Annual Report 2007

aitac

Annual Report 2007

7.

Annual Report

2007


Annual Report

2007


Boosting the economy

through research

and innovation

Austrian Research Centers carries out research programs in the most important economic and

technological areas of the future in order to play a major role in improving the innovative strength

and competitiveness of Austrian companies.

Our highly qualified scientific personnel provide Austrian organizations and companies with their

knowledge and expertise in research and development.

For a decisive competitive edge


0

Table of Contents

Annual Report

2007


Table of Contents

Chapter Page

01 Forewords 6

Foreword by Secretary of State Christa Kranzl 8

Foreword by the President of the Supervisory Board Hannes Androsch 10

Foreword by the General Management 12

02 Shareholders 14

03 Supervisory Board and Executive Bodies 16

04 Scientific Advisory Board 18

05 Organizational Chart 20

06 Austrian Research Centers 2007 22

Development of research areas 23

Strategic divisions in the 2007 business year 24

07 Highlights 28

08 Management Report 48

Operational business in 2007 50

09 Financial Statements 56

Consolidated Balance Sheet 58

Consolidated Profit and Loss Account 60

10 Imprint and Contact Details 62

00

Annual Report 2007

Table of Contents


6

Annual Report 2007

1

Forewords

Annual Report

2007


Forewords Page

Foreword by Secretary of State Christa Kranzl 8

Foreword by the President of the Supervisory Board

Hannes Androsch

10

Foreword by the General Management 12

7

Annual Report 2007


01

Annual Report 2007

Foreword by

Secretary of State

Christa Kranzl

8

Annual Report 2007

Secretary of State Christa Kranzl

Federal Ministry of Transport, Innovation and

Technology


Foreword by

Secretary of State Christa Kranzl

Austrian Research Centers as a strong partner to business and industry

The pace of the global race for scientific and technological superiority is increasing rapidly.

In the past, this race was between the leading industrialized nations, but many experts now believe

that innovative developments from Asia and Eastern Europe could soon lead to these regions

gaining the upper hand. If Austria wants to keep apace in the sphere of international science, it

must continue to support and encourage those skills that have helped it to achieve an outstanding

reputation as an important centre of research in the heart of Europe.

We are well on our way to achieving this goal. Over the past few years, Austria has spent more

on research, technological development and innovation than most other European countries. The

current research quota, i.e. the amount of money spent on research expressed as a per centage

of gross domestic product, is approximately 2.63 %, well above the EU average. Moreover,

Austria also has the means to achieve a research quota of 3 % by 2010, making it one of the few

EU members to do so. The support and encouragement we give to innovative and technological

developments reflects both how seriously we take our technology policy and our need to secure a

place for Austria’s economy at the forefront of international technology. By recognizing the need for

this investment, the Federal Ministry of Transport, Innovation and Technology (BMVIT) is making

a sustainable impact on our domestic innovation strategy. In creating this impetus to develop

intelligent traffic systems and to overhaul our way of thinking about mobility, we are also helping

Austrian companies create new market opportunities. At the same time, it is imperative that we

invest in key technologies which make it easier for senior citizens to cope with daily life.

As a centre of research, Austria should not only be able to measure itself against global leaders,

but also to introduce those small and medium-sized companies, which are so important for the

domestic economy, to research and development. With this in mind, the BMVIT has developed the

Research Creates Work initiative, and the Research and Innovation Cheque, which have already

been used by over 1,300 companies to cooperate with research institutes. In its position as the

leading domestic research organization outside of the universities, Austrian Research Centers has

taken a leading role in both areas. ARC’s research, being both applied and close-to-the-market,

provides not only innovations and tools for businesses and industries, but is also being pursued

rigorously in those sectors that will affect our lives tomorrow. As such, Austrian Research Centers

is a strong partner and ally to industry.

2007 will be seen as a turning point for ARC. In May 2007, Hannes Androsch was appointed

President of the Supervisory Board of Austrian Research Centers and, together with Wolfgang Knoll

and Anton Plimon, the management team has been re-shaped with experts best suited to these

positions; thus clearing the way for a new chapter to be written in Austrian Research Centers’

successful, four-decade-long history.

01

Annual Report 2007

Foreword by

Secretary of State

Christa Kranzl

9

Annual Report 2007


01

Annual Report 2007

Foreword by

the President of the

Supervisory Board

Hannes Androsch

10

Annual Report 2007

Foreword by the President of

the Supervisory Board

Hannes Androsch

Innovare necesse est

Innovation engine for industry and business

Investment in research and development, as well as in human capital, is critical for a country’s growth and

affluence. Austrian Research Centers (ARC) is Austria’s foremost knowledge-based group, making the largest

single contribution to applied, extra-university research. In its role as a driver for innovation, Austrian Research

Centers is tasked with creating completely new development tools for the innovative solutions of tomorrow,

working in close cooperation with industry, as well as with national and international knowledge centers. These

innovations are absolutely vital to giving industry and business a clear competitive advantage.

Challenges

The world’s population is constantly increasing. It currently stands at 6.7 billion and is soon expected to reach

9 billion, which naturally means that the demand for energy is also rising. Striking a balance between making

use of our resources in a responsible and economic way (energy, environment, etc.) and creating efficient

infrastructure (traffic, energy, information technology, etc.) is just one example of the challenges faced by ARC,

and one which it intends to face head on. In addition to this, the world’s population is getting older. A recent

study by the Austrian Academy of Sciences points to a dramatic increase in the average age of the population,

which is expected to reach 53.5 in 2100, compared to just 38.5 today. Consequently, Austrian Research Centers

is focusing particularly on innovative developments which address people’s health.

As far as research spending and high-tech patents are concerned, Austria is certainly above average, having

recently increased its R&D quota significantly to 2.6 % of gross domestic product (GDP) in 2008, with the

Austrian government having set a future target of 3 %. The work of Austrian Research Centers relies on federal

funding as the Federal government has a majority stake in ARC of 51 %. For its part, Austrian Research Centers

is taking steps to provide its partner industries a competitive advantage through its contract research activities,

as well as safeguarding the advantages Austria offers as a place to conduct business.

All clear for take-off

In the last business year (2007), many important preconditions were met concerning the new focus of Austrian

Research Centers. The first of these was to lift ARC out of the downward financial spiral it had been in over

the past few years and to stabilize it with strict liquidity and cost management. The results in 2007 returned to

a more respectable level thanks to an exceptional amount of funds made available by the BMVIT. For the 2008

business year, the commercial goals are for ARC to break even for the first time. I am delighted that Austrian

Research Centers is now being led into the future by two proven experts. Wolfgang Knoll, an internationally

renowned scientist from the Max Planck Institute, who has been ARC’s Chief Research Officer since April 2008,

will be leading the company together with Anton Plimon, the former manager of an ARC subsidiary, arsenal

research, and now ARC’s Chief Executive Officer.

At this point, I would like to express my thanks to the partners of ARC, as well as to its employees, and to finish

with an allegory. Throughout the Apollo missions, NASA motivated all of its employees with a single vision,

“We fly to the moon”. When applied to ARC and its employees, “we fly for innovations.” All we can say from the

Supervisory board is: “All clear for take-off!”


Hannes Androsch

President of the Supervisory Board

01

Annual Report 2007

Foreword by

the President of the

Supervisory Board

Hannes Androsch

11

Annual Report 2007


01

Annual Report 2007

Foreword by

the General Management

Wolfgang Knoll

Anton Plimon

12

Annual Report 2007

Foreword by the General Management

Wolfgang Knoll

Anton Plimon

The past business year represents both the end of one chapter and the beginning of a new one.

It is the end of a chapter for Austria’s largest extra-university research organization, one which was

marked by turbulence and strong headwinds. At the same time, it was also the signal for change.

This change will be the most significant in the history of ARC but, once this restructuring work has

been completed, a research organization will have been created that is stronger, more dynamic

and more intensively focused on its core competencies.

In April 2008, we were appointed to lead Austrian Research Centers, and we are performing this

task with a clear focus and objective: to commercially redevelop the company over the long-term,

to restructure Austria’s largest knowledge centre and to direct its scientific focus. We shall develop

and implement strategies that we shape based on the feedback we receive from industry and,

not least, from the recommendations in the audit division’s report, all with the aim of improving

performance and having a clear vision for the future.

A cornerstone of Austrian Research Centers’ credo is its focus on innovative solutions for business

and industry, which now means pooling our strengths and developing our core competencies. As

such, some divisions will also have to implement restructuring measures as part of the new ARC’s

future in order to guarantee our competitiveness.

With this annual report, however, ARC is not just taking stock of its commercial performance, but

is also illustrating why Austrian Research Centers is viewed with great respect both domestically

and internationally. For this reason, you will be able to read details of selected research highlights

from our innovative laboratories as well as studying the usual business figures.

