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Annual Report<br />
2008 2008<br />
<strong>Shareholders</strong>,<br />
<strong>Supervisory</strong> <strong>Board</strong><br />
<strong>and</strong> <strong>management</strong> <strong>bodies</strong><br />
––––––––– 6 –––––––––<br />
Management report<br />
––––––––– 10 –––––––––<br />
Financial statements<br />
––––––––– 36 –––––––––<br />
Credits <strong>and</strong><br />
contact details<br />
––––––––– 42 –––––––––
From ARC to AIT<br />
Austrian Institute of Technology (AIT)<br />
the Austrian research institution<br />
of European calibre<br />
Five specialist departments with a research focus on tomorrow‘s key infrastructure issues<br />
The objective of AIT‘s five departments — Mobility, Energy, Health & Environment, Safety &<br />
Security, <strong>and</strong> Foresight Policy & Development — is to give a technological lead, <strong>and</strong> develop<br />
methods <strong>and</strong> solutions for industrial <strong>and</strong> public sector clients.<br />
The new strategic thrust, ownership structure, governance system <strong>and</strong> scientific quality assurance<br />
processes at the Austrian Institute of Technology are designed to position AIT as a<br />
research institution of European calibre. This will enhance our partners’ innovative potential<br />
<strong>and</strong> strengthen Austria‘s competitive position as a business location.
00<br />
Contents<br />
Annual Report<br />
2008
Contents<br />
Section Page<br />
01 <strong>Shareholders</strong>, <strong>Supervisory</strong> <strong>Board</strong> <strong>and</strong> <strong>management</strong> <strong>bodies</strong> 6<br />
1.1 <strong>Shareholders</strong> 8<br />
1.2 <strong>Supervisory</strong> <strong>Board</strong> <strong>and</strong> <strong>management</strong> <strong>bodies</strong> 9<br />
02 Management report 10<br />
2.1 Structural report 12<br />
2.2 Business performance in 2008 26<br />
2.3 Risk report 32<br />
2.4 Outlook report<br />
Financial <strong>and</strong> non-financial performance indicators<br />
2.5 Post balance sheet date events 35<br />
03 Financial statements 36<br />
3.1 Consolidated balance sheet 38<br />
3.2 Consolidated profit <strong>and</strong> loss account 40<br />
04 Credits <strong>and</strong> contact details 42<br />
34<br />
00<br />
Annual Report 2008<br />
Contents
01<br />
<strong>Shareholders</strong>,<br />
<strong>Supervisory</strong> <strong>Board</strong><br />
<strong>and</strong> <strong>management</strong><br />
<strong>bodies</strong><br />
Annual Report<br />
2008
01<br />
Annual Report 2008<br />
<strong>Shareholders</strong>,<br />
<strong>Supervisory</strong> <strong>Board</strong> <strong>and</strong><br />
<strong>management</strong> <strong>bodies</strong><br />
As at 31. Dec. 2008<br />
01 <strong>Shareholders</strong>, <strong>Supervisory</strong> <strong>Board</strong> <strong>and</strong> <strong>management</strong> <strong>bodies</strong> Page<br />
1.1 <strong>Shareholders</strong> 8<br />
1.2 <strong>Supervisory</strong> <strong>Board</strong> <strong>and</strong> <strong>management</strong> <strong>bodies</strong> 9<br />
7<br />
Annual Report 2008
01<br />
Annual Report 2008<br />
<strong>Shareholders</strong>,<br />
<strong>Supervisory</strong> <strong>Board</strong> <strong>and</strong><br />
<strong>management</strong> <strong>bodies</strong><br />
As at 31. Dec. 2008<br />
8<br />
Annual Report 2008<br />
1.1 <strong>Shareholders</strong><br />
As at 31 December 2008<br />
A Republic of Austria (50.46%)<br />
BMVIT (Federal Ministry of Transport,<br />
Innovation <strong>and</strong> Technology)<br />
B Industry (49.54%)<br />
ABB AG<br />
Alcatel-Lucent Austria AG<br />
Allianz Elementar Versicherungs-<br />
Aktiengesellschaft<br />
APC Advanced Pollution Control AG<br />
Austria Metall Aktiengesellschaft<br />
BAWAG P.S.K. Bank für Arbeit und<br />
Wirtschaft und Österreichische<br />
Postsparkasse Aktiengesellschaft<br />
Berndorf Aktiengesellschaft<br />
BÖHLER-UDDEHOLM Aktiengesellschaft<br />
BSM Diagnostica Gesellschaft m.b.H<br />
Erste Bank der österreichischen<br />
Sparkassen AG<br />
EVN AG<br />
Gerot Pharmazeutika Gesellschaft.m.b.H<br />
GrECo International AG<br />
HENKEL CENTRAL EASTERN EUROPE<br />
GESELLSCHAFT MBH<br />
Hirtenberger Aktiengesellschaft<br />
Investkredit Bank AG<br />
KELAG-Kärntner Elektrizitäts-<br />
Aktiengesellschaft<br />
Kommunikations- & Sicherheitssysteme<br />
Gesellschaft m.b.H<br />
Mag. Dietbert Kowarik (trustee)<br />
Kwizda Holding GmbH<br />
New shareholder structure as at 25 March 2009:<br />
Austrian government 50.46%<br />
BMVIT (Federal Ministry for Transport, Innovation <strong>and</strong> Technology)<br />
Federation of Austrian Industries Verein zur Förderung von Forschung und Innovation<br />
(Association for the Promotion of Research <strong>and</strong> Innovation) 49.54%<br />
Lafarge Perlmooser AG<br />
MAGNA STEYR Fahrzeugtechnik AG &<br />
Co KG<br />
Mediscan GmbH & Co KG<br />
OMV Refining & Marketing GmbH<br />
PKE Electronics AG<br />
PLANSEE Aktiengesellschaft<br />
Siemens Aktiengesellschaft Österreich<br />
Steirische Wasserkraft- und Elektrizitäts-<br />
Aktiengesellschaft<br />
Telekom Austria TA Aktiengesellschaft<br />
T-Mobile Austria GmbH<br />
UniCredit Bank Austria AG<br />
VA TECH HYDRO GmbH<br />
Verb<strong>and</strong> der Elektrizitätsunternehmen<br />
Österreichs (Association of Austrian<br />
Electricity Companies)<br />
VERBUND-Austrian Renewable Power<br />
GmbH<br />
Vereinigung der österreichischen Industrie<br />
(Federation of Austrian Industries)<br />
voestalpine Stahl GmbH<br />
Vorarlberger Illwerke Aktiengesellschaft<br />
WBB Stahl- und Maschinenbau AG (in<br />
liquidation)<br />
WIENSTROM GmbH
1.2 <strong>Supervisory</strong> <strong>Board</strong> <strong>and</strong> <strong>management</strong> <strong>bodies</strong><br />
As at 31 December 2008<br />
<strong>Board</strong> of Management<br />
Wolfgang KNOLL<br />
Anton PLIMON<br />
Authorised signatories<br />
Josef FRÖHLICH<br />
Heinrich GARN<br />
DGeorg HABERHAUER<br />
Thomas KADI<br />
Alex<strong>and</strong>er SVEJKOVSKY<br />
Alfred WANSCH<br />
<strong>Supervisory</strong> <strong>Board</strong><br />
President<br />
Hannes ANDROSCH<br />
Vice Presidents<br />
Robert BÖHM<br />
Gerhard RIEMER<br />
from 25 July 2008<br />
Members<br />
Robert BÖHM<br />
Peter EGGER<br />
Silvia JANIK<br />
Maria KUBITSCHEK<br />
Gerhard RIEMER<br />
from 2 July 2008<br />
Norbert ROZSENICH<br />
Ingolf SCHÄDLER<br />
Peter SCHWAB<br />
Edeltraud STIFTINGER<br />
from 2 July 2008<br />
Franz VIEHBÖCK<br />
Members delegated by the Works Council<br />
Karl Heinz ASCHBACHER<br />
Karl FARTHOFER<br />
Heinrich HUMER<br />
Philip LEOPOLD<br />
Rudolf ORTHOFER<br />
Eva WILHELM<br />
Scientific Advisory <strong>Board</strong>s<br />
NES<br />
Helmut BÖCK (Chairman)<br />
Kathrin EBERL-SVOBODA<br />
Brigadier Norbert FÜRSTENHOFER<br />
Viktor KARG (stellvertretender Vorsitzender)<br />
Wolfgang PFEIFER<br />
Jirina RADY<br />
Horst REICHER<br />
Silvia VARGA<br />
Gabriele VOIGT<br />
All other advisory boards <strong>and</strong> the holding company advisory board were dissolved at the end of 2008.<br />
01<br />
Annual Report 2008<br />
<strong>Shareholders</strong>,<br />
<strong>Supervisory</strong> <strong>Board</strong> <strong>and</strong><br />
<strong>management</strong> <strong>bodies</strong><br />
As at 31. Dec. 2008<br />
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02<br />
Management report<br />
Annual Report<br />
2008
02 Management report Page<br />
2.1 Structural report 12<br />
2.2 Business performance in 2008 26<br />
2.3 Risk report 32<br />
2.4 Outlook report<br />
Financial <strong>and</strong> non-financial performance indicators<br />
2.5 Post balance sheet date events 35<br />
34<br />
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02<br />
Annual Report 2008<br />
Management report<br />
Structural report<br />
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2.1 Structural report<br />
2.1.1 Strategic realignment of Austrian Research Centers (ARC)<br />
The 2008 financial year witnessed a wide-ranging realignment of Group structures <strong>and</strong> activities<br />
at ARC. Under the stewardship of Managing Directors Anton Plimon (appointed as Chief Executive<br />
