedure. The blood-brain barrier is the body‘s
own protection mechanism, preventing toxic substances and pathogens from reaching the brain
through the bloodstream. This useful barrier becomes a problem when drugs which are meant to
act on the brain cannot reach their site of action. A regional overexpression of the P-glycoprotein
(P-gp) drug transporter at the blood-brain barrier could be responsible for the fact that a third of all
epilepsy patients fail to respond to drugs. It is assumed that the transporter (P-gp) pumps antiepileptic
drugs from the brain back into the blood, preventing sufficient concentrations of the drug
from reaching the epileptic tissue. Additional administration of P-gp inhibitors is a promising
approach to overcoming this therapy resistance. However, there has been no appropriate method
for checking the effectiveness of these substances to date.
The Department developed a new method for measuring P-gp inhibition at the blood-brain barrier
in a pre-clinical project. This novel method is based on applying the microPET procedure to
visualise the distribution of the model P-gp substrate [11C] Verapamil in the brain. It was shown
that absorption of [11C] Verapamil increases 11-fold once the highest dose of the P-gp inhibitor is
given. Using this new procedure, it was possible to determine the effective doses of two new P-gp
inhibitors (tariquidar and elacridar) for optimum inhibition of P-gp at the blood-brain barrier. The
process developed is excellently suited to determining the effectiveness of new P-gp inhibitors in
clinical studies on humans.
The study findings won the Drug Discovery Image of the Year award at the Siemens Preclinical
Imaging international award ceremony in Nice.
Genetic repository centre for future plant use
In 2008 the only genetic repository centre for plants of its kind in Europe was set up in Seibersdorf
as part of the EU‘s Evoltree network of excellence. Besides providing the resource centre, ARC
is also the central knowledge and database node in this network. The DNA of more than 300,000
genes from trees, insects and fungi have been stored in the world‘s first automated biobank for
forest genetic resources, the construction of which was completed in 2008. The collection of entire
genomes from 3,500 trees across Europe is also ongoing. These valuable resources can be used
to investigate the reactions of plants to environmental influences and stressors and as reference
samples. Standardised sample materials make research findings comparable, increasing their
usefulness to the forestry and wood-processing industries. By acting as a data network node, ARC
links forestry databases at partner institutions in Europe so that information stored at different sites
is searchable via a single online access point (www.evoltree.eu).
The aim of this information portal is to integrate research activities, thereby reducing fragmentation
in the European research landscape. The resource centre is the platform for a number of future
smart breeding research projects. Smart breeding technologies exploit natural genetic variety to
breed desired characteristics by applying modern molecular biological methods without inserting
foreign genes into the plant‘s genome. In addition to plant applications, the genetic repository
centre is also being extended to include microorganisms.

Lab-on-a-chip for continuous, non-invasive cell analysis
ARC succeeded in developing new miniaturised analysis systems for quantitative cell analysis
for the first time during the year under review. The microfluidic biochips (labs-on-a-chip) facilitate
highly-sensitive, continuous analysis of living cells under physiologically relevant conditions. The
integrated electrical and optical microprobes deliver continuous information about the dynamic
behaviour of cell populations, particularly in the presence of external influences such as drugs and
environmental toxins. Our lab-on-a-chip can also be applied in other areas, such as biotechnology
and medicine.
In the past few years it has become possible to carry out non-invasive cell analysis using a combination
of microfluidic systems and non-contacting dielectric sensors. This method stands out for its
high sensitivity to cellular structures such as membranes, facilitating rapid, markerless identification
of a variety of microorganisms. The dynamic repair mechanism of yeast cells following the addition
of membrane-destroying antibiotics has also been successfully demonstrated.
The application of human cells (fibroplasts) to a sensor and investigation of the short and long-term
toxic effects of various nanoparticles was also achieved in 2008. Researching their effect on cells is
a core focus of nanosystem technologies, as there is insufficient toxicological data for most nanomaterials
and the biochip offers a valuable alternative to animal experiments.
2.1.6.2 Energy
The future of energy supply and climate change are increasingly dominating political discussion at
national and international level. A sign that energy and environmental policies are being rethought
is the European Union‘s “20/20/20” climate change targets. Greenhouse gas emissions are to be
cut by 20%, the renewable energy share increased to 20% and energy efficiency raised by 20%.
A holistic view of energy resources will be needed if these ambitious targets are actually to be met.
The Energy Department is therefore pursuing forward looking research topics along the entire energy
supply chain, from environmentally friendly production to fail-safe distribution and intelligent use.
Tomorrow‘s office buildings
Buildings account for 40% of energy consumption in the EU — considerably more than transportation
and industry — and therefore offer huge energy saving potential. Last year the Energy Department
further extended its simulation expertise in this area. One of the highlights was certainly the
inauguration of the ENERGYbase demonstration project, Austria‘s largest passive office building.
Scientific assistance during the architectural design process ranged from the initial studies and
basic research through to assistance with the design of the complex building services and
innovative energy systems, and of the monitoring system that will provide new insights into system
operation strategies. In 2008 the energy efficient, sustainable office building not only won the solar
building category of the Austrian Solar Awards and the Solid Building Award for Ecology but was
also included in the EU GreenBuilding Programme‘s best practice inventory.
The knowledge gained from this project has laid the groundwork for the next generation of energyefficient
office buildings, and has already been successfully exported. The Energy Department
leveraged the know-how garnered from the ENERGYbase building when preparing a sustainable
energy concept for the new headquarters building at the Romanian Petrobrazi refinery commissioned
by OMV subsidiary Petrom. Thanks to highly efficient building services and the use of renewable
energy sources, the building will need only about one-third of the energy consumed by a conventional
office block.
Smart grids
In future a large number of decentralised generating stations including photovoltaic arrays, wind
farms and biomass power plants will feed electricity into supply networks, presenting the system
operators with entirely new challenges. The trend towards multidirectional power flows calls for
new, intelligent control systems — an approach successfully demonstrated by the DG DemoNetz
02
Annual Report 2008
Management report
Structural report
19
Annual Report 2008