On behalf of Austrian Research Centers, we would like to thank the Federal Ministry for Transport,

Innovation and Technology for its support as the representative of the majority shareholder. We

would also like to extend our gratitude to the further 49 % of shareholder representatives from

industries, who have shown through their cooperation that a successful research partnership

is possible even in difficult times. Our employees were naturally a decisive factor, giving impetus

to our development, and they will continue to play a central role in our future success. For this,

we would like to also accord them recognition. Together we can look forward with considerable

confidence to the coming business year and its challenges.

In 2008, Austrian Research Centers’ sites in Seibersdorf, Vienna and elsewhere will retain their

status as the flagships of Austrian extra-university research.


Anton Plimon Wolfgang Knoll

Managing Directors Austrian Research Centers – ARC

01

Annual Report 2007

Foreword by

the General Management

Wolfgang Knoll

Anton Plimon

13

Annual Report 2007


14

Annual Report 2007

2

Shareholders

Annual Report

2007


Shareholders

As at 31. 12. 2007

A Republic of Austria (50.46 %)

■ Federal Ministry for Transport, Innovation

and Technology (BMVIT)

B Industry (49.54 %)

■ ABB AG

■ Alcatel Austria Aktiengesellschaft

■ Allianz Elementar Versicherungs-

Aktiengesellschaft

■ APC Advanced Pollution Control AG

■ Austria Metall Aktiengesellschaft

■ Bank Austria Creditanstalt AG

■ 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

■ F. Joh. Kwizda Unternehmensverwaltungsgesellschaft

m.b.H

■ 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

■ Lafarge Perlmooser AG

■ MAGNA STEYR Fahrzeugtechnik AG &

Co KG

■ Mag. Dietbert Kowarik (Treuhänder)

■ Mediscan GmbH & Co KG

■ OMV Refining & Marketing GmbH

■ Österreichische Elektrizitätswirtschaft

Aktiengesellschaft

■ PKE Electronics AG

■ PLANSEE Aktiengesellschaft

■ Siemens Aktiengesellschaft Österreich

■ Steirische Wasserkraft- und Elektrizitäts-

Aktiengesellschaft

■ Telekom Austria TA Aktiengesellschaft

■ tele.ring Telekom Service GmbH

■ VA TECH HYDRO GmbH

■ Verband der Elektrizitätsunternehmen

Österreichs

■ VEREINIGUNG DER

ÖSTERREICHISCHEN INDUSTRIE

(Industriellenvereinigung)

■ voestalpine Stahl GmbH

■ Vorarlberger Illwerke Aktiengesellschaft

■ Waagner-Biro Binder Aktiengesellschaft

■ WIENSTROM GmbH

02

Annual Report 2007

Shareholders

As at 31. 12. 2007

15

Annual Report 2007


16

Annual Report 2007

3

Supervisory

Board

and Executive

Bodies

Annual Report

2007


Supervisory Board and Executive Bodies

As at 31. 12. 2007

Supervisory Board

President

Hannes ANDROSCH

from 16. 05. 2007

Rainer WIELTSCH

until 16. 05. 2007

Vice Presidents

Robert BÖHM

from 16. 05. 2007

Rainer WIELTSCH

from 16. 05. 2007 bis 01. 09. 2007

Karl SCHWAHA

until 16. 05. 2007

(after which a member of the Supervisory Board)

Andreas REICHARDT

until 16. 05. 2007

Members of the Supervisory Board

Peter EGGER

Silvia JANIK

Ingolf SCHÄDLER

Peter SCHWAB

Franz VIEHBÖCK

Maria KUBITSCHEK

from 16. 05. 2007

Norbert ROZSENICH

from 16. 05. 2007

Karl SCHWAHA

until 20. 12. 2007

Günther BONN

until 16. 05. 2007

Dieter DERNTL

until 16. 05. 2007

Peter LAYR

until 16. 05. 2007

Hans SCHÖNEGGER

until 16. 05. 2007

Johannes STROHMAYER

until 16. 05. 2007

Members of the Supervisory Board

appointed by the Works’ Council

Karl Heinz ASCHBACHER

Philip LEOPOLD

Karl FARTHOFER

Heinrich HUMER

Rudolf ORTHOFER

Eva WILHELM

Andrea ALBRECHT

until 16. 05. 2007

Board of Management

Chief Executive Officer

Hans RINNHOFER

Chief Research Officer

Erich GORNIK

Authorized Officers

Peter EURINGER

Finance and Controlling until 12. 12. 2007

Josef FRÖHLICH

systems research

Heinrich GARN

Information Technologies

Georg HABERHAUER

Health Technologies

Thomas KADI

Corporate R&D

Helmut KAUFMANN

LKR Ranshofen until 29. 03. 2007

Anton PLIMON

arsenal research

Alfred WANSCH

Human Resources and Legal Affairs

03

Annual Report 2007

Supervisory Board

and Executive Bodies

As at 31. 12. 2007

17

Annual Report 2007


18

Annual Report 2007

4

Scientific Advisory

Board

Annual Report

2007


Scientific Advisory Board

As at 31. 12. 2007

Ingeborg HOCHMAIR-DESOYER,

Born in Vienna in 1953, Ingeborg Hochmair-Desoyer

studied electrical engineering at Vienna University of

Technology and in Karlsruhe. After working as an

assistant lecturer at the Institute of Electrical Engineering

and Electronics at Vienna University of Technology,

she moved to the Institute of Applied Physics in

Innsbruck in 1986. In 1995, as managing director

of the Innsbruck company Med-El GmbH, she was

elected V. C. Business Woman of the Year.

Hermann KOPETZ,

Hermann Kopetz, born in Vienna in 1943, studied

physics and mathematics at the University of Vienna,

obtaining his doctorate in 1968 sub auspiciis praesi dentis.

After a spell as assistant professor at the University

of Georgia, he worked for VOEST ALPINE in Linz for

eight years. In 1982 Hermann Kopetz was appointed

professor at Vienna University of Technology‘s faculty

of software engineering and real-time systems, and

currently heads the Institute of Computer Engineering.

Hermann Kopetz is the German-speaking world‘s

foremost expert in the field of embedded systems.

Haim HARARI,

Born in Jerusalem in 1940, Haim Harari, studied

physics at the Hebrew University in his home town.

He has been employed at the Weizmann Institute

since 1966, where he was appointed professor of

high energy physics in 1970. He was president of the

Weizmann Institute of Science from 1988 through

2001. Today, Haim Harari is chairman of the board of

the Davidson Institute for Science Education.

Heinrich ROHRER,

Born in St. Gallen in 1933, Heinrich Rohrer studied

physics at the Swiss Federal Institute of Technology

in Zurich, obtaining his doctorate in 1960. From 1963

through 1997 he worked at the IBM research laboratory

in Rüschlikon in Switzerland. In 1974/75 he spent

a sabbatical at the University of California in Santa

Barbara. Together with Gerd Binnig, in 1996 Heinrich

Rohrer was awarded the Nobel Prize in Physics for

the development of the scanning tunneling microscope.

Bert SAKMANN,

Born in Stuttgart in 1942, Bert Sakmann studied

medicine, obtaining his doctorate from the University

of Göttingen in 1974.He habilitated at the University

of Göttingen and carried out research in biophysical

chemistry at the Max Planck Institute. Bert Sakmann

has been Director of the Department of Cellular

Physiology at the Max Planck Institute for Medical

Research in Heidelberg since 1989. In 1991, the

cellular physiologist was awarded the Nobel Prize

in Medicine together with Erwin Neher.

Siegfried SELBERHERR,

Born in Klosterneuburg in 1955, Siegfried Selberherr

studied electrical engineering at Vienna University

of Technology, obtaining his doctorate in 1981.

In 1988, he was appointed professor of software

engineering for microelectronic systems at Vienna

University of Technology. From 1998 through 2003,

Siegfried Selberherr was Dean of the Faculty of

Electrical Engineering, and, from 2004 through April

2005, Dean of the Faculty of Electrical Engineering

and Information Technology at Vienna University

of Technology.

Horst SCHMIDT-BISCHOFFSHAUSEN,

Born in Vienna in 1940, Horst Schmidt-Bischoffs -

hausen studied physics at Vienna University. In 1971,

he moved from Research Centre Jülich into industry,

where he subsequently worked in the research and

technology development for Daimler Chrysler AG. In

2000, he was appointed Head of Strategic Development,

Patent Applications and External Relations at

the Corporate Research Center in Germany.

