Annual Report 2007
ATB Annual Report 2007 02
Financial Highlights
of the ATB Group
2007 20061) 2005
Year-on-year comparison TEUR TEUR TEUR
Share Capital 26,657 21,810 21,810
Number of shares 11,000,000 9,000,000 9,000,000
Share price
High 15.49 17.90 19.47
Low 11.00 12.00 12.50
Year-end 12.60 13.20 16.50
Sales revenues 417,297 300,909 211,142
Order backlog 143,705 77,690 41,970
EBITDA 32,056 25,377 14,575
EBIT -18,222 8,977 6,257
EBT -38,614 -778 1,090
Result for the period -53,116 -2,531 1,750
Cash flow from operating activities -10,862 14,091 -29,124
EBT in% of sales revenues -9.3% -0.3% 0.5%
Investments
in intangible assets and property, plant and equipment 15,737 14,455 7,531
in financial assets 0 75 531
Employees (including apprentices) 6,339 6,511 3,603
Total assets 428,539 456,783 186,270
Equity 38,463 57,251 23,662
in% of total assets 9.0 12.5 12.7
1) The cash flow and the income statement of the financial year 2006, the period used for comparison, have been restated to reflect
the change in discontinued operations. The balance sheet of the financial year 2006 has been restated to reflect changes in ac-counting
for production contracts and error corrections.
ATB Annual Report 2007 03
Contents
04 A-TEC Industries Group
05 Organisatorial structure of A-TEC Industries AG
06 ATB Austria Antriebstechnik at a glance
08 Letter from the Managing Board
10 Management report
Development of the 18 Business Unit Project Motors
Business Units in 2007 19 Business Unit Serial Motors
20 Business Unit Home Appliances
21 Business Unit New Businesses
22 Report of the Supervisory Board
Consolidated financial 24 A. Consolidated balance sheets
statements 2007 26 B. Consolidated income statement
27 C. Consolidated equity statement
28 D. Consolidated cash flow statement
29 E. The Group
33 F. Summary of significant accounting and measurement policies
46 G. Financial instruments and risk management
52 H. Notes to the consolidated financial statements
85 Investments in fully consolidated and unconsolidated companies
86 Movement in intangible assets and property, plant and equipment
88 Auditor�s report
89 Locations
90 Contact
91 Imprint
ATB Annual Report 2007 04
A-TEC Industries Group
With about 13,708 employees and sales revenues of EUR 2.4 billion On the market, these divisions operate through strong international
in 2007, A-TEC Industries AG is one of the leading industrial groups brands including Austrian Energy & Environment, ATB Austria Antriebs�technik,
headquartered in Austria. The company is listed on the Prime Market of EMCO-Gruppe, D�rries Scharmann Technologie, and Montan-werke
the Vienna Stock Exchange and has a stable ownership structure. The Brixlegg.
foundations of CEO Mirko Kovats (55% M.U.S.T. Privatstiftung) and
COO Christian Schmidt (7% J. E. Loidold Privatstiftung) hold 62% of As a global full-line supplier in Plant Construction, the Group offers
the shares. The remaining 38% are free float. engineering services, boiler construction, flue gas purification technol-ogy
and turnkey waste incineration plants, co-generation plants, as well
The international success story of A-TEC Industries was achieved not as a wide range of after-sales services.
only by a dynamic growth and expansion strategy, but also by a corpo-rate
philosophy that links a clear vision for the future with integrity. Dy-namic The Drive Technologies division is a leading supplier of electric drive
organic growth and systematic acquisitions in all relevant markets systems. Its product portfolio includes mass-produced industrial motors
are the main drivers behind the expansion of A-TEC Industries. Over the as well as customised special and project motors.
past years, A-TEC Industries has developed into a diversified group with
an international orientation that holds leading market positions world-wide The Mechanical Engineering division manufactures innovative ma-chine
through its global network. This was achieved thanks to the long tools for the machining industry. Its products range from conven-tional
years of experience of the management team that boasts excellent ex-pertise turning and milling machines, fully automated CNC manufacturing
and a good network in the respective business fields gained cells and special machine tools to modular training programmes.
from the strong involvement of the founders and major shareholders.
Thus, the management is able to reliably identify growth opportunities In the Minerals & Metals division, highly pure copper and other valu-able
and potentials for synergies as well as to increase efficiency substan-tially metals are extracted from scrap copper in one of the largest sec-ondary
throughout the Group while at the same time lowering costs. smelting plants. In 2007, a manufacturer of copper components
and sections was added to the value-added chain.
A-TEC Industries AG is a holding company with four operating sub-groups:
-Plant Construction division
-Drive Technologies division
-Mechanical Engineering division
-Metal Industry division
ATB Annual Report 2007 05
Organisatorial structure
of A-TEC Industries AG
A-TEC Industries AG
Vienna, Austria
100% 98% 100% 100%
AUSTRIAN ENERGY & ATB AUSTRIA A-TEC MECHANICAL A-TEC MINERALS & METALS
ENVIRONMENT AG ANTRIEBSTECHNIK AG ENGINEERING HOLDING GmbH HOLDING GmbH
Vienna, Austria Vienna, Austria Vienna, Austria Vienna, Austria
AUSTRIAN ENERGY & ENVIRONMENT
AG & Co KG 100% ATB Motorenwerke GmbH 99.01% EMCO Maier GmbH 100% Gindre Duchavany S.A.
Raaba/Graz, Austria Spielberg, Austria Hallein, Austria Lyon, France
100% Von Roll Inova Holding AG 94% ATB ANTRIEBSTECHNIK GmbH 6% 100% EMCO Italia Srl 100% Gindre Composants S.A.
Zurich, Switzerland Welzheim, Germany Legnano, Italy Chavanoz, France
AE&E Inova GmbH ATB MOTORENTECHNIK
100% GmbH 100% EMCO Famup Srl 100% Metelec Ltd.
Cologne, Germany 94% Nordenham, Germany San Quirino, Italy Walsall, UK
Austrian Energy & Environment Kupferrheydt GmbH
100% 100%
Deutschland GmbH ATB TECHNOLOGIES GmbH 100% EMCO MECOF Srl 100%
Cologne, Germany Lustenau, Austria Belforte Monferrato, Italy M�nchengladbach,
Germany
99% AE&E Lentjes GmbH 100% ATB COMPONENTS s.r.o. 100% INTOS Spol., s.r.o. 100% MONTANWERKE BRIXLEGG AG
Ratingen, Germany Ostrava, Czech Republic Zebr�k, Czech Republic Brixlegg, Austria
100% Babcock Power Espa�a S. A. 100% ATB SELNI SAS 60% Mexpol Werkzeug-maschinen
GmbH 100% KOVOHUTY, a. s.
Bilbao, Spain Nevers, France Hilden, Germany Krompachy, Slovakia
100% ATB MOTORS (SHANGHAI) Magdeburg Werkzeug-maschinen Montanwerke Brixlegg
Duro Dakovic TEP d. o.o. 100% 100%
Co. Ltd. GmbH 100% Wasserkraftwerk
Slavonski Brod, Croatia Shanghai, China Magdeburg, Germany Reith GmbH
Salzburg, Austria
100% Mechanical Engineering
AE&E CZ s.r.o. 71% ATB SEVER a.d. 100% Investment GmbH Montanwerke Brixlegg
Brno, Czech Republic Subotica, Serbia D�sseldorf, Germany 100% Wasserkraftwerk
Alpbach GmbH
Salzburg, Austria
000 Austrian Energy & 100% D�rries Scharmann
100% Environment ATB MORLEY Ltd.
100% Technologie GmbH
Moscow, Russia Leeds, UK M�nchengladbach,
Germany
100% Austrian Energy &
Environment (Australia) Pty. Ltd. ATB Laurence Scott Ltd.
Berthiez SAS
Sydney, Australia 100% Norwich, UK 100%
St. Etienne, France
100% AE&E Chennai Works Ltd. 60% Lindeteves-Jacoberg Ltd. D�rries Scharmann
Chennai, India Singapore, Singapore 100% Technologie GmbH
Bielefeld, Germany
100% I.D.E.A Private Ltd.
Chennai, India
49% AE&E Energy & Environment
(Thailand) Ltd.
Bangkok, Thailand
100% AE&E Energy & Environment
Consulting Shanghai Co. Ltd.
Shanghai, China
A-TEC Power Plant
Systems AG
Vienna, Austria 93.1%
Status: April 2008
ATB Annual Report 2007 06 6
ATB Austria Antriebstechnik AG
at a glance
WELTKARTE|WORLD
EUROPAKARTE|EUROPE
Head office of ATB Austria ATB Antriebstechnik GmbH ATB Laurence Scott Ltd. Lindeteves-Jacoberg Ltd.
Antriebstechnik AG: Welzheim, Germany Norwich, Great Britain Singapore, Singapore
ATB Austria Antriebstechnik AG
Vienna, Austria ATB Motorentechnik GmbH ATB SEVER a.d. Schorch Elektrische Maschinen
Nordenham, Germany Subotica, Serbia und Antriebe GmbH
Registered offices of key M�nchengladbach, Germany
subsidiaries: ATB SELNI SAS ATB BENELUX B.V.
ATB Motorenwerke GmbH Nevers, France IJsselmuiden, Netherlands Brook Motors Limited
Spielberg, Austria Huddersfield, Great Britain
ATB MORLEY LIMITED ATB Schweiz AG
ATB Technologies GmbH Leeds, Great Britain Lenzburg, Switzerland Fabryka Silnik�w Elektrycznych
Lustenau, Austria TAMEL SA Tarnow, Poland
ATB Annual Report 2007 07
The Managing Board: The Supervisory Board:
Christian Schmidt Mirko Kovats
Chairman of the Managing Board (until 31 March 2008) Chairman of the Supervisory Board
Erwin Fritsch Franz Fehringer
Chairman of the Managing Board (from 1 April 2008) Deputy Chairman of the Supervisory Board
Member of the Managing Board (until 31 March 2008)
Matthias Rant
Christian Schr�tter Member of the Supervisory Board (until 16 May 2007)
Member of the Managing Board (until 31 January 2008
and again from 18 April 2008) Horst Wiesinger
Member of the Supervisory Board
Dave Brian Schumacher
Member of the Managing Board (from 1 April 2008)
Delegated by the works council:
Nikolaus Szlavik
Member of the Managing Board (from 1 April 2008) Michael Leitner (until 15 January 2008)
Wilhelm T�pfl Helmuth Kosutnik (until 15 January 2008)
Member of the Managing Board (until 14 May 2007)
Andreas Friedrich
Member of the Managing Board (from 15 May 2007 to
7 September 2007)
Christian Kopecek
Member of the Managing Board (from 1 February 2008 to
18 April 2008)
Financial Calendar 2008
Balance sheet date: 31 December 2007
Result 2007: 11 June 2008
Annual General Meeting: 3 July 2008
Result of 1st quarter 2008: 15 May 2008
Result of 2nd quarter 2008: 19 August 2008
Result of 3rd quarter 2008: 12 November 2008
ATB Annual Report 2007 08
Letter from the
Managing Board
Dear Ladies and Gentlemen, the good operating performance. EBIT amounted to EUR 14.1 million
after adjustment for the cost of personnel restructuring and extraordi-nary
In the financial year 2007, the ATB Austria Antriebstechnik Group con-tinued write-down of intangible assets (2006: 5.5 million) and thus more
to strengthen its market position as Europe�s third-largest and than doubled. The increase in borrowing expenses resulted in a pre-tax
the world�s sixth-largest manufacturer of electric drive systems for in-dustrial loss (EBT) in the amount of EUR 38.6 million (2006: EUR 0.8 million).
applications and household appliances and gained further op-erating The net result for the year 2007 was EUR 53.1 million (2006: EUR
momentum. 2.5 million).
In the reporting year, we largely completed the integration of the Linde-teves- In 2007, two extraordinary general meetings were held in addition to
Jacoberg Group and acquired two British makers of electric mo-tors the 22nd ordinary general meeting of shareholders. The extraordinary
Laurence Scott & Electromotors and McCLure to further expand general meeting of 28 March 2007 resolved to split off the produc-tion
our Project Motors core business. operations of ATB Austria Antriebstechnik AG into ATB Motoren-werke
GmbH. In November 2007, a capital increase was carried out to
Overall, the year 2007 was heavily influenced by the consolidation and strengthen the capital base, with the parent A-TEC Industries subscrib-ing
restructuring of the ATB Group. In this context, the implementation of two million new shares at a price of EUR 16.0.
a holding structure in the 2nd quarter 2007 enabling central control of
all plants was an important step in the right direction. Unified processes With effect from 1 April 2008, Christian Schmidt handed over the chair-manship
and standards have yielded first synergies and provide the holding com-pany of the Managing Board to Erwin Fritsch. At the beginning of
with resources that enable it to support the individual operating April, Nikolaus Szlavik and David Brian Schumacher joined the manage-ment
companies in the most effective manner. team of ATB-Holding.
In the Home Appliances business unit we took further steps and mea-sures 2007 did not see any major business takeovers under the company�s
in 2007 to either withdraw from this low-margin product segment acquisition strategy. The same should more or less be true in 2008.
or to move production to more profitable locations. The motivation be-hind If interesting targets are identified, however, we will of course take a
this move was the Group�s strategic focus on industrial motors and closer look. We remain fully committed to the consolidation and restruc-turing
project motors. of the ATB Group, with profitability being given priority over sales
growth. In 2008 we are planning to undertake a structural realignment
The development in our long-established plants in Spielberg, Welz�heim, of the ATB Group with the aim of creating clear areas of accountability
Nordenham and Leeds, where we improved results significantly, in the future.
was especially gratifying. The German company Schorch based in
M�nchengladbach also showed a positive performance, which proved At this point, we would like to thank our employees and managers for
that last year�s turnaround has been sustainable. their commitment and our shareholders for their trust. Come along with
us again as we enter the year 2008 to master new challenges.
The financial highlights for 2007 of ATB Austria Antriebstechnik reflect
a positive development of its operating activities even though the result
is depressed by restructuring and financing costs. We were able to
boost Group sales by 38.7% to EUR 417.3 million and improve EBIT-DA The Managing Board
by 26.3% year-on-year to EUR 32.1 million, which demonstrates Vienna, May 2008
ATB Annual Report 2007 09
Christian Schr�tter Christian Schmidt Erwin Fritsch
Member of the Managing Board Chairman of the Managing Board Member of the Managing Board
ATB Annual Report 2007 10
Management Report
The business activities of the ATB Group comprise in principle the de-velopment, Business development in 2007
production, distribution and trade in motors, drive systems, The Serial Motors division again benefited from high demand in 2007.
electronic control units and systems. In the financial year 2007, the ATB This division focuses on high-quality customer-specific serial motors of-fering
Group was subdivided into the business units Serial Motors, Project customers choices in terms of useful life, type of housing and
Motors, Home Appliances, and New Business. In April 2008, the ATB shaft whereas standard motors continue to decline in importance.
Group realigned its strategic orientation. In the future, ATB will comprise
two operating pillars: Project Motors and Industrial Motors. The Shared Despite stiff competition, especially from Asia, the market situation of
Services division will provide key services to the two operating divisions. the Serial Motors business unit was characterised by high demand, par-ticularly
from OEM customers, which in some instances could not even
Background be fully met. By stepping up production volume at Tamel in Poland and
ATB is a leading European manufacturer of electric motors and electronic at Brook Crompton in Great Britain, the ATB Group took steps to keep
drive systems with production plants in Austria, Germany, France, Great delivery times within acceptable limits.
Britain, Serbia, and Poland. Its key markets are Europe, Asia, and North
America. Especially gratifying is the development in our traditional main production
facilities in Spielberg (AUT), Welzheim (GER), and Nordenham, where
In the euro area, real GDP1 grew at a rate of about 2.6% in 2007 and results in the Serial Motors division were improved. At the Sever plant
thus was down slightly from the 2.8% seen in the previous year. In Ger-many, (SRB), which makes drive systems for Serial Motors, Project Motors,
the ATB Group�s most important market, real GDP growth also and Home Appliances, production volume was raised by about one third
slowed slightly from 2.9% to 2.5% according to European Commission and sales revenues by about one half in the reporting year. The plant�s
forecasts. Driven by long over-due capital expenditure in the manufactur-ing profitability suffered, however, from continuing restructuring costs and
industry and in the industrial sector, the economy is thus still expand-ing fluctuations in the exchange rate of the Serb dinar. To boost profitability,
at a robust pace. a project team delegated by the parent company has been assisting lo-cal
management in restructuring and work-flow organisation.
The annual report published by the section for electrical drive systems
of the industry organization ZVEI confirmed the positive trend, stating For the Polish production entity Tamel in Tranow (POL), the year 2007
a growth rate of about 6% (2006: +7.5%). According to ZVEI, Ger-many�s was characterised by restructuring and stabilisation measures. Substan-tial
central association of the electro-technology and electronic in-dustry, progress was achieved in the foundry operations. Delivery reliability
strong growth in important target industries such as mechanical was raised by increased plant capacity utilisation and quality assurance
engineering and the chemical industry benefited in 2007 from continuing efforts. Production in Tamel is marked by an improved cost structure,
world-wide capital spending on energy and transport infrastructure and a broad product portfolio and the employees� engineering expertise.
in the industrial sector. Against this backdrop, the company was able to further strengthen its
market position in Poland as well as in the important British market. In
Benefiting from brisk economic activity in its core markets, ATB scored addition to increased plant capacity utilisation, a large order was won
sustainable success from its market-driven sales organisation and the from an international pump maker.
continuing efforts towards integration of the Lindeteves-Jacoberg Group.
In 2007, the development of sales controlling, the introduction of sales Despite the quite positive development in the Serial Motors division, de-lays
support, trade fair management and the optimisation of sales activities occurred in the past financial years in the restructuring of ATB Sev-er,
in the core markets of Germany, Austria, and Switzerland produced first Subotica, Serbia, and Tamel, Tarnow, Poland. For the continued suc-cessful
synergies and results. development of the ATB Group it is essential for these two plants
to turn profitable again. Because of the poorer-than-expected results of
Overall, the year 2007 was marked significantly by the consolidation and the Serial Motors division, a write-down in the amount of EUR 29.0 mil-lion
restructuring of the ATB Group. In this context, the implementation of a had to be recognised in this division in the financial year 2007.
holding structure in the 2nd quarter 2007 enabling central control of all
plants was an important step in the right direction. A project team was set In the Project Motors division, demand from the energy and the infra-structure
up to identify potential for cost optimisation and synergies in the operating sectors remained robust. The sales efforts of the ATB Group
entities locally and to assist them in realising potential savings. were motivated in part by an attempt to get on the vendors list for large-
1) Source: Eurostat, 2007, forecast by the European Commission (autumn 2007)
ATB Annual Report 2007 11
scale projects and to also offer serial motors as an add-on. Companies Procurement
like the ATB entity Schorch boast a long tradition and market experience In procurement, the company confronted major challenges in the report-ing
in the project motors business. Over the past year, ATB devoted great year. In the face of high market demand and the resulting shortage in
efforts to the development of customer trust while, at a time marked by special products and key components such as slide and roller bearings,
high demand and short capacity, scoring high on delivery reliability and the company successfully intensified its international sourcing activities.
ability. Overall, the market development in the year 2007 was marked by gen-erally
higher material and commodity costs. In the Serial Motors and
The Project Motors division was expanded further in 2007 by two ac-quisitions. Home Appliances business units, the company reacted by further cost
In May 2007, the insolvent British motor maker Laurence control and, wherever possible, price escalator clauses. In the Project
Scott & Electromotors was wholly taken over under an asset deal at a Motors business unit it was possible to pass on higher costs directly to
price of GBP 3.0 million plus incidental acquisition costs. The company the customers.
produces high-performance motors mainly for the oil and gas industry.
It has a workforce of about 153 employees and is based in Norwich Changes in subsidiaries
(Great Britain). In July 2007, a 100% interest in David McClure Ltd., By resolution of 15 December 2006, the supervisory board of ATB Aus-tria
Great Britain, was purchased under a share deal at a purchase price of Antriebstechnik AG approved the Managing Board�s motion to split
GBP 0.4 million plus incidental acquisition costs. The entity acquired off the production operations of ATB Austria Antriebstechnik AG into
specialises in the production of motors for the mining, defence, automo-tive ATB Motorenwerke GmbH with its head office at Spielberg. ATB Mo-torenwerke
and heavy industries and employs a workforce of 27. GmbH was formed as of 19 December 2006. Following the
split-off of the operating activities, ATB Austria Antriebstechnik AG has
The German company Schorch based in M�nchengladbach also showed retained the holding activities.
a positive performance, which proved that last year�s turnaround has
been sustainable. Thanks to the stable financial and liquidity situation, Brook Crompton Western Electric Motor (Dalian) Corporation Ltd. was
Schorch was able to fully regain the customers� and suppliers� con-fidence acquired as part of the acquisition of the Lindeteves-Jacoberg Group
in 2007 and to fully exploit its good reputation and technical as of May 31, 2006. The Group had decided to dispose of this entity
expertise in a positive market environment. The company�s focus is on already at the time of purchase and has taken the required action. The
the high-voltage and special motors business. In this market segment, Management�s efforts to sell the entity at the highest price possible have
the company expects above-average growth in the years to come. The been unsuccessful, though, despite extensive negotiations with a range
company was able to raise both sales revenues and EBIT in the report-ing of potential buyers. In January 2008, the company closed down op-erations
year. At the same time, orders booked were maintained at the high and initiated the liquidation process. Lindeteves-Jacoberg Ltd.,
level of the previous year and margins were improved. Singapore, as the parent company of Brook Crompton Western Electric
Motor (Dalian) Corporation Ltd., funded the payment of wages and sala-ries
The Home Appliances division is characterised by a continuing trend to employees.
towards customer consolidation and the move of production facilities
mostly to Central and Eastern Europe. Faced by continuing pressure on As a consequence of the withdrawal from production in China and sales
prices, in 2007 again, ATB engaged in vigorous efforts to cut costs and to China, ATB Motors (Shanghai) Corporation Ltd. were closed down by
raise productivity. Following the transfer of part of the manufacturing year-end 2007 and the liquidation process was initiated.
operations to the Serbian company ATB Sever, the Home Appliances
business unit, which has further sites in Austria and France, is now in With effect from 1 January 2007, A.L.S. Altersversorgung GmbH was
a position to offer its customers price-competitive motors. Beside the merged with Schorch Elektrische Maschinen und Antriebe GmbH,
cost reductions already implemented, further cost savings have yet to be M�nchengladbach. In 2006, the company was not included in the con-solidated
realised to increase this division�s profitability. financial statements due to immateriality.