Officer on 1 April 2008) <strong>and</strong> Wolfgang Knoll (Chief Research Officer since 1 April 2008), a<br />
comprehensive change process was introduced <strong>and</strong> a raft of other measures were taken.<br />
The organisational <strong>and</strong> strategic changes were accompanied by a simplification of the ownership<br />
structure. 2008 thus marked the starting point for an complete repositioning of Austrian Research<br />
Centers.<br />
The new Austrian Institute of Technology (AIT) which has emerged from ARC will focus on<br />
improving efficiency by means of restructuring <strong>and</strong> spin-offs, on new fields of research <strong>and</strong> on the<br />
development of a new governance system. To this end, in 2008 Austrian Research Centers laid<br />
the foundations for significant changes in the future portfolio, the organisational structure <strong>and</strong> the<br />
institution’s role in the domestic <strong>and</strong> international innovation systems.<br />
2.1.2 Ownership structure<br />
The process of streamlining the ownership structure was initiated in 2008. The assignment<br />
procedures notified by the Company by way of the contract of assignment signed on 18 December<br />
2008 were registered on 25 March 2009, following an application to the register of companies filed<br />
on 23 March 2009. As a result, the shareholders as of the reporting date were as follows:<br />
Austrian government (Ministry of Transport, Innovation <strong>and</strong> Technology);<br />
Federation of Austrian Industries (Association for the Promotion of Research <strong>and</strong> Innovation).<br />
2.1.3 Organisational structure <strong>and</strong> research focus<br />
The new organisational structure of the ARC Group is shown in the organisational chart below.<br />
The new structure came into effect on 12 January 2009. It is derived from the four existing strategic<br />
divisions: Health Technologies, Materials Technologies, Information Technologies <strong>and</strong> Mobility &<br />
Energy. In future, our strategic research thrusts will be the responsibility of five departments: Foresight<br />
& Policy Development, Health & Environment, Safety & Security, Mobility, <strong>and</strong> Energy.<br />
Additional structural changes in 2008 resulted from the sale of some operations of the Research<br />
Studios Division to Research Studios Austria Forschungsgesellschaft mbH (34 employees) with<br />
effect from 1 June 2008 <strong>and</strong> to EOX-IT Services GmbH (four employees) as of 2 July 2008. The<br />
continued operation of ECHEM GmbH — a former Kplus competency centre with 38 employees —<br />
was assured by its partial sale to CEST GmbH. The latter is a K1 centre financed under the FFG<br />
(Austrian Research Promotion Agency) COMET programme.<br />
These disposals marked a major advance towards streamlining ARC’s strategic portfolio, <strong>and</strong><br />
aligning its activities with its new organisational structure <strong>and</strong> objectives. The change of name<br />
from Austrian Research Centres to Austrian Institute of Technology (AIT) will serve to highlight the<br />
Company’s transformation.
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Organisational Structure<br />
As at 31. Dec. 2008<br />
14<br />
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Corporate service functions<br />
Department<br />
Foresight & Policy<br />
Development<br />
Unit<br />
Technology Policy<br />
Unit<br />
Spatial Systems<br />
Unit<br />
Technology Management<br />
Auditing<br />
Department<br />
Health & Environment<br />
Unit<br />
Environmental Resources &<br />
Technologies<br />
Unit<br />
Bioresources<br />
Unit<br />
Molecular Medicine<br />
Unit<br />
Biomedical Systems<br />
Unit<br />
Nano Systems<br />
Austrian Research Centres (ARC)<br />
<strong>Board</strong> of Management<br />
Department<br />
Corporate <strong>and</strong> Legal Services<br />
Department<br />
Safety & Security<br />
Unit<br />
Quantum Technologies<br />
Unit<br />
Video <strong>and</strong> Security<br />
Technology<br />
Sub-division<br />
Neuroinformatics<br />
Unit<br />
High-Performance<br />
Image Processing<br />
Unit<br />
Save <strong>and</strong> Autonomous<br />
Systems<br />
Unit<br />
Information Management &<br />
e-Health
Department<br />
Finance & Controlling<br />
Department<br />
Mobility<br />
Unit<br />
Electric Drive Technologies<br />
Unit<br />
Transportation Infrastructure<br />
Technologies<br />
Unit<br />
Dynamic Transportation<br />
Systems<br />
Subsidiary<br />
Light Metal Competence<br />
Center (LKR)<br />
Department<br />
Energy<br />
Unit<br />
Sustainable Thermal<br />
Energy Systems<br />
Unit<br />
Electric Energy Systems<br />
Unit<br />
Sustainable Building<br />
Technologies<br />
Subsidiary<br />
arsenal research<br />
* The former AMAT Division will continue to exist with the previous organisational structure.<br />
Unit<br />
Infrastructure Certification<br />
Subsidiary<br />
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Organisational Structure<br />
As at 31. Dec. 2008<br />
arsenal research<br />
Nuclear Engineering<br />
Seibersdorf GmbH<br />
Subsidiary<br />
Seibersdorf Labor GmbH<br />
Subsidiary<br />
ISS Beteiligungsges. mbH<br />
Business unit<br />
Technology Transfer Centre<br />
(TTZ) Leoben<br />
Business unit<br />
Portfolio to be defined*<br />
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2.1.4 Strategic positioning <strong>and</strong> development of research areas<br />
AIT’s strategic focus on infrastructure reflects the central importance of this field for industry <strong>and</strong> the<br />
public sector. The public sector itself is a key investor in transportation, energy, health, security <strong>and</strong><br />
innovation infrastructure, <strong>and</strong> consequently has an important role to play in innovative procurement<br />
<strong>management</strong>. At the same time the development of innovative industrial solutions with a strong<br />
systems orientation calls for an environment that is conducive to top quality research <strong>and</strong><br />
development.<br />
In recognition of this the Austrian Institute of Technology will present itself as a highly specialised<br />
R&D partner in its selected fields of technology. Its activities in these areas will focus on developing<br />
technologies, methodologies <strong>and</strong> processes that will generate leading-edge innovations with an<br />
implementation timeframe of five years or more. AIT will also act as a central node in the European<br />
innovation network with outst<strong>and</strong>ing foresight capabilities.<br />
A cornerstone of AIT’s future work will be the ability to agree multi-year budgets with the Ministry.<br />
This will lead to a secure flow of funding <strong>and</strong> enable AIT to focus on long-term research topics <strong>and</strong><br />
activities.<br />
In order to align the focus <strong>and</strong> positioning of departments’ R&D portfolios with the new operating<br />
framework, we have launched an internal strategy development process with a view to drawing up<br />
the first four-year programme, for the 2010–2013 period. This process, to be completed by May<br />
2009, will lay the groundwork for implementing AIT’s new strategy.<br />
2.1.5 Restructuring the governance system<br />
At the same time the ownership structure <strong>and</strong> governance system have been adjusted to the new<br />
conditions <strong>and</strong> requirements faced by the Austrian Institute of Technology. AIT’s central goal is<br />
achieving scientific excellence in its chosen areas of research. This will be the task of two new<br />
<strong>bodies</strong>, to be established in 2009 (Figure 1). A Strategic Research Advisory <strong>Board</strong> is being created<br />
to support the <strong>Supervisory</strong> <strong>Board</strong> by taking a forward-looking perspective on strategic <strong>and</strong> research<br />
policy issues with implications for the organisation as a whole. This advisory board will be complemented<br />
at departmental level by evaluation panels, which will assess the scientific quality of<br />
research <strong>and</strong> report to the <strong>Board</strong> of Management (Figure 2).