02
Annual Report 2008
Management report
Structural report
20
Annual Report 2008
Konzept (DG Demo Network Concept) project in 2008. In cooperation with Austrian system operators,
researchers at the Energy Department developed flexible voltage management strategies
aimed at maintaining supply quality even where there is a high proportion of distributed electricity
generation. The outcome of the project was four innovative voltage control concepts which keep
voltage within the specified limits and maintain security of supply even under conditions of increased
distributed generation. Large-scale grid simulations were used to validate the new control concepts,
and demonstrated that they were both technically and economically feasible. Not only did they
enable a considerably higher density of decentralised generators to be integrated than with conventional
methods, but in the network areas observed the alternative approaches were actually three
to five times less expensive than the current strategy of network expansion. The next step will be to
tailor the control concepts still more closely to real operational requirements, and validate them in
practice over one to three years of demonstration operation.
2.1.6.3 Mobility
The Mobility Department focuses on developing solutions for environmentally sound, safe and cost
and energy efficient mobility. The department‘s stands out for its holistic approach which involves
taking a systemic view of vehicles, infrastructure and personal transport. This in turn opens up new
research perspectives.
Light alloy frames and bodies, and electric drives for alternative vehicle design concepts
Zero noise and exhaust emissions are the striking feature of the innovative sports model developed
in 2008 by motorcycle manufacturer KTM Sportmotorcycle AG and the drive technology experts at
the Mobility Department. Thanks to a powerful intelligent electric drivetrain that suits a wide range
of riding conditions, the performance of the new motorcycle is comparable to that of conventional
counterparts.
The brief for the first zero emission KTM Enduro was to combine maximum performance and range
with minimum vehicle weight. Developing the drivetrain involved selecting appropriate battery
technology, designing the battery system including battery management, developing a safety and
control concept, and designing an optimised electric motor. Following promising trials, the zero
emission prototype has moved from the research to the production ready development stage.
Energy-efficient mobility demands new drive technologies and lighter vehicle structures. The
department therefore focuses on novel methods for designing safe lightweight vehicle assemblies
made of aluminium and magnesium alloys. Thanks to the greatly reduced machining costs in comparison
to conventional body shells, the space frame — a structure consisting of extrusion sections
and cast nodes — is ideally suited to low and very low volume production. The aim is to create
space frames for a new generation of lightweight vehicles with alternative drives that meet existing
safety standards.
The simulation based development of a space frame structure for a lightweight electric drive vehicle
was completed in 2008. The basic appearance of the vehicle was the starting point for defining the
“packaging” — the exterior dimensions, wheelbase, and the position and weight of the electric motors,
battery and driver. The project team developed software to compute stresses when cornering
and braking, among other parameters. The packaging also determines the interior space provided
by the frame. A body frame using light alloy profiles and cast nodes was virtually developed for this
space and the other specifications.
Dynamic optimisation of transport systems
Dynamic management and guidance of large numbers of people is essential for the success of
major events. The RAVE control system uses objective, automatically captured data to manage traffic
flows at important hubs (such as railway platforms and entrances). Specially developed control
rules translate information on traffic volume into instructions for portal management. Intelligent
management like this maximises traffic throughput — for example, at large-scale events — and

also helps to avoid safety critical situations on platforms. The effectiveness of this innovative control
system was demonstrated at the UEFA Euro 2008™ football championships in Austria. Some 44%
of the spectators or 22,000 passengers who used an underground station equipped with the RAVE
system after a match at the Ernst Happel Stadium in Vienna were able to leave the venue in less
than an hour. This outstanding performance was honoured by the Ministry of Transport, Innovation
and Technology with a special award for transport logistics solutions at large-scale events as part of
the 2008 Austrian State Prize for Transport.
In 2009 the expertise developed during the project — using data acquisition to generate specific
recommendations based on simulations and forecasts — will be applied to transport logistics, in the
shape of dynamic route optimisation. The aim of the researchers is to develop methods and models
for the dynamic management of vehicle fleets that will enable operators to respond to changes in
the current traffic situation such as accidents, and to short-notice orders in real time, by performing
low-cost, high quality rescheduling. Such models are particularly important to transport companies,
which often have to guarantee top service quality and low costs when taking on short-notice orders.
Other potential cooperation partners for the project include ambulance service providers.
2.1.6.4 Safety & Security
The Safety & Security Department researches new information and communication technologies,
and develops, tests and implements new procedures and prototypical applications to demonstrate
the technological and economic feasibility of industrial implementation, as well as potential technological
effects (e.g. of relevance to safety and the environment). Innovative system solutions based
on artificial intelligence are implemented in practice in cooperation with partners from industry and
the public sector.
The department coordinates integrated projects forming part of the Sixth Framework Programme
(DECOS, SECOQC and SANY) and is a partner in some other EU projects (COOPERS, Watch-
Over, robots@home, AVITRACK, ORCHESTRA, ADOSE and MOGENTES).
World‘s first quantum cryptography network
Quantum cryptography solves one of the fundamental problems in data encryption, namely, the
exchange of a digital key. Using quantum cryptography, an absolutely tap-proof key can be exchanged
between two partners, thereby protecting electronic communication from eavesdroppers.
Procedures currently being used to exchange keys either require a great deal of effort (distribution
of keys by trusted couriers) or a belief that the mathematical methods used in key distribution will
be too complex for eavesdroppers to crack by applying massive computing power.
The integrated SECOQC project, under the Sixth Framework Programme began in 2004. Under
ARC‘s guidance more than 40 partners are working on refining quantum cryptography into a
technology suitable for commercial optical networks. The outcomes of this project were publicly demonstrated
in October 2008, when four locations in Vienna and one in St. Pölten were linked over
a Siemens optical network using quantum cryptography. During the demonstration, which attracted
widespread international media coverage, VoIP was encrypted and a tap-proof video conference
held using the keys generated. This was the first time that it had been demonstrated that quantum
cryptography is actually suitable for securing electronic data exchanges over long distances and
between several partners.
The next stage in this development will involve improving the reliability of the components used.
Extremely quick and sensitive high-resolution image sensors
Bio-inspired, neuromorphic electronic circuits and feature-based signal processing algorithms are to
be used in image processing systems as part of the VSOC research project, with a view to achieving
a major improvement in performance, e.g. in quality inspection applications.
02
Annual Report 2008
Management report
Structural report
21
Annual Report 2008