Walter J. AMMANN,

Born in 1949, Walter J. Ammann studied construction

engineering at the Swiss Federal Institute of Technology

in Zurich and obtained a doctorate in structural

dynamics. He has headed up the Swiss Federal

Institute for Snow and Avalanche Research in Davos

since 1992, became Head of Natural Dangers

Research at the Swiss Federal Institute for Forest,

Snow and Landscape Research in Birmendorf in

1994, and was appointed to the establishment‘s board

of directors in 1999. Walter Ammann also teaches at

the Swiss Federal Institute of Technology in Zurich.

Günter HERTEL,

Günter Hertel studied transport engineering and

mathematics at the “Friedrich List” University of

Transportation in Dresden, obtaining his doctorate

in 1974. In 1992, he was appointed professor of the

Transportation systems faculty at Dresden Technical

University. In 1996, he was selected to head one

of the four research & technology boards at the

Daimler-Benz Group, and is today Vice President

for Research and Technology.

04

Annual Report 2007

Scientific Advisory Board

As at 31. 12. 2007

19

Annual Report 2007


05

Annual Report 2007

Organizational Chart

As at 31. 12. 2007

20

Annual Report 2007

5

Organizational

Chart

Staff Unit

Corporate Communications

Strategic Division

Health Technologies

Division

Biogenetics

Division

Life Sciences

Division

Biomedical Engineering

Division

Radiation Safety and

Applications

Staff Unit

Testing and Quality

Management

Strategic Division

Materials Technologies

Division

Advanced Materials and

Aerospace Technologies

LKR

Ranshofen Light Metal

Competence Center

ECHEM

Competence Center for

Applied Electrochemistry

Staff Unit

R&D Strategy

Strategic Division

Information Technologies

Division

smart systems

Division

Research Studios


Austrian Research Centers

General Management

Administrative Unit

Finance and Controlling

Strategic Division

Mobility & Energy

arsenal research

Administrative Unit

Personnel and Legal Affairs

Division

Nano-System Technologies

Division

systems research

Division

Technology Transfer

NES

Nuclear Engineering

Seibersdorf

05

Annual Report 2007

Organizational Chart

As at 31. 12. 2007

21

Annual Report 2007


22

Annual Report 2007

6

Austrian

Research

Centers

2007

Annual Report

2007


Austrian Research Centers 2007

In 2007, Hans Rinnhofer (responsible for Corporate Strategy and Finance, and spokesman

of the Board of Management) and Erich Gornik (responsible for Research, Technology and

Development Strategy) made up the Board of Management.

The success generated by the company in 2007 reflected the new structure introduced

at the end of 2006 with its focus on thematic and contextual research areas. The four

strategic divisions of Materials Technologies, Information Technologies, Mobility & Energy

(arsenal research) and Health Technologies encompass the company’s focus of activities.

In addition to these, there are two multi-disciplinary divisions, Nano-System Technologies

and systems research. A divisional manager was appointed to head up each of the new

strategic divisions.

Furthers changes to the Group’s structure occurred as a result of the sale of Austrian Research

Centers’ Mechatronic Automation Systems division to PROFACTOR Research and Solutions

GmbH, based in Steyr. This disposal was an important step in the process of

restructuring the organization.

Development of research areas

The company’s development in terms of content during 2007 was denoted by work

under taken in preparation for defining a new, multi-year research and technology strategy,

for intensifying contractual activities in every operating division of Austrian Research Centers,

as well as for continuing to focus on scientific and technological areas within the context

of independent research.

Positioning Austrian Research Centers in 2007

Thanks to its excellent strategic communication, the Austrian Board for Research and

Technological Development has made a contribution to research and technology policy with

regards to defining targets for the sectors concerned. Two main factors are critical to the

success of extra-university research institutes: The first of these is conducting cutting-edge

research that is recognized by leading members of the scientific community; and the second

is the resulting commercial leadership in the area of technology which ensures the sectors

involved enjoy lasting success in the market.

Austrian Research Centers carries out independent technology and research programs and

releases its findings, within the context of contract research, to all the players in the market in

an impartial manner. These independent technology and research programs are financed by

the Republic of Austria, which states that this is in order to reduce the risk of market failures

and to generate new and innovative opportunities.

Research cooperation with industry in 2007

Austrian Research Centers’ focus on performing contract research for industry is complimented

by its work with industrial companies as part of cooperation-based projects on a national and

international level. In addition to the services it provides in the form of contract research, this

method of cooperation in developing new technologies and implementing innovations is

particularly important.

06

Annual Report 2007

Austrian Research Centers

2007

23

Annual Report 2007


06

Annual Report 2007

Austrian Research Centers

2007

24

Annual Report 2007

Austrian Research Centers sets aside a portion of its available capital, as well as its

human resources, to implement these co-operative research projects. Moreover, its detailed

knowledge of national and European funding programs in the technology sector (the Seventh

EU Programme for Research, Technology and Innovation) helps Austrian Research Centers

to distinguish itself. Similarly, Austrian Research Centers’ knowledge of and experience in

European funding programs are an additional plus for its industrial cooperation partners.

Complex, multi-disciplinary areas such as optimizing the use of renewable sources of energy

and guaranteeing energy efficiency or safety research for people in our society, require

comprehensive technical knowhow if such innovations are to be successfully introduced into

business and the community. These interdisciplinary, competitive research and technology

projects carried out by Austrian Research Centers form complementary technological platforms

due to their virtual and temporary structures. The central aim is to develop technological

innovations that deal with the core issues of the day concerning energy, the environment,

safety and health, as well as increasing the innovative strength of businesses.

Spin offs

The newly created knowledge and knowhow of Austrian Research Centers is applied to work

for customers on the basis of contract research. If a customer does not make use of these

research findings, and ARC is not able to economically implement these findings and create

new high-tech jobs, it supports so-called application or expertise spin offs. The underlying

goal is to make use of findings, results, methods or knowhow from the area of science in an

economically viable way.

Strategic divisions in the 2007 business year

Materials Technologies

Materials Technologies, a strategic division of the group, encompasses the following ARC

organizational units: the Light Metal Center of Competence at Ranshofen (LKR), the ECHEM

Center of Expertise and the Advanced Materials and Aerospace Technologies Division at

Seibersdorf.

The division of Advanced Materials and Aerospace Technologies is strategically positioned

in the aviation and space travel sector, focusing on composites and health monitoring, in

addition to it being an accredited test centre for the European Space Agency.

The division’s activities in 2007, aside from further comprehensive technological developments

in the area of materials characterization, included the research areas of materials development

and the systemic method development for applications such as composite process techniques

or liquid hydrogen storage.

Research activities in the area of space propulsion are characterized by new high-tech

developments concerning miniaturized space propulsion and efficient energy converters for

future space missions. In 2007, the considerable level of technological expertise required

for materials and material processes was significantly raised by research activities surrounding

the micro- and nanoclassification of materials and material systems. The expansion of material

nano technology activities in 2007 also encompassed functional nanomaterials and nano coatings.

ARC’s competence centre in Ranshofen (LKR) will come to the end of a sustained period of

funding as a centre of expertise at the end of this year.


ARC’s management has decided to continue research activities at Ranshofen in the area of

lightweight construction, and the transfer of the LHR division into ARC’s process structure

as a nationally funded centre of expertise has been initiated, with its business targets being

defined in accordance with the vision and the mission statement of the division. In the future,

the LKR will specialize in technologies and products related to protecting the climate and the

environment, with a particular focus on reducing the output of CO 2 in the transport industry.

System innovations during the manufacturing, processing and application of light metals will

help to solve these pressing problems.

In 2007, the corporate development of the ECHEM competence centre in Wiener Neustadt

was also highlighted by efforts to secure a continuing public-private partnership financing

model. Although the goal to position itself as an international centre of expertise (K2 as

defined by the COMET initiative) was unsuccessful, it was possible to establish a funding plan

stretching over several years, and recognizing the ECHEM as a K1 centre of expertise, in order

to ensure that the scientific and technological expertise acquired over the past years retain

their long-term relevance for Austrian industries.

Mobility & Energy (arsenal research)

In 2007, the strategic division Mobility & Energy (arsenal research) concentrated on the two

main areas of mobility and energy. The focus of research in the area of mobility encompassed

intelligent transport infrastructure and vehicle motorization systems of the future, in which

fundamentally new development tools for innovative vehicle concepts were generated.

Moreover, this focus included systemic research activities that involved simulating highly

congested traffic patterns using real-time models. The area of energy saw a focus on energy

production and distribution, as well as on energy in buildings, not just within the framework

of research strategies but also as part of commercial contract activities.

The integration of renewable energy into the entire system and the integration of large-scale

buildings into entire energy systems were closely observed, along with systemic problem-

solving when converting centralized supply structures into decentralized energy input systems

and active distribution networks.