Evaluation panels (EP)<br />
Approx. five members<br />
per department<br />
Appointed by the<br />
<strong>Supervisory</strong> <strong>Board</strong><br />
Reporting to AIT <strong>Board</strong><br />
of Management<br />
Task: Examine the<br />
quality of research at<br />
departmental level<br />
Figure 1: Austrian Institute of Technology (AIT) <strong>and</strong> its new advisory <strong>bodies</strong><br />
The following departmental research highlights in 2008 are illustrative of the recent changes at,<br />
<strong>and</strong> repositioning of ARC/AIT.<br />
EP Energy<br />
EP<br />
Health &<br />
Environment<br />
AIT<br />
<strong>Board</strong> of Management<br />
Figure 2: Evaluation panels (EP) at departmental level<br />
EP<br />
Mobility<br />
AIT<br />
AIT<br />
Austrian Institute of<br />
Technology<br />
Safety & Security<br />
<strong>Supervisory</strong> <strong>Board</strong><br />
Foresight & Policy<br />
Development<br />
EP<br />
EP<br />
Strategic Research<br />
Advisory <strong>Board</strong><br />
Three to five members<br />
Appointed by <strong>and</strong> reporting<br />
to the <strong>Supervisory</strong> <strong>Board</strong><br />
Task: Provide opinions on<br />
strategic issues <strong>and</strong> AIT’s<br />
future direction<br />
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2.1.6 Development of departmental research areas<br />
2.1.6.1 Health & Environment<br />
The Health & Environment Department strives for excellence in applied research <strong>and</strong> for new<br />
technological solutions benefiting the environment <strong>and</strong> health. The department‘s central research<br />
thrust is underst<strong>and</strong>ing biological systems, opening the way for the development of new medical,<br />
health <strong>and</strong> environmental technologies.<br />
Imaging molecular processes<br />
Molecular processes at the blood-brain barrier were investigated using micro-positron emission<br />
tomography (PET) — a nuclear medicine imaging procedure. The blood-brain barrier is the body‘s<br />
own protection mechanism, preventing toxic substances <strong>and</strong> pathogens from reaching the brain<br />
through the bloodstream. This useful barrier becomes a problem when drugs which are meant to<br />
act on the brain cannot reach their site of action. A regional overexpression of the P-glycoprotein<br />
(P-gp) drug transporter at the blood-brain barrier could be responsible for the fact that a third of all<br />
epilepsy patients fail to respond to drugs. It is assumed that the transporter (P-gp) pumps antiepileptic<br />
drugs from the brain back into the blood, preventing sufficient concentrations of the drug<br />
from reaching the epileptic tissue. Additional administration of P-gp inhibitors is a promising<br />
approach to overcoming this therapy resistance. However, there has been no appropriate method<br />
for checking the effectiveness of these substances to date.<br />
The Department developed a new method for measuring P-gp inhibition at the blood-brain barrier<br />
in a pre-clinical project. This novel method is based on applying the microPET procedure to<br />
visualise the distribution of the model P-gp substrate [11C] Verapamil in the brain. It was shown<br />
that absorption of [11C] Verapamil increases 11-fold once the highest dose of the P-gp inhibitor is<br />
given. Using this new procedure, it was possible to determine the effective doses of two new P-gp<br />
inhibitors (tariquidar <strong>and</strong> elacridar) for optimum inhibition of P-gp at the blood-brain barrier. The<br />
process developed is excellently suited to determining the effectiveness of new P-gp inhibitors in<br />
clinical studies on humans.<br />
The study findings won the Drug Discovery Image of the Year award at the Siemens Preclinical<br />
Imaging international award ceremony in Nice.<br />
Genetic repository centre for future plant use<br />
In 2008 the only genetic repository centre for plants of its kind in Europe was set up in Seibersdorf<br />
as part of the EU‘s Evoltree network of excellence. Besides providing the resource centre, ARC<br />
is also the central knowledge <strong>and</strong> database node in this network. The DNA of more than 300,000<br />
genes from trees, insects <strong>and</strong> fungi have been stored in the world‘s first automated biobank for<br />
forest genetic resources, the construction of which was completed in 2008. The collection of entire<br />
genomes from 3,500 trees across Europe is also ongoing. These valuable resources can be used<br />
to investigate the reactions of plants to environmental influences <strong>and</strong> stressors <strong>and</strong> as reference<br />
samples. St<strong>and</strong>ardised sample materials make research findings comparable, increasing their<br />
usefulness to the forestry <strong>and</strong> wood-processing industries. By acting as a data network node, ARC<br />
links forestry databases at partner institutions in Europe so that information stored at different sites<br />
is searchable via a single online access point (www.evoltree.eu).<br />
The aim of this information portal is to integrate research activities, thereby reducing fragmentation<br />
in the European research l<strong>and</strong>scape. The resource centre is the platform for a number of future<br />
smart breeding research projects. Smart breeding technologies exploit natural genetic variety to<br />
breed desired characteristics by applying modern molecular biological methods without inserting<br />
foreign genes into the plant‘s genome. In addition to plant applications, the genetic repository<br />
centre is also being extended to include microorganisms.
Lab-on-a-chip for continuous, non-invasive cell analysis<br />
ARC succeeded in developing new miniaturised analysis systems for quantitative cell analysis<br />
for the first time during the year under review. The microfluidic biochips (labs-on-a-chip) facilitate<br />
highly-sensitive, continuous analysis of living cells under physiologically relevant conditions. The<br />
integrated electrical <strong>and</strong> optical microprobes deliver continuous information about the dynamic<br />
behaviour of cell populations, particularly in the presence of external influences such as drugs <strong>and</strong><br />
environmental toxins. Our lab-on-a-chip can also be applied in other areas, such as biotechnology<br />
<strong>and</strong> medicine.<br />
In the past few years it has become possible to carry out non-invasive cell analysis using a combination<br />
of microfluidic systems <strong>and</strong> non-contacting dielectric sensors. This method st<strong>and</strong>s out for its<br />
high sensitivity to cellular structures such as membranes, facilitating rapid, markerless identification<br />
of a variety of microorganisms. The dynamic repair mechanism of yeast cells following the addition<br />
of membrane-destroying antibiotics has also been successfully demonstrated.<br />
The application of human cells (fibroplasts) to a sensor <strong>and</strong> investigation of the short <strong>and</strong> long-term<br />
toxic effects of various nanoparticles was also achieved in 2008. Researching their effect on cells is<br />
a core focus of nanosystem technologies, as there is insufficient toxicological data for most nanomaterials<br />
<strong>and</strong> the biochip offers a valuable alternative to animal experiments.<br />
2.1.6.2 Energy<br />
The future of energy supply <strong>and</strong> climate change are increasingly dominating political discussion at<br />
national <strong>and</strong> international level. A sign that energy <strong>and</strong> environmental policies are being rethought<br />
is the European Union‘s “20/20/20” climate change targets. Greenhouse gas emissions are to be<br />
cut by 20%, the renewable energy share increased to 20% <strong>and</strong> energy efficiency raised by 20%.<br />
A holistic view of energy resources will be needed if these ambitious targets are actually to be met.<br />
The Energy Department is therefore pursuing forward looking research topics along the entire energy<br />
supply chain, from environmentally friendly production to fail-safe distribution <strong>and</strong> intelligent use.<br />
Tomorrow‘s office buildings<br />
Buildings account for 40% of energy consumption in the EU — considerably more than transportation<br />
<strong>and</strong> industry — <strong>and</strong> therefore offer huge energy saving potential. Last year the Energy Department<br />
further extended its simulation expertise in this area. One of the highlights was certainly the<br />
inauguration of the ENERGYbase demonstration project, Austria‘s largest passive office building.<br />
Scientific assistance during the architectural design process ranged from the initial studies <strong>and</strong><br />
basic research through to assistance with the design of the complex building services <strong>and</strong><br />
innovative energy systems, <strong>and</strong> of the monitoring system that will provide new insights into system<br />
operation strategies. In 2008 the energy efficient, sustainable office building not only won the solar<br />
building category of the Austrian Solar Awards <strong>and</strong> the Solid Building Award for Ecology but was<br />
also included in the EU GreenBuilding Programme‘s best practice inventory.<br />
The knowledge gained from this project has laid the groundwork for the next generation of energyefficient<br />
office buildings, <strong>and</strong> has already been successfully exported. The Energy Department<br />
leveraged the know-how garnered from the ENERGYbase building when preparing a sustainable<br />
energy concept for the new headquarters building at the Romanian Petrobrazi refinery commissioned<br />
by OMV subsidiary Petrom. Thanks to highly efficient building services <strong>and</strong> the use of renewable<br />
energy sources, the building will need only about one-third of the energy consumed by a conventional<br />
office block.<br />
Smart grids<br />
In future a large number of decentralised generating stations including photovoltaic arrays, wind<br />
farms <strong>and</strong> biomass power plants will feed electricity into supply networks, presenting the system<br />
operators with entirely new challenges. The trend towards multidirectional power flows calls for<br />
new, intelligent control systems — an approach successfully demonstrated by the DG DemoNetz<br />
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Konzept (DG Demo Network Concept) project in 2008. In cooperation with Austrian system operators,<br />
researchers at the Energy Department developed flexible voltage <strong>management</strong> strategies<br />
aimed at maintaining supply quality even where there is a high proportion of distributed electricity<br />
generation. The outcome of the project was four innovative voltage control concepts which keep<br />
voltage within the specified limits <strong>and</strong> maintain security of supply even under conditions of increased<br />
distributed generation. Large-scale grid simulations were used to validate the new control concepts,<br />
<strong>and</strong> demonstrated that they were both technically <strong>and</strong> economically feasible. Not only did they<br />
enable a considerably higher density of decentralised generators to be integrated than with conventional<br />
methods, but in the network areas observed the alternative approaches were actually three<br />
to five times less expensive than the current strategy of network expansion. The next step will be to<br />
tailor the control concepts still more closely to real operational requirements, <strong>and</strong> validate them in<br />
practice over one to three years of demonstration operation.<br />
2.1.6.3 Mobility<br />
The Mobility Department focuses on developing solutions for environmentally sound, safe <strong>and</strong> cost<br />
<strong>and</strong> energy efficient mobility. The department‘s st<strong>and</strong>s out for its holistic approach which involves<br />
taking a systemic view of vehicles, infrastructure <strong>and</strong> personal transport. This in turn opens up new<br />
research perspectives.<br />
Light alloy frames <strong>and</strong> <strong>bodies</strong>, <strong>and</strong> electric drives for alternative vehicle design concepts<br />
Zero noise <strong>and</strong> exhaust emissions are the striking feature of the innovative sports model developed<br />
