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

incurs significant expenses for these fairs every other year. Costs relating to the changing of the
Nordex Energy GmbH and Südwind Energy GmbH company logos also had a significant effect upon the
Group’s advertising expense in fiscal year 1998/1999.
Certain imputed personnel and administrative expenses for Nordex AG have been included in order to
improve the comparability of the IAS Pro Forma Consolidated Financial Statements. These expenses
increased by approximately 27% from EUR 1.88 million in fiscal year 1997/1998 to EUR 2.39 million in
fiscal year 1998/1999, and by approximately 12% to EUR 2.69 million in 1999/2000.
The increase in receivables written off or written down in fiscal year 1999/2000 primarily related to
three large individual items amounting to approximately EUR 0.24 million. The remainder was due to
smaller items in the servicing field.
Operating profit
The Group’s operating profit increased by approximately 355% from EUR 2.8 million in fiscal year 1997/
1998 to EUR 10.0 million in fiscal year 1998/1999, and by approximately 31% to EUR 13.2 million in
fiscal year 1999/2000. These increases resulted from the changes in the line items analyzed above and
from an improvement in the ratio of fixed costs to net sales.
Net financial result
The development of the net financial result shown in the following table was influenced significantly by
increasing interest expenses during the period under review, resulting from the Group’s increased use
of the Babcock Borsig Group’s clearing account in connection with the expansion of the Group’s
volume of business. This relates in particular to interest expenses incurred in fiscal year 1999/2000,
which increased by approximately 242% to EUR 3.38 million compared to EUR 0.99 million in fiscal
year 1998/1999. However, fiscal year 1998/1999 was marked by unusually high prepayments by
customers, and thus the Group’s reduced need for borrowing, due to the fact that the
Stromeinspeisungsgesetz (the German law relating to the supplying of electricity from renewable
energy sources into the public grid) which was about to be repealed.
Fiscal years
1999/2000 1998/1999 1997/1998
EUR thousand
Other interest and similar income 516 1,111 70
Other interest and similar expense -3,381 -989 -406
Net financial result -2,865 122 -336
Taxes
Taxes comprises current, imputed, deferred and other taxes.
There were no current taxes on income for fiscal year 1997/1998. Current taxes on income increased
approximately 173% from EUR 0.87 million in fiscal year 1998/1999 to EUR 2.38 million in fiscal year
1999/2000. This growth was due primarily to the improvement in Nordex Energy GmbH’s results. Due
to the fact that Borsig Energy GmbH and the other subsidiaries were considered a single entity for tax
purposes, these companies were not separately taxed in the past. For reasons of comparability, imputed
taxes have been calculated for the earnings transferred to Borsig Energy GmbH, as well as for the
adjusted intra-group allocations within the Babcock Borsig Group and for the imputed expenses of
Nordex AG. These imputed taxes amounted to EUR – 0.26 million for fiscal year 1997/1998, EUR 0.70
million for fiscal year 1998/1999 and EUR 2.14 million for fiscal year 1999/2000. As a result of the
Group’s adoption of IAS for financial statements that had previously been prepared in accordance with
German accounting standards, deferred taxes were required to be calculated for the three fiscal years
during the period under review, but did not represent any net cash outflow. Deferred taxes were carried
at EUR 1.14 million for fiscal year 1997/1998, EUR 2.04 million for fiscal year 1998/1999 and EUR -0.63
million for fiscal year 1999/2000. Other taxes primarily related to transport and vehicle taxes and were
not significant.
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