02
Annual Report 2008
Management report
Structural report
22
Annual Report 2008
Research is being conducted on new concepts for neuromorphic image sensors and algorithms for
real-time data processing. Neuromorphic circuits process information by electronically mimicking
biological structures. Image processing algorithms that are feature rather than pixel-based can
capture and interpret image content more quickly and reliably, and it is hoped that this will enable
intelligent optical sensor systems with far better performance than existing products to be developed.
The research findings are being marketed in cooperation with sensor manufacturers and
system integrators.
Novel technological approaches and electronic circuits which open the way for extremely quick and
sensitive high-resolution image sensors have been developed. Light sensitivity, which is crucial to
practical usability, declines as the speed of the sensor increases. ARC has therefore developed and
patented a „digital multi-exposure process“ which counters this characteristic. The new xposure1
high-speed line sensor is compatible with extremely high sensitivity.
The specifications of the xposure1 high-speed line sensor as an FIP technology demonstrator were
completed in 2008. To minimise technological and commercial risk, test chips were produced in advance
for functional verification of the subassemblies. The first test chip has now been successfully
tested and the measurement results are already being incorporated into the xposure1 sensor.
Digital preservation
Preserving the availability and reliability of digital information over time is a constant problem for
private individuals, public authorities and industry alike.
The Digital Memory Engineering (DME) working group, previously operated as research studios,
was incorporated in the department in 2008. The group has recently been focusing on digital preservation,
mainly as part of PLANETS — an FP6-IST project. PLANETS is working on developing
a sustainable framework for the long-term archiving of digital content, in order to increase Europe‘s
ability to ensure long-term access to its cultural and scientific heritage. The project will enable organisations
to optimise their long-term archiving activities, safeguard long-term access to valuable
digital content and keep archiving costs under control through increased automation and scalable
infrastructure.
In 2008 DME succeeded in raising the profile of digital preservation in the Austrian research
scene by making a successful application under the FFG (Austrian Research Promotion Agency)
Research Studios Austria programme in cooperation with the University of Vienna and Vienna University
of Technology. The aim of this project is to refine the strategies and services for professional
long-term archiving at libraries and archives developed by the PLANETS project so that it will also
be possible to use them in other areas, such as large-scale industry, commerce and SMEs. Reducing
complexity, applying established best-practice strategies and developing simple, automated
services will play an important part in guaranteeing long-term access to digital data collections.
2.1.6.5 Foresight & Policy Development
In both business and scientific terms, 2008 was one of the most successful years ever for the
Foresight & Policy Development Department. The department posted an 11% increase in revenue
compared with 2007, and intellectual capital performance was equally impressive: 11 publications
by department staff (37.6 full-time equivalent) in peer reviewed journals. Another 16 articles were
submitted and nine were accepted for publication. Departmental staff also published five books and
numerous contributions to books, as well as speaking at international conferences. The department
hosted the International Conference on Science and Technology Indicators in Vienna in cooperation
with the University of Vienna. Foresight & Policy Development was responsible for scientific organisation
at the conference, and the staff’s speeches and publications made a significant contribution
to the success of the event.