in 2008 by motorcycle manufacturer KTM Sportmotorcycle AG <strong>and</strong> the drive technology experts at<br />
the Mobility Department. Thanks to a powerful intelligent electric drivetrain that suits a wide range<br />
of riding conditions, the performance of the new motorcycle is comparable to that of conventional<br />
counterparts.<br />
The brief for the first zero emission KTM Enduro was to combine maximum performance <strong>and</strong> range<br />
with minimum vehicle weight. Developing the drivetrain involved selecting appropriate battery<br />
technology, designing the battery system including battery <strong>management</strong>, developing a safety <strong>and</strong><br />
control concept, <strong>and</strong> designing an optimised electric motor. Following promising trials, the zero<br />
emission prototype has moved from the research to the production ready development stage.<br />
Energy-efficient mobility dem<strong>and</strong>s new drive technologies <strong>and</strong> lighter vehicle structures. The<br />
department therefore focuses on novel methods for designing safe lightweight vehicle assemblies<br />
made of aluminium <strong>and</strong> magnesium alloys. Thanks to the greatly reduced machining costs in comparison<br />
to conventional body shells, the space frame — a structure consisting of extrusion sections<br />
<strong>and</strong> cast nodes — is ideally suited to low <strong>and</strong> very low volume production. The aim is to create<br />
space frames for a new generation of lightweight vehicles with alternative drives that meet existing<br />
safety st<strong>and</strong>ards.<br />
The simulation based development of a space frame structure for a lightweight electric drive vehicle<br />
was completed in 2008. The basic appearance of the vehicle was the starting point for defining the<br />
“packaging” — the exterior dimensions, wheelbase, <strong>and</strong> the position <strong>and</strong> weight of the electric motors,<br />
battery <strong>and</strong> driver. The project team developed software to compute stresses when cornering<br />
<strong>and</strong> braking, among other parameters. The packaging also determines the interior space provided<br />
by the frame. A body frame using light alloy profiles <strong>and</strong> cast nodes was virtually developed for this<br />
space <strong>and</strong> the other specifications.<br />
Dynamic optimisation of transport systems<br />
Dynamic <strong>management</strong> <strong>and</strong> guidance of large numbers of people is essential for the success of<br />
major events. The RAVE control system uses objective, automatically captured data to manage traffic<br />
flows at important hubs (such as railway platforms <strong>and</strong> entrances). Specially developed control<br />
rules translate information on traffic volume into instructions for portal <strong>management</strong>. Intelligent<br />
<strong>management</strong> like this maximises traffic throughput — for example, at large-scale events — <strong>and</strong>
also helps to avoid safety critical situations on platforms. The effectiveness of this innovative control<br />
system was demonstrated at the UEFA Euro 2008™ football championships in Austria. Some 44%<br />
of the spectators or 22,000 passengers who used an underground station equipped with the RAVE<br />
system after a match at the Ernst Happel Stadium in Vienna were able to leave the venue in less<br />
than an hour. This outst<strong>and</strong>ing performance was honoured by the Ministry of Transport, Innovation<br />
<strong>and</strong> Technology with a special award for transport logistics solutions at large-scale events as part of<br />
the 2008 Austrian State Prize for Transport.<br />
In 2009 the expertise developed during the project — using data acquisition to generate specific<br />
recommendations based on simulations <strong>and</strong> forecasts — will be applied to transport logistics, in the<br />
shape of dynamic route optimisation. The aim of the researchers is to develop methods <strong>and</strong> models<br />
for the dynamic <strong>management</strong> of vehicle fleets that will enable operators to respond to changes in<br />
the current traffic situation such as accidents, <strong>and</strong> to short-notice orders in real time, by performing<br />
low-cost, high quality rescheduling. Such models are particularly important to transport companies,<br />
which often have to guarantee top service quality <strong>and</strong> low costs when taking on short-notice orders.<br />
Other potential cooperation partners for the project include ambulance service providers.<br />
2.1.6.4 Safety & Security<br />
The Safety & Security Department researches new information <strong>and</strong> communication technologies,<br />
<strong>and</strong> develops, tests <strong>and</strong> implements new procedures <strong>and</strong> prototypical applications to demonstrate<br />
the technological <strong>and</strong> economic feasibility of industrial implementation, as well as potential technological<br />
effects (e.g. of relevance to safety <strong>and</strong> the environment). Innovative system solutions based<br />
on artificial intelligence are implemented in practice in cooperation with partners from industry <strong>and</strong><br />
the public sector.<br />
The department coordinates integrated projects forming part of the Sixth Framework Programme<br />
(DECOS, SECOQC <strong>and</strong> SANY) <strong>and</strong> is a partner in some other EU projects (COOPERS, Watch-<br />
Over, robots@home, AVITRACK, ORCHESTRA, ADOSE <strong>and</strong> MOGENTES).<br />
World‘s first quantum cryptography network<br />
Quantum cryptography solves one of the fundamental problems in data encryption, namely, the<br />
exchange of a digital key. Using quantum cryptography, an absolutely tap-proof key can be exchanged<br />
between two partners, thereby protecting electronic communication from eavesdroppers.<br />
Procedures currently being used to exchange keys either require a great deal of effort (distribution<br />
of keys by trusted couriers) or a belief that the mathematical methods used in key distribution will<br />
be too complex for eavesdroppers to crack by applying massive computing power.<br />
The integrated SECOQC project, under the Sixth Framework Programme began in 2004. Under<br />
ARC‘s guidance more than 40 partners are working on refining quantum cryptography into a<br />
technology suitable for commercial optical networks. The outcomes of this project were publicly demonstrated<br />
in October 2008, when four locations in Vienna <strong>and</strong> one in St. Pölten were linked over<br />
a Siemens optical network using quantum cryptography. During the demonstration, which attracted<br />
widespread international media coverage, VoIP was encrypted <strong>and</strong> a tap-proof video conference<br />
held using the keys generated. This was the first time that it had been demonstrated that quantum<br />
cryptography is actually suitable for securing electronic data exchanges over long distances <strong>and</strong><br />
between several partners.<br />
The next stage in this development will involve improving the reliability of the components used.<br />
Extremely quick <strong>and</strong> sensitive high-resolution image sensors<br />
Bio-inspired, neuromorphic electronic circuits <strong>and</strong> feature-based signal processing algorithms are to<br />
be used in image processing systems as part of the VSOC research project, with a view to achieving<br />
a major improvement in performance, e.g. in quality inspection applications.<br />
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Research is being conducted on new concepts for neuromorphic image sensors <strong>and</strong> algorithms for<br />
real-time data processing. Neuromorphic circuits process information by electronically mimicking<br />
biological structures. Image processing algorithms that are feature rather than pixel-based can<br />
capture <strong>and</strong> interpret image content more quickly <strong>and</strong> reliably, <strong>and</strong> it is hoped that this will enable<br />
intelligent optical sensor systems with far better performance than existing products to be developed.<br />
The research findings are being marketed in cooperation with sensor manufacturers <strong>and</strong><br />
system integrators.<br />
Novel technological approaches <strong>and</strong> electronic circuits which open the way for extremely quick <strong>and</strong><br />
sensitive high-resolution image sensors have been developed. Light sensitivity, which is crucial to<br />
practical usability, declines as the speed of the sensor increases. ARC has therefore developed <strong>and</strong><br />
patented a „digital multi-exposure process“ which counters this characteristic. The new xposure1<br />
high-speed line sensor is compatible with extremely high sensitivity.<br />
The specifications of the xposure1 high-speed line sensor as an FIP technology demonstrator were<br />
completed in 2008. To minimise technological <strong>and</strong> commercial risk, test chips were produced in advance<br />
for functional verification of the subassemblies. The first test chip has now been successfully<br />
tested <strong>and</strong> the measurement results are already being incorporated into the xposure1 sensor.<br />
Digital preservation<br />
Preserving the availability <strong>and</strong> reliability of digital information over time is a constant problem for<br />
private individuals, public authorities <strong>and</strong> industry alike.<br />
The Digital Memory Engineering (DME) working group, previously operated as research studios,<br />
was incorporated in the department in 2008. The group has recently been focusing on digital preservation,<br />
mainly as part of PLANETS — an FP6-IST project. PLANETS is working on developing<br />
a sustainable framework for the long-term archiving of digital content, in order to increase Europe‘s<br />
ability to ensure long-term access to its cultural <strong>and</strong> scientific heritage. The project will enable organisations<br />
to optimise their long-term archiving activities, safeguard long-term access to valuable<br />
digital content <strong>and</strong> keep archiving costs under control through increased automation <strong>and</strong> scalable<br />
infrastructure.<br />
In 2008 DME succeeded in raising the profile of digital preservation in the Austrian research<br />
scene by making a successful application under the FFG (Austrian Research Promotion Agency)<br />
Research Studios Austria programme in cooperation with the University of Vienna <strong>and</strong> Vienna University<br />
of Technology. The aim of this project is to refine the strategies <strong>and</strong> services for professional<br />
long-term archiving at libraries <strong>and</strong> archives developed by the PLANETS project so that it will also<br />
be possible to use them in other areas, such as large-scale industry, commerce <strong>and</strong> SMEs. Reducing<br />
complexity, applying established best-practice strategies <strong>and</strong> developing simple, automated<br />
services will play an important part in guaranteeing long-term access to digital data collections.<br />
2.1.6.5 Foresight & Policy Development<br />
In both business <strong>and</strong> scientific terms, 2008 was one of the most successful years ever for the<br />
Foresight & Policy Development Department. The department posted an 11% increase in revenue<br />
compared with 2007, <strong>and</strong> intellectual capital performance was equally impressive: 11 publications<br />
by department staff (37.6 full-time equivalent) in peer reviewed journals. Another 16 articles were<br />
submitted <strong>and</strong> nine were accepted for publication. Departmental staff also published five books <strong>and</strong><br />
numerous contributions to books, as well as speaking at international conferences. The department<br />
hosted the International Conference on Science <strong>and</strong> Technology Indicators in Vienna in cooperation<br />
with the University of Vienna. Foresight & Policy Development was responsible for scientific organisation<br />
at the conference, <strong>and</strong> the staff’s speeches <strong>and</strong> publications made a significant contribution<br />
to the success of the event.