ATB Annual Report 2007 12
Management Report
Revenues and earnings EBITDA rose by 26.3% to EUR 32.1 million. Due to the charge for as-set
Note that due to the acquisition and initial consolidation of ATB Lau-rence impairment, EBIT fell to EUR 18.2 million from the level of EUR 9.0
Scott Ltd. as of 1 June 2007 and of McClure as of 1 July 2007, million reported in the financial year 2006.
as well as the full-year recognition of the Lindeteves-Jacoberg Group in
the financial year 2007, 2007 figures can be compared with those of Adjusted for one-off effects, EBIT was as follows:
the preceding year only with limitations. In the financial year 2006, the
Lindeteves-Jacoberg Group had been consolidated only over a period Adjusted EBIT
of seven months. in EUR million 2007 2006
In the positive market environment, especially in its core markets, ATB EBIT -18.2 9.0
Austria Antriebstechnik achieved a marked increase in new orders, or-ders Write-down of impaired intangible assets 29.0 0.0
on hand, and sales revenues. Personnel restructuring expenses 3.3 1.8
Personnel restructuring income 0.0 -5.3
New orders booked by the ATB Group reached EUR 411.5 million in the Adjusted EBIT before forgiven debts 14.1 5.5
past financial year and were thus up 21% on the previous year (2006: Debts forgiven -6.0 -0.4
EUR 340.0 million). Even better was the development of the order back-log, Adjusted EBIT after forgiven debts 8.1 5.1
which at EUR 143.7 million was even 85% higher than in the previ-ous
year as of the cut-off date 31 December 2007. Compared with the previous year, the company�s EBIT margin (EBIT to
sales revenues) was negative at 4.4% (previous year: 3.0%), which
On the back of the positive development of the business, the ATB Group was due in large part to the write-down of impaired intangible assets in
raised total revenues by 38.7% to EUR 417.3 million. (2006: EUR the amount of EUR 29.0 million. Adjusted for this unscheduled write-down
300.9 million). Broken down by business unit, Serial Motors increased of intangible assets, the EBIT margin was 2.6% (previous year:
sales revenues by 18.4% to EUR 216.4 million while Project Motors 3.0%).
boosted sales even by 135.3% to EUR 132.8 million. EUR 64.2 million
(2006: EUR 57.4 million) were contributed by the Home Appliances In the financial year, the company succeeded in negotiating the forgive-ness
business unit, and EUR 3.9 million (2006: EUR 4.2 million) by the New of debts in the amount of EUR 6.0 million (previous year: EUR 0.4
Businesses business unit. million) with banks, which had a positive impact on the result (see Note
H. 19).
The result of the financial year 2007 is depressed by the write-down
of impaired intangible assets of the Serial Motors business unit in the The deterioration of the financial result versus the previous year is due
amount of EUR 29.0 million. The primary reason for this unscheduled largely to the full-year recognition of the Lindeteves-Jacoberg Group
write-down was the fact that future cash-flows were not consistent with and additional borrowing at ATB Sever a.d. and ATB Austria Antriebs�technik
the carrying values. AG. In addition, participations in non-consolidated affiliated com-panies
were written down in the amount of EUR 2.8 million.
The result of discontinued operations relates to Serial Motors and Home
Appliances. Closure of the Shanghai branch (CHN) and shutdown of
the Dalian plant (CHN) caused the result from discontinued operations
to worsen from EUR 1.6 million in 2006 to EUR 15.9 million. (see
Note H.8).
2) The financial year 2006, which is used as the comparative period, has been restated to reflect changes in discontinued operations.
ATB Annual Report 2007 13
ATB Consolidated income statement Assets and liabilities and financial position
in EUR million 2007 2006 The return on equity reflects the ratio of the pre-tax result for the period
to average equity. The deterioration of return on equity from 5.9% in
Sales revenues 417.3 300.9 the financial year 2006 to 113.9% in 2007 is due mostly to the impair-ment
EBIT -18.2 9.0 write-down of intangible assets and the losses incurred by discon-tinued
Financial result -20.4 -9.8 operations. These effects also have an impact on return on total
Earnings before taxes -38.6 -0.8 investment (earnings before interest and tax to average total capital).
Income taxes 1.4 -0.1 Thus, the return on assets turned negative from 2.4% in the previous
Profit/loss from continued operations -37.2 -0.9 year to 7.7% in the financial year 2007.
Profit/loss from discontinued operations -15.9 -1.6
Result for the period -53.1 -2.5 Net debt (interest-bearing debt less cash and cash equivalents) rose from
EUR 206.6 million to EUR 220.4 million in the financial year 2007.
Thereof minority interests -12.1 0.5
Thereof majority interest -41.0 -3.0 Net debt comprises the following:
Diluted and undiluted earnings per share in EUR -4.51 -0.33 Net debt
in TEUR 2007 2006
ATB consolidated balance sheet
Plant, property and equipment declined by EUR 7.2 million to EUR 167.4 Long-term borrowings 82,039 112,900
million. This was due mainly to scheduled deprecation in the amount of Long-term borrowings from Group companies 44,736 0
EUR 17.7 million versus only EUR 11.7 million in capital expenditure. In-tangible Short-term borrowings 49,655 32,747
assets declined due mainly to non-scheduled write-downs in the Short-term borrowings from Group companies 54,113 80,870
amount of EUR 29.0 million. Current assets rose to EUR 167.3 million 230,544 226,518
(previous year: EUR 150.3 million) as a result of business requirements. Cash and cash equivalents -10,108 -19,871
Assets from discontinued operations fell to EUR 3.3 million (previous 220,436 206,647
year: EUR 11.6 million) due mainly to value impairments.
This increased gearing (net debt to equity) to 573% (previous year:
The capital increase by EUR 32.0 million offset the negative result of the 361%). Because of the high level of net debt and the currently difficult
period in the amount of EUR 53.1 million only to some extent. Equity situation in the financial markets, new credit has become more difficult
including minority interests therefore declined to EUR 38.5 million (previ-ous to obtain.
year: EUR 57.3 million).
The equity ratio is the ratio of equity to total assets. The equity ratio fell
Short-term and long-term financial liabilities to third parties dropped by from 12.5% in the previous period to 9.0% in the financial year 2007.
13% to EUR 131.7 million (previous year: EUR 150.6 million). The re-duction
in the amount of EUR 43.3 million is attributable to an assump-tion
of debt by Group companies of A-TEC Industries AG.
The decline in deferred tax liabilities is due mainly to their reversal follow-ing
the non-scheduled impairment write-down of intangible assets.
ATB Annual Report 2007 14
Management Report
Net working capital consists of current assets less current non-interest-bearing The cash flows mentioned reflect the cash flows of the continued busi-ness
liabilities: operations. The cash flows of discontinued business operations are
shown in the Notes under H.8.
Net working capital
in TEUR 2007 2006 Cash flow
in EUR million 2007 2006
Inventories 67,550 59,662
Trade and other receivables 74,977 63,021 Cash flow from operating activities -10.9 14.1
Receivable from construction contracts 14,679 7,783 Cash flow from investing activities -19.6 -29.8
157,206 130,466 Cash flow from financing activities 20.9 27.9
Trade payables including customer prepayments -52,614 -53,820 Effect of exchange rate changes -0.1 -0.2
Liabilities to Group entities (except borrowing) -1,837 -235 Change in cash and cash equivalents -9.6 12.2
Other short-term liabilities -28,710 -35,070 Cash outflow from reclassification as discontinued
Short-term tax liabilities -2,418 -428 operations 0.0 -0.4
-85,579 -89,553
The negative cash flow from operating activities is mostly the result of
Net working capital 71,627 40,913 the build-up of working capital (see Note H.22).
In the financial year 2007, net working capital increased to EUR 71.6 In December 2007, ATB Austria Antriebstechnik AG acquired another
million (previous year: EUR 40.9 million), which was due mostly to the 5,126,341 shares in Lindeteves-Jacoberg Ltd at a price of S$0.065
increase in sales volume and the re-building of working capital in the per share, thereby increasing its stake in the company from 58.97% to
plants of the Lindeteves-Jacoberg Group. As regard net working capital, 59.69%.
there is still some scope for optimisation, which is an objective being
pursued by the management of the ATB Group. The share capital of ATB Austria Antriebstechnik AG was increased un-der
the capital increase carried out on 14 December 2007 and as of
In the financial year 2007, the ATB Group incurred capital expenditure 31 December 2007 consisted of 11 million bearer shares. The ATB
in the amount of EUR 15.7 million (2006: EUR 14.5 million), of which share is listed on Wiener B�rse (Standard Market Auction) under the
EUR 11.7 million (2006: EUR 11.9 million) was invested in property, securities identification number AT0000617832. As of 31 December
plant and equipment, and EUR 4.0 million (2006: EUR 2.6 million) in 2007, A-TEC Industries AG, Vienna, owned 97.94% of the shares. The
intangible assets. Investment in intangible assets includes capitalised remaining shares are free float.
development costs of EUR 3.5 million (2006: EUR 2.4 million). In addi-tion,
EUR 5.5 million were invested in business takeovers (previous year: On 31 December 2007, the ATB share�s price stood at EUR 12.60 (31
EUR 17.2 million). Dec. 2006: EUR 13.20). The highest closing price during the reporting
period was EUR 15.49 (8 March 2007), the lowest closing price was
EUR 11.00 (21 Nov. 2007).
In 2007, the ATB Group employed, on average, a workforce of 6,397
(2006: 5,364). On 31 December 2007, the Group had a head count
of 6,339 employees (previous year: 6,511). The reduced level on the
reporting date is due to stiff competition and the resulting restructuring
measures.
ATB Annual Report 2007 15
Events after the balance-sheet date Future risks and opportunities
On 30 January 2008, Brook Motors International Pte. Ltd., Singapore Market and competition risks
was founded as a wholly owned subsidiary of Lindeteves-Jacoberg Ltd., Developments in the future will depend largely on cyclical economic ac-tivity
Singapore. The business object of the company is trade in and distribu-tion and competitive pressure. In this environment, the Group�s future
of electric motors. performance depends on its ability to win new orders. As the ATB Group
is doing business in numerous countries outside the traditional Euro-pean
In addition, ATB Sever a.d., Subotica, Serbia set up the entity ATB FOD markets and is thus confronted by different political, social and
d.o.o. in April 2008, which purchased all assets of FOD Bor by auction economic circumstances, it faces a wide range of different risks and
at a price of EUR 2.6 million. The company also agreed to take over opportunities.
672 employees and to continue production for five years. The entity
manufactures and provides services for mechanical engineering and In the currently difficult financial markets and persisting uncertainty, the
electrical powered mechanical engineering. Group needs support from its parent, A-TEC Industries AG, in procuring
additional outside funds and thereby securing the continued existence of
Outlook on 2008 the ATB Group. This applies particularly for raising new loans, for which
Action taken in 2007 such as the implementation of the holding struc-ture, a guarantee from A-TEC Industries AG is needed. Until year-end 2009,
the management�s fresh focus on Project Motors and Industrial financial support by the parent A-TEC Industries AG has been secured
Motors as well as Shares Services, and the newly devised financing under letters of comfort (see Note G.2.5).
structure for some of the plants will develop its full effect only in 2008.
Therefore, the ATB Group is optimistic about the current year. Exports In the Industrial Motors business unit, the general environment continues
will be weighed down to some extent by the dollar-euro exchange rate, to be characterised by stiff competitive pressure, with Asian suppliers
but this will not have much of an impact on the ATB Group because of expected to become increasingly active in the standard segment.
its concentration on the European markets.
The ATB Group has identified opportunities in the introduction and sys-tematic
At the present stage, the impact of developments unfolding on the inter-national development of the new range of EC motors and Efficiency
financial markets on the operating activities of the ATB Group is Class 1 motors, which should attain above-average growth on the back
difficult to assess. The ATB Group is, however, resolutely pursuing the of the energy issue, statutory requirements and debates about efficiency
goal of raising the Group�s profitability. at the European level.
The performance of the ATB Group depends heavily on the development The currently exceptionally high material prices, such as for electronic
of the cost of materials and personnel. The key prerequisite in maintain-ing sheet and copper, cannot be passed on to the market in full. One poten-tial
competitiveness is therefore to increase efficiency and productivity risk factor is also the procurement of critical components and parts
while cutting costs. Against this backdrop, the ATB Group will focus such as special bearings and castings.
in 2008 on the two ATB plants in Tamel and Sever, which were major
sources of loss in the reporting year. Another challenge is emerging from the trend towards standardisation
of motors and thus to the production of"low-cost motors�. The ATB
For 2008, the management expects no change in sales revenues but Group is able to meet this cost pressure in large part by sourcing from
significantly better earnings. its production facilities at ATB Sever, Serbia, and Tamel, Poland. Over
the medium term, this trend might result in a reduction in the volume of
in-house production.
The ATB Group has identified opportunities in new target regions such as
Great Britain and Eastern Europe. These markets can be developed and
supplied increasingly through the integration of acquired businesses.
ATB Annual Report 2007 16
Management Report
R&D activities at the ATB research centre in Lustenau (AUT) are being Research and development
intensified further to enable the company to provide innovative solutions In the reporting year 2007, the ATB Group�s development centre in Lus-tenau
to customer-specific drive needs and to support future growth. focused on the following key areas:
In order to raise productivity further, personnel restructuring has to be 1. Continuation of development work intensified in 2006 on Perma-nent
continued at ATB Sever (SRB) and Tamel (POL), which will result in Magnet Motors (PM) as a response to the growing demand for
some redundancies. energy efficient electric motors. Development work for low-voltage
applications (12VDC/and 24VDC) for the first motor sizes was com-pleted
In the annual accounts, adequate provisions have been made for costs in-curred and deliveries were started in mid-2007.
in winding up the Dalian plant (CHN). This will also result in massive
layoffs. At year-end 2007, the Dalian plant employed a workforce of 900. 2. Development of compact frequency converters to meet the strong
rise in demand for controlled drive systems. Development activities for
Personnel-related risks two motor sizes were intensified, following which the pilot series for
The successful ongoing development of the ATB Group of course de-pends the first converter type was launched in 2007. Preparatory work for
critically on the availability of adequate personnel resources for large-scale production has been largely completed so that deliveries
handling of the restructuring projects. In view of the strong wave of can start in February 2008.
emigration of skilled Polish workers to other EU countries, it is essential
for the Tarnow-based operations to retain a well-trained workforce for 3. Commencement of development projects for alternative vehicle drive
continued plant restructuring. systems with renowned automotive OEMs. The components to the
developed will be designed for use in hybrid vehicles and fuel cell
Restructuring risk vehicles.
Completion of restructuring efforts especially at the plants of Subotica,
Serbia, and Tarnow, Poland, is of key importance for the company in
its efforts to turn profitable. The restructuring process is designed to
improve and optimise production, while cutting overheads on a sustain-able
basis.
ATB Annual Report 2007 17
Disclosures pursuant to Section 243a UGB Declaration of the Managing Board pursuant to Section 82 Stock
(Austrian Business Code) Exchange Act
1. 1.The share capital of ATB Austria Antriebstechnik AG is EUR 26.7 The Managing Board declares that the consolidated annual financial
million or 11.0 million bearer shares and has been fully paid up. All statements of ATB Austria Antriebstechnik AG, which have been pre-pared
shares have the same rights and duties. in accordance with International Financial Reporting Standards
(IFRS), give a true and fair view of the financial position, the financial
2. Nothing is known about any restrictions concerning voting rights or performance and the cash flows of all entities included in the consoli-dated
the transfer of shares. financial statements.
3. The shareholder structure of ATB Austria Antriebstechnik AG is domi-nated Likewise, the consolidated management report gives a true and fair view
by majority shareholder A-TEC Industries AG, Vienna, which of the financial position, financial performance and cash flows of ATB
holds about 98%. About 2% of the shares are free float. Austria Antriebstechnik AG and provides information about the develop-ment
of the business and the impact of existing and future risks on the
4. There are no shares with special control rights. business activities of the ATB Group.
5. There is currently no employee stock options plan.
6. Regarding the members of the Managing Board and the Supervisory
Board there are no provisions over and above the statutory regula-tions.
Nor are there any provisions regarding the amendment of the
company bylaws other than those deriving directly from the law.
7. Thus far, the Managing Board has not passed any decision on a share
buyback scheme.
8. There are no compensation agreements as defined in Section 243a
(9) UGB.
ATB Austria Antriebstechnik Aktiengesellschaft
Vienna, 23 May 2008
signed: signed: signed: signed:
Erwin Fritsch m.p. Christian Schr�tter m.p. Nikolaus Szlavik m.p. David Brian Schumacher m.p.
Chairman of the Managing Board Member of the Managing Board Member of the Managing Board Member of the Managing Board
ATB Annual Report 2007 18
Business Unit Project Motors
The production plants of the Project Motors business unit are based In the reporting year, the business unit boosted its sales revenues to
mostly in Germany Schorch, M�nchengladbach; Great Britain ATB EUR 132.8 million (2006: EUR 56.4 million). With an EBIT margin of
Morley, Leeds and ATB Laurence Scott, Norwich; and Serbia ATB 8.5% (2006: 12.5%), profitability was also kept at a high level.
Sever (sizes larger than 315), Subotica. The product portfolio compris-es
customer and project-specific low-voltage and high-voltage motors Orders booked in the financial year 2007 amounted to EUR 127.2
as well as complex drive systems. The business unit operates world-wide, million. The high order backlog as of year-end 2007 of more than
supplying a wide variety of industries, with a key focus on the EUR 90.0 million bodes well for the future development of the business
oil and gas industry, chemical and petrochemical companies, energy unit�s sales revenues. To secure this performance, agreements have
utilities, mining businesses, and industrial enterprises engaged in metal been entered into with key suppliers to reserve production capacity.
production and water supply.
The Project Motors segment employed a workforce of 1,333 at year-end
The positive development in the Project Motors business unit was partly 2007 (2006: 1,184).
market and thus demand-driven on the back of strong economic ac-tivity
in the company�s core markets. On the other hand, the Group Business Unit Project Motors
companies have long-standing experience, technological expertise and in EUR million 2007 2006 Change
the required project motors product portfolio, which enables them to
offer the delivery reliability and production capacity needed in the mar-ket. Sales revenues 132.8 56.4 135.5%
The long-established company Schorch Elektrische Maschinen und EBIT 11.3 7.0 61.4%
Antriebe, for example, boasts 125 years of experience and tradition in EBIT margin 8.5% 12.5%
project motor engineering.
Employees 1,333 1,184 12.6%
Two business takeovers to strengthen the project motor business were
completed in the reporting period 2007. ATB Laurence Scott, a com-pany Despite first signs of an economic slowdown, the driving forces from
with a workforce of 123 employees based in Norwich, England, the energy and infrastructure sectors should permit a continuation of
is a maker of high-quality motors mostly for the oil and gas industry. business unit�s positive course in 2008 as well.
The company was acquired at a low single-digit EBIT multiple and has
been making valuable contributions to profit ever since the transaction For the coming years, the ATB Group has set itself the strategic goal
was closed. Another company that was taken over is McClure, which of penetrating in the segment of even larger project motors in order to
is also based in Great Britain and complements the company�s product strengthen its product portfolio.
portfolio perfectly. McClure specialises in motors for the mining industry.
Thus, the ATB Group has rounded off ATB Morley�s world-wide largest At Managing Board level, Board member David Brian Schumacher as-sumed
range of mining motors even further. responsibility for the Project Motors business unit from the be-ginning
of April 2008 with the aim of creating transparent structures
Over the past year, the business unit has focused its sales efforts on and accountabilities for production plants and products.
getting back onto the so-called vendors lists of large clients and con-tractors.
This is crucial for being invited to take part in tenders for refin-eries,
naval equipment, etc. Interesting potential for cross-selling may
arise with respect to the Serial Motors business unit as bids submitted
to tenders may include ATB serial motors as add-ons beside project
motors.
ATB Annual Report 2007 19
Business Unit Serial Motors
The Serial Motors business unit supplies serial and industrial motors In the reporting year, the business unit generated sales revenues in
to the market from the plants of Spielberg, Austria, Welzheim, Ger-many, the amount of EUR 216.4 million (2006: EUR 182.8 million). In 2007,
Tamel, Poland, and Sever, Serbia (sizes below 315). The product EBIT amounted to EUR 3.0 million after adjustment for the cost of per-sonnel
portfolio comprises customer-specific serial motors and industrial drive restructuring and extraordinary write-down of intangible assets
systems such as low-voltage and high-voltage motors, ventilation drive (2006: EUR 3.0 million).
systems and servo motors of different sizes and customised features
such as housings, shaft types, and service life. The business unit�s ATB New orders booked reached EUR 216.2 million in the past year. At
Sever plant is a cost-efficient and well-equipped production site in Ser-bia EUR 47.1 million, the order backlog was at a satisfactory level at year-end,
that also manufactures large motors for the Project Motors business which also caused delivery times and delivery reliability to get back
unit. to normal.
In 2007, 62.7% of sales revenues were earned in Germany, which thus The Serial Motors segment employed a workforce of 3,961 at year-end
remained the business unit�s main market. Business developed very 2007 (2006: 4,657).
strongly on the back of solid domestic sales and booming exports.
Business Unit Serial Motors
The situation in the commodity market and the procurement of critical in EUR million 2007 2006 Change
components was again tight in the year 2007. This also weighed on
profitability, as high material prices can be passed on only with a delay Sales revenues 216.4 182.8 18.4%
or only in part under price escalator clauses. The ATB Group responded Adjusted EBIT* 3.0 3.0 -
to persistent competitive and cost pressures by setting up a project EBIT -27.6 4.6 -
team and focusing on energy efficiency: Adjusted EBIT margin* 1.4% 1.6%
-In the year 2007, a project team combining controlling, purchasing Employees 3,961 4,657 -14.9%
and business excellence was set up at the level of ATB-Holding. This
taskforce concentrates on optimising processes and achieving sav-ings Beside the danger of an economic slowdown, the export business is ex-posed
in supply chain management. This involved talks with suppliers to to the strong euro and rising competitive pressure from Chinese
identify potential for savings in the procurement process and switching manufacturers in the standard motors segment. Due to its concentra-tion
to lean production processes. on the European market and its focus on customer-specific serial
motors, the impact of these risk factors on the business unit is limited,
-The company is vigorously marketing the Eff1 series of motors and however. A further risk is the future development in the raw materials
the new range of EC motors. The Group expects strong growth in sector, particularly with regard to steel.
this motor segment, driven by the debate about fuel conservation,
projected statutory regulations and new applications. In late 2007, In 2008, the business unit will be concentrating on high-margin custom-er-
first orders were won for the supply of efficient motors for wind farms specific solutions and a reduction of standard applications. This will
and solar system control. go hand in hand with a focus on key customers and target industries.
At the beginning of April, Nikolas Szlavik was appointed as Managing
Board member for the Serial Motors business unit.
*) EBIT adjusted for the cost of personnel restructuring and extraordinary write-down of intangible assets
ATB Annual Report 2007 20
Business Unit Home Appliances
The ATB business unit Home Appliances manufactures products at In the reporting year, the Home Appliances business unit generated
ATB Spielberg, Austria, ATB Sever, Serbia, and ATB Selni at Nevers, sales revenues in the amount of EUR 64.2 million (2006: EUR 57.4
France. The product portfolio comprises motors for garden equipment million). EBIT in 2007 stood at EUR 3.3 million after EUR 3.4 million
including lawnmowers, choppers, and aerators as well as motors in the previous year.
for concrete mixers, high-pressure cleaning systems, document shred-ders,
oil and gas burners, door and gate drives and for applications in New orders booked reached EUR 63.3 million in the past year. At year-end,
building automation. With a production of about 2.2 million motors and the order backlog amounted to EUR 5.4 million and especially in
drive systems for washing machines, it also supplies the"white goods� the oil burner and concrete mixer segments developed very satisfac-torily
industry. in the financial year 2007.