In order to maintain this record of success, ARC and the Vienna University of Economics and
Business Administration signed a cooperation agreement entitled “Innovation Economics Vienna
(IEV)” at the department’s initiative. Over the next five years selected students who are writing
masters or doctoral theses on innovation economics will receive funding from several sponsors,
including the Ministry of Transport, Innovation and Technology, and expert advice from mentors in
the department. As education takes place at the front end of scientific activity, the programme is
likely to provide a useful stimulus for the Austrian innovation system as a whole.
A number of distinct project clusters emerged in the department’s research into innovation and
sustainability in 2008. This was true of the contract, cooperative and independent research projects.
Network research is one of the main thrusts, and today the development is one of the top three
European research organisations in the field.
NEMO project on network models, governance and R&D collaboration networks
(sixth Framework Programme)
The Network of Excellence on Micro-optics (NEMO) project is the backbone of the department’s
network research activities. Its primary aim is to carry out an empirical analysis of the structure and
dynamics of R&D collaboration networks in Europe. This will involve adapting and applying conventional
social network analysis techniques and various statistical physics and econometric methods
to the area of research. However, developing new approaches to network modelling is also an
integral part of NEMO. The findings arrived at to date have significantly increased understanding of
the structure, dynamics and development of R&D collaboration under the EU’s Framework Programmes.
The project outcomes are likely to have a major impact on the strategic direction of future
Framework Programmes.
One important area of research under the NEMO project is identifying and analysing the factors
that determine the choice of partners from the various organisations participating in EU Framework
Programmes. The impact of individual determinants — arrived at on the basis of economic network
formation theories — was identified and evaluated with the aid of a separate decision-making
model. The latter estimates the probability of partnerships between two organisations according to
selected determinants and their influence on decisions.
The findings revealed that relationships based on past project cooperation are the most important
factor in selecting research partners. The research focus of the organisations also plays an
important part in decisions. The greater the similarity between the research profiles of a pair of
organisations, the more likely they are to enter into a partnership. Geographical proximity and the
importance of the organisations’ roles in the network are also statistically significant factors.
Research into networks is important because it generates models which are ideally suited to analysing
complex systems and reveal similarities in network characteristics, structures and development.
We believe that these are among the few models suitable for the management of complex
social systems. The department’s research will contribute to achieving this objective by providing
new insights into the relationships between network activities and structures, and between network
structures and network management.
Department staff have been looking into the design and implementation of foresight processes for
several years. Most of the research into process implementation has been carried out on behalf of
the European Commission, but the establishment of AIT marks a vital step towards institutionalising
foresight processes in Austria. The following is an example of the foresight projects conducted in
2008.
02
Annual Report 2008
Management report
Structural report
23
Annual Report 2008

02
Annual Report 2008
Management report
Structural report
24
Annual Report 2008
ForeSec – Europe’s evolving security: drivers, trends and scenarios — a project
commissioned by DG Research
This project uses the foresight approach to investigate potential challenges and future scenarios
for European security. After providing a comprehensive definition of security, the project addresses
key issues relating to energy supply, bilateral conflicts, communication networks and infrastructure.
These areas confront Europe with a wide range of new challenges, all of them related to technological
development. The project consortium consists of several leading European security research
organisations which have joined forces to create a common research platform (see www.foresec.
eu). Since security challenges and risks are perceived and evaluated in widely differing ways, the
first step in a highly participative process is to identify the various perspectives on risks, trends,
opportunities and scenarios. This involves cooperating with experts from governments, research
institutions, companies and civil society in 12 European countries. To facilitate collaboration, the
department organised a conference in Vienna from 2–3 July 2008 at which around 100 delegates
discussed a variety of issues. To complement this form of dialogue and further expand participation
in the foresight process, an online Delphi process was launched in autumn 2008. This enabled
various experts and stakeholders to evaluate key drivers identified during the workshop.
The findings were then used to create robust scenarios and visions for addressing new threats and
exploiting technological opportunities. Ethical, cultural and user related aspects were also taken into
consideration. The project outcomes can be used as a basis for recommendations and strategies
for governments, think tanks, research organisations and companies.

02
Annual Report 2008
Management report
Structural report
25
Annual Report 2008

02
Annual Report 2008
Management report
Business performance
in 2008
26
Annual Report 2008
2.2 Business performance in 2008
2.2.1 Income
In 2008 contract research revenue was down year on year at EUR 43.0 million (m) (2007: EUR
47.6m). This was due to the demerger of some operations, which resulted in lower revenue but
reduced expenses still more. Despite the spin-offs revenue from cofinanced projects (subsidies) declined
only slightly, to EUR 17.0m (2007: EUR 18.2m), demonstrating the strong position of ARC’s
core operations in the Austrian and international research funding markets.
Other operating income of EUR 13.9m includes EUR 1.7m in income from reversals of provisions,
EUR 3.7m in expenses charged-on, EUR 6.5m in reversals of reserves for investment grants, and
EUR 2.0m in sundry other operating income.
Payments by shareholders relate to research grants and, together with revenue from contract
research activities and cofinanced research, represent one of the main sources of total revenue
and of funding for the Group’s independent research activities. Amounting to EUR 40.0m (2007:
EUR 40.1m), these represented some 33% (2007: 32%) of total operating revenue of EUR 119.4m
(2007: EUR 126.3m). In addition to meeting the increased cofinancing needs arising from the
research programmes, these resources also enabled the Group to consolidate its research priorities
and overall technological expertise.
In contrast to the UGB (Austrian Business Code) presentation, in the management report EUR
1.1m is reclassified from other operating income to BMLFUW (Ministry of Agriculture and Forestry,
Environment and Water Management) nuclear research funding in order give a more accurate view
of overall nuclear research funding.

