Shareholders, Supervisory Board and management bodies ...

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.