As in 2006, the financial year 2007 was marked by price competition The Home Appliances business unit employed a workforce of 994 at
and consolidation trends on the manufacturing side. Because of dete-riorating year-end 2007 (2006: 622).
conditions and increasing competition from Asia, the Home
Appliances business unit and, especially, the white goods segment, is Business Unit Home Appliances
no longer part of the ATB Group�s strategic core business. One conse-quence in EUR million 2007 2006 Change
of this strategy was closure of ATB Motors Shanghai Co. Ltd. at
the end of 2007. The plant had produced motors for lawnmowers and Sales revenues 64.2 57.4 11.8%
high-pressure cleaners for the European and Asian markets. EBIT -3.3 -3.4 3.4%
EBIT margin -5.1% -5.9%
In the lawnmower motors segment, the ATB Group is market leader
in Europe with a market share of more than 40%. In order to ensure Employees 994 622 59.8%
cost-effective manufacturing of lawnmower motors and protecting sales
revenue, coiling and part of the production of lawnmower motors was Further development of activities at ATB Sever are planned for the fi-nancial
moved from Spielberg, Austria to the Serbian plant in Subotica. year 2008 in order to win new customers and projects on the
basis of a competitive cost structure. In view of high material costs,
East-European countries like Romania, Czech Republic, Slovakia, and management expects continuing difficult market conditions in this busi-ness
the Balkan states are increasingly becoming key markets of the Home segment.
Appliances business unit. The Group responded to this shift in mar-kets
by relocating production to lower-cost Serbia in the reporting year.
Thus, it was able to stay close to the customers and protect its competi-tive
position.
ATB Annual Report 2007 21
Business Unit New Businesses
The development activities of the ATB group are bundled in the sub-sidiary Automotive development projects
ATB Technologies GmbH in Vorarlberg, Austria. In the first year Technology projects for alternative vehicles drive systems have been
after start-up of full operations at the new, very modern development launched with renowned OEMs from the automotive industry. Projects
centre in Lustenau, activities concentrated on three segments that are started in previous years were continued. The components to be de-veloped
novel for the ATB Group and very important for the future: are designed for use in hybrid vehicles and fuel cell vehicles.
The projects initiated in 2007 have a time horizon of several years and
The continuing development of energy-efficient Permanent provide for the manufacture of smaller trial series in conformity with au-tomotive
Magnet Motors (PM) standards. Under one of the projects, about 400 test vehicles
The development of this series is ATB�s response to a clear market will be fitted with ATB Technologies components in 2009.
trend: increasing demand for energy-efficient electric motors. PM mo-tors
are much more efficient than ATB�s main product, asynchronic mo-tors, In the reporting year, the New Businesses business unit generated
and can be built in much more compact design, which conserves sales revenues in the amount of EUR 3.9 million (2006: EUR 4.2 mil-lion).
materials. While giving the same performance, PM motors are lighter EBIT in 2007 stood at EUR 1.3 million after EUR 0.8 million in the
and smaller. previous year. The EBIT margin was 33.0% (2006: 18.2%).
ATB has developed completely new, highly innovative designs that New orders booked reached EUR 4.8 million in the past year. At year-end,
combine the electric motor and the required electronic drive system in the order backlog amounted to EUR 1.2 million.
a fully integrated unit. Development work for low-voltage applications
(12VDC/and 24VDC) for the first motor sizes was completed and deliv-eries At year-end 2007, the New Businesses business unit employed a
were started in mid-2007. In 2007, the development departments workforce of 51 (year-end 2006: 48).
of ATB Technologies GmbH focused in expanding the series for 230
volt applications. Business Unit New Businesses
in EUR million 2007 2006 Change
Development of a series of compact frequency inverters
Unlike many of its peers, the ATB Group specialises in customer-specif-ic Sales revenues 3.9 4.2 -7.5%
electric drives. To meet the rapidly rising demand for controlled drive EBIT 1.3 0.8 67.7%
systems, ATB is working on the development of a series of highly com-pact EBIT margin 33.0% 18.2%
frequency inverters in order to be able to offer modular and read-ily
adaptable power electronics for customer-specific drive systems. A Employees 51 48 6.3%
major manufacturer of vacuum pumps has already been won as a new
customer for this new type of electronic drive system. Development ac-tivities For PM motors, a new automated winding system was developed in
for two sizes of frequency converters were intensified, following 2007, which in 2008 led to the installation of an automatic needle
which the pilot series for the first converter type was started in 2007. winding system used to mass-produce windings for permanent mag-net
motors. In the customised frequency inverter segment, preparatory
work has been largely completed, permitting the start of production in
February 2008. In the automotive segment, the Group expects that its
technology projects will pave the way for becoming a components sup-plier
for the automotive industry in the medium run and upgrading its
technological expertise substantially.
ATB Annual Report 2007 22
Report of the Supervisory Board
The Supervisory Board responsible for the reporting period has com-plied
with its duties set out by law and in the company�s statutes in five
meetings in the financial year 2007. The Managing Board reported to
the Supervisory Board regularly about the development of the business
and the situation of the company and that of its Group members. All
issues requiring Supervisory Board approval were discussed in detail. In
addition, the Supervisory Board Chairman was regularly informed of any
important matters relating to the company.
The annual financial statements of ATB Austria Antriebstechnik AG and
the consolidated financial statements for the year ending 31 December
2007, as well as the management report and the consolidated manage-ment
report for the financial year 2007 including the accounting meth-ods
used were audited by BDO Salzburg Wirtschaftspr�fungs GmbH,
the auditing firm appointed by resolution of the general shareholders�
meeting, and awarded an unqualified audit certificate.
The Supervisory Board examined the financial statements presented,
the proposal to carry the accumulated deficit forward and the Managing
Board�s management report and concurs with the audit opinion.
Thus, the financial statements of the stock corporation for the year end-ing
31 December 2007 are hereby approved pursuant to 125 (2) of
the Austrian Stock Corporation Act.
The Supervisory Board thanks the Managing Board and the employees
for the work performed and the commitment shown.
Vienna, May 2008
Supervisory Board
Mirko Kovats
Chairman of the Supervisory Board
ATB Annual Report 2007 23
Consolidated annual financial
statements 2007
ATB Annual Report 2007 24
A. Consolidated balance sheets
as at 31 December 2006 and 2007
ASSETS Note 2007 20061)
TEUR TEUR
Non-current assets
Property, plant and equipment H.01 167,396 174,597
Intangible assets H.02 83,880 110,885
Deferred tax assets H.03 4,826 5,930
Available-for-sale financial assets H.04 1,243 3,280
Other non-current financial assets H.04 549 129
257,894 294,821
Current assets
Inventories H.05 67,550 59,662
Trade and other receivables H.06 74,977 63,021
Receivables from construction contracts H.06 14,679 7,783
Cash and cash equivalents H.07 10,108 19,871
167,314 150,337
Assets from discontinued operations H.08 3,331 11,625
170,645 161,962
TOTAL ASSETS 428,539 456,783
1) The comparative period has been restated to reflect changes in accounting for construction contracts and error corrections.
ATB Annual Report 2007 25
EQUITY AND LIABILITIES Note 2007 20061)
TEUR TEUR
Equity
Share capital 26,657 21,810
Capital reserves 30,570 3,417
Currency translation differences 878 45
Accumulated profit/loss -11,989 22,530
Negative minority interests -8,903 -3,104
Majority shareholder�s interests 37,213 44,698
Minority interests 1,250 12,553
Equity H.09 38,463 57,251
Non-current liabilities
Long-term borrowings H.10 82,039 112,900
Liabilities to Group H.11 44,735 0
Long-term obligations to employees H.12 42,568 42,690
Other long-term provisions H.13 1,289 1,127
Deferred tax liabilities H.03 13,633 21,925
184,264 178,642
Current liabilities
Trade payables including customer prepayments H.15 52,614 53,820
Group payables H.11 55,951 81,105
Short-term provisions H.13, H.14 6,096 8,330
Other short-term liabilities H.14 28,710 35,070
Current tax payable 2,418 428
Short-term borrowing H.10 49,655 32,747
195,444 211,500
Liabilities from discontinued operations H.08 10,368 9,390
205,812 220,890
TOTAL EQUITY AND LIABILITIES 428,539 456,783
1) The comparative period has been restated to reflect changes in accounting for construction contracts and error corrections.
ATB Annual Report 2007 26
B. Consolidated income statement
for the financial years 2006 and 2007
Note 2007 20061)
TEUR TEUR
Sales revenues H,16 417,297 300,909
Change in inventories H.17 -2,394 3,127
Own work capitalised H.17 4,932 3,774
Cost of materials and services H.5 -217,098 -164,631
Personnel expenses H.18 -132,626 -104,111
Depreciation and amortisation of fixed assets -21,278 -16,400
Other operating income H.19 14,046 17,828
Other operating expenses H.19 -52,101 -31,519
Write-down of impaired intangible assets H.2 -29,000 0
Operating result (EBIT) -18,222 8,977
Financing expenses -20,930 -10,542
Financing income 538 787
Financial result H.20 -20,392 -9,755
Earnings before taxes -38,614 -778
Income tax H.21 1,388 -151
Profit/loss from continued operations -37,226 -929
Profit/loss from discontinued operations H.08 -15,890 -1,602
Net profit/loss for the year -53,116 -2,531
thereof minority interests -12,096 470
thereof majority interests -41,020 -3,001
Diluted and undiluted earnings per share H.25 -4.51 -0.33
(undiluted and diluted) earnings per share in EUR from continued operations
attributable to the parent company�s shareholders in the financial year -3.38 -0.19
(undiluted and diluted) earnings per share in EUR from discontinued operations
attributable to the parent company�s shareholders in the financial year -1.13 -0.14
Period-to-period comparability
Note that due to the acquisition and initial consolidation of ATB Laurence Scott Ltd. and David McClure Ltd. as well as the full-year recognition
of the Lindeteves-Jacoberg Group, the comparability of the consolidated income statement, balance sheet, equity and cash flow statements and
notes for 2007 with those of the preceding year is limited.
The effects of the acquisitions made in the financial years 2006 and 2007 on net assets, sales revenues and the consolidated net profit for the
period are disclosed in Notes F24.1 and F.24.2.1
1) The comparative period has been restated to reflect changes in discontinued operations and error corrections.
ATB Annual Report 2007 27
C. Consolidated equity statement
for the financial years 2006 and 2007
for
interests
loss
securities negative
reserve of
profit/
sales reserve
translation
market for- interests shareholder�s interests
capital reserves
to-
Share Capital Currency Mark-available-Revaluation Accumulated Reclassification minority Majority Minority Equity
Note in TEUR
As at 31 December 2005 21,810 3,417 -1,183 4 0 4,177 -5,841 22,384 1,278 23,662
Unrealised gains/losses
securities 0 0 0 -21 0 0 0 -21 0 -21
Revaluation reserve 0 0 0 0 39,852 0 1,424 41,276 859 42,135
Deferred taxes on revaluation
reserve 0 0 0 0 -11,427 0 -142 -11,569 -326 -11,896
Currency translation differences 0 0 1,293 0 0 0 -120 1,173 -91 1,082
Net gain (loss) recognised in
equity 0 0 1,293 -21 28,425 0 1,162 30,859 442 31,300
Profit/loss for the year 0 0 0 0 0 -3,430 392 -3,038 -220 -3,258
Total net income 2006 0 0 1,293 -21 28,425 -3,430 1,554 27,821 222 28,042
Distribution 0 0 0 0 0 -4,500 0 -4,500 -96 -4,596
Capital increase ATB Sever 0 0 0 0 0 -1,183 1,183 0 0 0
Acquisition LJ 0 0 0 0 0 0 0 0 4,654 4,654
Increase in minorities 0 0 0 0 0 -2,148 0 -2,148 4,801 2,653
As at 31 December 2006 21,810 3,417 110 -17 28,425 -7,084 -3,104 43,556 10,859 54,415
Change in accounting for
�construction contracts 0 0 0 0 0 698 0 698 472 1,170
Error correction 0 0 -65 0 0 508 0 443 1,222 1,665
As at 31 December 2006 after
accounting changes and error
correction 21,810 3,417 45 -17 28,425 -5,878 -3,104 44,698 12,553 57,251
Unrealised gains/losses-
�securities 0 0 0 -16 0 0 0 -16 0 -16
Other changes 0 0 0 0 0 571 0 571 0 571
Impairment write-down -1,645 -1,645 -105 -1,750
Deferred taxes on revaluation
reserve 0 0 0 0 1,719 0 0 1,719 109 1,828
Currency translation differences 0 0 833 0 0 0 186 1,019 936 1,955
Net gain (loss) recognised in
equity 0 0 833 -16 74 571 186 1,648 940 2,588
Profit/loss for the year 0 0 0 0 0 -35,035 -5,985 -41,020 -12,096 -53,116
Total net income 2007 0 0 833 -16 74 -34,464 -5,799 -39,372 -11,156 -50,528
Capital increase 4,847 27,153 0 0 0 0 0 32,000 0 32,000
Distribution 0 0 0 0 0 0 0 0 -78 -78
Change in minorities 0 0 0 0 0 -113 0 -113 -69 -182
As at 31 December 2007 26,657 30,570 878 -33 28,499 -40,455 -8,903 37,213 1,250 38,463
ATB Annual Report 2007 28
D. Consolidated cash flow statement
for the financial years 2006 and 2007
Note 2007 20061)
TEUR TEUR
Cash flow from operating activities
Cash generated from current operations -9,159 14,970
Taxes paid -1,703 -879
Cash flow from operating activities H.22 -10,862 14,091
Cash flow from investing activities
Acquired company interests less net cash acquired -5,511 -17,197
Acquired intangible assets -3,993 -2,579
Acquired plant, property and equipment -11,743 -11,876
Acquired financial assets 0 -75
Proceeds from the disposal of property, plant and equipment 210 1,718
Change in finance lease liabilities and grants received 1,414 0
Interest received 0 207
Cash flow from investing activities -19,623 -29,802
Cash flow from financing activities
Increase in share capital 4,847 0
Increase in capital reserve 27,153 0
Dividend payments -78 -4,596
Payments to minority shareholders 0 -25
Inflow from loan liabilities to third parties 30,067 37,606
Outflow from loan liabilities to Group entities -25,559 0
Interest paid -15,574 -5,123
Cash flow from financing activities 20,856 27,862
Cash and cash equivalents at beginning of period 19,871 8,322
Decrease/increase in cash and cash equivalents -9,629 12,151
Effect of exchange rate changes on cash and cash equivalents -134 -167
Outflow of cash from reclassification as discontinued operations 0 -435
Cash and cash equivalents at end of period H.07 10,108 19,871
In contrast to the previous year, restricted cash and cash equivalents are included in cash and cash equivalents and interest paid is reported as
part of the cash flow from financing activities. This resulted in a change in presentation of the cash flow statement. The comparable period has
been restated accordingly.
During the financial year, partner companies of majority owner A-TEC Industries AG purchased debt owed by entities of the Lindeteves-Jacoberg
Group to creditor banks in the amount of TEUR 43,283. As these transactions did not result in any outflow of cash and cash equivalents, these
transactions were not included in the cash flow from financing activities
1) The comparative period has been restated to reflect changes in discontinued operations and error corrections.
ATB Annual Report 2007 29
E. The Group
Legal name: To enable the company to attain a simple majority in Lindeteves-Ja-coberg
ATB Austria Antriebstechnik Aktiengesellschaft Ltd., a call option was subsequently signed in the form of a
"subscription agreement�. The call option, which was issued by the G15
Head office: Investment Holding Pte Ltd., Singapore group of investors at the time
A-1010 Vienna, Hohenstaufengasse 7 of the successful completion of the capital increase, entitled the holder
to buy another 75,058,499 shares representing a stake of 15.14% (af-ter
Legal form: the capital increase). The purchase price under the call option was
Stock corporation S$0.1658 and S$0.2 per share. This call option was limited to three
months after the end of the subscription of shares from the conversion
Company register: of the loan. The call option was exercised in March 2006, raising the
Regional Court of Vienna interest held in the Lindeteves-Jacoberg group to a total of 45.12%. As
Initial entry on 22 December 1986 the interest held had risen above 30%, a takeover bid had to be made
FN 80022 f in accordance with the rules of the Singapore stock exchange (between
March and May 2006). This raised the interest held to 51% as of the
The Group�s principal activity is the manufacture of electrical drive sys-tems end of May 2006.
for industrial applications and machinery. The Group produces and
markets mainly industrial motors, motors for house and garden appli-ances, In November 2006, the interest held was raised to 58.97% as a result
and explosion-proof motors. of a further capital increase.
1 Restructuring during the financial year 2006 In addition, in the past financial year, a capital increase was carried
1.1 Restructuring within the ATB Group out within the Lindeteves-Jacoberg Group at Brook Crompton Western
Electric Motor Corporation, Dalian, PRC, through a cash contribution of
ATB Motorenwerke GmbH, AUT EUR 0.7 million.
By resolution of 15 December 2006, the Supervisory Board of ATB
Austria Antriebstechnik AG approved the motion to split off the pro-duction ATB Sever a.d., SRB
operations of ATB Austria Antriebstechnik AG into ATB Mo-torenwerke In the financial year 2006, a 2.15% capital increase was effected at
GmbH with its head office at Spielberg. ATB Motorenwerke ATB SEVER a.d., Subotica, Serbia through a non-cash contribution. As
GmbH was formed as of 19 December 2006. Following the split-off a result, total shareholdings in ATB SEVER amounted to 70.46% as of
of operating activities, ATB Austria Antriebstechnik AG still retains its 31 December 2006.
holding activities.
ATB Selni SAS, FRA
Lindeteves-Jacoberg Ltd., SGP By resolution of the General Meeting of Shareholders dated 21 De-cember
On 27 August 2005, the company signed a loan agreement with Lin-deteves- 2006, the share capital of ATB Selni SAS, Nevers, France
Jacoberg Ltd., Singapore, a company listed on the Singapore was raised in the financial year 2006 through a cash contribution of
stock exchange, which was subsequently amended by an additional EUR 1.7 million to EUR 4.2 million. Subsequently, the share capital was
agreement on 21 December 2005. Under this agreement, the compa-ny reduced to TEUR 160 to cover the losses incurred. The reduction of the
granted, subject to certain terms and conditions, a convertible loan in share capital was effected by reducing the nominal value per share from
the total amount of TEUR 12,267, which is senior to all other liabilities. EUR 16 to EUR 0.61. EUR 1 million was paid in cash before the end
This loan agreement enabled the company to acquire 148,781,725 of December 2006, followed in the financial year 2007 by the balance
shares under a conditional capital increase through conversion of the of EUR 0.7 million.
loan (29.99% of the shares outstanding after the capital increase). In
February 2006, the loan was converted into a 29.99% interest in the
Lindeteves-Jacoberg Group.
ATB Annual Report 2007 30
At December 31, 2006, the Group therefore was structured as follows:
A-TEC Industries AG
Vienna, Austria
97,02%
ATB Austria Antriebstechnik AG
Spielberg, Austria
6%
Lindeteves-Jacoberg Limited
Singapore
58,97%
ATB Motorentechnik GmbH 94% ATB Antriebstechnik GmbH 94%
Nordenham, Germany Weizheim, Germany
100% 1%
Brook Crompton International
ATB Motorentechnik (Asia) Pte Ltd. ATB France s.a.r. l. 99% Western Electric Pacific Ltd. 100% 100% Pte Ltd (in Liquidation)
Singapore Gonesse, France Hong Kong, China Singapore
ATB Austria Antriebstechnik 100% Lindeteves Marketing Services
Vertriebsgesellschaft mbH Pte Ltd. (in liquidation) 100% 100% Lindeteves-Jacoberg Malaysia
Sdn Bhd Malaysia
(not operational since 30 June 2005) Singapore
100%
ATB Technologies GmbH 100% WE Motors Sdn Bhd
Lustenau, Austria Malaysia
ATB Components s.r.o. 100% Linberg Sdn Bhd 100% 100% Brook Crompton France S.A.
Ostrava-Radvanice, Czech Republic Malaysia (in Liquidation)
Paris, France
ATB Benelux B.V. 100% Linberg Philippines Inc. 100% 100% Brook Crompton Ltd
Appeldoorn, Netherlands Philippines Toronto, Canada
ATB Selni SAS 100% Lindeteves-Jacoberg Holding GmbH Fabryka Silnik�w Elektrycznych
100% 100%
Nevers, France M�nchengladbach, Germany TAMEL SA
Tarnow, Poland
100%
ATB Morley Ltd. 100% Schorch Elektrische Maschinen
Leeds, Great Britain und Antriebe GmbH
M�nchengladbach, Germany
ATB Sever a.d. Lindeteves-Jacoberg
70,48% Trading Sdn Bhd (in Liquidation) 100% 100% Brook Crompton Motor USA Inc.
Subotica, Serbia Singapore Arlington Heights, USA
ATB Schweiz AG 99,20% Lindeteves Engineering Pte Ltd Brook Crompton Germany GmbH
100% 100%
Lenzburg, Switzerland Singapore (in Liquidation)
Unterf�hring, Germany
ATB Motors (Shanghai) Co. Ltd. 100% Brook Crompton Western Electric
100% 100% Brook Motors Ltd.
Shanghai, China Motor (Dalian) Corporation Ltd Huddersfield, Great Britain
Dalian, China
Western Electric Asia Pte Ltd. 100% 51% Brook Crompton Greaves Ltd.
Singapore Maharashtra, India
100%
Brook Crompton B.V.
Netherlands
100%
Western Electric Australia Pty Ltd.
Australia
100%
Western Electric New Zealand
Auckland, New Zealand
ATB Annual Report 2007 31
E. The Group
2 Restructuring during the financial year 2007 ATB Laurence Scott Ltd., GB
2.1 Restructuring within the ATB Group On 22 May, the assets and liabilities of Laurence Scott & Electromotors
Ltd. were acquired by the newly formed ATB Laurence Scott Ltd., GB
ATB Austria Antriebstechnik AG, AUT under an asset deal at a purchase price of TGBP 3,000 not includ-ing
As of 21 September 2007, the company moved its head office to Ho-henstaufengasse incidental acquisition costs. Under this move, 153 employees were
7, 1010 Vienna. Its operating activities were hived taken over. The company specialises in the production of high-voltage
off to ATB Motorenwerke GmbH with its head office at Spielberg. The motors especially for the oil and gas industry.
holding activities have been retained by ATB Austria Antriebstechnik
AG. ATB Sever a.d., SRB
In the financial year 2007, nominal share values were homogenised at
Lindeteves-Jacoberg Ltd., SGP ATB Sever a.d., Subotica, Serbia. ATB Austria Antriebstechnik AG now
In December 2007, ATB Austria Antriebstechnik AG acquired another holds 2,721,522 shares at a nominal value of RSD 500 per share. As
5,126,341 shares at a price of S$0.065 per share, thereby increasing of 31 December 2007, total shareholdings in ATB Sever amount to
its stake in Lindeteves-Jacoberg Ltd. to 59.69%. 70.59%.
David McClure Ltd., GB
In July 2007, a 100% interest in David McClure Ltd., England was
purchased under a share deal at a price of TGBP 350 not including
incidental acquisition costs. Following this, all assets and liabilities were
transferred to ATB Morley Ltd. at the respective book values. The entity
acquired specialises in the production of motors for the mining, defence,
automotive and heavy industries and employs a workforce of 27.