EUR '000
2007
2008
R&D revenue 45,567 41,142
Changes in inventories 2,069 1,861
R&D revenue including changes in inventories 47,636 43,004
R&D grants 12,004 12,403
Changes in inventories 6,171 4,579
R&D revenue including changes in inventories 18,175 16,982
1. Total revenue from research contracts 65,811 59,986
2. Nationalstiftung funding 4,890 739
BMVIT support for independent research 38,989 38,923
Syndicate agreement payments 1,136 1,117
3. Total shareholder payments
(research) 40,125 40,040
BMVIT nuclear research funding 4,454 4,771
BMLFUW nuclear research funding 0 1,099
4. Total nuclear research funding 4,454 5,870
5. Own work capitalised 36 0
6. Other operating income 11,013 12,793
Total operating income 126,329 119,429
02
Annual Report 2008
Management report
Business performance
in 2008
27
Annual Report 2008

02
Annual Report 2008
Management report
Business performance
in 2008
28
Annual Report 2008
2.2.2 Expenses
Personnel expenses represented 53.3% of operating income in 2008 (2007: 49.7%). Cost of materials
and other supplies was equal to 20.6% of operating income — down from 24.6% in the previous
year. The Group’s cost structure improved as it reflected increased use of the core resource —
personnel — and lower transitory costs. The decrease in other operating expenses to EUR 20.3m
(2007: EUR 26.7m) is due to the allocation to provisions for remediation of the Seibersdorf site
(approx. EUR 3.1m), the fact that the allocation to warranty provisions in 2007 was not repeated in
the year under review, and savings on various other expense items. The annual result is positive by
EUR 4.5m, and represents a marked improvement on the previous year.
EUR '000
2007
2008
Total operating income 126,329 119,429
Cost of materials -7,747 -6,702
Other supplies -23,151 -17,909
1. Cost of materials and other supplies -30,898 -24,611
2. Personnel expenses -62,785 -63,661
3. Depreciation and amortisation -7,507 -7,423
4. Other operating expenses -26,742 -20,265
Total operating expenses -127,932 -115,960
Earnings before interest and tax -1,603 3,469
Financial result 373 1,008
POA -1,230 4,476
Income/expenses relating to other periods, and minority interests 3 47
Profit/loss for the year/period -589 0
Movements in reserves -1,816 4,523
Profit/loss brought forward -6,037 -7,853
Accumulated profit/loss -7,853 -3,330

2.2.3 New and existing projects,
and work in progress
New commissions
New contract research commissions (KU) were
about 5% up year on year at EUR 24.7m. Subsidised
research (KF) commissions grew much
more rapidly, more than doubling to EUR 25.6m
(an increase of approx. 132%). The decline in
research commissions to competency centres
was due to the expiry of the Kplus programme.
New research commissions were only received
for half a year, and for a single centre (LKR).
The growth in new commissions — which
totalled EUR 51.42m — was highly encouraging,
and shows the Company‘s strong market
position.
Existing commissions
Due to the upturn in new commissions the
backlog of existing contract research commissions
and cofinanced research also rose
sharply year on year. Existing contract research
commissions were about 4% up at EUR 30.8m,
while commissions for co-financed research
jumped by some 30% to EUR 57.1m. Due to
the termination of the Kplus programme the
backlog of projects under the competency centre
programme was worked off. Total commissions
in hand in the ARC Group stood at EUR
87.9m as at 31 December 2008.
Work in progress
Work in progress expanded by around 23%,
and amounted to EUR 47.7m at year end. Contract
research in progress edged down by 2%
to EUR 21.3m due to the high completion rate,
but co-financed research surged by some 62%
to EUR 26.4m owing to the strong intake of
new commissions. The cessation of the Kplus
programme meant that all work in progress
under the competency centre programme was
completed.
■ Contract research (KU) ■ Subsidised research (KF) ■ Competency centres (KK)
40.91
■ Contract research (KU) ■ Subsidised research (KF) ■ Competency centres (KK)
74.29
29.54
44.03
0.72
87.93
1 – 12/2007 1 – 12/2008
30.80
57.13
0.00
All values in million EUR
■ Contract research (KU) ■ Subsidised research (KF) ■ Competency centres (KK)
38.68
23.54
11.03
6.34
21.70
16.26
0.72
51.41
1 – 12/2007 1 – 12/2008
47.72
1 – 12/2007 1 – 12/2008
24.66
25.57
1.18
21.31
26.41
0.00
All values in million EUR
All values in million EUR
29
Annual Report 2008

02
Annual Report 2008
Management report
Business performance
in 2008
30
Annual Report 2008
2.2.4 Investment
Total investment in intangible and tangible assets during the 2008 financial year amounted to EUR
8.36m — EUR 0.53m up on the previous period (2007: EUR 7.83m).
Of this EUR 0.51m went to intangible assets, mostly software licences (2007: EUR 0.80 m). Additions
to land and buildings totalled EUR 2.02m (2007: EUR 1.69m) while EUR 4.27m (2007: EUR
3.67m) was invested in technical equipment. A further EUR 1.1m (2007: EUR 1.09m) was devoted
to fixtures, furniture and office equipment, while EUR 0.46m (2007: EUR 0.59m) in prepayments
and assets in the course of construction was capitalised.
Additions to financial assets were EUR 0.11m, compared to EUR 4.0m in 2007, when mature
obligations of EUR 2.00m were reinvested, and EUR 2.01m arose from additions to and reversals
of the same transaction.
2.2.5 Liquidity and financial position
There were net cash inflows of EUR 11.79m during the 2008 financial year, following inflows of EUR
8.13m in the previous period. The positive cash flow resulted chiefly from cash flow from operating
activities, and in particular, a reduction in working capital.
Cash in hand and at bank of EUR 32.41m as at 31 December 2008 included EUR 10.63m in EU
coordination funds, national foundation money and project related prepayments.
31. Dec. 2007 31. Dec. 2007 2007
FTE People Average
Austrian Research Centers GmbH – ARC 624.5 672 620.0
arsenal research (inc. civil servants assigned to U&L) 173.2 176 168.9
Advanced Computer Vision GmbH (ACV) 6.9 7 9.7
Nuclear Engineering Seibersdorf GmbH 50.8 53 48.8
ARC Leichtmetallkompetenzzentrum
Ranshofen GmbH 31.7 34 34.9
ECHEM GmbH 2.8 4 2.4
ECHEMplus employees 26.3 30 24.9
Group 916.2 976 909.6

