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

The sundry accruals, recognized in accordance with and required by IAS 37, provide for obligations that
exist at the legal or economical level, whose settlement will probably result in an outflow of resources
embodying economic benefits, and whose amount can be determined reliably. Discounting was waived
for lack of materiality. The contract-related accruals refer to flat-rate and specific warranties, follow-up
costs, and penalties, while the personnel-related accruals substantially provide for accrued vacation
and leave, profit shares and Workers Compensation Insurance premiums. The remaining sundry
accruals refer to liabilities accrued for invoices not yet received, for annual closing and audit costs, and
for litigation risks.
(5.8) Future payables under l/t construction contracts
9-30-2000 E0.00
9-30-1999 E590,097.30
9-30-1998 E0.00
This line reflects the losses from work in process accounted for according to the PoC method (IAS 11).
(5.9) Liabilities
9-30-2000 E114,585,916.31
9-30-1999 E57,635,162.21
9-30-1998 E18,561,330.15
9-30-2000 9-30-1999 9-30-1998
E E E
Prepayments received 0.00 47,167.44 0.00
Due to banks 180,262.11 58,562.98 0.00
Trade payables 44,121,740.03 34,097,308.88 8,424,436.86
Due to Babcock Borsig Group companies 63,152,135.44 19,117,281.81 9,355,579.51
Sundry liabilities 7,131,778.73 4,314,841.10 781,313.78
All substantial liabilities have a remaining term of one year or less.
114,585,916.31 57,635,162.21 18,561,330.15
In the years under review, the accounts due to Babcock Borsig Group companies were mostly owed to
Babcock Borsig AG, Oberhausen; Flender AG, Bocholt; Babcock Giesserei GmbH, Oberhausen; and Loher
AG, Ruhstorf. After netting the debit and credit balances, the intercompany clearing account for the
intragroup cash management funds provided by Babcock Borsig AG showed net debts of
E64,935,602.79 as of 9-30-2000 (E2,447,042.94 as of 9-30-1998). For details of intercompany
receivables, see Note (5.4).
Breakdown of sundry liabilities:
9-30-2000 9-30-1999 9-30-1998
E E E
Fiscal taxes 4,291,115.30 1,822,205.97 109,220.87
Social security taxes 295,527.83 255,920.98 97,633.16
Due to employees 541,408.78 918,981.65 267,930.98
Mobile crane capital lease 720,499.35 1,125,375.70 0.00
License agreement 777,163.66 0.00 0.00
EU grant 0.00 155,705.62 300,568.05
Remaining items 506,063.81 36,651.18 5,960.72
F-20
7,131,778.73 4,314,841.10 781,313.78