Information Technologies

The strategic division Information Technologies encompasses the following organizational units:

Smart Systems, Advanced Computer Vision and Research Studios. The division employs

around 220 personnel focusing on developing methods and algorithms for intelligent, autonomous

systems. The division has stated that it intends to launch new, cost-saving embedded

image processing systems in new international niche markets, in addition to an improved

sensor system based on new technology. Its activities in 2007 included systemic developments

to high performance vision systems for automation, CCTV surveillance, complex and intelligent

controls, and medical diagnosis in line with customer requirements.

The Advanced Computer Vision competence centre attracted attention in 2007 due to the

imminent expiry of its period of funding as a centre of expertise. An application to extend this

funding within the framework of a public-private partnership funding program was only

successful in as far as its activities in the area of Computer Vision could be continued as a

so-called K project as part of COMET, a new Austrian funding initiative.

06

Annual Report 2007

Austrian Research Centers

2007

25

Annual Report 2007


06

Annual Report 2007

Austrian Research Centers

2007

26

Annual Report 2007

Health Technologies

The strategic division Health Technologies encompasses the following organizational units:

Biogenetics, Life Sciences, Radiation Safety and Applications, and Biomedical Engineering.

The division’s goal is to develop new technologies that can be used to improve human health

and the environment, and that are both economically viable and relevant to society.

Its technological goal is to develop molecular analytical platforms for analysis, molecular monitoring

systems and bioinformation systems for applications in the areas of health, the environment

and safety. The Biogenetics program focuses on water as a resource, specific bioresources

and systemic environmental research, which includes the sustainable safety of food by means

of microbial diagnostics, as well as developing new genes for industrial use and using biomass

more intensively. 2007 was characterized by decisions that led to the strategic partnership

with the University of Natural Resources and Applied Life Sciences being strengthened,

in which the goal was set to establish a joint research infrastructure based in Tulln to create

critical mass in Austria.

The Life Sciences program is Austria’s largest pre-clinical contract research organization

conforming to GLP (good laboratory practice) standards. Its core competencies lie in the

areas of toxicology, clinical and biological analysis, and molecular diagnostics, which were the

primary areas of research activity in 2007. The organization was able to successfully position

itself in international niche markets for applied genomics, proteomics and bioinformatics, positions

which it will build on over the coming years. The double-digit target set for the organization’s

annual growth rate for contract research was exceeded. Future results will be underpinned

by increased cross-linking with universities focusing on the specialized area of drug safety

science.

In 2007, the Radiation Safety and Applications program was shaped by the development

of radiochemical compounds when examining therapy methods, diagnosis processes and the

effects of medication. Initial steps in the area of pharmaceutical research (translational

research) were taken and cooperative work was begun with the clinical pharmacology department

of Vienna’s Medical University.

The goal of the research activities is to develop radiochemical tracers and to carry out

pre-clinical studies for nuclear medical diagnosis and therapy in cases of oncological and

neurological illness. Its activities in examining the effectiveness of neuropsychiatric medication

with PET tracers were particularly significant.

The Biomedical Engineering program continued to add to its expertise in terms of methods

and solutions for patient-oriented data collection as well as in the telecare and healthcare

monitoring systems that are associated with collection processes. This organization’s position

in niche markets will be boosted particularly due to the installation of near-field communication

technology (NFC) for telemonitoring applications. The organization’s goal is to build on its

position as the leading technology organization in the areas of cardiology and haemodynamics

with regards to diagnosis and therapy systems.

systems research

In 2007, the systems research program was shaped by a continual development of its core

competencies in the fields of systemic innovation research, sustainability research and

knowledge transfer. Additional activities were concerned with the field of governance to enable

the RTI policy to take on the role of a think-tank in the future. Scientific results in 2007 were

recorded in the context of the thematic research program “analysis and transformation of

complex social and natural systems”, with the strategic goal of ensuring competitiveness,

sustainability and involvement in the global knowledge economy.


Nano-System Technologies

In 2007, the Nano-System Technologies division reduced its scope of activity to just two

strategic areas in line with the organization’s new mission to create innovative product ideas

and develop prototypes that can be used effectively in nanoscience and nanotechnology.

The first main area of focus centers on developing cutting-edge nanosensors for technological

use in the fields of safety, energy, communication and transport. The second main area of

focus makes use of these nano sensors in a systematic, technological way to develop

prototype-specific nanotechnological platforms for on-chip diagnostics. The organization’s

strategic target is to become the leader in magnetic lab-on-chip systems.

06

Annual Report 2007

Austrian Research Centers

2007

27

Annual Report 2007


28

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7

Highlights

Annual Report

2007


Highlights Page

New nanoparticles simultaneously cleanse and repel dirt 30

Patented magnesium alloys 32

Concept for diagnosing cancer of the thyroid 34

Identifying biomolecules effectively with nanosensors 36

Epilepsy early warning system for hospitals 38

Networking European environmental information systems 40

Sustainable building concept cuts energy use by 80 % 42

The latest technological developments in predicting and

preventing accidents

44

Detailed climate forecasts for Austria 46

29

Annual Report 2007


07

Annual Report 2007

Highlights

Materials Technologies

30

Annual Report 2007

New nanoparticles simultaneously cleanse

and repel dirt

Eight industry partners join forces with ARC

on the “Phonas” project.

Nanocoatings can now be used in a variety of different ways. Buildings that have been fitted

with nanocoated windowpanes have to be cleaned much less frequently than those fitted with

conventional glazing. The use of such nanocoatings is, however, largely restricted to glass

surfaces because the aggressive oxygen, responsible for the cleaning effects, also attacks plastic

and paintwork. Nevertheless the future points towards a time when there will be textiles or other

sensitive materials that cannot be marked or stained.

This will be possible thanks to newly developed nanoparticles that combine two cleaning functions

in one i.e. preventing dirt from affixing itself to the surface and actively dissolving dirt particles. The

process makes use of water and sunlight, using a catalyst to trigger the process.

In the “Phonas” project, nanoparticles with just such inherent properties are being developed under

the scientific supervision of the Surface Engineering Group of Advanced Materials and Aerospace

Technologies. The nanoparticles’ active component consists of titanium oxide, which serves as a

catalyst and stimulates the production of oxygen radicals when exposed to sunlight. These oxygen

radicals then attack the organic particles in a way similar to burning them. The other, inactive

component of the nanoparticle, for example, silicates is connected to the substrate. They then

prevent the substrate from being destroyed by the chemical reaction, making it possible to broaden

the use of nanocleansing to encompass not only glass surfaces and ceramic, but also more

sensitive materials such as textiles and plastics.

Thanks to the results yielded by the “Phonas” project, it should be possible in the future to develop

building facades, bathroom fittings and even furniture that can repel dirt and fats.

The project involves the work of five scientific and eight industry partners and is supported by the

BMVIT, the FFG, the FWF and the Austrian Nanoinitiative.

Contact

Ernst Semerad

Interim Head of Division Advanced Materials and Aerospace Technologies

Austrian Research Centers GmbH – ARC

Advanced Materials and Aerospace Technologies

Research Center: 2444 Seibersdorf, Austria

T +43 5 0550-3300, ernst.semerad@arcs.ac.at

www.arcs.ac.at


Nanocoated glazing has to be cleaned much less frequently than conventional glazing

(the right-hand side has been nanocoated)

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Materials Technologies

32

Annual Report 2007

Patented magnesium alloys

New applications for lightweight construction

and medical technology

Magnesium is 1.5 times lighter than aluminum and 4.6 times lighter than steel. It is said that

magnesium could become the material of choice in lightweight constructions throughout the 21st

Century. However, the considerable advantages offered by its low weight have so far not been

capitalized on due to its poor workability and brittleness. These properties serve only to increase

production costs on the one hand, while on the other hand making it unsuitable for safety-relevant

construction parts.

A breakthrough has been achieved at ARC’s light metal competence centre in Ranshofen involving

nano-structured magnesium alloys which have the same level of workability as aluminum alloys.

Successfully adapting micro alloys is a technique that is well-known in the area of steel production,

but its use together with magnesium is an absolute first.

An initial application of the new magnesium alloys is their use in bio-absorbable implants which

can be easily formed and dissolve evenly within the human body. Moreover, they are highly

biocompatible. However, it’s not just alloying that is important to the use of magnesium in industry.

Other process parameters such as temperature control and extrusion speed, as well as the

geometry of the slugs and matrices are just as important. Further potential applications for the

new magnesium alloys are within the transport industry and the energy industry as crash-resistant

materials and as a hydrogen storage medium. The prerequisite for the development of these new

technologies l lies in the new magnesium properties, making the patented alloying technique an

important step in achieving this.