Equity was EUR 12.8m as at 31 December 2008 (2007: EUR 2.7m). Taking investment grants of
EUR 37.2m into account, total equity was EUR 50.0m in the year under review (2007: EUR 39.7m).
The improvement in equity resulted from the profit for the year, as well as the reclassification of
EUR 5.7m in shareholder payments from prepayments and accrued income to the unappropriated
capital reserve, on the basis of the owner’s agreement to unrestricted use of the funds in question.
2.2.6 Human resources
At balance sheet date the Company had 852.7 employees (calculated on the basis of free time
equivalents, and excluding apprentices, staff subject to the post-apprenticeship retention period,
and HF/EU grant holders. This represented a reduction of 63.5 (FTE) or 75 persons (see table)
compared to the previous year‘s head count (916.2 FTE).
31. Dec. 2008 31. Dec. 2008 2008 Percentage change (year on year)
FTE People Average FTE People Average
582.8 622 595.0 -41.7 -50 -24.9
185.9 190 177.0 12.7 14 8.1
0.0 0 0.0 -6.9 -7 -9.7
52.0 55 51.3 1.2 2 2.4
32.0 34 31.3 0.3 0 -3.6
0.0 0 1.6 -2.8 -4 -0.8
0.0 0 17.5 -26.3 -30 -7.4
852.7 901 873.8 -63.5 -75 -35.9
02
Annual Report 2008
Management report
Business performance
in 2008
31
Annual Report 2008

02
Annual Report 2008
Management report
Risk report
32
Annual Report 2008
2.3 Risk report
To the ARC Group, risk management means both actively addressing risks in order to protect the
Group‘s assets, finances and earnings, and equally, identifying opportunities and weighing up
business decisions. Our risk management system is aimed at recognising risks at an early stage,
and taking appropriate action to counter them so as to minimise deviations from our targets. This
involves the identification, assessment, management and monitoring of risks, which takes place
regularly as part of our internal financial, performance and risk reporting processes.
2.3.1 Financial risk: information on financial instruments pursuant to
section 243(3)(5) Austrian Business Code
The Company does not currently employ any derivative financial instruments, and due to the nature
of its operations it does not plan to do so in future. The receivables management system includes
ongoing impairment testing and monitoring. The potential impact of defaults on the Company‘s
assets, finances and earnings is restricted by monitoring compliance with payment dates, setting
credit limits and obtaining client creditworthiness checks.
2.3.2 Market risk
The current situation on global markets and the sharp downturn in economic activity in 2009 represent
risks for all market participants in terms of the attainability of performance targets, the acquisition
of new customer groups and partner networks, and the implementation of business models. The
ARC Group’s diversified service portfolio addresses a variety of markets. It is difficult to assess the
potential effects of the global crisis on ARC’s revenue due to the constant changes in the information
available to management. While the improvement in commissions in hand sends a positive
signal for ARC, constant tracking of order backlog and early identification of trends in the relevant
markets, leading to rapid action will remain a key task.
2.3.3 IT risk
The Company has a centralised IT environment, permitting joint use of advanced system components
at the various sites. These include a modern security environment with firewalls, virus
scanning and remote access points with multiple protection to recognise and repel attacks. Regular
generation of backup copies of centrally held data is automated. Security for all our projects complies
with the generally accepted standards established by the BSI (Federal Office for Information
Security) IT Baseline Protection Manual and ISO 17799, and reflects the technical state-of-the-art.
2.3.4 Legal risk
We are currently unaware of any actual or impending legal disputes that could have a significant
influence on the financial position of the Company and Group.

2.3.5 Personnel risk
As with any knowledge-based business, employee performance is crucial to the Company’s success.
We compete with other companies for highly qualified experts and managers. To recruit and
retain them, we offer attractive compensation and benefits, as well as extensive staff development
opportunities.
2.3.6 Overall risk
No risks have been identified that could endanger the continued survival of the Company at present
or in the foreseeable future.
02
Annual Report 2008
Management report
Risk report
33
Annual Report 2008

02
Annual Report 2008
Management report
Outlook report
Financial and non-financial
performance indicators
34
Annual Report 2008
2.4 Outlook report
Financial and non-financial
performance indicators
2.4.1 Strategic development
Readers are referred to section 2.1.4 of the management report for a discussion of the Group’s
strategic development.
2.4.2 Metrics for attainment of BMVIT targets
Financial and non-financial indicators have been established which are used to manage the Company
as a whole and measure the attainment of targets for specific areas of operations. These
performance levers are broken down into four groups, described below. For example, we applied
for 20 Austrian and 31 international patents in 2008; a total of 27 were awarded.
Business performance
Market success with research commissioners and funders (total contract research and funding);
Contract and subsidised research related to strategic topics;
Licences awarded;
Patent applications and awards.
Scientific performance
Number of publications in peer reviewed journals;
Number of teaching contracts at universities, Fachhochschulen (universities of applied science)
and postgraduate institutions;
Number of lectures given at international conferences, symposia and workshops;
Number of national and international awards.
Human resources
Number of undergraduate and doctoral thesis students;
Number of training days;
Proportion of female scientific staff;
Recruitment of foreign scientific staff.
Knowledge and technology transfers to SMEs
Technology projects conducted in cooperation with SMEs;
Workshops and seminars targeted at SMEs;
Number of spin-offs;
Number of scientific employees transferred to spin-offs.
The business performance indicators are intended to give an overall view of the Group‘s revenue
situation. They are a particularly good guide to overall performance as non-university research organisations
are expected to maintain close links with industry, and operate in an especially application
and market driven manner. The scientific performance indicators capture the Group’s scientific
excellence, its cooperation with universities and the strength of its links with the scientific community.
Since this area of performance is very closely related to personnel matters, some issues are also

