PDF, 3.2 MB - Pfleiderer AG

1. Contingent liabilities
VII. Other Disclosures
Contingent liabilities are recognized below at nominal values:
million euros Dec. 31, 2004 Dec. 31, 2003
Guarantees and letters of comfort 32.7 10.7
Warranty obligations 1.4 29.1
Discounted notes 0.0 0.9
The Group has provided the purchasers with guarantees on a customary scale in connection with
various business disposals. The Company does not currently expect any significant claims under
these guarantees.
Long-term supply obligations to a power plant operator at fixed prices exist in the Business
Segment Engineered Wood. A possible risk to the earnings as a result of these prices is deemed
improbable.
Furthermore, credit institutions have issued guarantees in favor of customers, suppliers and other
contractual partners of the Group totaling of 41.8 million euros (2003: 40.5 million euros), and
corresponding guarantee lines are available. These mainly comprise guarantees under warranties
and guarantees in connection with the contingent liabilities from disinvestments.
No accruals have been set up for the above contingent liabilities, because the probability that
the risks will occur is deemed to be low.
The Group provides warranties for certain products. The amount of the potential warranty claims
is based on the sales of these products and the records relating to past warranty claims.
Under a factoring program for the financing of trade receivables of 30.3 million euros, Pfleiderer AG
is liable for the verity of the receivables sold. The receivables sold are covered in full by commercial
credit insurance, so that a claim from this is not expected.
‘000 euros
Balance as of January 1, 2004 0
Warranties issued during the reporting period 2,769
Claims during the past business year 0
Balance as of December 31, 2004 2,769
Accruals for warranty obligations developed as following during the past business year:
The application of FIN 45 does not result in any further disclosable matters.
105
FINANCIAL STATEMENTS/NOTES PFLEIDERER GROUP