PDF, 1.2 MB - Pfleiderer AG

24 being focused: being better
Net Assets and Earnings of Pfleiderer AG
The holding company, Pfleiderer AG, is solely responsible for the strategy and management of
the Group. This means that the earnings position of Pfleiderer AG is closely connected to the
success of the Pfleiderer Group.
For Pfleiderer AG, fiscal 2002 was characterized by the new strategy adopted by the
Pfleiderer Group, and thus by the effects of divesting indirect and direct holdings. In particular,
it should be pointed out that losses realized in the Financial Statements of Pfleiderer AG had
been carried in the Consolidated Financial Statements in previous years. Adding to this are
one-off losses by affiliate companies, incurred through impairment adjustments, either because
certain inventories proved difficult to sell, or because certain investments were recorded
at net realizable value. Total realized losses, including consultancy expenses and follow-up
charges from the disposals, come to 178,317 thousand euros, as reported under extraordinary
results.
Investment results in 2002 were affected by expenses incurred through the absorption of
losses carried by affiliated companies, while investment income from the previous year related
to a period of more than 12 months, due to the conversion of the fiscal year to run parallel
with the calendar year.
After adjusting for profits brought forward from the previous year, the net loss for the
year totaling 197,763 thousand euros was reduced to a provisional accumulated deficit of
191,084 thousand euros. In order to avoid this accumulated deficit, the Executive Board proposed
to the Supervisory Board that parts of the capital reserve and other reserves be used
to compensate the loss. The Supervisory Board has accepted this proposal. Accordingly,
Pfleiderer AG reached break even as of December 31, 2002.
Sale of the Company’s Insulation Technology and Doors and Windows operations
has resulted in Pfleiderer AG significantly reducing the level of capital tied up. This is clearly
illustrated by the decline of the balance sheet total by 112,750 thousand euros to 427,330
thousand euros. More specifically, financial assets were reduced by 77,277 thousand euros to
298,518 thousand euros and accounts receivable from affiliated companies by 55,856 thousand
euros to 37,765 thousand euros.
Non-recurring effects from value adjustments and sales have reduced the equity of
Pfleiderer AG, but it still remains at around 40 percent of the balance sheet total. On the other
hand, capital uptake from outside sources rose by 93,218 thousand euros. At the same time,
liabilities to banks fell by 43,576 thousand euros to 20,839 thousand euros, while interestcarrying
liabilities to affiliated companies rose by 136,794 thousand euros to 208,158 thousand
euros. Interest-carrying liabilities to affiliated companies particularly relate to the Dutch financing
company Pfleiderer Finance BV, Deventer/Netherlands. The Dutch financing company
refinances itself via the capital markets.
Dividend
In view of the positive effects to be achieved by divesting the Insulation Technology and Doors
and Windows Business Centers, the Company consciously accepted book losses shown in the
Consolidated Financial Statements for 2002. These negative non-recurring effects are greater