ATB Annual Report 2007 32
As at 31 December 2007, the changed Group structure was therefore as follows:
ATB Austria Antriebstechnik Vertriebsgesellschaft mbH, Welzheim, Germany, Brook Crompton Germany GmbH, Unterf�hring, Germany, Brook
Crompton France S.A., Paris, France, David McClure Ltd., Stockport, GB, Brook Crompton Greaves Ltd., Maharashtra, India, and Dabatera Sdn.
Bhd., Malaysia were not included in the consolidated financial statements for reasons of immateriality or lack of control.
A-TEC Industries AG
Vienna, Austria
97,94%
ATB Austria AG
Vienna, Austria
6%
Lindeteves-Jacoberg Limited
Singapore
59,69%
ATB Motorenwerke GmbH 100%
Spielberg, Austria
Brook Crompton International
ATB Motorentechnik GmbH 94% ATB Antriebstechnik GmbH 94% Western Electric Pacific Ltd. 100% 100% Pte Ltd (in Liquidation)
Nordenham, Germany Weizheim, Germany Hong Kong, China Singapore
100% 1%
ATB Motorentechnik (Asia) Pte Ltd. ATB France s.a.r. l. 99% Lindeteves Marketing Services
100% 100% Lindeteves-Jacoberg Malaysia
Singapore Gonesse, France Pte Ltd. (in liquidation) Sdn Bhd Malaysia
Singapore
100%
ATB Austria Antriebstechnik
100% WE Motors Sdn Bhd
Vertriebsgesellschaft mbH Malaysia
(not operational since 30 June 2005)
ATB Technologies GmbH 100% Linberg Sdn Bhd Brook Crompton France S.A.
100% 100%
Lustenau, Austria Malaysia (in Liquidation)
Paris, France
ATB Components s.r.o. 100% Linberg Philippines Inc. 100% 100% Brook Crompton Ltd
Ostrava-Radvanice, Czech Republic Philippines Toronto, Canada
ATB Benelux B.V. 100% Lindeteves-Jacoberg Holding GmbH Fabryka Silnik�w Elektrycznych
100% 100%
Appeldoorn, Netherlands M�nchengladbach, Germany TAMEL SA
Tarnow, Poland
100%
ATB Selni SAS 100% Schorch Elektrische Maschinen
Nevers, France und Antriebe GmbH
M�nchengladbach, Germany
ATB Laurence Scott Ltd. 100% ATB Morley Ltd. Lindeteves-Jacoberg
100% Trading Sdn Bhd (in Liquidation) 100% 100% Brook Crompton Motor USA Inc.
Norwich, Great Britain Leeds, Great Britain Singapore Arlington Heights, USA
100%
David McLure Ltd. ATB Sever a.d. 70,59% Lindeteves Engineering Pte Ltd 100% 100% Brook Crompton Germany GmbH
Stockport, Great Britain Subotica, Serbia Singapore (in Liquidation)
Unterf�hring, Germany
ATB Schweiz AG Brook Crompton Western Electric
99,20% 100% 100% Brook Motors Ltd.
Lenzburg, Switzerland Motor (Dalian) Corporation Ltd Huddersfield, Great Britain
Dalian, China
ATB Motors (Shanghai) Co. Ltd. 100% Western Electric Asia Pte Ltd. 100% 51% Brook Crompton Greaves Ltd.
Shanghai, China Singapore Maharashtra, India
100%
Brook Crompton B.V.
Netherlands
100%
Western Electric Australia Pty Ltd.
Australia
100%
Western Electric New Zealand
Auckland, New Zealand
ATB Annual Report 2007 33
F. Summary of significant accounting and
measurement policies
1 General information the economy of its functional currency. IFRIC requires that an entity,
The consolidated financial statements as of 31 December 2007 were once it identifies the existence of hyperinflation, shall restate its financial
prepared in accordance with International Financial Reporting Standards statements as though the economy had always been hyperinflationary.
(IFRS) as adopted by the European Union (EU) 245a UGB (the Aus-trian IFRIC also regulates how to remeasure deferred tax items in the open-ing
Business Code). They give a true and fair view of the company�s balance sheet. As the countries in which the company operates are
assets and liabilities, financial position, and profit or loss. Land and build-ings not hyperinflationary economies, this has no impact on the ATB Group.
are carried at fair value less cumulative depreciation for buildings.
Available-for-sale securities are carried at fair value (cf. Note F.11). IFRIC 8 Scope of IFRS 2 Share-based Payments (effective from 1 May
2006) contains clarifications regarding the scope of IFRS 2"Share-based
The Group currency is the euro, which also reflects the primary economic payments�. IFRS 2 is interpreted as applying even to those busi-ness
environment in which the Group operates. All figures in the consolidated transactions in which the entity is not able to clearly identify goods
financial statements are presented in euro thousands (TEUR). or services received. The entity shall measure the non-identifiable goods
or services as the difference between the fair value of the share-based
The consolidated financial statements were authorised for issue by the payment and the faire value of the identifiable goods or services re-ceived.
Group�s Managing Board on 23 May 2008. Changes to the consolidated As IFRS 2 is currently not being applied in the ATB Group, this
financial statements by any other body are thus no longer possible. has no impact on the company.
1.1 First-time application of new financial reporting standards IFRIC 9 Reassessment of Embedded Derivatives (effective from 1 June
Of the existing standards, new standards and interpretations, the follow-ing 2006) addresses the question of when an entity has to assess whether
were applied in the financial year 2007: a contract contains any embedded derivative that is required to be sepa-rated
from the host contract and accounted for as if it were a stand-alone
Amendments to IAS 1: Capital Disclosures (effective from 1 Janu-ary derivative. According to IFRIC 9, an assessment has to be made
2007): the amendment regulates the disclosure obligations with only when the entity first becomes a party to the contract. A reassess-ment
regard to the entity�s objectives, policies and processes for managing has to be made if there was a subsequent change in the terms of
capital. As these changes relate only to disclosure obligations, they do the financial instrument that significantly modified the cash flows. The
not have any material impact on the company�s assets and liabilities, first-time adoption of IFRIC 9 does not have any material impact on the
financial position, and profit or loss. company�s assets and liabilities, financial position, and profit or loss, nor
on the company�s cash flows.
IFRS 7 Disclosures about Financial Instruments (effective from 1 Janu-ary
2007) introduce new disclosure requirements for improved informa-tion IFRIC 10 Interim Financial Reporting and Impairment (to be applied for
about financial instruments. It requires the reporting of qualitative reporting periods commencing on or from 1 November 2006): IFRIC 10
and quantitative information concerning the risk potential deriving from provides that an entity shall not reverse an impairment loss recognised in
the financial instruments, including prescribed minimum information a previous interim period in respect of goodwill or an investment in either
about credit, liquidity and market risk, including market risk sensitivity an equity instrument held for sale or a financial asset carried at cost. Fur-thermore,
analyses. IFRS 7 replaces IAS 30 (Disclosures in the Financial State-ments an entity shall not extend this consensus by analogy to other
of Banks and Similar Financial Institutions) and the reporting re-quirements areas of potential conflict between IAS 34 and other standards.
contained in IAS 32 Financial Instruments: Disclosure and
Presentation). IFRS 7 has an impact on published information but no This first-time application of IFRIC 10 has no material effect on the
impact on accounting methods and measurement principles. Group�s assets and liabilities, financial position, and profit or loss.
IFRIC 7 Applying the Restatement Approach under IAS 29, Finan-cial
Reporting in Hyperinflationary Economies (effective from 1 March
2006). IFRIC 7 contains guidance on how an entity would restate its
financial statements when it identifies the existence of hyperinflation in
ATB Annual Report 2007 34
F. Summary of significant accounting and
measurement policies
1.2 New financial reporting standards not yet adopted The following standards and amendments to standards and interpre-tations
The IASB has issued further standards and amendments to standards have been issued by the IASB but have not been adopted by
and interpretations, the application of which was not yet obligatory in the the EU yet by the time these consolidated financial statements were
financial year 2007. prepared:
The following standards and interpretations had been issued by the -The revised standards IFRS 3 Business Combinations and IAS 27
IASB and endorsed by the EU by the time these consolidated financial Consolidated and Separate Financial Statements according to IFRS
statements were prepared: were released in January 2008. IFRS 3 allows an accounting policy
choice to measure non-controlling interest either at fair value or at the
-IFRS 8 Operating Segments (to be applied for reporting periods com-mencing non-controlling interest�s proportionate share of identifiable net assets
on or after 1 January 2009). IFRS 8 requires an entity to of the acquiree. This new rule has an impact, among other things, on
report financial and descriptive information about its reportable seg-ments. the measurement of a proportionate share of noncontrolling interests
Reportable segments are operating segments or aggregations in goodwill and its reporting in equity. IAS 27 provides rules for con-solidation
of operating segments that meet specified criteria. An operating seg-ment and for the treatment of changes in interests held in entities.
is a component of an entity for which discrete financial informa-tion Residual investments in former subsidiaries initially have to be valued
is available, which is reviewed regularly by the entity�s chief operat-ing at fair value, with any resulting difference to be recognised in profit or
decision maker to make decisions about resources to be allocated loss. ATB currently examines to what extent application of this inter-pretation
and the assessment of its performance. In general, financial informa-tion will have an effect on the company�s assets and liabilities,
must be reported on the basis of the internal control mechanism financial position, and profit or loss, or on the company�s cash flows.
by which the performance of the operating segments is assessed and
decisions are made how resources are to be allocated among operat-ing -IFRIC 12 Service Concession Arrangements (effective beginning on or
segments. These changes do not have any material impact on the from 1 January 2008) addresses the question of how entities supply-ing
company�s assets and liabilities, financial position, and profit or loss, public services under arrangements with territorial governing bodies
nor on the company�s cash flows. have to account for rights and duties resulting from service concession
arrangements. The company currently examines to what extent ap-plication
-IFRIC 11 Group and Treasury Share Transactions in accordance with of this interpretation will have an impact on the company�s
IFRS 2 (to be applied for reporting periods commencing on or after assets and liabilities, financial position, and profit or loss, or on the
1 March 2007): IFRIC 11 provides guidance on applying IFRS 2 and company�s cash flows.
addresses the question of how IFRS 2 is to be applied to share-based
compensation agreements under which equity instruments of the en-tity -IFRIC 13 Customer Loyalty (effective beginning on or from 1 July
or of another entity within the group are granted. As IFRS 2 is cur-rently 2008) addresses the question of how entities should account for ex-penses
not being applied at ATB, this has no impact on the company�s and recognise income from customer loyalty programmes. As
assets and liabilities, financial position, and profit or loss, nor on the ATB does not operate any customer loyalty programmes, IFRIC 13 will
company�s cash flows. not have any impact on the company.
-IFRIC 14 The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their interaction (effective beginning on or from 1
January 2008) addresses how the limit according to IAS 19 Employee
Benefits is determined for a surplus that can be carried as an asset.
In addition, it explains the impact of a statutory minimum funding re-quirement
on the measurement of assets and provisions under defined
benefit plans. The company currently examines how application of this
interpretation will impact on the company�s assets and liabilities, finan-cial
position, and profit or loss, and on the company�s cash flows.
ATB Annual Report 2007 35
-Changes to IAS 1 Presentation of Financial Statements (effective be-ginning 2 Consolidation methods
on or from 1 January 2009) include proposals for changes in Subsidiaries are all companies for which the Group has control over
the titles of some of the financial statements, the duty to present a financial and business policies and holds more than 50% of voting rights
statement of financial position as at the beginning of the earliest com-parative (see Attachment 2). Subsidiaries are included in consolidation from the
period in certain circumstances, presentation of non-owner assumption of control by the parent until control ends.
changes in equity in a separate statement, the separate statement of
components of comprehensive income previously recognised in eq-uity, Group acquisitions are accounted for by the purchase method. The pur-chase
and disclosure of income tax relating to each component of other price paid in an acquisition is the sum of the fair values, at the ac-quisition
comprehensive income. The company currently examines to what ex-tent date, of the assets transferred (primarily cash and cash equiva-lents),
application of this standard will have an impact on the company�s equity instruments issued and liabilities incurred or assumed, plus
assets and liabilities, financial position, and profit or loss, and on the any costs directly attributable to the acquisition.
company�s cash flows.
Identifiable assets acquired, and liabilities and contingent liabilities taken
-Changes to IAS 23 Borrowing Costs (to be applied to reporting periods over as part of a company purchase are initially recognised at fair value
beginning on or from 1 January 2009) addresses capitalisation of bor-rowing on the acquisition date, irrespective of any minority interest.
costs relating to the acquisition, construction or production of
a qualifying asset. The previous option to charge borrowing costs im-mediately The excess of the purchase price over the fair value of the identifiable
to income was completely abolished. The company currently net assets acquired is recognised as goodwill. If the purchase price is
examines how application of this standard will impact on the company�s lower than the fair value of the acquiree�s net assets, the negative good-will
assets and liabilities, financial position, and profit or loss, and on the is recognised in income.
company�s cash flows.
If minority interests in subsidiaries turn negative, they are allocated to the
-Amendment to IAS 32 Financial Instruments: Presentation and IAS 1 majority owner�s equity. From the date as of which the minority interest
Presentation of Financial Statements (effective for reporting periods turns positive again as a result of profits, the interest will be reallocated
starting on or from 1 January 2009) addresses specifically the bal-ance to the minority shareholders.
sheet classification of puttable financial instruments as equity or
debt. Formerly, equity capital had to be shown as a liability because All intra-Group transactions, balances and unrealised gains on transac-tions
of the shareholders� right to withdraw capital. In the future, such put-table between Group companies are eliminated. Unrealised losses from
instruments may be classified as equity on certain conditions. The transactions between Group companies are eliminated unless such loss-es
company currently examines to what extent application of this standard cannot be covered. Where necessary, accounting and measurement
will have an impact on the company�s assets and liabilities, financial policies of subsidiaries were adjusted in order to ensure compliance with
position, and profit or loss, and on the company�s cash flows. the accounting and measurement policies of the parent company.
-Amendments to IFRS 2 Share-based Compensation (effective for re-porting
periods beginning on or from 1 January 2009). As the com-pany
does not operate any share-based compensation scheme, these
amendments will not have any impact on the company�s assets and
liabilities, financial position, and profit or loss, nor on the company�s
cash flows.
All of the accounting standards not yet applied will be applied as soon as
application becomes mandatory.
ATB Annual Report 2007 36
F. Summary of significant accounting and
measurement policies
3 Foreign currency translation
The income statements of foreign subsidiaries are translated into the Group reporting currency at the weighted annual average exchange rate. Bal-ance
sheets items are translated at the exchange rate prevailing on the balance sheet date.
The following closing date and average exchange rates were used:
Singapore US dollar British pound Chinese Serbian Polish
Functional currency dollar (SGD) (USD) (GBP) yuan (CNY) dinar (RSD) zloty (PLN)
Exchange rate at 31 December 2006 2.0200 1.3170 0.6715 10.2790 79.0000 3.831000
Average exchange rate 2006 1.9915 1.2512 0.6830 9.9813 81.4547 3.904417
Exchange rate at 31 December 2007 2.1150 1.4698 0.7342 10.7430 79.2362 3.5900
Average exchange rate 2007 2.0653 1.3760 0.6864 10.3572 79.9234 3.7721
Goodwill arising on the acquisition of foreign subsidiaries is stated in the currency of the respective subsidiary and is translated at the respective
closing rate.
Translation differences arising on consolidation are recognised in the Group�s equity. In the event of the sale of a foreign operation, the cumulative
amount of the translation differences is recognised in the income statement as a gain or loss on disposal.
Foreign currency transactions are translated at the exchange rate on the date of the transaction. Gains or losses arising on such transactions, or
from the translation of monetary assets or liabilities, are recognised in the income statement.
ATB Annual Report 2007 37
4 Property, plant and equipment 5 Goodwill
Land and buildings comprise mainly factories, warehouses for merchan-dise Goodwill represents the excess of the cost of acquisition over the fair
and offices and, in accordance with the option under IAS 16, are value of the company�s share of the net assets of the acquired entity at
recognised at fair value less accumulated depreciation for buildings. In-creases the date of acquisition. Goodwill is reported in the balance sheet under
in fair value are recognised directly in equity in the revaluation intangible assets.
reserve. Impairments that offset previous value gains are shown directly
in equity, in a revaluation reserve. All other impairments are charged to The ATB Group tests goodwill for impairment annually. Impairment tests
income. Land and buildings are carried at cost and, subsequently, at fair are also carried out during the year if there are indications that an impair-ment
value based on periodic valuations performed by an external indepen-dent may have occurred.
expert, less depreciation for buildings.
For performing the impairment test, goodwill is distributed among the
Land is not depreciated. The company applied the revaluation rule in segments of the ATB Group (cf. Note H.2.1) that are used as a basis
accordance with IAS 16 for the first time as of 31 December 2006. for the impairment test.
Carrying values are reviewed at regular intervals.
Negative goodwill represents the difference by which the fair value of
Any other plant, property and equipment bought or produced (e.g. plant the Group�s interest in the net assets of an acquired company exceeds
and equipment, furniture and fixtures) are carried at historical cost less the acquisition cost at the time of its first recognition in the consolidated
depreciation. Cost does not include interest paid on borrowings. accounts.
Depreciation is on a straight-line basis, whereby the cost of assets is In accordance with IFRS 3, negative goodwill is charged to income im-mediately.
written down to residual value over their anticipated useful lives as fol-lows:
6 Research and development
Buildings, including buildings on land Research costs are expensed as incurred. Costs incurred in develop-ment
owned by third parties 20 76 years projects (in connection with the design and testing of new or im-proved
Plant and equipment 3 34 years products) are capitalised as intangible assets, if it is considered
Furniture and fixtures 2 14 years likely that the project will be a commercial success, will be technically
feasible and the costs can be measured reliably, and if all other require-ments
If the carrying value of an asset is greater than its fair value (impairment set out in IAS 38 are met. Other development costs that do not
loss), the asset is written down to the lower value. satisfy these criteria are expensed as incurred.
Gains and losses on disposal are recognised as the difference between Development costs are capitalised only from the time from which a future
the proceeds and the residual book value, and are reported in the in-come benefit can be reliably demonstrated. Capitalised development expenses
statement. If revalued assets are sold, the respective amounts are having a limited period of usefulness are amortised over the period of
transferred from the revaluation reserve to the revenue reserve. their anticipated usefulness using the straight-line method, as from the
beginning of the commercial production of the relevant products, with
the maximum possible amortisation period being fifteen years.
In accordance with IAS 36, development costs are subjected to an an-nual
impairment test until the project is ready for commercial operation.
ATB Annual Report 2007 38
F. Summary of significant accounting and
measurement policies
7 Computer software development costs 11 Available-for-sale financial assets
Expenditure relating to the development or installation of computer soft-ware All shares in non-consolidated subsidiaries and other entities as well as
is capitalised as incurred and amortised over twelve years, as this securities are classified as available for sale. If an active market does not
type of expenditure meets the conditions for the capitalisation of devel-opment exist or fair values cannot be reliably determined by reasonable effort,
costs. the shares in non-consolidated subsidiaries and other entities are mea-sured
at cost. If there are indications that the fair value of an asset has
8 Other intangible assets changed, then the asset is carried at the changed fair value.
Production rights, technologies and licences are capitalised at the time
of acquisition and are amortised on a straight-line basis over periods All purchases and sales are recognised at cost including transaction
of between eight and nineteen years. The amortisation of depreciable costs, if any, at the transaction date. Subsequently, assets are carried at
intangible assets is reported in the income statement under amortisation fair value, with any changes being recognised in equity without impact
expense. Trademark rights acquired have an indefinite useful life and on income. Impairments are charged to income.
are subjected to an annual impairment test in accordance with IAS 36.
Impairment tests are also carried out during the year if there are indica-tions Assets intended for sale within twelve months are included in current
that an impairment may have occurred. assets, else in non-current assets.
9 Impairment of property, plant and equipment and intangible 12 Trade receivables
assets Trade receivables are recognised at the amounts invoiced less allow-ances
Property, plant and equipment and intangible assets including goodwill for doubtful receivables. Receivables are tested for impairment
are tested for impairment each year. Intangible assets with an indefinite on a case-by-case basis. Receivables are regarded as impaired if one
useful life are tested for impairment each year. If the reason for an im-pairment or several events provide objective evidence that future receivables will
of an asset recognised in the past no longer applies, the asset not be fully collectible. Receivables that are assumed to be entirely un-collectible
with the exception of goodwill is written up to cost less scheduled are written off. Bad debts are written off as soon as they are
depreciation. identified as such.
10 Inventories 13 Cash and cash equivalents
Inventories are carried at the lower of cost or net realisable value. The Cash and cash equivalents comprise cash in hand, cash in foreign cur-rencies,
cost of raw materials and goods for resale is determined by the average demand deposits and other short-term, highly liquid financial
price method. The costs of purchase or production of finished goods and assets with original maturities of up to three months. Overdraft facilities
work in progress include materials, direct wage costs and other over-heads are reported in the balance sheet as short-term borrowings.
directly attributable to the production process (based on normal
capacity utilisation). Borrowing costs are not capitalised. Restricted cash and cash equivalents include deposits pledged as col-lateral
for loans.
Net realisable value is the estimated selling price attainable in the ordi-nary
course of business, less the costs of completion and sale.
ATB Annual Report 2007 39
14 Discontinued operations Government grants for costs are recognised over the period in which the
In accordance with IFRS 5 (Non-current Assets Held for Sale and Dis-continued costs for which the compensation was granted are incurred.
Operations), assets and liabilities of discontinued operations
are carried at book value or the lower fair value less disposal costs. As-sets Government grants for investments are recognised as accruals under
that are classified as held for sale are not depreciated further but long-term liabilities. They are reversed on a straight-line basis over the
have to be shown as a separate item in the balance sheet. anticipated service life of the assets concerned and recognised in in-come.
15 Financial liabilities
Financial liabilities are recognised initially at fair value less transaction 18 Deferred taxes
costs. In subsequent years, they are reported at amortised cost. The Deferred tax assets and liabilities are recognised in respect of temporary
ATB Group has entered into financing agreements with factoring banks differences between asset and liability items pursuant to IFRS and the
under which all material risks such as credit and default risks are as-sumed corresponding tax bases. Deferred tax assets and liabilities are deter-mined
by the factoring banks and has also entered into agreements by using tax rates that have been enacted or substantially enacted
under which risks are retained by the company. by the balance sheet date. Deferred tax assets are recognised to the
extent to which it is probable that taxable profits will be available in the
16 Leases future for offsetting against the temporary differences. Deferred tax as-sets
Lease agreements for property, plant and equipment under which the and liabilities are offset if there is a legally enforceable right to set
Group assumes all material risks and rewards incidental to ownership are off actual entitlements to tax refunds against actual tax liabilities, and if
reported as finance leases. Such assets are recognised at the lower of the assets and liabilities relate to income taxes levied by the same taxa-tion
the current fair values at the beginning of the lease term or at the pres-ent authority.
value of the minimum lease payments. Lease payments are split into
finance charges and principal components in order to obtain a constant 19 Long-term obligations towards employees
rate of interest for the remaining liability. The related leasing obligations Provisions for long-term employee benefits (retirement pensions and
less financing costs are reported under"long-term liabilities from finance long-service payments) and post-employment benefits (severance pay-ments)
leases�and"short-term liabilities from finance leases�. Interest included are recognised in accordance with IAS 19 using the projected
in financing costs is recognised in income over the period of the lease. unit credit method. Actuarial gains and losses beyond a specified cor-ridor
are charged or credited to income (retirement pensions and sever-ance
Property, plant and equipment acquired under finance leases are depre-ciated payments).
over the shorter of lease period or useful life.