Contact

Franz Riemelmoser

Managing Director ARC Light Metal Center of Competence Ranshofen (LKR)

ARC Leichtmetallkompetenzzentrum Ranshofen GmbH

Lamprechtshausener Strasse, 5282 Ranshofen, Austria

T +43 7722 83333-7037, franz.riemelmoser@arcs.ac.at

www.lkr.at


The patented alloying technique for magnesium is ideal for lightweight construction and medical technology

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Highlights

Health Technologies

34

Annual Report 2007

Concept for diagnosing cancer of the thyroid

Pre-operative decision-making guidance

for doctors

Between ten and twenty percent of all Austrians will at some point during their lives discover a

lump in their thyroid gland. Usually, this turns out to be a benign tumor that doesn’t even need to

receive medical attention. However, it could also be a malignant tumor that can lead to death within

a matter of months. Despite considerable progress in the field of diagnostics, it is still difficult to

conduct a preoperative investigation of thyroid tumors. The centerpiece of modern day diagnostics

is so-called fine-needle aspiration, in which cells are extracted from the thyroid gland and cytologically

examined.

In general, the specifity and sensitive of this method is very good, but it continues to yield an

“unspecific” or “suspect” diagnosis in around 30 % of the cases - these patients must be operated

on. It is retrospectively determined that 80 % of the suspect tumors were benign.

In order for operations to be avoided in future, the ARC unit Life Sciences has been cooperating

with the Medical University of Vienna to develop a completely new and much more accurate

method of diagnosis. This is based on molecular biological methods with which the entire genome

can be combed for tumor markers. From a single piece of tissue, each of a human’s 40,000 genes

can be checked in parallel on a microarray.

The fundamentals of ARC’s concept for diagnosing cancer are the analysis of every gene in the

human body that is responsible for thyroid carcinoma. During the diagnosis of tyhroid cancer, all the

available data pertaining to thyroid carcinoma were analyzed by means of a purely mathematical

procedure. On the basis of this meta-analysis it was possible to identify the diagnostic marker

genes in silico i.e. on the computer. In this way it could be shown amongst others that papillary

thyroid cancer can be differentiated from a benign tumor due to the activity of a single gene.

An experimental laboratory test was then carried out in order to check the correlation between the

mathematically identified marker genes and actual clinical results. The result was that papillary

thyroid carcinoma could be correctly identified in every case using a single gene.

This new diagnostic concept will now be used for other forms of thyroid carcinoma. This will mean

that, in the future, many patients will be spared the rigors of an operation.

Contact

Georg Haberhauer

Head of Strategic Division Health Technologies

Austrian Research Centers GmbH – ARC

Health Technologies

Research Center: 2444 Seibersdorf, Austria

T +43 5 0550-3600, georg.haberhauer@arcs.ac.at

www.arcs.ac.at


From a single piece of tissue each of a human’s 40,000 genes can be checked against each other on a microarray

35

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Highlights

Nano-System Technologies

Health Technologies

36

Annual Report 2007

Identifying biomolecules effectively

with nanosensors

Application in the field of point-of-care

diagnostics

In the field of medical diagnostics it is important to obtain results as soon as possible without having

to engage in complex sample preparations and lengthy analyses; because it is only then that the

appropriate therapy can be started. One promising development involves so-called “lab-on-a-chip”

systems using magnetism. The term refers to systems that automate many steps in the diagnostic

process that previously had to be done manually, therefore considerably speeding up the process.

In doing so, the target molecules are attached to magnetic nanoparticles called markers. These

markers can be specifically moved on the chip, greatly facilitating sample preparation and reducing

the time needed for analysis. Moreover, special sensors make it possible to identify exactly the

target molecules by means of the marker’s magnetic stray field.

Magnetic biochips are well suited for use in the field of point-of-care (POC) diagnostics seeing as

all the components can be easily integrated into a desktop unit. A sepsis test demonstrates just

how much potential a magnetic biochip has by focusing on detecting transmitter substances within

the immune system directly from the patient’s blood. Sample preparations, magnetic manipulations

and the magneto-resistive detection of biomolecules are integrated into a single chip. The diagnosis

begins in the sample chamber where the target molecules are bound to specifically functionalized

markers. The process can be accelerated by agitating the marker in the sample using magnetic

fields.

Following this, the markers are magnetically attracted to various functionalized sensor surfaces to

which they attach by means of the relevant target molecules, thus making detection possible.

The system has been designed to allow both attracting and repelling magnetic forces to be applied

to the markers, as far as the sensors are concerned. This helps to prevent unspecific attachment

of the markers to the sensor surfaces.

All in all, the ARC magnetic biochip prototype is designed to detect up to four different kinds of

target molecules simultaneously. When compared to conventional methods such as a fluorescence

analysis, magnetic biochips lead to a significant improvement in sensitivity, as well as drastically

reducing the time needed for analysis.

A major challenge with this work lies in the necessary multidisciplinary approach. Divisions from

physics and electrical engineering, as well as from the biochemistry field of molecular diagnostics,

all have to work together, making the multi-disciplinary approach to the area of nano-system

technology an ideal starting point.


Magnetic nanoparticles in microfluidics

Contact

Hubert Brückl

Head of Division Nano-System Technologies

Austrian Research Centers GmbH – ARC

Nano-Systemtechnologien

Tech Gate Vienna: Donau-City-Str. 1, 1220 Vienna, Austria

T +43 5 0550-4301, hubert.brueckl@arcs.ac.at

www.arcs.ac.at

Georg Haberhauer

Head of Division Health Technologies

Austrian Research Centers GmbH – ARC

Health Technologies

Research Center: 2444 Seibersdorf, Austria

T +43 5 0550-3600, georg.haberhauer@arcs.ac.at

www.arcs.ac.at

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Highlights

Information Technologies

38

Annual Report 2007

Epilepsy early warning system for hospitals

Recognizing epileptic brain activity before

the appearance of clinical symptoms

Almost 1 % of the world’s population suffers from epilepsy, a sudden disturbance of the brain

caused by uncontrolled discharges of neuron groups. In the worst case, this can be characterized

by severe seizures and a loss of consciousness. Around two thirds of patients can be medically

treated, although this is often accompanied by severe side effects. If epilepsy patients could be

warned in advance of an imminent seizure (or if it could at least be recognized early), they would

be able to take preventative action. This would dramatically improve their quality of life and reduce

their fear of the next seizure.

In order to be able to better monitor the disorder and to be able to administer better treatment, the

Smart Systems division of Austrian Research Centers has developed a procedure which identifies

electrical pathological activity in the brain before clinical symptoms develop. The epilepsy early

warning system centers around the fact that the electroencephalogram (EEG) immediately picks up

signals at the start of a seizure that do not yet have any effect on the body. The clinical symptoms

appear a few seconds later.

The early warning system makes use of a range of mathematical algorithms which measure the

different characteristics of brain signals. It differs from other approaches in that, on the one hand,

the individual algorithms are linked to a complex interpretation system, and, on the other, that

the system is constantly modified and adapted to the patient’s EEG which can change greatly

throughout the day. This system, developed by the Austrian Research Centers, makes it possible

to recognize an epileptic seizure within a matter of seconds and with a high degree of reliability.

The aim of the work is now to develop machines that will help patients to recognize the early signs

of a seizure or to at least warn others. This technology can also be used in epilepsy diagnostics.

Until now, a large number of EEG signals had to be recorded and manually examined to check

for seizures – a very expensive and time-consuming procedure. By being able to preselect data

using a procedure to automatically identify seizures, the time needed can be drastically reduced and

the work of hospital personnel can be made much easier. The first prototype of the new epilepsy

early warning system will soon be installed and tested in the Epilepsy Monitoring Unit of Vienna’s

General Hospital (AKH).

Contact

Heinrich Garn

Head of Strategic Division Information Technologies

Austrian Research Centers GmbH – ARC

Information Technologies

Tech Gate Vienna: Donau-City-Str. 1, 1220 Vienna, Austria

T +43 5 0550-4100, heinrich.garn@arcs.ac.at

www.arcs.ac.at


The first prototype of the new epilepsy early warning system will soon be installed and tested in the Epilepsy Monitoring Unit of

Vienna’s General Hospital (AKH)

Image: iStockPhoto

39

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Highlights

Information Technologies

40

Annual Report 2007

Networking European environmental

information systems

Support for natural disaster and crisis

management

Environmental disasters such as air pollution and flooding are indifferent to international and

provincial borders, making it necessary to network environmental surveillance systems worldwide

in order to reduce the impact of disasters and to save lives. For this network to be successful, data

from organizations in several countries has to be made available for analysis and interpretation.

The EU project SANY (Sensors Anywhere) brings together 16 countries under the leadership

of Austrian Research Centers to work on a joint information platform to exchange information freely

from a wide variety of sources. SANY’s predefined operational areas include monitoring air quality,

analyzing polluted water (seas, coasts, lakes, rivers), as well as monitoring buildings close to tunnels.

