OFFERING MEMORANDUM Global Offering of up to ... - Nordex

(4.3) Currency translation
Non-DM transactions were translated at their historical rates into deutsche mark (DM). Currency
translation gains and losses were recognized in net income. Translation at the current closing rate
under the terms if IAS 21 was waived for lack of materiality.
(5) Comments on balance sheet lines
(5.1) Fixed assets
The following intangible assets were capitalized within fixed assets:
9-30-2000 E21,446,955.55
9-30-1999 E12,822,045.20
9-30-1998 E4,479,005.86
9-30-2000 9-30-1999 9-30-1998
E E E
Concessions, franchises, industrial-property and similar rights and
assets as well as licenses thereto 4,554,282.41 2,182,357.28 883,186.32
Prepayments on intangibles 1,270,960.32 579,284.00 177,976.41
5,825,242.73 2,761,641.28 1,061,162.73
Intangible assets mainly include acquired licenses and software, as well as internally created
intangibles (development costs) according to IAS 38.
Capitalized property, plant & equipment breaks down as follows:
9-30-2000 9-30-1999 9-30-1998
E E E
Land and buildings 3,058,658.79 818,956.47 725,616.39
Production plant and machinery 3,518,700.77 3,921,845.74 1,545,267.23
Other plant, factory and office equipment 3,398,352.04 2,431,732.42 912,003.98
Prepayments on PP&E, and construction in progress 4,662,885.52 2,114,063.80 234,955.53
14,638,597.12 9,286,598.43 3,417,843.13
In fiscal 1999/2000 land and buildings were written down by E30,297.37 to the recoverable amount
according to IAS 36.
In fiscal 1999/2000, government grants of E1,787,947.69 (up from E306,775.13) were received for
capital expenditures for property, plant & equipment and deducted from cost as required by IAS 20.
The leases for property, plant & equipment chiefly include noncapitalizable operating leases under the
terms of IAS 17. In consolidation for the (combined) pro forma consolidated financial statements, one
mobile crane within production plant and machinery was capitalized at E1,260,334.49 in fiscal 1998/
99. From the group’s viewpoint, this addition constitutes a lease subject to capitalization according to
IAS 17.8. The crane is depreciated over eight years. The lease expenses (rents) were eliminated during
consolidation in fiscal 1999/2000 at E404,876.51 and in fiscal 1998/99 at E134,958.78.
The financial assets of E983,115.70 as of 9-30-2000 (9-30-1999: E773,805.49; 9-30-1998: E0.00)
reflect the subsidiaries not included in the pro forma consolidation group, as well as the investee of
Nordex GmbH, cf. Note (2).
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