In order to maintain this record of success, ARC <strong>and</strong> the Vienna University of Economics <strong>and</strong><br />
Business Administration signed a cooperation agreement entitled “Innovation Economics Vienna<br />
(IEV)” at the department’s initiative. Over the next five years selected students who are writing<br />
masters or doctoral theses on innovation economics will receive funding from several sponsors,<br />
including the Ministry of Transport, Innovation <strong>and</strong> Technology, <strong>and</strong> expert advice from mentors in<br />
the department. As education takes place at the front end of scientific activity, the programme is<br />
likely to provide a useful stimulus for the Austrian innovation system as a whole.<br />
A number of distinct project clusters emerged in the department’s research into innovation <strong>and</strong><br />
sustainability in 2008. This was true of the contract, cooperative <strong>and</strong> independent research projects.<br />
Network research is one of the main thrusts, <strong>and</strong> today the development is one of the top three<br />
European research organisations in the field.<br />
NEMO project on network models, governance <strong>and</strong> R&D collaboration networks<br />
(sixth Framework Programme)<br />
The Network of Excellence on Micro-optics (NEMO) project is the backbone of the department’s<br />
network research activities. Its primary aim is to carry out an empirical analysis of the structure <strong>and</strong><br />
dynamics of R&D collaboration networks in Europe. This will involve adapting <strong>and</strong> applying conventional<br />
social network analysis techniques <strong>and</strong> various statistical physics <strong>and</strong> econometric methods<br />
to the area of research. However, developing new approaches to network modelling is also an<br />
integral part of NEMO. The findings arrived at to date have significantly increased underst<strong>and</strong>ing of<br />
the structure, dynamics <strong>and</strong> development of R&D collaboration under the EU’s Framework Programmes.<br />
The project outcomes are likely to have a major impact on the strategic direction of future<br />
Framework Programmes.<br />
One important area of research under the NEMO project is identifying <strong>and</strong> analysing the factors<br />
that determine the choice of partners from the various organisations participating in EU Framework<br />
Programmes. The impact of individual determinants — arrived at on the basis of economic network<br />
formation theories — was identified <strong>and</strong> evaluated with the aid of a separate decision-making<br />
model. The latter estimates the probability of partnerships between two organisations according to<br />
selected determinants <strong>and</strong> their influence on decisions.<br />
The findings revealed that relationships based on past project cooperation are the most important<br />
factor in selecting research partners. The research focus of the organisations also plays an<br />
important part in decisions. The greater the similarity between the research profiles of a pair of<br />
organisations, the more likely they are to enter into a partnership. Geographical proximity <strong>and</strong> the<br />
importance of the organisations’ roles in the network are also statistically significant factors.<br />
Research into networks is important because it generates models which are ideally suited to analysing<br />
complex systems <strong>and</strong> reveal similarities in network characteristics, structures <strong>and</strong> development.<br />
We believe that these are among the few models suitable for the <strong>management</strong> of complex<br />
social systems. The department’s research will contribute to achieving this objective by providing<br />
new insights into the relationships between network activities <strong>and</strong> structures, <strong>and</strong> between network<br />
structures <strong>and</strong> network <strong>management</strong>.<br />
Department staff have been looking into the design <strong>and</strong> implementation of foresight processes for<br />
several years. Most of the research into process implementation has been carried out on behalf of<br />
the European Commission, but the establishment of AIT marks a vital step towards institutionalising<br />
foresight processes in Austria. The following is an example of the foresight projects conducted in<br />
2008.<br />
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ForeSec – Europe’s evolving security: drivers, trends <strong>and</strong> scenarios — a project<br />
commissioned by DG Research<br />
This project uses the foresight approach to investigate potential challenges <strong>and</strong> future scenarios<br />
for European security. After providing a comprehensive definition of security, the project addresses<br />
key issues relating to energy supply, bilateral conflicts, communication networks <strong>and</strong> infrastructure.<br />
These areas confront Europe with a wide range of new challenges, all of them related to technological<br />
development. The project consortium consists of several leading European security research<br />
organisations which have joined forces to create a common research platform (see www.foresec.<br />
eu). Since security challenges <strong>and</strong> risks are perceived <strong>and</strong> evaluated in widely differing ways, the<br />
first step in a highly participative process is to identify the various perspectives on risks, trends,<br />
opportunities <strong>and</strong> scenarios. This involves cooperating with experts from governments, research<br />
institutions, companies <strong>and</strong> civil society in 12 European countries. To facilitate collaboration, the<br />
department organised a conference in Vienna from 2–3 July 2008 at which around 100 delegates<br />
discussed a variety of issues. To complement this form of dialogue <strong>and</strong> further exp<strong>and</strong> participation<br />
in the foresight process, an online Delphi process was launched in autumn 2008. This enabled<br />
various experts <strong>and</strong> stakeholders to evaluate key drivers identified during the workshop.<br />
The findings were then used to create robust scenarios <strong>and</strong> visions for addressing new threats <strong>and</strong><br />
exploiting technological opportunities. Ethical, cultural <strong>and</strong> user related aspects were also taken into<br />
consideration. The project outcomes can be used as a basis for recommendations <strong>and</strong> strategies<br />
for governments, think tanks, research organisations <strong>and</strong> companies.
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2.2 Business performance in 2008<br />
2.2.1 Income<br />
In 2008 contract research revenue was down year on year at EUR 43.0 million (m) (2007: EUR<br />
47.6m). This was due to the demerger of some operations, which resulted in lower revenue but<br />
reduced expenses still more. Despite the spin-offs revenue from cofinanced projects (subsidies) declined<br />
only slightly, to EUR 17.0m (2007: EUR 18.2m), demonstrating the strong position of ARC’s<br />
core operations in the Austrian <strong>and</strong> international research funding markets.<br />
Other operating income of EUR 13.9m includes EUR 1.7m in income from reversals of provisions,<br />
EUR 3.7m in expenses charged-on, EUR 6.5m in reversals of reserves for investment grants, <strong>and</strong><br />
EUR 2.0m in sundry other operating income.<br />
Payments by shareholders relate to research grants <strong>and</strong>, together with revenue from contract<br />
research activities <strong>and</strong> cofinanced research, represent one of the main sources of total revenue<br />
<strong>and</strong> of funding for the Group’s independent research activities. Amounting to EUR 40.0m (2007:<br />
EUR 40.1m), these represented some 33% (2007: 32%) of total operating revenue of EUR 119.4m<br />
(2007: EUR 126.3m). In addition to meeting the increased cofinancing needs arising from the<br />
research programmes, these resources also enabled the Group to consolidate its research priorities<br />
<strong>and</strong> overall technological expertise.<br />
In contrast to the UGB (Austrian Business Code) presentation, in the <strong>management</strong> report EUR<br />
1.1m is reclassified from other operating income to BMLFUW (Ministry of Agriculture <strong>and</strong> Forestry,<br />
Environment <strong>and</strong> Water Management) nuclear research funding in order give a more accurate view<br />
of overall nuclear research funding.