As part of the development of the European-wide information platform, particular attention is being

paid to access to sensors, how they are managed, controlled, configured and networked. In order

to ensure that the data is accurate and complete, considerable emphasis is placed on guaranteeing

controlled and stable access to sensor data.

It is of vital importance for the local users to be able to understand and interpret the information

without any problems. For this purpose, several components are being developed that will create a

clear overview of a potentially threatening situation within a short space of time.

With the technologies and tools that are being developed in the SANY EU project, existing data

can also be consolidated swiftly and safely. This serves to support cooperation between the

organizations concerned and helps the search for European-wide answers to complex environmental

questions.

Contact

Heinrich Garn

Head of Strategic Division Information Technologies

Austrian Research Centers GmbH – ARC

Information Technologies

Tech Gate Vienna: Donau-City-Str. 1, 1220 Vienna, Austria

T +43 5 0550-4100, heinrich.garn@arcs.ac.at

www.arcs.ac.at


Existing data on the environment can be consolidated swiftly and safely

41

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Highlights

Mobility & Energy

42

Annual Report 2007

Sustainable building concept cuts energy

use by 80 %

Scientific support when planning construction

projects

The construction industry is the largest consumer of energy in the EU with a share of 40 %. The

new office block ENERGYbase in Vienna’s Floridsdorf district demonstrates how resources can

actually be conserved. The concept for this sustainable office block was created by arsenal

research and “pos architects” for the Vienna Business Agency (WWFF), setting new standards

in the areas of energy efficiency, using renewable energy sources and interior comfort.

An ingenious building and energy concept, passive house standards and innovative systems for

indoor environments and light engineering reduces the energy consumption of ENERGYbase by

80 % compared to conventional office blocks, saving 180 tonnes of carbon dioxide per year.

The south facade is of particular interest from an architectural and energy standpoint. It is ideal

for harnessing solar energy due to it being specially “folded” and possessing an integrated photovoltaic

module. The building is heated and cooled thanks to a mixture of innovative, energy-efficient

technologies: a thermoactive ceiling, a groundwater heat pump and solar cooling, a cooling process

driven flat plate collectors. Moreover, 500 galingale plants work as ecological humidifiers and

pollution filters to ensure a balanced, healthy and pleasant indoor environment.

The building is also subject to comprehensive scientific monitoring which serves to optimize the

regulation methods and, above all, should help to garner important information with which to create

the next generation of sustainable office buildings at a national and international level.

Contact

Anton Plimon

Managing director of arsenal research

Österreichisches Forschungs- und Prüfzentrum Arsenal GmbH

Giefinggasse 2, 1210 Vienna, Austria

T +43 5 0550-6310, gf@arsenal.ac.at

www.arsenal.ac.at


The sustainable building concept reduces energy consumption by 80 % and saves 180 tonnes of

carbon dioxide per year

43

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07

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Highlights

Mobility & Energy

44

Annual Report 2007

The latest technological developments in

predicting and preventing accidents

Innovative applications for traffic planners

Around 40,000 accidents involving personal injury occur each year on Austria’s roads. arsenal

research has developed an innovative software tool called MARVin that can help to reduce this

figure considerably.

MARVin is a model for assessing the risks of road infrastructure which, for the first time, makes

it possible to objectively measure the influence of road surface conditions and road geometry on

accidents. The computer-based risk assessment is derived from route mapping data and status

data that are constantly recorded by RoadSTAR, a mobile high-tech appliance, for Austria’s entire

network of major roads. MARVin makes it possible to link this detailed information on traction,

ruts, road surface consistency, degree of longitudinal and transversal plane, and curve radii with

data collected from accident statistics. Complex statistical and mathematical analyses have made

it possible to recognize fundamental similarities between road parameters and accident risk, and

to measure this objectively.

MARVin clears the way for virtual accident hotspots to be identified by using the parameters

of a known dangerous stretch of road to search the entire road network for similar patterns. A

computer model can then be used to assess planned improvements and check their effectiveness.

The possibility of reducing the risk of potentially dangerous stretches of road makes targeted

redevelopment and maintenance work realistic, as well as making it possible to assess the risk

of future road construction projects.

Contact

Anton Plimon

Managing director of arsenal research

Österreichisches Forschungs- und Prüfzentrum Arsenal GmbH

Giefinggasse 2, 1210 Vienna, Austria

T +43 5 0550-6310, gf@arsenal.ac.at

www.arsenal.ac.at


Austria’s accident hotspots can be detected quickly and reliable using MARVin

45

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Highlights

systems research

46

Annual Report 2007

Detailed climate forecasts for Austria

The effects of climate change on individual

regions

Until recently, it was only possible to calculate the effects of climate change on Austria from roughly

tabularized global climate data, or from foreign data sources. This was simply not exact enough for

a small, mountainous country such as Austria. Under the auspices of the Austrian Research Centers’

systems research division, key players in the Austrian climate model research field developed in

the so-called reclip:more project a basic set of data. They are summarized in scenarios and provide

basic information on the effects of climate change in the Alps for the first time.

reclip:more is based on two internationally recognized climate models, MM5 and Aladin. These

were adapted to Austria’s particular circumstances, reducing the calculation grid to 10km.

The model’s calculations were based on data collected in the 1980s, and the model values were

compared with measured data on a daily basis to optimize this process. After completing this trial

run, current data were fed into reclip:more in order to derive scenarios for the period between 2040

and 2050.

Significant regional variations in climate development

Early results show that rising temperatures in Austria will vary considerably from region to region.

Between 2041 and 2050, the average annual temperature will increase by around 2.5°C, and by as

much as 3°C along the main alpine ridge. These changes will also manifest themselves differently

throughout the seasons although it is believed that the highest temperature increase will occur in

the autumn. The number of hot days in Austria will increase fourfold, and the amount of precipitation

will reduce, affecting eastern regions in particular. Moreover, the number of days with a frost will fall

by half in valley areas.

Austrian researchers stress that climate change should not be depicted as some form of nightmare

scenario. The important thing is that people start trying to find solutions now that take regional

differences into consideration. This refers particularly to agriculture and forestry, as well as to tourism

and local politics.

Contact

Josef Fröhlich

Head of Division systems research

Austrian Research Centers GmbH – ARC

systems research

Tech Gate Vienna: Donau-City-Str. 1, 1220 Vienna, Austria

T +43 5 0550-4501, josef.froehlich@arcs.ac.at

www.arcs.ac.at


The rise in temperature and the decrease in precipitation are most marked in autumn. The images above highlight the

changes in mean values between the years 1981 – 1990 and 2041 – 2050

47

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Annual Report 2007

8

Management

Report

Annual Report

2007


Management Report Page

Operational business in 2007 50

Earnings position 50

Cost structure 52

Annual result 52

New projects 53

Current projects 53

Pipeline projects 53

Capital investment 54

Liquidity and financial position 54

Human resources 54

49

Annual Report 2007


08

Annual Report 2007

Management Report

Operational business in 2007

50

Annual Report 2007

Operational business in 2007

Earnings position

The previous growth trend continued unabated in 2007. The increase in the value of research

projects of approximately 14 % is indicative of the demand for our research and development services

from the market.

Grant-based revenues increased by around 8 %, meaning that it was also possible to improve the

market situation in this area.

The remaining own work capitalized and other operating income include TEUR 36 (PY: TEUR 24)

for own work capitalized and other operating income in the amount of EUR 5.4 m (PY: EUR 3.5 m)

in addition to the balance of accruals for investment grants in the amount of EUR 4.9 m. In 2007,

the recognition of investment grants is reported on the balance sheet for the first time under

position “B Investment grants” below the position “Shareholders’ equity”, while the reversal of

accruals has been reported in the position “Other operating income” in the profit and loss account.

In 2006, this position was reported as a reversal of reserves below the position “Result on ordinary

activities.” The marked rise in other operating revenues without the reversal of accruals for

investment grants is explained by the retroactive billing of site-related costs for the years 2004 –

2006 in the amount of EUR 0.7 m, the reversal of provisions in the amount of EUR 1.9 m, and the

increase in expenses billed to third parties.

The revenues from shareholders relate to research grants and, in addition to revenues from

contract research activities and co-financed research, these represent a significant proportion of

the operating result and the main source of financing for the independent research activities of the

Group. Amounting to EUR 40.1 m (PY: EUR 40.98 m), these represented approximately 32 %

(PY: 35 %) of total operating revenues of EUR 126.3 m (PY: EUR 118.2 m). In addition to meeting

increased demands for co-financing associated with the research programs, these funds also

enabled the areas of excellence and the technological competence of the Group to be consolidated

further.