19.1 Pension obligations
In addition, the Group has entered into operating lease agreements for The group operates long-term defined benefit pension schemes for part
the use of furnishings, fixtures and fittings, which are recognised as of its employees. Actuarial gains and losses are amortised over an aver-age
expense. period of 13 years.
17 Government grants The provision for pension obligations at ATB Motorenwerke GmbH in
Government grants are recognised at fair value if it can be reliably as-sumed Spielberg, Austria covers the entitlements of all of the employees taken
that the grant will be awarded and the Group will meet the re-quired over from Bauknecht Austria GmbH, Spielberg. These entitlements are
conditions for the award of the grant. nominal amounts that are not subject to change. The liability represent-ing
this defined benefit obligation (DBO) in the balance sheet is equal to
the present value of the difference between the percentage entitlements
acquired by a set date and the estimated remuneration upon occurrence
of the insured event.
ATB Annual Report 2007 40
F. Summary of significant accounting and
measurement policies
The provision set up at ATB Antriebstechnik GmbH, Welzheim, Ger-many The provision at Morley Electrical Engineering Co Ltd., Leeds, Great
is for pension commitments to a number of managerial employees Britain, was set up for entitlements of all employees. The company�s de-fined
made under individual employment contracts, as well as long-service benefit pension plan provides for employees who joined the com-pany
bonuses for other employees awarded under internal regulations. The before 6 April 1994 the option of taking retirement from age 60
liability representing this defined benefit obligation (DBO) in the balance even without the company�s consent. If retirement is taken before age
sheet is equal to the present value of the pension entitlements acquired 65, entitlements that originated previous to 17 May 1990 are subject to
by the managerial employees taking into account expected increases in reductions. Employees who joined the company after 6 April 1994 do
remuneration until retirement and, upon retirement, indexing of current not have the right to take retirement before age 65 without the com-pany�s
pensions to the cost of living. consent. If retirement is taken before age 65, deductions are
applied.
The provision carried at ATB Selni SAS, Nevers, France, relates to
pension entitlements of managerial and non-managerial employees 19.2 Severance payment obligations
under individual agreements. Benefits become due when an employee Actuarial gains and losses of severance payment obligations are amor-tised
leaves the company and at the same time has a claim to a statutory over an average period of 12 years.
retirement pension.
Under Austrian labour law, the employer is required to make severance
At Schorch Elektrische Maschinen und Antriebe GmbH, M�nchen�gladbach, payments to employees upon termination of employment under certain
Germany, provisions were set up under a defined-benefit ar-rangement circumstances (one of which is retirement). The level of severance pay-ments
for individual employees based on two pension plans dating depends on income and length of service with the employer. Sev-erance
from the years 1977 and 1988. The benefits are pension group-specific payments are one-off payments.
and dependent on years of service, with claims arising when employees
leave the company and at the same time have a claim to a state pen-sion, At ATB SEVER a.d., Subotica, Serbia, a provision for severance pay-ments
and in the case of occupational invalidity. In addition, widow�s (wid-ower�s) was formed for the first time in the acquisition balance sheet
pensions are also provided (60% of the entitlement). Employees as at January 1, 2005 to meet a collective agreement obligation. The
who joined the company after 30 September 1996 are not covered by projected unit credit method was applied to determine the scope of this
the rules of the 1988 pension plan. obligation. Anticipated future increases in remuneration that will influ-ence
the amount of the entitlement were taken into account.
At Brook Crompton Ltd., Toronto, Canada, provisions were set up
under a defined-benefit arrangement for employees based on the Brook Following the passing of the Austrian Act Governing Employee Retire-ment
Crompton Pension Plan for Canadian Employees, which in 1996 re-placed and Severance Pay Provision (BMVG), a changeover was made in
the BTR Pension Plan for Canadian Employees and the Regis-tered Austria from defined-benefit to defined-contribution schemes, involving
Pension Plan for the Employees of Brook Hansen (Canada) Inc.. the transfer of entitlements to employee severance pay and pension
The plan�s assets are invested in a mixed (equities and fixed-interest funds. The changed legal position applies to employment contracts con-cluded
securities) fund managed by Jarislowsky Fraser (JF) Ltd. After one year on or after 1 January 2003 and to cases in which employees
of service for the company, employees are entitled to join the pension voluntarily transfer to the new system by mutual agreement with the em-ployer.
plan. After two years of participation in the plan they are entitled to draw Under the new legislation, the employer must contribute 1.53%
benefits from it. The company pension is paid out as of the first day of of the employee�s salary to the employee severance pay and pension
the month following the employee�s 65th birthday. In the case of earlier fund, but there is no obligation to make top-up payments.
retirement (at age 55, at the earliest), benefits are reduced proportion-ately.
The maximum pension amount payable annually is limited by Ca-nadian
income tax rules.
At ATB Motorentechnik GmbH, Nordenham, Germany, provisions
were set up under a defined-benefit plan for employees, which is based
on a company agreement dated 27 Sept. 1996 and Attachment 3 to the
company agreement dated 15 Jan. 1986. The defined benefit plan was
based on both salary and time of service. Under a partial amendment of
the company agreement on pensions dated 25 March 2004, no further
gains increasing pensions are granted to employees from 2004.
ATB Annual Report 2007 41
19.3 Long-service payment obligations 22 Change in presentation of the income statement
Long-service payment obligations are classified as other long-term em-ployee In the consolidated financial statements for 2006, restructuring expens-es
benefits. Provisions for long-service payment obligations are cal-culated and revenues were shown as separate items in the income state-ment.
using the projected unit credit method. The corridor method in Given the recurring nature of these expenses and revenues, they
accordance with IAS 19 is not applied. are now included in the respective items of the income statement.
Employees at the Austrian, German, Serbian and French companies 23 Critical accounting estimates and judgements
receive long-service bonuses for defined years of service under the re-spective Estimates and judgements are continually reviewed based on past expe-rience
collective agreements. The amounts are determined by length and other factors, including expectations of future events that are
of service and remuneration at the time of disbursement. believed to be reasonable under the circumstances.
20 Provisions The Group makes forward-looking estimates and assumptions. Esti-mates
Provisions have to be set up when the Group has a present legal or and assumptions with a significant risk of causing a material ad-justment
constructive obligation as a result of past events and it is more likely than to the carrying amounts of assets and liabilities within the next
not that an outflow of resources will be required to settle the obligation financial years relate to the following items:
and the amount of this outflow can be reliably estimated.
(a) Estimate of impairment of goodwill
21 Revenue recognition The Group conducts an annual impairment test of goodwill in accordance
Revenues from the sale of goods are recognised at the time of with the accounting principle laid down in IAS 36 (see Note H.2.1). Im-pairment
delivery and acceptance by the customer. Revenue is reported net of tests are also carried out during the year if there are indications
discounts and after elimination of intra-Group supplies. that an impairment may have occurred. An impairment must be recog�nised
if the recoverable amount is lower than the carrying value.
Revenues from the sale of services are recognised based on the per-centage
of completion, i.e. the proportion of the service rendered rela-tive These calculations require the use of estimates.
to the entire service to be rendered, in the financial year in which
the service was rendered. If the gross margin on which the calculations are based were 10% lower
in the future than estimated by the management on 31 December 2007,
Revenue from construction contracts is recognised in accordance with the Group would nonetheless not be forced to reduce the carrying value
the percentage-of-completion method provided the conditions set out in of goodwill and property, plant and equipment.
IAS 11 are met. This means that aggregate cost incurred is recognised
plus a profit margin proportionate to the stage of completion. The stage If the interest rate applied to discounted cash flows were 10% (relatively)
of completion is defined as the ratio of production costs incurred to ag-gregate higher than estimated by the management, the cash generating"New
costs expected. If a construction contract is expected to yield a Business�unit would have to recognise an impairment in the amount of
loss, a provision is set up in that amount. TEUR 206.
Interest income is recognised pro rata temporis using the effective In the cash generating"Serial Motors�unit, an impairment was recog-nised
interest rate method. in the amount of TEUR 29,000 (previous year: TEUR 0) (see
H.2).
ATB Annual Report 2007 42
F. Summary of significant accounting and
measurement policies
(b) Income taxes (e) Inventories
The Group is subject to income tax in numerous jurisdictions. Estimates Inventories are carried at the lower of cost or net realisable value. Net
have to be made to determine provisions for income taxes. If the taxable realisable value is the estimated selling price attainable in the ordinary
profits changed by 10% during the planning period on which the carrying course of business, less the costs of completion and sale. If the prob-ability
value of deferred taxes is based, the net balance of deferred taxes would of recovery declined by 10%, a further write-down would be re-quired
have to be adjusted by TEUR 1,215. in the amount of TEUR 1,004 (previous year: TEUR 957).
(c) Actuarial assumptions of provisions for pensions and sever-ance (f) Useful life
payments The useful lives of property, plant and equipment and intangible assets
The company�s actuarial assumptions are based on current market con-ditions. are based on past experience and assumptions made by the manage-ment.
In forecasting future events relating to these obligations, the Group re-lies (g) Provisions
on actuaries� statistical and mathematical calculations. For calcula-tion Estimates on the amount and the recognition of provisions are made by
purposes, actuarial assumptions and estimates are indispensable. the management. Estimates may eventually differ from actual amounts.
These are made on the basis of current market conditions. If, for ex-ample,
the assumed interest rate before taxes were 10% lower than
estimated, the Group�s obligations (after deduction of plan assets) would
be TEUR 4,796 higher (previous year: TEUR 5,157).
(d) Trade receivables and other receivables
Trade receivables and other receivables are carried at amortised cost.
This is the amounts invoiced less allowances for doubtful receivables.
Write-downs reflect the Group�s past experience regarding the collect-ibility
of receivables. If the probability of recovery declined by 10%, a
further write-down would be required in the amount of TEUR 688 (previ-ous
year: TEUR 683). The management is confident, however, that the
default risk of receivables is not in excess of the allowances applied.
ATB Annual Report 2007 43
24 Change in consolidated entities
24.1 Acquisition of Lindeteves-Jacoberg Group in the business year 2006
Effective 1 June 2006, a 51% interest was acquired in the Lindeteves-Jacoberg Group, which is listed at the Singapore stock exchange. The entity
was first included in the consolidated financial statements of the ATB Group as of 1 June 2006. In preparing the opening balance sheet, deferred
tax liabilities were erroneously overlooked in recognising various intangible assets. In addition, Brook Crompton International Pte Ltd, Singapore was
not included in the consolidated financial statements, which resulted in the following corrections:
1 June 2006 1 June 2006
Error correction Restated
TEUR
Property, plant and equipment 82,093 0 82,093
Intangible assets 62,596 0 62,596
Deferred tax assets 7,063 -7,063 0
Other non-current assets 3,380 0 3,380
Inventories 27,935 0 27,935
Other current assets 28,622 0 28,622
Cash and cash equivalents 4,616 0 4,616
Long-term borrowing -55,911 0 -55,911
Long-term obligations to employees -18,556 0 -18,556
Deferred tax liabilities -1,927 -9,367 -11,294
Short-term borrowing -70,262 0 -70,262
Provisions -13,893 0 -13,893
Liabilities -45,445 18,567 -26,878
Net assets acquired 10,311 2,137 12,448
0
Purchase prices paid 21,813 0 21,813
Prorated net assets acquired 5,258 1,090 6,348
Goodwill 16,555 -1,090 15,465
In the financial year 2006, the Lindeteves-Jacoberg Group contributed TEUR 69,328 to sales revenues and TEUR 2,244 to earnings before
taxes.
ATB Annual Report 2007 44
F. Summary of significant accounting and
measurement policies
24.2 Acquisitions during the financial year
On 22 May 2007, the assets and liabilities of Laurence Scott Ltd., GB (in administration) were acquired and included in the consolidated finan-cial
statements for the first time at the next balance sheet date. ATB Laurence Scott Ltd., GB, contributed TEUR 19,538 to sales revenues and
TEUR 3,980 to earnings before tax. The purchase price allocation for ATB Laurence Scott Ltd., GB had not been finalised by the balance sheet
date. It is therefore based on preliminary values not including intangible assets that may yet be identified. The contributions of David McClure Ltd.,
GB, to revenues and earnings cannot be determined as immediately after the acquisition of the shares the net assets were acquired by ATB Morley
Ltd, GB, under an asset deal. Disclosures about the contributions of the acquired entities to revenues and earnings had they been included in
the consolidated financial statements as early as 1 January 2007 cannot be made, as the assets and liabilities were essentially acquired from
bankruptcy assets.
The following assets and liabilities were acquired under these deals:
ATB Laurence Scott, Ltd McClure Total
TEUR
Property, plant and equipment 846 166 1,012
Inventories 4,956 617 5,573
Other current assets 0 306 306
Provisions -1,584 0 -1,584
Other liabilities -4,302 -627 -4,929
Acquired net assets -84 462 378
Purchase price paid 4,747 804 5,551
Prorated share of net assets acquired -84 462 378
Goodwill 4,831 342 5,173
ATB Annual Report 2007 45
24.3 Other changes in consolidated entities
With effect from 1 January 2007, A.L.S. Altersversorgung GmbH, which previously had not been consolidated due to immateriality, was merged
with Schorch Elektrische Maschinen und Antriebe GmbH, M�nchengladbach. ATB Motorenwerke GmbH, Spielberg, which was founded on 19 De-cember
2006, was first recognised in the consolidated financial statements as of 1 January 2007, as the operating activities of ATB Austria An�triebstechnik
AG were split off into this entity.
25 Recognition of construction contracts
In 2007, construction contracts were first recognised in the Project Motors segment, which increased the informative value of the annual financial
statements. This change in recognition had the following impact on the balance sheet and the Group�s equity position of the comparative period:
2006
TEUR
Deferred tax assets -777
Inventories -6,847
Receivables from construction contracts 7,783
ASSETS 159
Equity 1,170
thereof majority shareholder�s interests accumulated profit/loss 698
thereof minority interests 472
Trade payables including customer prepayments -1,011
EQUITY AND LIABILITIES 159
ATB Annual Report 2007 46
G. Financial instruments and risk management
1 Additional information about financial instruments
This chapter provides additional information about balance sheet items including financial instruments.
The following table shows the carrying values and fair values of all categories of financial assets and liabilities:
2007 2006
TEUR TEUR
Book value Fair value Book value Fair value
Trade receivables 65,595 65,595 54,507 54,507
Group receivables 423 423 21 21
Other long-term financial assets 549 549 129 129
Other short-term financial assets 89 89 0 0
Credits and receivables 66,656 66,656 54,657 54,657
Interests in non-consolidated Group entities 765 765 2,786 2,786
Available-for-sale securities 454 454 471 471
Other interests 24 24 23 23
Avaiable-for-sale financial assets 1,243 1,243 3,280 3,280
Cash 36 36 49 49
Bank balances 5,890 5,890 13,318 13,318
Restricted cash 4,182 4,182 6,504 6,504
Cash and cash equivalents 10,108 10,108 19,871 19,871
Financial assets 78,007 78,007 77,808 77,808
Long-term borrowing 82,039 81,461 112,900 111,824
Long-term liabilities to Group entities 44,736 33,061 0 0
Trade payables 46,528 46,528 50,488 50,488
Customer prepayments 4,172 4,172 3,332 3,332
Short-term liabilities to Group entities 55,950 55,950 81,105 81,105
Short-term borrowing 49,655 49,655 32,747 32,747
Financial liabilities at amortised cost 283,080 270,827 280,572 279,496
ATB Annual Report 2007 47
Financial assets found to be impaired have already been written down. Assets are written down when there are indications that a debtor is facing
financial difficulties and may not be able to meet payment obligations in full.
The following table shows net gains and expenditures on financial instruments of the various categories of financial assets and financial liabilities:
Financial income and expenses 2007 2006
TEUR TEUR
Interest and similar income from credits and receivables 522 748
Dividend income from available-for-sale financial assets 16 39
Net currency translation gains from credits, receivables and financial liabilities 2,815 2,576
Financial income 3,353 3,363
Interest and similar expenses from financial liabilities at amortised cost -11,975 -5,384
Interest and similar expenses from financial liabilities to Group entities -3,822 -3,129
Financial expenses from financial liabilities at amortised cost -15,797 -8,513
Write-down losses from trade receivables -1,126 -701
Write-down losses from available-for-sale securities -2,797 -324
Financial expenses -19,720 -9,538
Financial gains/losses recognised in income -16,367 -6,175
Net change in market value of available-for-sale financial assets -16 -19
Financial gains/losses recognised direct in equity -16 -19
ATB Annual Report 2007 48
G. Financial instruments and risk management
2 Financial risk factors
The Group�s activities expose it to a number of financial risks, including the effects of fluctuations in market prices, exchange rates, and interest
rates. The Group�s risk management policies are focused on such unpredictable developments in financial markets and aimed at minimising any
potential negative impacts on the Group.
2.1 Foreign exchange risk
The Group operates internationally and is therefore increasingly exposed to foreign exchange risks, especially with regard to the US dollar, the
British pound, the Serbian dinar, and the Singapore dollar. All transaction, translation and economic risks are monitored continuously as protection
against currency-related risks. Within the Group, the exchange rate risk associated with transactions is hedged largely by closing positions out, i.e.
by netting. In addition, sales in foreign currencies are recorded in foreign currency accounts, the balances of which are not converted into the Group
currency wherever possible, but instead are employed to settle liabilities in the same currency.
The following table shows the transaction-related net foreign exchange exposure by major currencies as of 31 Dec. 2007 and 2006:
2007
TEUR
EUR USD GBP SGD OTHER TOTAL
Financial assets 56,703 1,202 12,156 2,154 5,792 78,007
Financial liabilities -177,622 -16,938 -37,148 -28,274 -23,098 -283,080
Net exposure -120,919 -15,736 -24,992 -26,120 -17,306 -205,073
2006
TEUR
EUR USD GBP SGD OTHER TOTAL
Financial assets 55,307 1,153 8,372 5,321 7,655 77,808
Financial liabilities -166,278 -23,034 -33,485 -30,710 -27,065 -280,572
Net exposure -110,971 -21,881 -25,113 -25,389 -19,410 -202,764
ATB Annual Report 2007 49
Risks arise furthermore from the translation of the individual accounts of foreign entities into euros, the Group currency. Sales revenues, earnings
and the values of balance sheet items of entities not located in the euro area therefore vary with the euro exchange rate. The impact of hypotheti-cal
exchange rate changes on earnings and equity is determined by means of sensitivity analyses. To determine sensitivity, it was assumed that a
hypothetical unfavourable change in exchange rates by ten percent would occur, with all currencies appreciating against the euro at the same time
from their year-end levels. A devaluation of the euro versus the key currencies would have led to an increase in equity and the profit/loss for the
period by the same nominal amount. The unfavourable change in the exchange rate by 10% would have had the following impact on the profit or
loss for the period and equity:
Impact on profit/loss for the 2007 2006 2007 2006
period TEUR TEUR Impact on equity TEUR TEUR
USD -152 -66 USD 2,617 3,080
GBP -188 264 GBP -1,855 -738
SGD -466 -318 SGD -732 -168
CSD -1,028 120 CSD -528 495
CNY -1,393 -85 CNY -4,087 -3,174
PLN -970 -195 PLN 3,078 2,382
Other 33 -42 Other 649 612
Total -4,164 -322 Total -858 2,489
2.2 Interest rate risk
The Group�s consolidated earnings and cash flow from operating activities are exposed to changes in market interest rates, except in the case of
long-term borrowings (see Note H.10). The Group has no material interest bearing assets. The interest rate risk derives from long-term liabilities on
which interest is payable. Liabilities subject to variable interest rates expose the Group to cash flow risks related to interest rates.
A sensitivity analysis carried out for variable-rate financial liabilities has shown that had the market interest rate level been 100 basis points higher or
lower on the balance sheet date, earnings and equity would have been TEUR 1,249 (2006: TEUR 1,203) lower or higher.
2.3 Default risk
There is no major concentration of customer risk. The Group assesses its exposure to default risk as very low. The Group has policies in place that
ensure that products and services are sold only to customers with good credit ratings and thus limit the amount of credit exposure to any contracting
party.
The maximum credit risk associated with financial assets not taking into account collateral is determined by their carrying value. These financial
assets comprise the following:
2007 2006
TEUR TEUR
Credits and receivables 66,656 54,657
Available-for-sale financial assets 1,243 3,280
Cash and cash equivalents 10,108 19,871
Maximum default risk 78,007 77,808
ATB Annual Report 2007 50
G. Financial instruments and risk management
2.4 Pricing risk well as to provide it with financial flexibility in its planned financing activities,
In the Project Motors unit, most of the high commodity prices of, for ex-ample, A-TEC Industries AG has issued two letters of comfort in favour of ATB
electric sheet and copper, can be passed on to customers under Antriebstechnik AG and Lindeteves-Jacoberg Ltd.
escalator clauses. In the Serial Motors unit this is possible only with limita-tions.
The company is therefore seeking to save costs through increased A-TEC Industries AG has undertaken to enable ATB Austria Antriebstech-nik
centralised procurement. AG at any time to meet its current and future financial obligations at
maturity. In addition, A-TEC Industries AG has undertaken to prevent the
2.5 Liquidity risk occurrence of situations that would constitute insolvency as defined by the
Prudent liquidity management practices ensure that sufficient cash and Austrian Bankruptcy Code. These obligations provide security for ATB Aus-tria
cash equivalents are available and that the Group has adequate credit lines Antriebstechnik AG until 31 December 2009.
at its disposal. In view of the dynamic nature of the underlying businesses,
the Group seeks to maintain flexibility in funding by keeping committed In addition, A-TEC Industries AG has issued a letter of comfort in respect of
credit lines available. Lindeteves-Jacoberg Ltd, Singapore, a subsidiary of ATB Austria Antriebs�technik
AG, undertaking to provide the entity with sufficient capital until
Prudent liquidity management includes the retention of sufficient cash and 8 April 2010 to enable it to meet its current and future obligations at any
cash equivalents, as well as the procurement of adequate financing under time. Lindeteves-Jacoberg Ltd., Singapore has in turn undertaken to pro-vide
committed credit lines. In view of the highly dynamic character of the busi-ness financial assistance to specific subsidiaries if needed.
environment in which the Group operates, endeavours are made to
maintain the required flexibility in financing. Short-term financing within the Group is arranged in part by factoring, with both
genuine factoring (transfer of the default risk) and non-genuine factoring (the
The ATB Group�s liquidity management is based on 12-week and 12-month risk remains with the company) being employed. In the case of subsidiaries,
financing plans prepared by each entity of the Group, which are aggregated security is provided by a letter of comfort issued by the parent company.
into consolidated financial plans at the Holding level. These plans show that
some entities have unused credit lines whereas other entities have financ-ing The items representing liabilities to banks, financial lease liabilities, liabilities
needs but no access to finance. In view of the difficult situation in the to Group companies and other financing liabilities compare carrying values
financial markets, new borrowing can be arranged only with the support with repayments including interest payments.
of A-TEC Industries AG for the time being. In order to ensure the Group�s
solvency at any time and its continued existence as a going concern as The liquidity analysis required under IFRS 7 looks as follows:
Within 1 5 More than
Carrying value 1 year years 5 years
2007
TEUR
Liabilities to banks 115,191 53,612 70,190 7,862
Finance lease liabilities 13,703 1,895 5,274 10,911
Other borrowing 2,800 1,729 1,208 0
Liabilities to Group entities 100,686 59,229 46,228 8,775
Trade payables including customer prepayments 50,700 49,409 1,291 0
Total 283,080 165,874 124,191 27,548
Within 1 5 More than
Carrying value 1 year years 5 years
2006
TEUR
Liabilities to banks 128,670 35,437 85,994 34,456
Finance lease liabilities 12,410 1,775 3,951 11,085
Other borrwoing 4,567 2,154 2,573 29
Liabilities to Group entities 81,105 83,531 0 0
Trade payables including customer prepayments 53,820 51,322 2,498 0
Total 280,572 174,219 95,016 45,570
ATB Annual Report 2007 51
The projected cash flows of the subsequent year include a liability to Group 3 Estimate of fair values
entities in the amount of TEUR 20,528 (previous year: TEUR 0) without The fair values of securities available for sale are based on the stock ex-change
interest payments. The remaining liabilities to Group entities include inter-est prices quoted on the balance sheet date.
payments at an average rate of 6% on the balance outstanding.
