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