EUR '000<br />
2007<br />
2008<br />
R&D revenue 45,567 41,142<br />
Changes in inventories 2,069 1,861<br />
R&D revenue including changes in inventories 47,636 43,004<br />
R&D grants 12,004 12,403<br />
Changes in inventories 6,171 4,579<br />
R&D revenue including changes in inventories 18,175 16,982<br />
1. Total revenue from research contracts 65,811 59,986<br />
2. Nationalstiftung funding 4,890 739<br />
BMVIT support for independent research 38,989 38,923<br />
Syndicate agreement payments 1,136 1,117<br />
3. Total shareholder payments<br />
(research) 40,125 40,040<br />
BMVIT nuclear research funding 4,454 4,771<br />
BMLFUW nuclear research funding 0 1,099<br />
4. Total nuclear research funding 4,454 5,870<br />
5. Own work capitalised 36 0<br />
6. Other operating income 11,013 12,793<br />
Total operating income 126,329 119,429<br />
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2.2.2 Expenses<br />
Personnel expenses represented 53.3% of operating income in 2008 (2007: 49.7%). Cost of materials<br />
<strong>and</strong> other supplies was equal to 20.6% of operating income — down from 24.6% in the previous<br />
year. The Group’s cost structure improved as it reflected increased use of the core resource —<br />
personnel — <strong>and</strong> lower transitory costs. The decrease in other operating expenses to EUR 20.3m<br />
(2007: EUR 26.7m) is due to the allocation to provisions for remediation of the Seibersdorf site<br />
(approx. EUR 3.1m), the fact that the allocation to warranty provisions in 2007 was not repeated in<br />
the year under review, <strong>and</strong> savings on various other expense items. The annual result is positive by<br />
EUR 4.5m, <strong>and</strong> represents a marked improvement on the previous year.<br />
EUR '000<br />
2007<br />
2008<br />
Total operating income 126,329 119,429<br />
Cost of materials -7,747 -6,702<br />
Other supplies -23,151 -17,909<br />
1. Cost of materials <strong>and</strong> other supplies -30,898 -24,611<br />
2. Personnel expenses -62,785 -63,661<br />
3. Depreciation <strong>and</strong> amortisation -7,507 -7,423<br />
4. Other operating expenses -26,742 -20,265<br />
Total operating expenses -127,932 -115,960<br />
Earnings before interest <strong>and</strong> tax -1,603 3,469<br />
Financial result 373 1,008<br />
POA -1,230 4,476<br />
Income/expenses relating to other periods, <strong>and</strong> minority interests 3 47<br />
Profit/loss for the year/period -589 0<br />
Movements in reserves -1,816 4,523<br />
Profit/loss brought forward -6,037 -7,853<br />
Accumulated profit/loss -7,853 -3,330
2.2.3 New <strong>and</strong> existing projects,<br />
<strong>and</strong> work in progress<br />
New commissions<br />
New contract research commissions (KU) were<br />
about 5% up year on year at EUR 24.7m. Subsidised<br />
research (KF) commissions grew much<br />
more rapidly, more than doubling to EUR 25.6m<br />
(an increase of approx. 132%). The decline in<br />
research commissions to competency centres<br />
was due to the expiry of the Kplus programme.<br />
New research commissions were only received<br />
for half a year, <strong>and</strong> for a single centre (LKR).<br />
The growth in new commissions — which<br />
totalled EUR 51.42m — was highly encouraging,<br />
<strong>and</strong> shows the Company‘s strong market<br />
position.<br />
Existing commissions<br />
Due to the upturn in new commissions the<br />
backlog of existing contract research commissions<br />
<strong>and</strong> cofinanced research also rose<br />
sharply year on year. Existing contract research<br />
commissions were about 4% up at EUR 30.8m,<br />
while commissions for co-financed research<br />
jumped by some 30% to EUR 57.1m. Due to<br />
the termination of the Kplus programme the<br />
backlog of projects under the competency centre<br />
programme was worked off. Total commissions<br />
in h<strong>and</strong> in the ARC Group stood at EUR<br />
87.9m as at 31 December 2008.<br />
Work in progress<br />
Work in progress exp<strong>and</strong>ed by around 23%,<br />
<strong>and</strong> amounted to EUR 47.7m at year end. Contract<br />
research in progress edged down by 2%<br />
to EUR 21.3m due to the high completion rate,<br />
but co-financed research surged by some 62%<br />
to EUR 26.4m owing to the strong intake of<br />
new commissions. The cessation of the Kplus<br />
programme meant that all work in progress<br />
under the competency centre programme was<br />
completed.<br />
■ Contract research (KU) ■ Subsidised research (KF) ■ Competency centres (KK)<br />
40.91<br />
■ Contract research (KU) ■ Subsidised research (KF) ■ Competency centres (KK)<br />
74.29<br />
29.54<br />
44.03<br />
0.72<br />
87.93<br />
1 – 12/2007 1 – 12/2008<br />
30.80<br />
57.13<br />
0.00<br />
All values in million EUR<br />
■ Contract research (KU) ■ Subsidised research (KF) ■ Competency centres (KK)<br />
38.68<br />
23.54<br />
11.03<br />
6.34<br />
21.70<br />
16.26<br />
0.72<br />
51.41<br />
1 – 12/2007 1 – 12/2008<br />
47.72<br />
1 – 12/2007 1 – 12/2008<br />
24.66<br />
25.57<br />
1.18<br />
21.31<br />
26.41<br />
0.00<br />
All values in million EUR<br />
All values in million EUR<br />
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2.2.4 Investment<br />
Total investment in intangible <strong>and</strong> tangible assets during the 2008 financial year amounted to EUR<br />
8.36m — EUR 0.53m up on the previous period (2007: EUR 7.83m).<br />
Of this EUR 0.51m went to intangible assets, mostly software licences (2007: EUR 0.80 m). Additions<br />
to l<strong>and</strong> <strong>and</strong> buildings totalled EUR 2.02m (2007: EUR 1.69m) while EUR 4.27m (2007: EUR<br />
3.67m) was invested in technical equipment. A further EUR 1.1m (2007: EUR 1.09m) was devoted<br />
to fixtures, furniture <strong>and</strong> office equipment, while EUR 0.46m (2007: EUR 0.59m) in prepayments<br />
<strong>and</strong> assets in the course of construction was capitalised.<br />
Additions to financial assets were EUR 0.11m, compared to EUR 4.0m in 2007, when mature<br />
obligations of EUR 2.00m were reinvested, <strong>and</strong> EUR 2.01m arose from additions to <strong>and</strong> reversals<br />
of the same transaction.<br />
2.2.5 Liquidity <strong>and</strong> financial position<br />
There were net cash inflows of EUR 11.79m during the 2008 financial year, following inflows of EUR<br />
8.13m in the previous period. The positive cash flow resulted chiefly from cash flow from operating<br />
activities, <strong>and</strong> in particular, a reduction in working capital.<br />
Cash in h<strong>and</strong> <strong>and</strong> at bank of EUR 32.41m as at 31 December 2008 included EUR 10.63m in EU<br />
coordination funds, national foundation money <strong>and</strong> project related prepayments.<br />
31. Dec. 2007 31. Dec. 2007 2007<br />
FTE People Average<br />
Austrian Research Centers GmbH – ARC 624.5 672 620.0<br />
arsenal research (inc. civil servants assigned to U&L) 173.2 176 168.9<br />
Advanced Computer Vision GmbH (ACV) 6.9 7 9.7<br />
Nuclear Engineering Seibersdorf GmbH 50.8 53 48.8<br />
ARC Leichtmetallkompetenzzentrum<br />
Ranshofen GmbH 31.7 34 34.9<br />
ECHEM GmbH 2.8 4 2.4<br />
ECHEMplus employees 26.3 30 24.9<br />
Group 916.2 976 909.6
Equity was EUR 12.8m as at 31 December 2008 (2007: EUR 2.7m). Taking investment grants of<br />
EUR 37.2m into account, total equity was EUR 50.0m in the year under review (2007: EUR 39.7m).<br />
The improvement in equity resulted from the profit for the year, as well as the reclassification of<br />
EUR 5.7m in shareholder payments from prepayments <strong>and</strong> accrued income to the unappropriated<br />
capital reserve, on the basis of the owner’s agreement to unrestricted use of the funds in question.<br />
2.2.6 Human resources<br />
At balance sheet date the Company had 852.7 employees (calculated on the basis of free time<br />
equivalents, <strong>and</strong> excluding apprentices, staff subject to the post-apprenticeship retention period,<br />
<strong>and</strong> HF/EU grant holders. This represented a reduction of 63.5 (FTE) or 75 persons (see table)<br />
compared to the previous year‘s head count (916.2 FTE).<br />
31. Dec. 2008 31. Dec. 2008 2008 Percentage change (year on year)<br />
FTE People Average FTE People Average<br />
582.8 622 595.0 -41.7 -50 -24.9<br />
185.9 190 177.0 12.7 14 8.1<br />
0.0 0 0.0 -6.9 -7 -9.7<br />
52.0 55 51.3 1.2 2 2.4<br />
32.0 34 31.3 0.3 0 -3.6<br />
0.0 0 1.6 -2.8 -4 -0.8<br />
0.0 0 17.5 -26.3 -30 -7.4<br />
852.7 901 873.8 -63.5 -75 -35.9<br />
02<br />
Annual Report 2008<br />
Management report<br />
Business performance<br />
in 2008<br />
31<br />
Annual Report 2008
02<br />
Annual Report 2008<br />
Management report<br />
Risk report<br />
32<br />
Annual Report 2008<br />
2.3 Risk report<br />
To the ARC Group, risk <strong>management</strong> means both actively addressing risks in order to protect the<br />
Group‘s assets, finances <strong>and</strong> earnings, <strong>and</strong> equally, identifying opportunities <strong>and</strong> weighing up<br />
business decisions. Our risk <strong>management</strong> system is aimed at recognising risks at an early stage,<br />
<strong>and</strong> taking appropriate action to counter them so as to minimise deviations from our targets. This<br />
involves the identification, assessment, <strong>management</strong> <strong>and</strong> monitoring of risks, which takes place<br />
regularly as part of our internal financial, performance <strong>and</strong> risk reporting processes.<br />
2.3.1 Financial risk: information on financial instruments pursuant to<br />
section 243(3)(5) Austrian Business Code<br />
The Company does not currently employ any derivative financial instruments, <strong>and</strong> due to the nature<br />
of its operations it does not plan to do so in future. The receivables <strong>management</strong> system includes<br />
ongoing impairment testing <strong>and</strong> monitoring. The potential impact of defaults on the Company‘s<br />
assets, finances <strong>and</strong> earnings is restricted by monitoring compliance with payment dates, setting<br />
credit limits <strong>and</strong> obtaining client creditworthiness checks.<br />
2.3.2 Market risk<br />
The current situation on global markets <strong>and</strong> the sharp downturn in economic activity in 2009 represent<br />
risks for all market participants in terms of the attainability of performance targets, the acquisition<br />
of new customer groups <strong>and</strong> partner networks, <strong>and</strong> the implementation of business models. The<br />
ARC Group’s diversified service portfolio addresses a variety of markets. It is difficult to assess the<br />
potential effects of the global crisis on ARC’s revenue due to the constant changes in the information<br />
available to <strong>management</strong>. While the improvement in commissions in h<strong>and</strong> sends a positive<br />
signal for ARC, constant tracking of order backlog <strong>and</strong> early identification of trends in the relevant<br />
markets, leading to rapid action will remain a key task.<br />
2.3.3 IT risk<br />
The Company has a centralised IT environment, permitting joint use of advanced system components<br />
at the various sites. These include a modern security environment with firewalls, virus<br />
scanning <strong>and</strong> remote access points with multiple protection to recognise <strong>and</strong> repel attacks. Regular<br />
generation of backup copies of centrally held data is automated. Security for all our projects complies<br />
with the generally accepted st<strong>and</strong>ards established by the BSI (Federal Office for Information<br />
Security) IT Baseline Protection Manual <strong>and</strong> ISO 17799, <strong>and</strong> reflects the technical state-of-the-art.<br />
2.3.4 Legal risk<br />
We are currently unaware of any actual or impending legal disputes that could have a significant<br />
influence on the financial position of the Company <strong>and</strong> Group.