It is assumed that the nominal values of financial assets and liabilities with
During the financial year, one subsidiary was unable to meet the credit maturities of less than one year, minus any estimated deductions, are
terms, which entitled the lender to call for immediate repayment of the roughly equal to their fair values. Group entities of A-TEC Industries AG
outstanding balance in the amount of TSGD 17,620. A restructuring of the have acquired Scheme debt of the Lindeteves-Jacoberg Group from credi-tor
loan is currently under negotiation. banks. The purchase price of some credits was below the balance of
bank liabilities of the Lindeteves-Jacoberg Group. These purchase prices
In September 2005, ATB Austria Antriebstechnik had issued a letter of reflect the fair value in the best way possible and are reflected in turn in the
comfort to Vorarlberger Landes-und Hypothekenbank Aktiengesellschaft fair values of long-term liabilities to Group entities (see G.1).
undertaking to provide sufficient financial resources to ATB Technologies
GmbH, Lustenau to enable it to always meet its liabilities in a timely man-ner. The fair value of financial investments in equity instruments not quoted on
As long as Vorarlberger Landes-und Hypothekenbank has claims active markets as well as that of derivatives that are associated with them
under credit arrangements, ATB Austria Antriebstechnik AG is unable to and must be settled by delivering such non-listed equity instruments, is
dispose of its interest in ATB Technologies GmbH. deemed to be reliably determinable if the fluctuation range of the reason-able
estimates of the fair value of the instrument is insignificant or the
ATB Austria Antriebstechnik AG has undertaken to cover any financing probability of the various estimates within this range can be assessed in
deficit that ATB Sever a. d., Subotica may incur to assist the entity in the a reasonable manner and can be employed in estimating the fair value. In
ongoing development of its operations. The obligation is valid for twelve determining fair value, the following factors are considered among others:
months from the date of approval of the annual financial statements as of the time value of money, equity prices (shares), the risk of early redemp-tion,
31 December 2007 of ATB Sever.a.d.. the risk of surrender, and volatility.
ATB Austria Antriebstechnik AG has issued a letter of comfort undertaking
to provide sufficient financial assistance to ATB Selni SAS, Nevers, until
year-end 2008 to enable it to meet its financial obligation at maturity and to
continue its operations without significant constraints.
ATB Annual Report 2007 52
H. Notes to the consolidated financial statement
Comparability with the previous year is limited due to the initial consolida-tion With the income approach, the value of a property is determined by capi-talising,
of ATB Laurence Scott Ltd., McClure and the full-year recognition at an appropriate interest rate, the net income to be expected
of the Lindeteves-Jacoberg Group. or obtained during the time after the valuation date, on the basis of the
expected useful life of the property. The income that is used for this
The effects of the acquisitions made in the financial year 2007 on net purpose is the income that can actually be earned from operation of the
assets, sales revenues and the consolidated net profit for the period are property (gross income).
disclosed in Note F.24.2.
Net income is calculated by deducting the actual expenses for opera-tion,
1 Property, plant and equipment maintenance and management of the property and depreciation
Movements in property, plant and equipment are shown in Attach-ment from gross income. Depreciation is discounted only if it was not already
1. taken into account in the capitalisation of income. In determining net
income, the risk of default and potential liquidation proceeds and costs
As of December 31, 2006, the ATB Group performed a revaluation have to be considered as well.
of land property with the aim of obtaining realistic fair values for non-depreciable
land property and long-term depreciable building structures The differences between depreciation based on the revaluation of tan-gible
erected on such land for reporting under tangible assets. As a result of assets recognised in income and depreciation based on histori-cal
this revaluation, land property was written up by TEUR 42,135. cost are not transferred from the revaluation reserve to the revenue
reserve. Land and buildings valued at TEUR 102,344 (previous year:
The valuation was carried out by independent knowledgeable experts. TEUR 106,738) include TEUR 39,577 (previous year: TEUR 42,135) in
All expert opinions show land and building values separately. carrying values resulting from revaluation in accordance with IAS 16.
The values of building structures were determined using the value com-parison Other operating income of the financial year 2007 includes gains on
or guideline method. The value comparison method is based on the disposal of fixed assets in the amount of TEUR 466 (previous year:
the assumption that comparable plots of land are sold within a compa-rable TEUR 635). Other operating expenses include losses in the amount of
time period and the expert has access to information about the TEUR 256 (previous year: TEUR 100).
sales proceeds.
Capitalised assets held under finance leases are mostly land and build-ings,
The buildings were appraised by the experts using in part the pure asset plant and machinery, and fixtures and fittings, tools and equipment.
value method. Beyond that, in some opinions, the capitalised value of The movements in these assets were as follows:
potential income was calculated and compared with the asset value. The
value of a building is the sum total of the building structures. It is usually 31 December
determined on the basis of the cost of construction. 2007 2006
in TEUR
The cost of construction is the notional cost that would be incurred in
newly erecting the building structures at the valuation date. From this Cost of acquisition capitalisation
value, a deduction is made to allow for wear and tear. In any case, the under finance lease agreements 14,777 48,062
usual useful life and residual useful life of a property are taken into ac-count. Accumulated depreciation -1,252 -20,341
13,525 27,721
ATB Annual Report 2007 53
Bank loans were secured by pledging land and buildings (see Note 2.1 Goodwill
H.10). In an impairment test conducted in the previous period, goodwill of
TEUR 45,600 had been allocated to the ATB Group cash generating
Revaluation of real estate of ATB Antriebstechnik GmbH, Welzheim, unit. When the opening balance sheet was prepared for the entities of
Germany resulted in a write-down in the amount of TEUR 1,750 (previ-ous the Lindeteves-Jacoberg Group, which were included in the consolidat-ed
year: TEUR 0). financial statements of the ATB Group for the first time as of the end
of May 2006, an error was made, which led to a restatement of goodwill
2 Intangible assets in the financial year 2006. Goodwill was adjusted by TEUR 1,110 to
Movements in intangible assets are shown in Attachment 1. The book TEUR 44,490. Following the new segmentation of the business divi-sions
value of trademarks with an indefinite life is TEUR 21,232 (previous of the ATB Group in the reporting period, goodwill was allocated
year: TEUR 23,394). The assumption of an indefinite useful life is ex-plained to the cash generating units as follows: Home Appliance TEUR 3,000;
by past experience which shows that trademarks have a con-stant New Business TEUR 2,678; Serial Motors TEUR 6,729, and Project
value and are subject to hardly any fluctuations in value. Following Motors TEUR 35,674. Goodwill of the cash generating unit Serial Mo-tors
a change in estimates, capitalised technology is now amortised over 15 with a carrying value of TEUR 6,729 was found to be impaired and
years (previously 9.6 years). was written down.
The company erroneously failed to recognise deferred tax liabilities re-lating-Planning for impairment tests comprises detailed planning for three
to certain intangible assets of the Lindeteves-Jacoberg Group as years and rough planning for two years. Perpetuity is based on the plan
well as failed to include Brook Compton International Pte. Ltd., Singa-pore data of the fifth planning period.
in the 2006 consolidated financial statements. This resulted in a
reduction of goodwill as of 31 December 2006 by TEUR 1,110. -For valuation purposes, cash flows following the three-year detailed
planning period were forecast to grow at a steady rate of 2%. The
An impairment test of the cash generating"Serial Motors�unit resulted long-term pre-tax discount rate was set at 11.52%.
in a need for write-down. The impairment related exclusively to intan-gible
assets and amounted to TEUR 29,000.
ATB Annual Report 2007 54
H. Notes to the consolidated financial statement
2.2 Capitalised development costs 2.4 Customer relations
Financial year ending 31 December Financial year ending 31 December
2007 2006 2007 2006
TEUR TEUR TEUR TEUR
Capitalised development expenses 8,895 5,409 Capitalised customer relations 6,826 7,463
Accumulated amortisation -3,557 -509 Accumulated amortisation -6,826 -506
Carrying value 5,338 4,900 Carrying value 0 6,957
All capitalised development costs derive from internal development The impairment test revealed that customer relations in the amount of
projects. The impairment test revealed that development costs in the TEUR 5,569 (previous year: TEUR 0) had to be written down in the Se-rial
amount of TEUR 2,637 (previous year: TEUR 0) had to be written down Motors cash-generating unit.
in the Serial Motors cash-generating unit.
2.5 Technology
2.3 Trademarks
Financial year ending 31 December
Financial year ending 31 December 2007 2006
2007 2006 TEUR TEUR
TEUR TEUR
Capitalised technology 28,554 29,090
Capitalised trademarks 22,237 23,394 Accumulated amortisation -15,220 -1,768
Accumulated amortisation -1,005 0 Carrying value 13,334 27,323
Carrying value 21,232 23,394
The impairment test revealed that technologies in the amount of
The impairment test revealed that trademarks in the amount of TEUR 11,628 (previous year: TEUR 0) had to be written down in the
TEUR 1,005 (previous year: TEUR 0) had to be written down in the Se-rial Serial Motors cash-generating unit.
Motors cash-generating unit.
ATB Annual Report 2007 55
3 Deferred taxes
Deferred taxes are computed on temporary differences using the liability method and applying those tax rates that are expected to be applicable in
the period in which assets will be realised or debt repaid.
In the financial year 2006, the company erroneously failed to recognise deferred tax liabilities relating to intangible assets. The effect of the correc-tion
of this omission is illustrated in the table below.
The movements in net deferred taxes were as follows:
Financial year ending 31 December
2007 2006
TEUR TEUR
At 1 January 656 8,076
Reclassifications 0 0
Deferred taxes on changed accounting for construction contracts -777 0
Error correction/change in consolidated entities -16,430 0
Error correction/recognised in income in financial year 727 0
Error correction/currency translation differences -171 0
At 1 January after reclassification and error correction -15,995 8,076
Currency translation differences 278 252
Change in consolidated entities 0 4,813
Recognised in income in financial year 7,141 -348
Impact of tax rate changes on income -2,060 0
Not recognised in income in financial year 665 -12,137
No impact of tax rate changes on income 1,163 0
at 31 December -8,807 656
Deferred tax assets are recognised in respect of tax loss carryforwards to the extent that it is likely that this tax loss will be offset by future taxable
income. The Group has capitalised deferred taxes in respect of loss carryforwards in the amount of TEUR 11,958 (previous year: TEUR 11,487),
which can be offset against future taxable income. The carryforwards of loss were discounted due to some uncertainty that the losses can actually
be utilised. No deferred tax assets from carryforwards of losses were recognised in respect of group entities where it currently does not appear
likely that sufficient taxable income will be available in the future for offsetting against the deferred taxes. On balance, deferred tax assets were not
recognised in respect of loss carryforwards in the amount of TEUR 128,530 (previous year: TEUR 132,298).
ATB Annual Report 2007 56
H. Notes to the consolidated financial statement
Movements in deferred tax assets and liabilities before offsetting of balances within the same tax jurisdictions were as follows:
Long-term Short-term
Tax provisions provisions
Fixed assets Receivables concessions and liabilities and liabilities Total
Deferred tax liabilities TEUR
At 31 December 2005 1,802 0 74 15 0 1,891
Currency translation differences -253 0 0 0 0 -253
Change in consolidated entities 6,423 13 -73 0 0 6,363
Recognised in income in financial year -408 0 0 218 18 -172
Not recognised in income in financial year 11,895 0 0 0 0 11,895
At 31 December 2006 before reclassification 19,459 13 1 233 18 19,724
Reclassification 142 1 -1 0 0 142
Change in accounting for construction contracts 0 374 0 0 403 777
Error correction/change in consolidated entities 16,430 0 0 0 0 16,430
Error correction/recognised in income in financial
year -727 0 0 0 0 -727
Error correction/currency translation differences 171 0 0 0 0 171
at 31 December 2006 after reclassification and
error correction 35,475 388 0 233 421 36,517
Currency translation differences -187 0 0 2 1 -184
Recognised in income in financial year -3,615 6 0 -91 432 -3,268
Impact of tax rate changes on income -1,752 -78 0 -14 -172 -2,016
Not recognised in income in financial year -1,760 0 0 0 0 -1,760
No impact of tax rate changes on income -1,163 0 0 0 0 -1,163
At 31 December 2007 26,998 316 0 130 682 28,126
ATB Annual Report 2007 57
Long-term Short-term
Loss carried provisions provisions
Fixed assets forward and liabilities and liabilities Receivables Total
Deferred tax assets TEUR
At 31 December 2005 1,807 3,253 4,544 338 25 9,967
Currency translation differences 0 0 -1 0 0 -1
Change in consolidated entities 0 11,359 -183 0 0 11,176
Recognised in income in financial year -364 -390 -56 268 22 -520
Not recognised in income in financial year -242 0 0 0 0 -242
At 31 December 2006 before reclassification 1,201 14,222 4,304 606 47 20,380
Reclassification 178 -2,735 2,749 -3 -47 142
Change in accounting for construction contracts 0 0 0 0 0 0
Error correction/change in consolidated entities 0 0 0 0 0 0
Error correction/recognised in income in financial
year 0 0 0 0 0 0
Error correction/currency translation differences 0 0 0 0 0 0
At 31 December 2006 after reclassification and
error correction 1,379 11,487 7,053 603 0 20,522
Currency translation differences -47 144 -63 28 32 94
Recognised in income in financial year -988 3,676 -49 283 951 3,873
Impact of tax rate changes on income 18 -3,349 -717 0 -28 -4,076
Not recognised in income in financial year 0 0 -1,027 -68 0 -1,095
No impact of tax rate changes on income 0 0 0 0 0 0
At 31 December 2007 362 11,958 5,197 846 955 19,319
Deferred tax assets and liabilities are offset if there is a legally enforceable right to set off actual entitlements to tax refunds against actual tax li-abilities,
and if the assets and liabilities relate to income taxes levied by the same tax authority.
The following amounts are reported in the consolidated balance sheet:
2007 20061)
TEUR TEUR
Deferred tax liabilities 13,633 21,925
Deferred tax assets 4,826 5,930
TEUR 2,229 (previous year: TEUR 699) of the deferred tax net position is current.
1) The comparative period has been restated to reflect changes in accounting for construction contracts and error corrections..
ATB Annual Report 2007 58
H. Notes to the consolidated financial statement
4 Available-for-sale securities and other non-current assets
The movements in the portfolio of non-current available-for-sale securities were as follows:
2007 2006
TEUR TEUR
and sale and sale
in for-assets in for-assets
entities entities
Securities Interests subsidiaries other Available-financial Securities Interests subsidiaries other Available-financial
At 1 January 471 2,809 3,280 450 806 1,256
Change in consolidated entities 0 -102 -102 0 2,618 2,618
Currency translation differences 0 -70 -70 1 10 11
Additions 0 1 1 39 0 39
Retirements -1 0 -1 0 -625 -625
Change in mark-to-market reserve for securities
held for sale -16 0 -16 -19 0 -19
Write-down 0 -1,849 -1,849 0 0 0
At 31 December 454 789 1,243 471 2,809 3,280
Available-for-sale securities consist of tradable equities and are restated at fair value annually as of the balance sheet date. Available-for-sale securi-ties
are classified as non-current assets.
The securities are used as collateral for long-term bank loans (see Note H.10.1.2).
The change in consolidated entities in 2007 relates to the initial consolidation of A.L.S. Altersversorgung GmbH in the amount of TEUR 66, which
was merged into Schorch Elektrische Maschinen und Antriebe GmbH, M�nchengladbach as of 1 January and, in the amount of TEUR 36, to ATB
Motorenwerke GmbH, Spielberg, to which the operating activities of ATB Austria Antriebstechnik AG were hived off and which has been recognised
in the consolidated accounts since 1 January 2007.
The securities yielded TEUR 16 (previous year: TEUR 39) in income, which was recognised in income.
Other non-current financial assets are carried at amortised cost and comprise the following:
2007 2006
TEUR TEUR
At 1 January 129 0
Change in consolidated entities 0 2
Currency translation differences 0 4
Additions 420 123
Retirements 0 0
Write-down 0 0
At 31 December 549 129
ATB Annual Report 2007 59
5 Inventories
Inventories comprise the following:
Financial year ending 31 December
2007 20061)
TEUR TEUR
Raw materials and supplies 33,304 25,343
Unfinished goods 16,449 20,332
Finished goods and merchandise 14,630 12,586
Services not yet chargeable 3,167 1,401
67,550 59,662
Inventories are generally recognised at the cost of acquisition or production.
The cost of materials in the amount of TEUR 183,024 (previous year: TEUR 137,798) is reported in income.
Inventories are gross of write-downs in the amount of TEUR 10,040 (previous year: TEUR 9,566). Write-downs amounted to TEUR 742 (previous
year: TEUR 723).
As of 31 December 2007, inventories carried at market value less selling expenses amounted to TEUR 3,711.
6 Trade receivables, other receivables and receivables from construction contracts
Trade receivables and other current receivables comprise:
Financial year ending 31 December
2007 20061)
TEUR TEUR
Trade receivables 72,477 61,340
Impairment write-down -6,882 -6,833
Net trade receivables 65,595 54,507
Receivables from higher-level group entities 423 21
Receivables from tax authorities 2,624 1,559
Salary and travel expense advances 158 180
Receivables from construction contracts 14,679 7,783
Other receivables and assets 6,177 6,754
Total 89,656 70,804
Trade receivables include receivables in the amount of TEUR 9,153 financed by factoring. As not all material risks were assigned to the factor, these
receivables are carried on the face of the balance sheet in trade receivables and in short-term financing liabilities.
The provisions made for doubtful receivables reflect the Group�s past experience regarding the collectibility of receivables. The management is
confident that the default risk of receivables is not in excess of the allowances applied.
1) The comparative period has been restated to reflect changes in accounting for construction contracts and error corrections..
ATB Gesch�ftsbericht 2007 60
H. Notes to the consolidated financial statement
Movements in provisions for doubtful receivables were as follows during the financial year:
2007 2006
TEUR TEUR
Bad debt allowance at 1 January 6,833 1,617
Change in consolidated entities 66 5,624
Currency translation differences 83 -6
Addition 1,105 2,712
Use -788 -1,838
Release -417 -1,276
Bad debt allowance at 31 December 6,882 6,833
Export promotion loans extended by Raiffeisenlandesbank Ober�sterreich Aktiengesellschaft, Linz are secured by Group trade receivables from
third parties. In addition, all receivables of ATB Motorenwerke GmbH, Spielberg, and ATB Technologies GmbH, Lustenau, have been assigned as
security (see Note H.10).
The following table shows the age composition of trade receivables for which no bad debt allowances have been recognised:
2007 2006
TEUR TEUR
Gross Gross
Not past due 42,549 40,748
0 to 30 days past due 14,080 8,142
31 to 90 days past due 5,217 2,607
91 to 180 days past due 1,757 801
181 to 360 days past due 397 934
More than 360 days past due 565 139
Total 64,565 53,371
The following table shows the age composition of all trade receivables and allowances for doubtful receivables:
2007 2006
TEUR TEUR
Bad debt Bad debt
Gross allowance Gross allowance
Not past due 42,568 -20 41,874 -89
0 to 30 days past due 14,107 -27 8,150 -6
31 to 90 days past due 5,294 -49 2,693 -78
91 to 180 days past due 2,410 -601 1,110 -298
181 to 360 days past due 4,317 -3,018 3,660 -2,699
More than 360 days past due 3,781 -3,167 3,853 -3,663
Total 72,477 -6,882 61,340 -6,833
ATB Annual Report 2007 61
7 Cash and cash equivalents
Cash and cash equivalents comprise:
2007 2006
TEUR TEUR
Cash and cash equivalents comprise 5.926 13.367
Restricted cash and cash equivalents 4.182 6.504
10.108 19.871
Restricted cash and cash equivalents in the amount of TEUR 4,182 are used as collateral for bank loans (see Note H.10.1). Cash and bank bal-ances
of the previous period include TEUR 173 of ATB Motors (Shanghai) Corporation Ltd, which has been reported in discontinued operations
since 1 January 2007.
8 Discontinued operations
Brook Crompton Western Electric Motor (Dalian) Corporation Ltd.
As of 31 December 31 2006, the company applied IFRS 5 in conjunction with IAS 27 for the subsidiary Brook Crompton Western Electric Motor
(Dalian) Corporation Ltd. This entity was acquired as part of the acquisition of the Lindeteves-Jacoberg Group as of 31 May 2006. The Group had
decided to dispose of this entity already at the time of purchase and has taken the required action. The management�s efforts to sell the entity at
the highest price possible have been unsuccessful, though, despite extensive negotiations with a number of potential buyers. In January 2008,
the company closed down operations and initiated the liquidation process. Lindeteves-Jacoberg Ltd., Singapore, as the parent company of Brook
Crompton Western Electric Motor (Dalian) Corporation Ltd., funded the payment of wages and salaries to employees. In view of the said events, an-other
TEUR 2,000 were recognised as fixed asset impairments and a provision of TEUR 3,000 was set up for severance payments to employees.
The above events would require the entity�s assets to be shown under continued operations. As the disclosure under continued operations would be
misleading and thus would not ensure an objective presentation of the annual financial statements, the assets continue to be shown in the income
statement under income from discontinued operations.
ATB Motors (Shanghai) Corporation Ltd.
As a consequence of the withdrawal from production in China and sales to China, ATB Motors (Shanghai) Corporation Ltd. is reported as a discontin-ued
business as of 1 January 2007. By the end of the reporting period, all major assets had been sold and the liquidation of the entity prepared.
For this reason, assets of the entities named above in the amount of TEUR 3,331 (previous year: TEUR 11,625) and liabilities in the amount of
TEUR 10,368 (previous year: TEUR 9,390) are reported as being held for sale.
Earnings before tax from discontinued operations are TEUR 15,890 (previous year: TEUR 1,602 and, upon deduction of tax expenditure in the
amount of TEUR 0 (previous year: TEUR 0) are shown as"result from discontinued operations�.
These discontinued operations are part of the segments Home Appliances and Serial Motors.
