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

A detailed breakdown of income taxes is shown in the table below. Deferred taxes are shown nonnetted.
1999/00 1998/99 1997/98
E E E
Profit from ordinary operations 10,348,993.11 10,122,532.29 2,480,674.15
Non-income tax (expenses)/refund (29,736.46) 24,476.49 (7,255.31)
Earnings before taxes (EBT) 10,319,256.65 10,147,008.78 2,473,418.84
Current tax expenses of the period (2,376,192.57) (869,930.44) 0.00
Imputed tax (burden)/relief on net adjustment for group fee
apportionment and P&L transfer (2,139,535.64) (703,692.55) 263,560.23
Increase in deferred taxes for the period:
application of the PoC method (75,724.37) (1,520,261.47) (790,216.94)
accounting for public grants (15,941.57) 0.00 0.00
accounting for assets under capital leases (99,881.38) (22,691.65) 0.00
capitalization of development costs (232,438.40) (404,547.94) (140,686.56)
elimination of change in general allowance for doubtful accounts (25,330.93) (55,062.05) (1,452.58)
utilization of deferred tax assets from loss carryovers 0.00 (407,567.12) (268,525.39)
change in future payables from l/t construction contracts (212,304.75) 0.00 0.00
Decrease in deferred taxes for the period:
(661,621.40) (2,410,130.23) (1,200,881.47)
application of the PoC method 811,633.42 26,669.50 59,097.67
accounting for public grants 445,038.68 123,889.09 0.00
change in future receivables from l/t construction contracts 0.00 212,305.77 0.00
elimination of change in general allowance for doubtful accounts 24,958.71 0.00 0.00
elimination of intercompany profits 11,058.73 4,132.26 0.00
1,292,689.54 366,996.62 59,097.67
Income tax expense as per income statement (3,884,660.07) (3,616,756.60) (878,223.57)
Total actual burden from current, imputed and deferred taxes
in the fiscal year approx. 37% approx. 36% approx. 36%
(6.11) Other taxes
The other (i.e., non-income) taxes basically cover vehicle and real-estate taxes.
1999/00 E29,736.46
1998/99 (E24,476.49)
1997/99 E7,255.31
(7) Comments on the cash flow statement
The cash flow statement shows the changes in the flow of funds during the years under review. In
accordance with IAS 7, a distinction is made between the cash flows from (i.e. the net cash used in or
provided by) operating, investing and financing activities.
The cash & cash equivalents as shown in the cash flow statement comprises cash on hand and in bank.
Current liabilities due to banks were deducted. Included in cash & cash equivalents were, moreover,
debit and credit balances of the intercompany clearing account provided by Babcock Borsig AG for
intragroup cash management purposes since such funds represent cash equivalents under the terms of
IAS 7. Also included were interest receivables and payables.
The indirect approach was adopted to determine the cash flow from operating activities. The changes
in balance sheet lines ensue from the difference of each fiscal year’s closing balances versus the
previous year. The cash flow from investing activities breaks down into cash outflows for expenditures
for intangible assets, property, plant & equipment and financial assets, as well as into cash inflows
from fixed-asset disposal. The cash flow from financing activities was provided by cash inflows from
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