covered by the human resources group of indicators.
The performance indicators above are subjected to a critical assessment during the formulation
of the multi-year strategy, and adjusted or modified where necessary. In future the performance
indicators, and the target financing mix (40% shareholder funding, 30% contract research and 30%
income from cofinanced research) incorporated in the articles of association will be monitored as
part of a regular reporting process.
2.5 Post balance sheet date events
There were no events of particular significance after the balance sheet date that would have resulted
in a different view of the Company‘s assets, finances and earnings.
Austrian Research Centers GmbH (ARC), Vienna
The Board of Management:
Anton Plimon m.p. Wolfgang Knoll m.p.
Managing Directors Austrian Research Centers GmbH – ARC
Austrian Research Centers GmbH (ARC)
Tech Gate Vienna: Donau-City-Strasse 1, 1220 Wien, Austria
T +43 5 0550-2000, F +43 5 0550-2201
office@arcs.ac.at, www.arcs.ac.at
Vienna, 17 March 2009
02
Annual Report 2008
Management report
Outlook report
Financial and non-financial
performance indicators
35
Annual Report 2008

03
Financial
statements
Annual Report
2008

03 Financial statements Page
3.1 Consolidated balance sheet 38
3.2 Consolidated profit and loss account 40
37
Annual Report 2008

3.1 Consolidated balance sheet
as at 31. Dec. 2008
Assets EUR EUR
A. FIXED ASSETS
38
I. Intangible assets
Annual Report 2008
As at
31. Dec. 2008
EUR
As at
31. Dec. 2007
EUR '000
1. Licences and similar rights 559,779.38 966
II. Tangible assets
1. Land, titles to land, and buildings including
buildings on third-party land 20,117,975.85 19,329
2. Plant and equipment 20,405,164.83 20,501
3. Other equipment, furniture and fixtures 3,410,081.95 3,485
4. Prepayments and assets in the course of
construction
III. Financial assets
1. Investments
780,682.08 685
44,713,904.71 44,000
a) In associates 29,050.00 0
b) Other investments 46,938.97 41
2. Loans to associates 70,833.00 0
3. Securities held as fixed assets 9,582,220.31 9,821
B. CURRENT ASSETS
I. Inventories
9,729,042.28 9,862
55,002,726.37 54,828
1. Raw materials and supplies 8,751.02 14
2. Finished goods 500,868.52 336
3. Spare parts 59,348.78 56
4. Inventories 99,500.00 0
5. Uninvoiced services
a) Unsubsidised customer projects
less prepayments received
b) Subsidised customer projects
less prepayments received
II. Receivables and other assets
9,522,630.68
– 4,578,438.71
31,015,774.40
–23,866,855.52 12,093,110.85 11,235
12,761,579.17 11,641
1. Trade receivables 10,413,584.70 14,564
2. Receivables from associates 1,228,030.66 38
3. Other receivables and assets 3,345,485.62 4,469
14,987,100.98 19,071
III. Cash in hand and at bank 32,405,823.34 20,615
60,154,503.49 51,327
C. PREPAYMENTS AND ACCRUED INCOME 2,871,860.29 2,737
Total assets 118,029,090.15 108,892

3.1 Consolidated balance sheet
as at 31. Dec. 2008
Equity and liabilities EUR EUR
A. EQUITY
As at
31. Dec. 2008
EUR
As at
31. Dec. 2007
EUR '000
I. Share capital 470,920.12 471
II. Capital reserves
1. Unappropriated 13,657,717.45 7,953
13,657,717.45 7,953
III. Revenue reserves 2,057,557.61 2,058
IV. Retained losses
of which losses brought forward EUR 7,853,329.92
(2007: EUR 6,037,000)
–3,330,373.51 –7,853
V. Negative adjustment for minority interests –26,650.60 28
B. INVESTMENT GRANTS
12,829,171.07 2,657
I. Shareholder investment grants
(in accordance with Art. 13 Articles of Association) 29,317,068.65 28,192
II. Government investment grants 1,360,147.17 1,711
III. Other investment grants 6,476,042.23 7,165
C. PROVISIONS
37,153,258.05 37,068
1. Provisions for severance payments 7,286,556.00 7,633
2. Provisions for pensions 1,777,770.00 1,873
3. Provisions for taxes 268,889.49 271
4. Other provisions 22,326,538.92 22,795
D. LIABILITIES
31,659,754.41 32,572
1. Prepayments received – trade 13,149,355.49 8,307
2. Prepayments received – Nationalstiftung 45,467.98 771
3. Trade payables 6,813,036.86 8,704
4. Payables to Group companies 48,611.15 49
5. Other liabilities
of which taxes EUR 419,650.55
(2007: EUR 932,000)
social security contributions
EUR 1,234,846.39 (2007: EUR 1,326,000)
12,493,558.13 11,475
6. Bank borrowings 148.50 0,00
32,550,178.11 29,306
E. ACCRUED EXPENSES AND DEFERRED INCOME 3,836,728.51 7,289
Total equity and liabilities 118,029,090.15 108,892
CONTINGENT LIABILITIES 24,971.72 695
39
Annual Report 2008