ATB Annual Report 2007 62
H. Notes to the consolidated financial statement
Cash flow from discontinued operations:
Financial year ending 31 December 2007 Financial year ending 31 December 20061)
Home Serial Home Serial
Appliances Motors Total Appliances Motors Total
TEUR
Cash flow from operating activities -88 -3,173 -3,261 -28 56 28
Cash flow from investing activities -20 -16 -36 -260 -411 -671
Cash flow from financing activities 0 3,221 3,221 0 59 59
Total cash flow -108 32 -76 -288 -296 -584
Cash and cash equivalents at beginning of period 173 40 213 435 0 435
Change in consolidated entities 0 0 0 0 343 343
Decrease/increase in cash and cash equivalents -108 32 -76 -288 -296 -584
Exchange rate effects on cash and cash equivalents -8 -2 -10 26 -7 19
Cash and cash equivalents at end of period 57 70 127 173 40 213
(a) Assets from discontinued operations:
Financial year ending 31 December 2007 Financial year ending 31 December 2006
Home Serial Home Serial
Appliances Motors Total Appliances Motors Total
TEUR
Plant, property and equipment 10 0 10 0 3,860 3,860
Other intangible assets 0 0 0 0 461 461
Inventories 170 1,409 1,579 0 4,668 4,668
Trade receivables 59 1,077 1,136 0 948 948
Other current assets 167 439 606 0 1,688 1,688
406 2,925 3,331 0 11,625 11,625
1) The comparative period has been restated to reflect changes in discontinued operations.
ATB Annual Report 2007 63
(b) Liabilities from discontinued operations:
Financial year ending 31 December 2007 Financial year ending 31 December 2006
Home Serial Home Serial
Appliances Motors Total Appliances Motors Total
TEUR
Trade payables 8 7,032 7,040 0 6,507 6,507
Other liabilities 0 3,328 3,328 0 2,883 2,883
8 10,360 10,368 0 9,390 9,390
(c) The result from discontinued operations and the result of the market valuation of assets or groups of assets and liabilities held for sale comprise
the following:
Financial year ending 31 December 2007 Financial year ending 31 December 20061)
Home Serial Home Serial
Appliances Motors Total Appliances Motors Total
TEUR
Sales revenues 1,081 2,852 3,933 3,559 9,300 12,859
Expenses -1,816 -12,458 -14,274 -1,437 -13,024 -14,461
Impact of valuation on income 0 -5,549 -5,549 0 0 0
Earnings before tax and valuation effects -735 -15,155 -15,890 2,122 -3,724 -1,602
Income tax 0 0 0 0 0 0
Earnings after tax from discontinued
operations -735 -15,155 -15,890 2,122 -3,724 -1,602
1) The comparative period has been restated to reflect changes in discontinued operations.
ATB Annual Report 2007 64
H. Notes to the consolidated financial statement
9 Equity
The share capital of ATB Austria Antriebstechnik Aktiengesellschaft is TEUR 26,657 (previous year: TEUR 21,810) and has been fully paid up. On
14 May 2004, the General Shareholders� Meeting authorised a three-for-one share split, which was effected on 10 August 2004. Each share cer-tificate
represents an equal portion of the issued capital. The shares are bearer shares. The Extraordinary General Shareholders� Meeting in October
2007 authorised the Managing Board to increase the company�s share capital of TEUR 21,810 by a nominal amount of up to TEUR 10,905 to
TEUR 32,715, against contributions in kind or in cash, including or excluding subscription rights. By resolution of the Managing Board dated 13 No-vember
2007, the Managing Board made use in part of the authorisation to increase the share capital and resolved to increase the share capital by
EUR 4,846,600 plus a share premium of EUR 27,153,400 by issuing two million bearer shares. The issue amount was EUR 16 per share and was
payable in cash. By resolution dated 14 December 2007, the Supervisory Board approved the Managing Board�s resolution. The capital increase
was entered into the Companies Register on 19 December 2007. The share capital is now divided into 11,000,000 (previous year: 9,000,000)
no par value shares. The proceeds from the capital increase subscribed to by A-TEC Industries AG on 14 December 2007 in the amount of
TEUR 32,000 were used in full on 17 December 2007 to repay a loan granted by A-TEC Industries AG. The Managing Board is authorised until
24 October 2012 to increase the company�s share capital from currently EUR 26,525,600 by up to a further EUR 6,058,400 (nominal amount) to
EUR 32,715,000 by issuing new bearer shares against contributions in kind or in cash, including or excluding subscription rights.
The capital reserve reflects the value of the appropriated capital reserve of ATB Austria Antriebstechnik AG.
In the previous period, land and buildings were carried at fair value in accordance with the option under IAS 16. The valuation effects were recognised
in the revaluation reserve without effect on income. Deferred taxes on these valuation effects were also recognised without impact on income.
In the financial year 2006, the company erroneously failed to recognise deferred tax liabilities on intangible assets as well as failed to include Brook
Compton International Pte., Singapore into its consolidated financial statements. Correction of these errors had the following impact on the com-pany�s
equity position:
for
interest
loss s
negative
securities
reserve of
profit/
sale reserve
translation
market for- interests shareholder� interests
capital reserves
to-
Share Capital Currency Mark-available- TEUR Revaluation Accumulated Reclassification minority Majority Minority Equity
Curreny translation differences 0 0 -65 0 0 0 0 -65 -45 -110
Net gain (loss) recognised in
equity 0 0 -65 0 0 0 0 -65 -45 -110
Profit/loss for the year 0 0 0 0 0 428 0 428 299 727
Total net income 2006 0 0 -65 0 0 428 0 363 254 617
Acquisition LJ 0 0 0 0 0 0 0 0 1.047 1.047
Change in minorities 0 0 0 0 0 80 0 80 -79 1
Errors correction 2006 0 0 -65 0 0 508 0 443 1.222 1.665
ATB Annual Report 2007 65
10 Borrowings
Borrowings can be broken down as follows:
Financial year ending 31 December
2007 2006
TEUR TEUR
Short-term
Liabilities under finance lease 1,431 1,330
Liabilities to banks 46,602 29,343
Short-term liabilities under bills of exchange 0 2,074
Other short-term borrowing 1,622 0
49,655 32,747
Long-term
Liabilities under finance leases 12,272 11,080
Other long-term borrowing 1,178 2,493
Liabilities to banks 68,589 99,327
82,039 112,900
Total loans 131,694 145,647
10.1 Bank loans
10.1.1 Short-term bank loans
The company takes out short-term credits in the form of overdrafts, one-off loans and cash on demand in a total amount of TEUR 46,602 (previous
year: TEUR 29,343) at its banks for the purpose of financing current operations. Interest rates range from 2.45% to 11.35% (previous year: 2.60%
to 10.24%), with the higher rates of around 11.35% incurred only in Serbia.
These short-term bank liabilities include the following items:
-Export financing loans backed by federal government bill guarantees and refinancing facilities from Oesterreichische Kontrollbank Aktiengesell-schaft,
Vienna amounting to TEUR 5,830 (previous year: TEUR 5,830)
-Liabilities to factoring banks of TEUR 11,697 (previous year: TEUR 4,881).
Short-term bank loans have been secured by the assignment of trade receivables of TEUR 4,305 (previous year: TEUR 5,064). These consist of the
assignment as security of all receivables of ATB Motorenwerke GmbH, Spielberg and ATB Technologies GmbH, Lustenau. Furthermore, security
was provided in the form of a mortgage on the real estate in Welzheim, Germany, in the amount of TEUR 10,226 (previous year: TEUR 10,226).
In addition, short-term bank liabilities of ATB Antriebstechnik GmbH, Welzheim were secured by a letter of comfort issued in the amount of
TEUR 1,000 (previous year TEUR 1,000) by ATB Austria Antriebstechnik AG.
ATB Motorenwerke GmbH, Spielberg, provided security for short-term liabilities to banks by means of a bill of exchange in the amount of TEUR 5,000
(previous year: TEUR 5,000).
ATB Annual Report 2007 66
H. Notes to the consolidated financial statement
A bank guarantee in the amount of TEUR 101 (previous year: TEUR 101) Antriebstechnik GmbH, Welzheim. In addition, these are secured by
was issued in favour of Investkredit as well as a bill of exchange in the a letter of comfort issued by ATB Austria Antriebstechnik AG in the
amount of TEUR 830 (previous year: TEUR 830) as security for short-term amount of TEUR 7,500 (previous year: TEUR 7,500).
bank liabilities of ATB Technologies GmbH, Lustenau.
-A mortgage on the property in Nordenham, Germany, in the amount of
At the balance sheet date, unused credit lines were available in the TEUR 2,500 (previous year: TEUR 2,500). The property in Spielberg
amount of TEUR 4,029 (previous year: TEUR 2,360). is encumbered with a mortgage deed in the amount of TEUR 6,000
that has not been entered into the land register but is transferable on
The short-term bank liabilities of Brook Crompton Ltd., Toronto, Can-ada, demand (previous year: TEUR 6,000). The property in Knittelfeld is
in the amount of TEUR 138 (previous year: TEUR 262) towards encumbered with a mortgage in the amount of TEUR 1,500 (previous
Royal Bank of Canada have been secured by trade receivables in the year: TEUR 1,500).
same amount.
-In addition, a mortgage in the amount of TEUR 2,222 (previous year:
Fixed and floating charges (creditor�s claim to all assets in the case of a TEUR 1,861) was placed on the land of ATB Sever a.d., Subotica,
violation of contract or liquidation) are held by Citicorp International Ltd. Serbia. Furthermore, all receivables in the amount of TEUR 4,466
in respect of all assets of Lindeteves-Engineering Pte Ltd., Singapore, have been assigned by way of security (previous year: TEUR 3,333).
and Linberg Philippines Inc., Philippines as security for long-term bank As security for bank liabilities, ATB Austria Antriebstechnik AG has
liabilities in the amount of TEUR 52,566 (previous year: TEUR 53,277) issued guarantees in the amount of TEUR 1,700 (previous year:
as security for short-term bank liabilities in the amount of TEUR 2,260 TEUR 0). In addition, A-TEC has issued a guarantee in the amount of
(previous year: TEUR 2,434). The total value of all assets of Linde-teves- TEUR 24,000 (previous year: TEUR 0).
Engineering Pte Ltd, Singapore is TEUR 18,486 (previous year:
TEUR 27,578), those of Linberg Philippines Inc., Philippines, amount to -Fixed and floating charges (creditor�s claim to all assets in the case of a
TEUR 34,100 (previous year: TEUR 25,699). violation of contract or liquidation) are held by Citicorp International Ltd.
in respect of all assets of Lindeteves-Engineering Pte Ltd., Singapore,
Since 2007, fixed and floating charges have been held by Royal Bank of and Linberg Philippines Inc., Philippines as security for long-term bank
Scotland in respect of all assets of Brook Motors Limited, Great Britain liabilities in the amount of TEUR 8,319 (previous year: TEUR 11,867).
in the amount of TEUR 33,145 as security for short-term bank liabili-ties The total value of all assets of Lindeteves-Engineering Pte Ltd, Singa-pore
in the amount of TEUR 3,965. These are secured, in addition, by is TEUR 18,486 (previous year: TEUR 27,578), those of Linberg
guarantees issued by ATB Austria Antriebstechnik AG in the amount of Philippines Inc., Philippines, amount to TEUR 34,100 (previous year:
TGBP 2,650 (previous year: TGBP 0). TEUR 25,699).
The short-term bank liabilities to Stadtsparkasse D�sseldorf and Volks-bank -The long-term bank liabilities to Stadtsparkasse D�sseldorf in the
M�nchengladbach in the amount of TEUR 6,529 (previous year: amount of TEUR 4,063 (previous year: TEUR 0) are secured by
TEUR 0) are secured by all assets of Schorch Elektrische Maschinen all assets of Schorch Elektrische Maschinen und Antriebe GmbH,
und Antriebe GmbH, M�nchengladbach, Germany in the amount of M�nchengladbach, Germany in the amount of TEUR 53,622.
TEUR 53,622.
-The property of ATB Morley Ltd., Great Britain is encumbered
10.1.2 Long-term bank loans with a mortgage in the amount of TEUR 1,540 (previous year:
The company takes out long-term loans for financing investments in TEUR 1,705).
plant and machinery. These loans are generally one-off loans. On the
balance sheet date, long-term bank liabilities totalled TEUR 68,589 -The long-term bank liabilities of ATB Austria Antriebstechnik Aktien�gesellschaft,
(previous year: TEUR 99,327). Interest rates range from 2.60% to Vienna have been secured by means of bill of exchange
11.98% (previous year: between 2.60% and 12.36%). in the amount of TEUR 10,000 (previous year: TEUR 0) as well as a
guarantee issued by A-TEC in the amount of TEUR 10,000 (previous
The following collateral was provided to secure long-term bank loans: year: TEUR 0).
-The mortgage on the property in Welzheim in the amount of
TEUR 10,226 listed under short-term bank loans (previous year:
TEUR 10,226) is used as security for long-term bank liabilities of ATB
ATB Annual Report 2007 67
10.2 Group loans
Group loans are described in Note H.11.
10.3 Maturities
Maturities of liabilities to banks:
Financial year ending 31 December
2007 2006
TEUR TEUR
Up to one year 46,602 29,343
Longer than 1 and up to 5 years 61,165 21,668
More than 5 years 7,424 77,659
Total 115,191 128,670
Financial lease liabilities:
Financial lease liabilities are recognised when leased assets are capitalised in which the Group has beneficial ownership. Financial lease liabilities
are carried at the present value of minimum lease payments.
In subsequent years, lease payments will have to be made in the amount of TEUR 18,080 (previous year: TEUR 16,811). This includes interest
expenses of TEUR 4,377 (previous year: TEUR 4,401).
Financial year ending 31 December
2007 2006
TEUR TEUR
Up to one year 1,895 1,775
Longer than 1 and up to 5 years 5,274 3,951
More than 5 years 10,911 11,085
18,080 16,811
Future financing costs under finance leases -4,377 -4,401
Present value of liabilities under finance leases 13,703 12,410
Present value of liabilities under financial leases:
Financial year ending 31 December
2007 2006
TEUR TEUR
Up to one year 1,431 1,330
Longer than 1 and up to 5 years 3,964 2,544
More than 5 years 8,308 8,536
Total 13,703 12,410
ATB Annual Report 2007 68
H. Notes to the consolidated financial statement
10.4 Interest rates
Carrying values of bank liabilities subject to variable and fixed interest rates:
Financial year ending 31 December
2007 2006
TEUR TEUR
Variable interest rate 104,204 120,275
Fixed interest rate 10,987 8,395
Total 115,191 128,670
The carrying values of the bank liabilities are roughly identical to their fair values. At the balance sheet date, the effective interest rates of long-term
bank liabilities range from 2.60% to 11.98% (previous year: 3,80% to 16,50%).
10.5 Covenant clauses On 13 March 2006, 59,533,511 new shares in the total amount of
In December 2005, Lindeteves-Engineering Pte Ltd. (LJE) issued float-ing SGD 9,871,000 were issued and allocated to the participating creditor
rate notes (FRN) in the amount of TUSD 25,000 (previous year: banks in conformity with the provisions of the agreement and 148,781,725
TUSD 25,000). The FRNs were issued at a discount of 10%. new shares were allocated to ATB Austria Antriebstechnik AG for conver-sion
of the advance payment received from ATB Austria Antriebstechnik AG
FRNs are redeemed in 25 quarterly instalments in arrears at an interest in the amount of SGD 24,668,000.
rate of LIBOR+7% p.a. The FRNs are secured and subject to contractual
agreements (so-called covenants). On 13 March 2006, the bank liabilities covered by the proposed composi-tion
amounted to SGD 187,361,000, of which SGD 112,414,000 were
The obligations of LJE in connection with the FRN are guaranteed and turned into a long-term eight-year loan repayable in 20 quarterly instalments
secured by fixed and floating charges (creditor�s claim to all assets in the from 21 March 2009 and an amount of SGD 74,947,000 was forgiven
case of a violation of contract or liquidation) in respect of all assets of LJE and written off.
and Linberg Philippines Inc. (LPI). The shares held by Lindeteves-Jacoberg
Ltd. in the two companies (LJE, LPI) are part of the collateral provided. The Contingent liabilities in the amount of SGD 10,200,000 were sepa-rated
first repayment was made on 2 March 2006. and transformed into liabilities in December 2006. An amount of
SGD 4,080,000 of contingent liabilities was forgiven and written off in De-cember
10.6 Scheme debt 2006 in accordance with the proposed composition.
In the financial year 2005, the Lindeteves-Jacoberg Group agreed to a debt During the repayment period agreed in the composition proposal, non-com-pliance
restructuring scheme based on a proposal for composition between Lin-deteves- with the conditions agreed between Lindeteves-Jacoberg Limited
Jacoberg Limited and the banks involved pursuant to Article 210 and ATB Austria Antriebstechnik AG and the participating credit banks (a
(10) of the agreement. The proposed composition took effect as of 22 De-cember reason for dissolution as defined in the composition proposal and in the
2005. circular of 10 February 2006) by means of a special declaration caused all
or parts of the restructuring debt outstanding to become immediately due
The proposed composition provided for restructuring and write-down of and payable.
the liabilities of the Lindeteves-Jacoberg Group in view of the investment
of SGD 24,688,000 in Lindeteves-Jacoberg Limited by ATB Austria An�triebstechnik During the financial year, partner companies of A-TEC Industries AG, the
AG and issuance of 59,533,511 new shares, 12% of the en-tity�s parent of ATB Austria Antriebstechnik, purchased restructuring debt in the
newly issued and fully paid-up share capital to the participating creditor amount of TEUR 39,391 from the participating creditor banks.
banks.
ATB Annual Report 2007 69
11 Group payables
Group payables are liabilities to the parent company or to non-consolidated affiliated companies. These liabilities comprise:
2007 2006
TEUR TEUR
Long-term
A-TEC INDUSTRIES AG, Vienna (Austria) 44,736 0
44,736 0
Short-term
A-TEC INDUSTRIES AG, Vienna (Austria) 53,927 78,807
Austrian Energy & Environment AG, Raaba (Austria) 661 2,064
EMCO Maier GmbH, Hallein (Austria) 7 0
Montanwerke Brixlegg AG, Brixlegg (Austria) 38 156
Von Roll Inova Holding AG, Zurich (Switzerland) 38 78
Gindre Duchavany S. A., Lyon (France) 19 0
Brook Crompton Greaves Ltd., Maharashtra (India) 543 0
Brook Crompton France S. A, Paris (France) 717 0
55,950 81,105
100,686 81,105
The interest rate applied to Group loans is generally 6.0% p.a.. The company has loan liabilities towards A-TEC INDUSTRIES AG, Vienna in the
amount of TEUR 98,594 (previous year: TEUR 78,807) of which TEUR 39,391 (previous year: TEUR 0) are Scheme debts repayable from March
2009 in 20 instalments (see H.10.6). In addition, the company has loan debts to Austrian Energy & Environment AG, Raaba, in the amount of TEUR
255 (previous year: TEUR 2,064). Trade payables to Group entities amount to TEUR 1,837 (previous year: TEUR 234).
12 Long-term obligations towards employees
Obligations to employees comprise the following:
Financial year ending 31 December
2007 2006
TEUR TEUR
Provision for pensions 32,010 31,875
Provision for severance payments 7,216 7,443
Provision for anniversary bonuses 3,342 3,372
Total 42,568 42,690
12.1 Pension obligations
The amounts reported in the balance sheet comprise the following:
2007 2006
TEUR TEUR
Present value of liability (with plan assets) 9,963 10,638
Fair value of plan assets -8,562 -7,417
1,401 3,221
Present value of liability (w/o plan assets) 27,872 30,541
Actuarial gains/losses not yet recognised 2,821 -1,887
Time of service not yet recognised -84 0
Liabilities in the balance sheet 32,010 31,875
ATB Annual Report 2007 70
H. Notes to the consolidated financial statement
The amounts shown in the income statement comprise the following:
2007 2006
TEUR TEUR
Current time of service expense 585 419
Interest expense 1,876 1,026
Expected income from plan assets -488 -40
Actuarial gains/losses 90 -151
Time of service yet to be accounted for 7 0
Pension plan changes 0 4
Additional charges 7 0
Total 2,077 1,258
Current service time cost and actuarial gains are reported in the income statement under personnel expenses. The interest expense relating to pen-sion
obligations is reported under financial expenses and income.
Movements in the provisions recognised in the balance sheet were as follows:
2007 2006
TEUR TEUR
At 1 January 31,875 13,300
Change in consolidated entities 102 18,235
Pension expenses 2,077 1,258
Employer's contributions -703 -199
Amounts disbursed -1,084 -750
Currency translation differences -257 31
At 31 December 32,010 31,875
The change in consolidated entities shown in the financial year 2007 came from the merger of A.L.S. Altersversorgung GmbH into Schorch Elek-trische
Maschinen und Antriebe GmbH as of 1 January 2007.
The movements in the plan assets shown in the balance sheet (deducted from the provisions) were as follows:
2007 2006
TEUR TEUR
At 1 January 7,417 6,663
Addition from acquisition 0 435
Income from plan assets 406 55
Actuarial losses -179 0
Employer's contributions 997 199
Employees'contributions 9 0
Amounts disbursed -197 -5
Currency translation differences 109 70
At 31 December 8,562 7,417
ATB Annual Report 2007 71
The movements in the plan assets shown in the balance sheet (deducted from the provisions) were as follows:
2007 2006
Discount rate 5.0 5.7% 4.25 5%
Future wage and salary increases 2 5.5% 2 4%
Employee turnover 0 4.38% 0 4.5%
Retirement age 58-65 years 60-65 years
12.2 Severance payments and long-service bonuses
31 December
2007 2006
TEUR TEUR
Present value of obligations 12,737 13,349
Actuarial losses not yet recognised -2,179 -2,534
Liabilities in the balance sheet 10,558 10,815
The amounts reported in the balance sheet comprise the following:
31 December 2007
Severance Anniversary
payments bonuses
Present value of obligations 9,396 3,342
Actuarial losses not yet recognised -2,180 0
Liabilities in the balance sheet 7,216 3,342
31 December 2006
Severance Anniversary
payments bonuses
Present value of obligations 9,977 3,372
Actuarial gains/losses not yet recognised -2,534 0
Liabilities in the balance sheet 7,443 3,372
The amounts for defined-benefit plans in the income statement comprise the following:
31 December
2007 2006
TEUR TEUR
Current time of service expense 409 515
Interest expense 767 773
Actuarial losses recognised during the year, net -91 -82
Effect of reductions -260 0
Additional costs due to split-off 0 148
Total 825 1,354
ATB Annual Report 2007 72
H. Notes to the consolidated financial statement
Amounts in the financial year 2007 comprise the following:
2007 2006
Severance Anniversary Severance Anniversary
payments bonuses payments bonuses
Current time of service expense 266 143 316 199
Interest expense 582 185 601 172
Actuarial gains/losses recognised during the year, net 119 -210 187 -269
Effect of reductions -260 0 0 0
Additional costs due to split-off 0 0 136 12
Total 707 118 1,240 114
Current service time cost and actuarial losses recorded during the year (net) are reported in the income statement under personnel expenses. The
interest expense relating to severance payments and long-service bonuses is reported under financial expenses and income.