2.3.5 Personnel risk<br />
As with any knowledge-based business, employee performance is crucial to the Company’s success.<br />
We compete with other companies for highly qualified experts <strong>and</strong> managers. To recruit <strong>and</strong><br />
retain them, we offer attractive compensation <strong>and</strong> benefits, as well as extensive staff development<br />
opportunities.<br />
2.3.6 Overall risk<br />
No risks have been identified that could endanger the continued survival of the Company at present<br />
or in the foreseeable future.<br />
02<br />
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Management report<br />
Risk report<br />
33<br />
Annual Report 2008
02<br />
Annual Report 2008<br />
Management report<br />
Outlook report<br />
Financial <strong>and</strong> non-financial<br />
performance indicators<br />
34<br />
Annual Report 2008<br />
2.4 Outlook report<br />
Financial <strong>and</strong> non-financial<br />
performance indicators<br />
2.4.1 Strategic development<br />
Readers are referred to section 2.1.4 of the <strong>management</strong> report for a discussion of the Group’s<br />
strategic development.<br />
2.4.2 Metrics for attainment of BMVIT targets<br />
Financial <strong>and</strong> non-financial indicators have been established which are used to manage the Company<br />
as a whole <strong>and</strong> measure the attainment of targets for specific areas of operations. These<br />
performance levers are broken down into four groups, described below. For example, we applied<br />
for 20 Austrian <strong>and</strong> 31 international patents in 2008; a total of 27 were awarded.<br />
Business performance<br />
Market success with research commissioners <strong>and</strong> funders (total contract research <strong>and</strong> funding);<br />
Contract <strong>and</strong> subsidised research related to strategic topics;<br />
Licences awarded;<br />
Patent applications <strong>and</strong> awards.<br />
Scientific performance<br />
Number of publications in peer reviewed journals;<br />
Number of teaching contracts at universities, Fachhochschulen (universities of applied science)<br />
<strong>and</strong> postgraduate institutions;<br />
Number of lectures given at international conferences, symposia <strong>and</strong> workshops;<br />
Number of national <strong>and</strong> international awards.<br />
Human resources<br />
Number of undergraduate <strong>and</strong> doctoral thesis students;<br />
Number of training days;<br />
Proportion of female scientific staff;<br />
Recruitment of foreign scientific staff.<br />
Knowledge <strong>and</strong> technology transfers to SMEs<br />
Technology projects conducted in cooperation with SMEs;<br />
Workshops <strong>and</strong> seminars targeted at SMEs;<br />
Number of spin-offs;<br />
Number of scientific employees transferred to spin-offs.<br />
The business performance indicators are intended to give an overall view of the Group‘s revenue<br />
situation. They are a particularly good guide to overall performance as non-university research organisations<br />
are expected to maintain close links with industry, <strong>and</strong> operate in an especially application<br />
<strong>and</strong> market driven manner. The scientific performance indicators capture the Group’s scientific<br />
excellence, its cooperation with universities <strong>and</strong> the strength of its links with the scientific community.<br />
Since this area of performance is very closely related to personnel matters, some issues are also
covered by the human resources group of indicators.<br />
The performance indicators above are subjected to a critical assessment during the formulation<br />
of the multi-year strategy, <strong>and</strong> adjusted or modified where necessary. In future the performance<br />
indicators, <strong>and</strong> the target financing mix (40% shareholder funding, 30% contract research <strong>and</strong> 30%<br />
income from cofinanced research) incorporated in the articles of association will be monitored as<br />
part of a regular reporting process.<br />
2.5 Post balance sheet date events<br />
There were no events of particular significance after the balance sheet date that would have resulted<br />
in a different view of the Company‘s assets, finances <strong>and</strong> earnings.<br />
Austrian Research Centers GmbH (ARC), Vienna<br />
The <strong>Board</strong> of Management:<br />
Anton Plimon m.p. Wolfgang Knoll m.p.<br />
Managing Directors Austrian Research Centers GmbH – ARC<br />
Austrian Research Centers GmbH (ARC)<br />
Tech Gate Vienna: Donau-City-Strasse 1, 1220 Wien, Austria<br />
T +43 5 0550-2000, F +43 5 0550-2201<br />
office@arcs.ac.at, www.arcs.ac.at<br />
Vienna, 17 March 2009<br />
02<br />
Annual Report 2008<br />
Management report<br />
Outlook report<br />
Financial <strong>and</strong> non-financial<br />
performance indicators<br />
35<br />
Annual Report 2008
03<br />
Financial<br />
statements<br />
Annual Report<br />
2008
03 Financial statements Page<br />
3.1 Consolidated balance sheet 38<br />
3.2 Consolidated profit <strong>and</strong> loss account 40<br />
37<br />
Annual Report 2008
3.1 Consolidated balance sheet<br />
as at 31. Dec. 2008<br />
Assets EUR EUR<br />
A. FIXED ASSETS<br />
38<br />
I. Intangible assets<br />
Annual Report 2008<br />
As at<br />
31. Dec. 2008<br />
EUR<br />
As at<br />
31. Dec. 2007<br />
EUR '000<br />
1. Licences <strong>and</strong> similar rights 559,779.38 966<br />
II. Tangible assets<br />
1. L<strong>and</strong>, titles to l<strong>and</strong>, <strong>and</strong> buildings including<br />
buildings on third-party l<strong>and</strong> 20,117,975.85 19,329<br />
2. Plant <strong>and</strong> equipment 20,405,164.83 20,501<br />
3. Other equipment, furniture <strong>and</strong> fixtures 3,410,081.95 3,485<br />
4. Prepayments <strong>and</strong> assets in the course of<br />
construction<br />
III. Financial assets<br />
1. Investments<br />
780,682.08 685<br />
44,713,904.71 44,000<br />
a) In associates 29,050.00 0<br />
b) Other investments 46,938.97 41<br />
2. Loans to associates 70,833.00 0<br />
3. Securities held as fixed assets 9,582,220.31 9,821<br />
B. CURRENT ASSETS<br />
I. Inventories<br />
9,729,042.28 9,862<br />
55,002,726.37 54,828<br />
1. Raw materials <strong>and</strong> supplies 8,751.02 14<br />
2. Finished goods 500,868.52 336<br />
3. Spare parts 59,348.78 56<br />
4. Inventories 99,500.00 0<br />
5. Uninvoiced services<br />
a) Unsubsidised customer projects<br />
less prepayments received<br />
b) Subsidised customer projects<br />
less prepayments received<br />
II. Receivables <strong>and</strong> other assets<br />
9,522,630.68<br />
– 4,578,438.71<br />
31,015,774.40<br />
–23,866,855.52 12,093,110.85 11,235<br />
12,761,579.17 11,641<br />
1. Trade receivables 10,413,584.70 14,564<br />
2. Receivables from associates 1,228,030.66 38<br />
3. Other receivables <strong>and</strong> assets 3,345,485.62 4,469<br />
14,987,100.98 19,071<br />
III. Cash in h<strong>and</strong> <strong>and</strong> at bank 32,405,823.34 20,615<br />
60,154,503.49 51,327<br />