TEUR 2007 2006 % change

R&D revenues 45,567 40,249 13.2 %

Changes in inventory 2,069 1,645 25.8 %

R&D revenues incl. changes in inventory 47,636 41,894 13.7 %

R&D grants 12,004 13,871 –13.5 %

Changes in inventory 6,171 2,990 106.4 %

R&D grants incl. changes in inventory 18,175 16,861 7.8 %

1. Total revenues from research contracts 65,811 58,755 12.0 %

2. Nationalstiftung receivables 4,890 9,990 –51.1 %

BMVIT – independent research 38.989 39,800 –2.0 %

Syndicate agreement revenues 1,136 1,180 –3.7 %

3. Total shareholder revenues (research) 40,126 40,980 –2.1 %

BMVIT nuclear research funding 4,454 4,877 –8.7 %

BMLFUW nuclear research funding 0 62 –100.0 %

4. Total nuclear research funding 4,454 4,939 –9.8 %

5. Own work capitalized 36 24 50.0 %

6. Intra-group services – – –

7. Other operating income 11,013 3,545 192.4 %

Total operating income 126,329 118,233 7.0 %

08

Annual Report 2007

Management Report

Operational business in 2007

51

Annual Report 2007


08

Annual Report 2007

Management Report

Operational business in 2007

52

Annual Report 2007

Cost structure

Personnel expenses fell during the period under review when compared to the previous reporting

period by around 8 % to EUR 62.8 m (PY: EUR 68.6 m). The drop in the actual amount for personnel

expenses is attributable both to the disposal of Group (sub-)divisions and other personnel-related

measures. The increase in other operating expenses from EUR 21.1 m in 2006 to EUR 26.8 m in

2007 is accounted for by the setting up of provisions for the remediation of the Seibersdorf site

(approx. EUR 3.1 m) and higher other operating expense positions. These increases culminated in

a negative result for the period (excluding revenue reserves) of approximately EUR -1.2 m, or EUR

-1.8 m including revenue reserves (from previous periods).

TEUR 2007 2006 % change

Cost of materials –7,747 –6,733 15.1 %

Third-party services –23,151 –24,058 –4.5 %

1. Cost of materials and third-party services –30,898 –30,791 –0.3 %

2. Personnel expenses –62,785 –68,565 –8.4 %

3. Depreciation and amortization –7,507 –7,338 2.3 %

4. Other operating expenses –26,742 –21,129 27.3 %

Total operating expenses –127,932 –127,823 0.1 %

Annual result

The consolidated result for the period amounted to a loss of EUR 1.81 m (PY: losses of EUR 4.01 m)

and can be broken down as follows:

TEUR 2007 2006

Non-consolidated result for the period –1,822 –6,074

Additions to revenues reserves –592 –241

Consolidation effects:

Consolidation of losses from mergers 0 3,170

Minority interests 6 13

Reversal of extraordinary items (arsenal)

Financing of technology offensive from capital

0 0

reserves 0 –1,119

Total consolidation effects 6 2,065

Consolidated result for the period –1,816 –4,010


Value of new projects, existing

projects and work in progress

New projects

The value of new contract research (KU)

projects rose marginally compared to the prior

year. This is contrasted by a decline in the value

of subsidized research (KF) and the research

work by the competence centers (KK) partly

due to the phasing out of the competence

centers, but also as a result of the spinning

off of sub-divisions to the company Profactor.

The approved grants for ECHEM and the TPM

foundation project have been postponed until

2008. The total value of new projects in the

2007 reporting period amounted to EUR 40.9 m

(PY: EUR 54.4 m).

Existing projects

The total value of existing contract research

projects increased by almost 6 %. The value

of existing subsidized research (KF) and

competence center (KK) projects fell due to the

phasing out of the competence centers and

the spinning off of activities to Profactor. In

total, the value of existing projects in the 2007

reporting period amounted to EUR 74.3 m

(PY: EUR 77.8 m).

Work in progress

(uncompleted projects)

The value of contract research in progress

is around 19 % higher than a year earlier. In

comparison to 2006, the value of the subsidized

projects and the projects of the competence

centers led, for the reasons set out above, to

a temporary yet marked reduction in the value

of work in progress equivalent to around 32 %.

In total, the value of the work in progress in the

reporting period 2007 amounted to EUR 38.7 m

(PY: EUR 47.3 m).

■ Contract research (KU) ■ Subsidized research (KF) ■ Competence centers (KK)

54.39

1 – 12/2006

■ Contract research (KU) ■ Subsidized research (KF) ■ Competence centers (KK)

77.78

1 – 12/2006

27.95

45.01

4.82

74.29

1 – 12/2007

29.54

44.03

0.72

All values in million EUR

■ Contract research (KU) ■ Subsidized research (KF) ■ Competence centers (KK)

47.36

1 – 12/2006

23.39

20.00

11.00

18.19

23.88

5.29

40.91

1 – 12/2007

38.68

1 – 12/2007

23.54

11.03

6.34

21.70

16.26

0.72

All values in million EUR

All values in million EUR

53

Annual Report 2007


08

Annual Report 2007

Management Report

Operational business in 2007

54

Annual Report 2007

Capital investments

The total volume of investments in intangible and tangible assets during the course of the

2007 financial year amounted to EUR 7.83 m or EUR 3.48 m lower than in the previous period

(EUR 11.31 m).

A total of EUR 0.80 m were invested in intangible assets, foremostly software licenses

(PY: EUR 0.40 m). The additions to the position “Land, titles to land and buildings including

buildings on non-owned land” amounted to EUR 1.69 m (PY: EUR 3.94 m). A total of EUR 3.67 m

(PY: EUR 5.55 m) were invested in technical equipment. A further EUR 1.09 m (PY: EUR 0.88 m)

covered the costs of fixtures, furniture and office equipment, while prepayments and plant under

construction in an amount of EUR 0.59 m (PY: EUR 0.54 m) were capitalized.

Additions to financial assets totaled EUR 4.01 m in 2007 and resulted from the re-investment of

mature obligations in the amount of EUR 2.00 m, with the remaining EUR 2.01m accounted for by

additions to and reversals of the same.

Liquidity and financial position

The liquidity of the ARC Group rose significantly when compared with the previous reporting period.

The value of current assets stood at EUR 20.62 m (PY: EUR 12.49 m) on 31.12.2007. Securities

accounts also existed with a book value of EUR 9.82 m (PY: 9.91 m). No liabilities existed vis-à-vis

banks, with interest only being payable on subsidized FFG loans in the amount of EUR 0.63 m

(PY: EUR 0.77 m).

With regard to the liquidity recognized on 31.12.2007 in the amount of EUR 20.62 m, it should be

noted that this includes EUR 3.94 m in EU coordination funds. These funds are under trusteeship

and cannot be drawn upon to make payments on behalf of the ARC Group. The financial flexibility

available to the Group is also significantly restricted by the positions on the liabilities side of the

balance sheet.

The inflow of financing amounted to EUR 8.13 m during the 2007 financial year following an outflow

of funds in the amount of EUR 8.49 m in the previous period. This flow of funds was principally

attributable to the reduction of accounts receivable and an increase in accounts payable in addition

to a rise in the value of accruals due to the receipt of prepayments.

At 31.12.2007, the value of shareholders equity, not taking investment grants into consideration,

amounted to EUR 2.66 m. Following the recognition of investment grants in the amount of

EUR 37.1 m, total available funds stood at EUR 39.72 m (PY: EUR 40.6 m) at year-end.

Human resources

The ARC Group employed a total of 916.2 employees (full-time equivalents) at a total of nine

sites on 31.12.2007. This figures does not include personnel covered by the redundancy plan for

employees with civil servant status (arsenal research). This headcount represents a slight reduction

compared to the previous year-end (933.8 FTEs).