Consolidated profit and loss account
1. 1. 2008 to 31. Dec. 2008
40
Annual Report 2008
2008
EUR EUR
2007
EUR '000 EUR '000
1. Revenue 41,142,238.41 45,567
2. Subsidies, research grants
and Nuclear Engineering funding
57,953,648.46 61,473
a) Subsidies 12,403,090.95 12,004
b) Research grants 40,779,550.81 45,015
c) Nuclear Engineering funding 4,771,006.70 4,454
3. Change in inventories of finished
goods and uninvoiced services
6,440,719.92 8,240
4. Other own work capitalised 0.00 36
5. Other operating income
a) Gains on disposal of assets other than financial
assets
16,115.50 12
b) Income from reversal of provisions 1,687,409.64 1,786
c) Sundry other operating income 12,188,669.65 13,892,194.79 9,215 11,013
6. Cost of materials and other supplies
a) Cost of materials 6,702,148.93 7,747
b) Other supplies 17,908,827.12 –24,610,976.05 23,151 –30,898
7. Personnel expenses
a) Wages 113,847.91 155
b) Salaries 47,982,993.51 47,660
c) Severance payments and contributions to
employee benefit funds
1,549,438.64 1,091
d) Pension expenses 1,201,217.95 1,285
e) Statutory social security contributions, pay-related
levies and compulsory contributions
11,924,807.00 11,935
f) Other employee benefit expenses 888,686.04 –63,660,991.05 659 –62,785
8. Amortisation and impairment –7,423,426.14 –7,507
9. Other operating expenses
a) Taxes (other than income taxes) 247,274.38 10
b) Sundry other operating expenses 20,017,369.69 –20,264,644.07 26,732 –26,742
10. Subtotal items 1–9
(earnings before interest and tax)
3,468,764.27 –1,603

3.2 Consolidated profit and loss account
1. 1. 2008 to 31. Dec. 2008
11. Income from other securities held as
financial assets, of which Group companies
nil (2007: nil)
12. Other interest and similar income,
of which Group companies nil
(2007: nil)
13. Expenses arising from financial assets
2008
EUR EUR
2007
EUR '000 EUR '000
448,911.72 425
856,409.26 455
a) Amortisation 238,991.71 95
b) Other expenses 0.00 –238,991.71 14 –109
14. Interest and similar expenses,
of which Group companies nil (2007: nil)
15. Subtotal items 11–14
(financial result)
–58,827.74 –398
1,007,501.53 373
16. Profit/loss on ordinary activities 4,476,265.80 –1,230
17. Income taxes –8,456.48 –3
18. Profit/loss after tax 4,467,809.32 –1,233
19. Attributable to minority interests 55,147.09 6
20. Reversal of revenue reserves 0.00 3
21. Allocations to revenue reserves 0.00 –592
22. Profit/loss for the year 4,522,956.41 –1,816
23. Losses brought forward –7,853,329.92 –6,037
24. Accumulated loss –3,330,373.51 –7,853
41
Annual Report 2008

04
Credits and
contact details
Annual Report
2008

Credits
Published by
Austrian Research Centers GmbH – ARC
Corporate and Marketing Communications
Tech Gate Vienna: Donau-City-Strasse 1,
1220 Vienna, Austria
office@arcs.ac.at, www.arcs.ac.at
Concept and contents
Austrian Research Centers GmbH – ARC
Corporate and Marketing Communications
Michael H. Hlava
Tech Gate Vienna: Donau-City-Strasse 1,
1220 Vienna, Austria
office@arcs.ac.at, www.arcs.ac.at
Graphic concept, design and layout
Spirit Design Innovation and Branding
Silbergasse 8, 1190 Vienna, Austria
spirit@spiritdesign.at, www.spiritdesign.at
Printed by
gugler GmbH
Auf der Schön 2, 3390 Melk an der. Donau,
Austria
office@gugler.at, www.gugler.at
Contact
For further information please contact:
Austrian Research Centers GmbH – ARC
Corporate and Marketing Communications
Michael H. Hlava
Tech Gate Vienna: Donau-City-Strasse 1,
1220 Vienna, Austria
T +43 5 0550-2046, F +43 5 0550-2010
michael.hlava@arcs.ac.at, www.arcs.ac.at
Cautionary statement
This annual report has been prepared with the
greatest possible care, and the information
contained in it has been checked. Nonetheless,
rounding, typesetting and printing errors cannot
be excluded. The use of software to aggregate
rounded figures and percentages may result in
minor calculation differences.
This report is also available in German. In case
of doubt the German version is authoritative.
Editorial deadline: 2 May 2009
04
Annual Report 2008
Impressum
Kontakt
43
Annual Report 2008

The Austrian Research Centers Annual Report 2008 has been printed on paper certified according to the rules of the
Forest Stewardship Council (FSC). The FSC imposes strict criteria on the management of forests in order to avoid
uncontrolled deforestation, infringements of human rights and environmental pollution.
As products with the FSC seal of approval may be subject to a number of trading and processing stages, paper processing
facilities such as printworks are also certified in accordance with FSC guidelines.
For further information about the FSC please visit www.fsc.org.
This document has been printed using carbon neutral methods. Records are kept of all CO2 emissions arising from
printing processes, and these are balanced by the purchase of valid emission reduction certificates from recognised cli-
mate projects. At present all the proceeds from carbon neutral printing are going to a project in Karnataka, India, where
agricultural waste that was previously incinerated is being used to generate electricity and heat.