C. PREPAYMENTS AND ACCRUED INCOME 2,871,860.29 2,737<br />
Total assets 118,029,090.15 108,892
3.1 Consolidated balance sheet<br />
as at 31. Dec. 2008<br />
Equity <strong>and</strong> liabilities EUR EUR<br />
A. EQUITY<br />
As at<br />
31. Dec. 2008<br />
EUR<br />
As at<br />
31. Dec. 2007<br />
EUR '000<br />
I. Share capital 470,920.12 471<br />
II. Capital reserves<br />
1. Unappropriated 13,657,717.45 7,953<br />
13,657,717.45 7,953<br />
III. Revenue reserves 2,057,557.61 2,058<br />
IV. Retained losses<br />
of which losses brought forward EUR 7,853,329.92<br />
(2007: EUR 6,037,000)<br />
–3,330,373.51 –7,853<br />
V. Negative adjustment for minority interests –26,650.60 28<br />
B. INVESTMENT GRANTS<br />
12,829,171.07 2,657<br />
I. Shareholder investment grants<br />
(in accordance with Art. 13 Articles of Association) 29,317,068.65 28,192<br />
II. Government investment grants 1,360,147.17 1,711<br />
III. Other investment grants 6,476,042.23 7,165<br />
C. PROVISIONS<br />
37,153,258.05 37,068<br />
1. Provisions for severance payments 7,286,556.00 7,633<br />
2. Provisions for pensions 1,777,770.00 1,873<br />
3. Provisions for taxes 268,889.49 271<br />
4. Other provisions 22,326,538.92 22,795<br />
D. LIABILITIES<br />
31,659,754.41 32,572<br />
1. Prepayments received – trade 13,149,355.49 8,307<br />
2. Prepayments received – Nationalstiftung 45,467.98 771<br />
3. Trade payables 6,813,036.86 8,704<br />
4. Payables to Group companies 48,611.15 49<br />
5. Other liabilities<br />
of which taxes EUR 419,650.55<br />
(2007: EUR 932,000)<br />
social security contributions<br />
EUR 1,234,846.39 (2007: EUR 1,326,000)<br />
12,493,558.13 11,475<br />
6. Bank borrowings 148.50 0,00<br />
32,550,178.11 29,306<br />
E. ACCRUED EXPENSES AND DEFERRED INCOME 3,836,728.51 7,289<br />
Total equity <strong>and</strong> liabilities 118,029,090.15 108,892<br />
CONTINGENT LIABILITIES 24,971.72 695<br />
39<br />
Annual Report 2008
Consolidated profit <strong>and</strong> loss account<br />
1. 1. 2008 to 31. Dec. 2008<br />
40<br />
Annual Report 2008<br />
2008<br />
EUR EUR<br />
2007<br />
EUR '000 EUR '000<br />
1. Revenue 41,142,238.41 45,567<br />
2. Subsidies, research grants<br />
<strong>and</strong> Nuclear Engineering funding<br />
57,953,648.46 61,473<br />
a) Subsidies 12,403,090.95 12,004<br />
b) Research grants 40,779,550.81 45,015<br />
c) Nuclear Engineering funding 4,771,006.70 4,454<br />
3. Change in inventories of finished<br />
goods <strong>and</strong> uninvoiced services<br />
6,440,719.92 8,240<br />
4. Other own work capitalised 0.00 36<br />
5. Other operating income<br />
a) Gains on disposal of assets other than financial<br />
assets<br />
16,115.50 12<br />
b) Income from reversal of provisions 1,687,409.64 1,786<br />
c) Sundry other operating income 12,188,669.65 13,892,194.79 9,215 11,013<br />
6. Cost of materials <strong>and</strong> other supplies<br />
a) Cost of materials 6,702,148.93 7,747<br />
b) Other supplies 17,908,827.12 –24,610,976.05 23,151 –30,898<br />
7. Personnel expenses<br />
a) Wages 113,847.91 155<br />
b) Salaries 47,982,993.51 47,660<br />
c) Severance payments <strong>and</strong> contributions to<br />
employee benefit funds<br />
1,549,438.64 1,091<br />
d) Pension expenses 1,201,217.95 1,285<br />
e) Statutory social security contributions, pay-related<br />
levies <strong>and</strong> compulsory contributions<br />
11,924,807.00 11,935<br />
f) Other employee benefit expenses 888,686.04 –63,660,991.05 659 –62,785<br />
8. Amortisation <strong>and</strong> impairment –7,423,426.14 –7,507<br />
9. Other operating expenses<br />
a) Taxes (other than income taxes) 247,274.38 10<br />
b) Sundry other operating expenses 20,017,369.69 –20,264,644.07 26,732 –26,742<br />
10. Subtotal items 1–9<br />
(earnings before interest <strong>and</strong> tax)<br />
3,468,764.27 –1,603
3.2 Consolidated profit <strong>and</strong> loss account<br />
1. 1. 2008 to 31. Dec. 2008<br />
11. Income from other securities held as<br />
financial assets, of which Group companies<br />
nil (2007: nil)<br />
12. Other interest <strong>and</strong> similar income,<br />
of which Group companies nil<br />
(2007: nil)<br />
13. Expenses arising from financial assets<br />
2008<br />
EUR EUR<br />
2007<br />
EUR '000 EUR '000<br />
448,911.72 425<br />
856,409.26 455<br />
a) Amortisation 238,991.71 95<br />
b) Other expenses 0.00 –238,991.71 14 –109<br />
14. Interest <strong>and</strong> similar expenses,<br />
of which Group companies nil (2007: nil)<br />
15. Subtotal items 11–14<br />
(financial result)<br />
–58,827.74 –398<br />
1,007,501.53 373<br />
16. Profit/loss on ordinary activities 4,476,265.80 –1,230<br />
17. Income taxes –8,456.48 –3<br />
18. Profit/loss after tax 4,467,809.32 –1,233<br />
19. Attributable to minority interests 55,147.09 6<br />
20. Reversal of revenue reserves 0.00 3<br />
21. Allocations to revenue reserves 0.00 –592<br />
22. Profit/loss for the year 4,522,956.41 –1,816<br />
23. Losses brought forward –7,853,329.92 –6,037<br />
24. Accumulated loss –3,330,373.51 –7,853<br />
41<br />
Annual Report 2008
04<br />
Credits <strong>and</strong><br />
contact details<br />
Annual Report<br />
2008
Credits<br />
Published by<br />
Austrian Research Centers GmbH – ARC<br />
Corporate <strong>and</strong> Marketing Communications<br />
Tech Gate Vienna: Donau-City-Strasse 1,<br />
1220 Vienna, Austria<br />
office@arcs.ac.at, www.arcs.ac.at<br />
Concept <strong>and</strong> contents<br />
Austrian Research Centers GmbH – ARC<br />
Corporate <strong>and</strong> Marketing Communications<br />
Michael H. Hlava<br />
Tech Gate Vienna: Donau-City-Strasse 1,<br />
1220 Vienna, Austria<br />
office@arcs.ac.at, www.arcs.ac.at<br />
Graphic concept, design <strong>and</strong> layout<br />
Spirit Design Innovation <strong>and</strong> Br<strong>and</strong>ing<br />
Silbergasse 8, 1190 Vienna, Austria<br />
spirit@spiritdesign.at, www.spiritdesign.at<br />
Printed by<br />
gugler GmbH<br />
Auf der Schön 2, 3390 Melk an der. Donau,<br />
Austria<br />
office@gugler.at, www.gugler.at<br />
Contact<br />
For further information please contact:<br />
Austrian Research Centers GmbH – ARC<br />
Corporate <strong>and</strong> Marketing Communications<br />
Michael H. Hlava<br />
Tech Gate Vienna: Donau-City-Strasse 1,<br />
1220 Vienna, Austria<br />
T +43 5 0550-2046, F +43 5 0550-2010<br />
michael.hlava@arcs.ac.at, www.arcs.ac.at<br />
Cautionary statement<br />
This annual report has been prepared with the<br />
greatest possible care, <strong>and</strong> the information<br />
contained in it has been checked. Nonetheless,<br />
rounding, typesetting <strong>and</strong> printing errors cannot<br />
be excluded. The use of software to aggregate<br />
rounded figures <strong>and</strong> percentages may result in<br />
minor calculation differences.<br />
This report is also available in German. In case<br />
of doubt the German version is authoritative.<br />
Editorial deadline: 2 May 2009<br />
04<br />
Annual Report 2008<br />
Impressum<br />
Kontakt<br />
43<br />
Annual Report 2008
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