(Employees excluding trainees, post-qualification trainees,

those on national service, parental and other forms of leave,

and HF/EU grant holders) 31. 12. 2007 31. 12. 2006

Austrian Research Centers GmbH – ARC 624.5 618.8

Nuclear Engineering Seibersdorf GmbH 50.8 43.8

ARC business services GmbH 0 0

ARC Seibersdorf research GmbH 0 0

ARC systems research GmbH 0 0

Österreichisches Forschungs- und Prüfzentrum Arsenal GmbH 173.2 182.7

Advanced Computer Vision GmbH – ACV

ECHEM Kompetenzzentrum für angewandte Elektrochemie

6.9 22.4

GmbH 29.1 27.3

ARC Leichtmetallkompetenzzentrum Ranshofen GmbH 31.7 38.8

Innovative Science Solutions Beteiligungsgesellschaft m. b. H. 0 0

Total ARC Group (FTE) 916.2 933.8

Individuals 976 992

Annual average number of FTEs – ARC Group 909.6 954.2

08

Annual Report 2007

Management Report

Operational business in 2007

55

Annual Report 2007


56

Annual Report 2007

9

Financial

Statements

Annual Report

2007


Financial Statements Page

Consolidated balance sheet 58

Consolidated profit and loss account 60

57

Annual Report 2007


Consolidated balance sheet

As at 31. 12. 2007

As at As at

31. 12. 2007 31. 12. 2006

Assets

A. FIXED ASSETS

I. Intangible assets

EUR EUR

EUR TEUR

1. Licenses and similar rights

II. Tangible assets

1. Land, titles to land and buildings,

966,251.98 643

including buildings on non-owned land 19,329,379.29 18,823

2. Property, plant and equipment 20,500,683.06 21,671

3. Other equipment, furniture and fixtures 3,485,154.32 3,542

4. Prepayments and plant under construction 684,955.20 556

III. Financial assets

44,000,135.87 44,592

1. Shares in affiliated companies 0.00 0

2. Equity holdings 40,525.13 40

3. Long-term financial investments 9,821,212.02 9,913

9,861,737.15 9,953

B. CURRENT ASSETS

I. Inventories

54,828,125.00 55,188

1. Raw materials and supplies 13,550.24 9

2. Finished goods 335,736.05 526

3. Spare parts

4. Uninvoiced services

55,808.82 0

Uninvoiced customer projects

7,952,996.98

less prepayments received

–3,753,136.02 0

Subsidized customer projects

26,276,947.44

less prepayments received

–19,241,216.65 11,235,591.75 7,285

II. Receivables and other assets

11,640,686.86 7,820

1. Accounts receivable 14,564,282.61 17,166

2. Receivables due from affiliated companies 38,393.15 0

3. Other receivables and assets 4,468,864.53 5,087

19,071,540.29 22,253

III. Cash and cash balances 20,615,228.07 12,494

51,327,455.22 42,567

C. PREPAYMENTS AND ACCRUED INCOME 2,736,682.86 2,804

Total assets 108,892,264.08 100,559

58

Annual Report 2007


Consolidated balance sheet

As at 31. 12. 2007

As at As at

31. 12. 2007 31. 12. 2006

Shareholders’ equity and liabilities

A. SHAREHOLDERS‘ EQUITY

EUR EUR

EUR TEUR

I. Share capital

II. Capital reserves

1. Restricted (in accordance with § 13 of

470,920.12 471

the Articles of Incorporation) 0 27,786

2. Non-restricted 7,952,905.97 9,549

7,952,905.97 37,335

III. Revenue reserves 2,057,557.61 1,469

IV. Reserves from investment grants 0 7,355

V. Accumulated result

of which losses carried forward EUR –5,037,284.56

(2006: EUR –2,027,000)

–7,853,329.92 –6,037

VI. Minority interests 28,496.49 34

B. INVESTMENT GRANTS

I. Investment grants from shareholders

2,656,550.27 40,627

(in accordance with § 13 of the Articles of Incorporation) 28,192,221.16 0

II. Investment grants from public bodies 1,711,068.12 0

III. Other investment grants 7,164,932.73 0

C. PROVISIONS

37,068,222.01 0

1. Provisions for severance payments 7,633,569.56 8,402

2. Provisions for pensions 1,873,329.00 1,930

3. Provisions for taxes 270,639.49 438

4. Other provisions 22,794,749.14 19,455

D. LIABILITIES

32,572,287.19 30,225

1. Prepayments received - trade 8,307,365.53 726

2. Prepayments received - Nationalstiftung 770,757.02 3,384

3. Accounts payable - trade 8,703,742.71 8,914

4. Accounts payable – affiliated companies 48,611.15 35

5. Other liabilities

of which for taxes EUR 931,728.08

(2006: EUR 462,000)

of which for social security contributions

EUR 1,325,912.29 (2006: EUR 1,354,000)

11,475,855.68 11,126

29,306,332.09 24,185

E. ACCRUED EXPENSES AND DEFERRED INCOME 7,288,872.52 5,522

Total shareholders’ equity and liabilities 108,892,264.08 100,559

CONTINGENT LIABILITIES 695,129.96 442

59

Annual Report 2007


Consolidated profit and loss account

1. 1. 2007 to 31. 12. 2007

60

Annual Report 2007

2007

EUR EUR

2006

TEUR TEUR

1. Revenues 45,567,359.64 40,249

2. Subsidies, research grants

and Nuclear Engineering financing 61,472,883.13 69,779

a) Subsidies 12,003,961.95 13,871

b) Research grants 45,015,388.57 50,969

c) Nuclear Engineering financing 4,453,532.61 4,939

3. Change in inventories of finished goods

and services not yet invoiced 8,239,873.41 4,635

4. Other own work capitalized 36,007.49 24

5. Other operating income

a) Income from the disposal of assets

excluding financial assets 11,600.54 0

b) Income from the reversal of provisions 1,786,135.81 658

c) Other income 9,214,935.44 11,012,671.79 2,887 3,545

6. Cost of materials and third-party

manufacturing costs

a) Cost of materials 7,747,087.67 6,733

b) Third party manufacturing costs 23,151,191.43 –30,898,279.10 24,058 –30,791

7. Personnel expenses

a) Wages 155,040.76 238

b) Salaries 47,659,684.83 51,726

c) Severance payments and contributions to

occupational pension funds 1,090,851.78 2,363

d) Pension contributions 1,285,322.23 1,402

e) Legally required social security expenses, salaryrelated

expenses and mandatory contributions 11,935,212.79 12,306

f) Other social security expenses 658,710.05 –62,784,822.44 529 –68,564

8. Amortization of intangible assets and depreciation

of tangible assets –7,506,863.49 –7,338

9. Other operating expenses

a) Expenses from the disposal of assets 11,461.00 0

b) Taxes (excluding income taxes) 10,191.37 137

c) Other expenses 26,719,956.51 –26,741,608.88 20,992 –21,129

10. Sub-total of Positions 1 to 9

(Earnings before interest and tax) –1,602,778.45 –9,590


Consolidated profit and loss account

1. 1. 2007 to 31. 12. 2007

2007

EUR EUR

2006

TEUR TEUR

11. Income from other financial assets,

of which from affiliated companies EUR 0.00

(2006: EUR 0.00)

12. Other interest receipts and similar income,

of which from affiliated companies EUR 0.00

424,533.06 416

(2006: EUR 0.00)

13. Financial investment expenses

455,337.68 281

a) Revaluations of financial assets 95,213.88 81

b) Other expenses 14,138.00 –109,351.88 180 –261

14. Interest payments and similar expenses,

of which relating to affiliated companies EUR 0.00

(2006: EUR 0.00) –397,874.36 –112

15. Sub-total of Positions 11 to 14

(Financial result)

372,644.50 324

16. Result on ordinary activities –1,230,133.95 –9,266

17. Income tax expenses –2,713.81 –14

18. Net loss for the year –1,232,847.76 –9,280

19. Minority interests 5,682.40 13

20. Reversal of capital reserves 0.00 4,645

21. Reversal of reserves for investment grants 0.00 1,325

22. Reversal of revenue reserves 3,000.00 1,194

23. Allocations to revenue reserves –591,880.00 –241

24. Allocations to reserves for investment grants 0.00 –1,667

25. Profit / loss for the year –1,816,045.36 –4,010

26. Losses carried forward –6,037,284.56 –2,027

27. Consolidated profit / loss –7,853,329.92 –6,037

61

Annual Report 2007


62

Annual Report 2007

0

Imprint and

Contact Details

Annual Report

2007


Imprint

Publisher

Austrian Research Centers GmbH – ARC

Corporate Communications

Research Center: 2444 Seibersdorf, Austria

office@arcs.ac.at, www.arcs.ac.at

Concept and contents

Austrian Research Centers GmbH – ARC

Corporate Communications

Michael H. Hlava

Julia Petschinka

Research Center: 2444 Seibersdorf, 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

Translation

Anglo-Austrian Communications

Rosenbergen 41, 2123 Unterolberndorf, Austria

www.aac.co.at

Printing

gugler GmbH

Auf der Schön 2, 3390 Melk a. d. Donau, Austria

office@gugler.at, www.gugler.at

Contact Details

For further details please contact:

Austrian Research Centers GmbH – ARC

Corporate Communications

Michael H. Hlava

Research Center: 2444 Seibersdorf, Austria

T +43 5 0550-2046, F +43 5 0550-2010

michael.hlava@arcs.ac.at, www.arcs.ac.at

Note

Great care has been taken during the pre paration

of this annual report to present the data accurately.

Nonetheless, the possibilities of rounding,

typesetting and printing errors cannot be entirely

excluded. The use of software in the preparation

of rounded figures and percentages may have

resulted in minor inaccuracies.

This document is an English translation of a

German original. It is provided for information

purposes only. The original German version of

the annual report is binding and authoritative in

all cases.

Publication date: August 2008.

10

Annual Report 2007

Imprint and Contact Details

63

Annual Report 2007


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