Movements in liabilities recognised in the balance sheet were as follows:
31 December
2007 2006
TEUR TEUR
At 1 January 10,815 10,655
Addition from acquisition 0 231
Severance payment and anniversary bonus expenses 825 1,354
Amounts disbursed -1,089 -1,494
Currency translation differences 7 69
At 31 December 10,558 10,815
Amounts as of 31 December 2007 comprise the following:
2007 2006
Severance Anniversary Severance Anniversary
payments bonuses payments bonuses
At 1 January 7,443 3,372 7,534 3,121
Addition from acquisition 0 0 0 231
Severance payment and anniversary bonus expenses 706 118 1,240 114
Amounts disbursed -929 -159 -1,400 -94
Currency translation differences -4 11 69 0
At 31 December 7,216 3,342 7,443 3,372
Key actuarial assumptions at the balance sheet date:
2007 2006
Discount rate 1) 5,25% 4,25-5%
Future salary and wage increases 2-5,5% 2%
Employee turnover 0-4,38% 0-4,5%
Retirement age 58 65 years 60 65 years
1) In Serbia (ATB Sever a.d., Subotica, Serbia) a discount rate of 12% is applied.
ATB Annual Report 2007 73
13 Provisions
Provision
Provision Provision Provision for environ-mental Provision
for warran-ties for immi-nent for restruc-turing for follow-up Other
losses costs costs provisions Total
TEUR
At 31 December 2005 151 625 5,289 3,002 1,198 1,693 11,958
Change in consolidated entities 1,392 9,688 168 0 124 2,396 13,768
Allocation 272 500 572 0 2,125 1,477 4,946
Use -77 -9,670 -1,649 0 -1,919 -973 -14,288
Release of amounts not used -180 -228 -4,025 -2,427 -58 -792 -7,710
Currency translation 12 38 324 265 0 144 783
At 31 December 2006 1,570 953 679 840 1,470 3,945 9,457
Change in consolidated entities 0 414 0 0 0 1,170 1,584
Allocation 728 501 122 0 1,281 167 2,799
Use -100 -498 -505 0 -1,671 -2,063 -4,837
Release -502 -259 -76 0 -20 -690 -1,547
Currency translation 3 -4 0 -2 0 -68 -71
At 31 December 2007 1,699 1,107 220 838 1,060 2,461 7,385
Thereof short-term 1,699 779 97 0 1,060 2,461 6,096
The provisions shown in the balance sheet as of 31 December 2007 (excluding employee benefit provisions) relate mostly to warranties and im-pending
losses as well as to provisions for follow-up costs and comprise:
13.1 Warranty provisions 13.4 Provisions for environmental expenses
Warranty provisions are made for individual risks after the receipt of For environmental damage at the various locations of ATB Sever a.d.,
complaints and their investigation by quality management. Subotica, Serbia a provision of TEUR 840 was formed in the previous
period. As the situation had not changed, there was no need for adjust-ments
13.2 Provisions for impending losses in the reporting year.
Provisions for impending losses are based on an assessment of cus-tomer
orders received and confirmed as at 31 December 2007. 13.5 Provisions for restructuring and redundancy programmes
At ATB Selni SAS, Nevers, France, provisions of TEUR 485 had been
These provisions cover all orders for which production has not yet begun set up in the previous year for expenses and severance payments under
and materials have not yet been procured, but where losses may be the redundancy programme. In 2007, TEUR 378 of this provision were
incurred in the future. used and TEUR 9 were released. As of 31 December 2007, provisions
therefore amounted to TEUR 98.
Provisions for orders on which work has begun and for which part or
all of the materials have been procured, are accounted for in the write-down At Schorch Elektrische Maschinen und Antriebe GmbH, M�nchengla-dbach,
of inventories. a restructuring provision was set up in the previous year in the
amount of TEUR 194. In 2007, TEUR 122 were allocated to the provi-sion
13.3 Provisions for follow-up costs for expenses and severance payments under the redundancy plan,
Provisions for follow-up costs relate to possible reductions of proceeds TEUR 127 were used and TEUR 67 released. As of 31 December
and are calculated monthly on the basis of historical data. 2007, total provisions therefore amounted to TEUR 122.
ATB Annual Report 2007 74
H. Notes to the consolidated financial statement
14 Short-term provisions and other short-term liabilities
Short-term provisions and other short-term liabilities comprise:
Financial year ending 31 December
2007 2006
TEUR TEUR
Restructuring 97 485
Follow-up costs 1,060 1,470
Provisions for imminent losses from pending transactions 779 860
Provison for warranties 1,699 1,570
Other provisions 2,461 3,945
Short-term provisions 6,096 8,330
Social security contributions and other taxes 8,097 9,797
Accrual for unconsumed vacation 2,712 2,343
Accrual for other personnel expenses 1,686 1,678
Accrual for partial retirement 2,318 973
Accrual for cost of annual financial statements and consultancy fees 1,024 1,096
Accrual for bonuses and discounts 1,254 668
Other 11,619 18,515
Other short-term liabilities 28,710 35,070
Total 34,806 43,400
15 Trade payables including customer prepayments
In 2006, the company erroneously failed to include Brook Crompton International, Singapore into the consolidated financial statements. As a result
of consolidation, trade payables were reduced by TEUR 18,650 to TEUR 53,820.
16 Sales revenues
Sales revenues are broken down as follows:
Financial year ending 31 December
2007 20061)
TEUR TEUR
Sales revenues (w/o sales revenues from construction contracts) 408,276 300,909
Sales revenues from construction contracts 9,021 0
Sales revenues 417,297 300,909
In the Project Motors segment, the measurement method was changed and construction orders were accounted for in accordance with IAS 11 in
order to increase the informative value of the annual financial statements.
17 Change in inventories and own work capitalised
Changes in inventories reflect changes in inventories of work in progress and finished goods as well as services not yet chargeable.
Capitalised own work includes TEUR 1,465 (previous year: TEUR 1,361) in buildings, plant and machinery as well as TEUR 3,467 (previous year:
TEUR 2,413) in development costs.
1) The comparative period has been restated to reflect changes in discontinued operations.
ATB Annual Report 2007 75
18 Personnel expenses
Personnel expenses comprise:
Financial year ending 31 December
2007 20061)
TEUR TEUR
Salaries and wages 110,492 83,097
Severance payment expenses and payments to employee retirement and severance payment provision funds 504 937
Pension expenses 1,643 1,736
Social security expenses and payroll-related taxes 19,866 18,207
Other expenses for employee benefits 121 134
Total 132,626 104,111
The average number of employees in the financial year 2007 was 6,397 (Previous year: 5.364); at 31 December 2007, the head count was 6,339
(previous year: 6.511).
Personnel expenses include restructuring expenses in the amount of TEUR 3,315 (previous year: TEUR 1,820) as well as income in the amount of
TEUR 0 (previous year: 5,291). Regarding changes in the presentation of the income statement see F.22.
19 Other operating income and expenses
Other operating income and expenses comprise the following:
Financial year ending 31 December
2007 20061)
TEUR TEUR
Income from the disposal of fixed assets except financial assets 466 635
Insurance compensation 166 296
Foreign exchange gains 2,815 2,804
Charge-out of various services 97 48
Other incidental income 9,881 7,600
Sundry 621 6,445
Other operating income 14,046 17,828
Transport expenses 6,260 6,145
Consultancy expenses, audit expenses, other outside services 9,440 6,371
Repair and maintenance expenses 5,009 3,113
Travel expenses 3,375 2,580
Insurance 2,400 1,966
Rents and leases 3,658 2,842
Taxes other than income taxes 1,675 1,523
Mail, telephone, postage, bank charges 2,367 1,809
IT expenses 1,466 812
Warranty expenses 1,425 692
Commission expenses 2,320 1,744
Losses from the disposal of fixed assets except financial assets 256 100
Sundry operating expenses 12,450 1,822
Other operating expenses 52,101 31,519
1) The comparative period has been restated to reflect changes in discontinued operations.
ATB Annual Report 2007 76
H. Notes to the consolidated financial statement
Other operating expenses include write-offs and write-downs of receivables in the amount of TEUR 1,751 (previous year: TEUR 1,607) as well
as, on the other hand, gains from written-off receivables and the release of bad debt allowances in the amount of TEUR 625 (previous year:
TEUR 906).
On 27 December 2007, debt forgiveness was agreed between Standard Chartered Bank, Singapore, Standard Chartered Bank (Hong Kong) Ltd.,
and ATB Austria Antriebstechnik AG in the amount of 50% of outstanding Scheme Debts. The debt forgiven was reported as a component of
income in other incidental income in the amount of TEUR 2,759. The underlying payments were made in January 2008. In addition, it was agreed
that the ATB Group will make repayment of all non-Scheme debts including outstanding interest to Standard Chartered Bank, Singapore.
Brook Motors Ltd., GB, likewise negotiated debt forgiveness, which is reported in other incidental income in the amount of TEUR 3,278.
20 Financial result
Financing expenses comprise the following:
Financial year ending 31 December
2007 2006
TEUR TEUR
Financing income
Bank and loan interest -15,510 -8,287
Interest expense for long-term personnel-related provisions -2,643 -1,759
Amortisation of investments in Group companies, non-consolidated -2,797 -324
Finance lease -386 -226
Income from plan assets 406 54
-20,930 -10,542
Financing income
Income from securities 16 39
Interest on bank accounts 522 748
538 787
Financial result -20,392 -9,755
ATB Annual Report 2007 77
21 Income taxes
In the financial year 2006, the company erroneously failed to recognise deferred tax liabilities relating to intangible assets. The effect of the correc-tion
of this error is illustrated in the table below.
Financial year ending 31 December
2007 20061)
TEUR TEUR
Current tax expenses 3,693 530
Deferred tax income/expenses -5,081 348
Error correction/deferred tax income 0 -727
Income tax income/expenses -1,388 151
The table below shows the reconciliation of tax expenditure resulting from application of the Austrian corporate income tax rate of 25% to pre-tax
earnings and actual tax expenditure:
2007
TEUR
Earnings before tax -38,614
Calculated income tax expenses -9,653
Deviating foreign tax rates 2,532
Non-deductible expenses 1,814
Tax-free income -1,335
Application of previously not accrued temporary differences and tax losses -1,869
Change in deferred tax expenses due to first-time recognition of deferred taxes -3,209
Deferred tax expenses due to change in tax rates 2,060
Non-deductible impairments 3,576
Difference between tax rate in reporting period and future expected tax rate on realisation/repayment 752
Non-capitalised losses and temporary differences in reporting period 5,500
Sundry -1,556
Income tax income -1,388
20061)
TEUR
Earnings before tax -778
Calculated income tax expenses -195
Deviating foreign tax rates -467
Non-deductible expenses/non-taxable income 1,540
Error correction/deferred tax income -727
Income tax expenses 151
1) The comparative period has been restated to reflect changes in discontinued operations and error corrections.
ATB Annual Report 2007 78
H. Notes to the consolidated financial statement
22 Cash flow from operating activities
2007 20061)
TEUR TEUR
Profit/loss from continued operations -37,226 -929
Adjustments for Taxes 481 0
Interest result 15,574 10,185
Depreciation of property, plant and equipment and amortisation of intangible assets 21,278 16,400
Write-down of impaired intangible assets 29,000 0
Amortisation of financial assets 1,850 0
Income from debts forgiven by banks -6,037 0
Change in available-for-sale securities 16 0
Expenses from allocation to restructuring provisions 122 572
Change in long-term provisions -2,434 -10,891
Gain from the disposal of fixed assets -210 -1,361
Other -2,930 2,988
Inventories -3,715 1,731
Trade and other short-term receivables -21,099 4,699
Liabilities and provisions, except tax provisions -5,532 -9,303
Cash flow from operating activities -10,862 14,091
1) The comparative period has been restated to reflect changes in discontinued operations and error corrections.
ATB Annual Report 2007 79
23 Segment information
The ATB Group is a leading manufacturer of electrical drive systems for industrial applications and appliances.
The division of the ATB Group into the business units Project Motors, Serial Motors, Home Appliances and New Business reflects the internal
organisational and management structure and thus forms the basis of primary segment reporting.
The secondary reporting segments are defined by region, with sales revenues being shown by client location, and assets and investments according
to the entities� locations.
Segment information of discontinued operations is shown under H.8.
Transfer prices charged between segments are at arm�s length.
23.1 Segment reporting by business segments
2007 Home Continued
TEUR New Business Appliances Serial Motors Project Motors operations
External sales revenues 7,727 83,367 223,611 138,201 452,906
Internal sales revenues 3,804 19,144 7,244 5,417 35,609
Sales revenues from third parties 3,923 64,223 216,367 132,784 417,297
Operating result (EBIT) 1,293 -3,278 -27,565 11,328 -18,222
Earnings before tax (EBT) 797 -5,428 -41,258 7,275 -38,614
20061) Home Continued
TEUR New Business Appliances Serial Motors Project Motors operations
External sales revenues 8,655 76,579 191,041 57,661 333,936
Internal sales revenues 4,416 19,150 8,235 1,226 33,027
Sales revenues from third parties 4,239 57,429 182,806 56,435 300,909
Operating result (EBIT) 771 -3,395 4,555 7,046 8,977
Earnings before tax (EBT) 637 -5,098 -2,603 6,286 -778
External sales include sales to third parties and other segments. Internal sales revenues relate to sales between the segments.
1) The comparative period has been restated to reflect changes in discontinued operations.
ATB Annual Report 2007 80
H. Notes to the consolidated financial statement
2007 New Home Serial Project Continued
TEUR Business Appliances Motors Motors Consolidation operations
Allocated assets 19,980 51,624 229,058 170,497 -47,446 423,713
Non-allocated assets 0 0 0 0 0 4,826
Total assets 19,980 51,624 229,058 170,497 -47,446 428,539
Allocated debt 14,793 50,780 248,402 122,112 -59,644 376,443
Non-allocated debt 0 0 0 0 0 13,633
Total debt 14,793 50,780 248,402 122,112 -59,644 390,076
Investment 25 2,945 7,320 5,446 0 15,736
Scheduled amortisation and
depreciation 473 2,866 14,102 3,837 0 21,278
Write-down of impaired intangible
assets 0 0 29,000 0 0 29,000
20061) New Home Serial Project Continued
TEUR Business Appliances Motors Motors Consolidation operations
Allocated assets 20,196 61,850 275,769 127,300 -34,262 450,853
Non-allocated assets 0 0 0 0 0 5,930
Total assets 20,196 61,850 275,769 127,300 -34,262 456,783
Allocated debt 14,486 72,043 261,505 66,240 -36,667 377,607
Non-allocated debt 0 0 0 0 0 21,925
Total debt 14,486 72,043 261,505 66,240 -36,667 399,532
Investment 1,409 2,863 5,507 2,502 0 12,281
Scheduled amortisation and
depreciation 352 2,974 10,459 2,615 0 16,400
The comparative period has been restated to reflect changes in accounting for construction contracts and error corrections.
ATB Annual Report 2007 81
23.2 Segment reporting by geographical segments
Secondary segment reporting is based on geographical regions, with sales reported by customer location and asset-related data based on the
respective entities� locations.
Sales revenues were earned in the following regions and are reported by client location:
Financial year ending 31 December
2007 20061)
Sales revenues TEUR TEUR
Europe
Germany 168,073 121,148
Great Britain 45,924 28,801
France 19,727 21,652
Italy 18,680 14,240
Austria 15,095 12,685
Spain 9,355 10,785
Poland 16,291 9,867
Netherlands 13,509 8,596
Switzerland 7,811 6,662
Denmark 9,261 4,818
Serbia 8,686 7,517
Slovenia 5,546 4,580
Other Europe 34,156 27,115
Europe, total 372,114 278,466
North America 15,718 11,785
Asia 18,596 6,976
Australia 4,564 1,019
South-and Central America 839 385
Africa 5,466 2,278
417,297 300,909
Investments and assets are allocated according to the domicile of the entity to which they belong
Financial year ending 31 December
2007 2006
Investment TEUR TEUR
Austria 5,553 1,709
Germany 3,970 1,777
Serbia 3,725 5,952
Poland 651 1,066
Rest of Europe 1,413 1,476
Asia 358 287
Australia/Oceania 36 0
North America 30 14
15,736 12,281
1) The comparative period has been restated to reflect changes in discontinued operations.
ATB Annual Report 2007 82
H. Notes to the consolidated financial statement
Financial year ending 31 December
2007 20061)
Assets TEUR TEUR
Austria 66,146 70,376
Germany 135,132 125,405
France 21,063 23,635
Great Britain 58,182 61,214
Serbia 62,500 58,336
Poland 54,965 57,347
Rest of Europe 5,598 3,188
Asia 21,758 41,758
Australia/Oceania 707 1,263
North America 6,353 7,374
Reconciliation -3,865 6,887
428,539 456,783
24 Research and development costs
Research and development costs reported as expenses amounted to TEUR 3,166 (previous year: TEUR 2,478), i.e. 0.76% (previous year: 0.82%)
of sales proceeds.
Of these expenses, TEUR 326 (previous year: TEUR 239) are reported under the item"Cost of materials and other services�, TEUR 1,981 (previ-ous
year: TEUR 2,101) under"Personnel expenses�, TEUR 452 (previous year: TEUR 64) under"Depreciation of fixed assets�, and TEUR 407
(previous year: TEUR 74) under"Other operating income and expenses�.
25 Earnings per share
Earnings per share are calculated according to IAS 33 by dividing profit or loss attributable to the shareholders of ATB Austria Antriebstechnik AG
by the weighted average number of ordinary shares outstanding during the financial year
2007 2006
Prorated profit/loss for the period attributable to the shareholders of ATB Austria Antriebstechnik AG (in TEUR) -41,020 -3,001
Weighted average number of shares 9,093,151 9,000,000
Diluted and undiluted result per share in EUR -4.51 -0.33
1) The comparative period has been restated to reflect changes in accounting for construction contracts and error corrections.
ATB Annual Report 2007 83
26 Related party transactions with entities and individuals 27 Managing Board remuneration
These consolidated financial statements are sub-group financial state-ments Managing Board remuneration in 2007 totalled TEUR 779 (previous
within the group financial statements of A-TEC INDUSTRIES AG, year: TEUR 719). This included fixed compensation in the amount of
Vienna, which holds a 97.94% (previous year: 90.02%) majority interest TEUR 631 (previous year: TEUR 663) and variable compensation in
in ATB Austria Antriebstechnik Aktiengesellschaft. The assets and liabili-ties the amount of TEUR 148 (previous year: TEUR 56). In addition, TEUR
shown in the group financial statements with the parent company 18 (previous year: TEUR 0) were allocated to severance payment provi-sions.
are presented as assets and liabilities vis-�-vis the higher-level group.
A-TEC INDUSTRIES AG, Vienna has issued a guarantee in the amount 28 Special purpose entities
of EUR 9 million to Schorch Elektrische Maschinen und Antriebe GmbH, In 2006, A-TEC Immobilienvermietung GmbH, Vienna entered into a
M�nchengladbach, Germany. lease agreement on an office building and a plot of land. The office build-ing
and the plot of land are used by ATB Technologies GmbH, Lustenau,
With regard to receivables from and liabilities to related entities and indi-viduals which also pays the lease instalments to A-TEC Immobilienvermie�tung
we refer to Note H.6 and Note H. 11. The business relations with GmbH, Vienna. After an adaptation of the lease agreement, the plot of
the related entities basically comprise financing activities, the purchase land is carried at TEUR 1,334 (previous year: TEUR 1,213), the building
and sale of goods and the provision of services. at TEUR 8,569 (previous year: TEUR 8,898). The special purpose entity
has been included in the consolidated financial statements as the entity
The company reports an amount of TEUR 204 (previous year: EUR 204) derives economic benefit and is exposed to risks relating to the office
receivable from KPS Beteiligungs-GmbH, Vienna, under"Other receiv-ables�. building and the plot of land.
This includes interest in the amount of TEUR 45 (previous year:
TEUR 45). This receivable derived from the purchase of ATB Moto�rentechnik
GmbH, Nordenham, Germany, in 2002. The company paid
100% of the purchase price, but only received 94% of the shares.
KPS Beteiligungs-GmbH, Vienna holds 6% of ATB Motorentechnik
GmbH, Nordenham, Germany, and is owned by one member of the
Managing Board and two members of the Supervisory Board.
In the financial year 2007, TEUR 60 (previous year: TEUR 37) were paid
to employee severance pay and pension funds in Austria.
In 2007, a total of TGBP 381 (TEUR 556) and, in 2006, TGBP 300,
(TEUR 447) were paid into the Morley Electrical Engineering Co Ltd.
Pension and Assurance Scheme, Leeds, UK, and to the Morley Electric
Motors Ltd. Group Personal Pension Plan, Leeds, UK.
ATB Annual Report 2007 84
H. Notes to the consolidated financial statement
29 Contingent liabilities and other financial obligations
29.1 Contingent liabilities
At 31 December 2007, the Group had contingent liabilities of TEUR 66,298 under bank and other guarantees (previous year: TEUR 13,850).
Management does not anticipate that these will give rise to actual liabilities.
29.2 Financial obligations
As at the end of the financial years 2007 and 2006, there were no financial obligations existing at the balance sheet date but not reported in the
balance sheet.
29.3 Other obligations
At the balance sheet date, the following commitments existed under rental and lease arrangements not reflected in the balance sheet:
Total Residual term
more than
TEUR 31 Dec 2007 up to 1 year 2 to 5 years 5 years
Operating rental and lease agreements 4,771 1,470 2,786 515
Total Residual term
more than
TEUR 31 Dec 2006 up to 1 year 2 to 5 years 5 years
Operating rental and lease agreements 5,307 1,206 4,043 58
30 Events after the balance-sheet date
On 30 January 2008, Brook Motors International Pte. Ltd., Singapore was founded as a wholly owned subsidiary of Lindeteves-Jacoberg Ltd.,
Singapore. The business object of the company is trade in and distribution of electric motors.
In April 2008, ATB Sever a.d., Subotica, Serbia set up the entity ATB FOD d.o.o., which purchased all assets of FOD Bor by auction at a price of
EUR 2.6 million. In 2007, the company generated sales revenues in the amount of EUR 8.0 million. In addition, the company undertook to take
over 672 employees and continue production activities for another five years. The entity manufactures and provides services for machinery used in
copper mining.
Vienna, 23 May 2008
signed: signed:
Erwin Fritsch Christian Schr�tter
Chairman of the Managing Board Member of the Managing Board
signed: signed:
Nikolaus Szlavik Dave Brian Schumacher
Member of the Managing Board Member of the Managing Board
ATB Annual Report 2007 85
Investments in fully consolidated and
unconsolidated companies
ATB Group entities at 31 December 2007
Entity Country Stake Interest Consolidated
ATB Austria Antriebstechnik AG, Vienna Austria f
ATB Motorenwerke GmbH, Spielberg Austria 100.00% direct f
ATB Technologies GmbH (formerly"Thien"E-Motoren GmbH, Rankweil),
Lustenau Austria 100.00% direct f
Lustenau Special Purpose Entity Austria 100.00% direct f
ATB Antriebstechnik GmbH, Welzheim Germany 94.00% direct f
ATB Motorentechnik GmbH, Nordenham Germany 88.36% indirect f
ATB Austria Antriebstechnik Vertriebsgesellschaft mgH, Welzheim Germany 100.00% n
ATB France S.A.R.L., Gonesse France 100.00% direct f
ATB SELNI SAS, N�v�rs Cedex France 100.00% direct f
ATB MORLEY LIMITED, Leeds Great Britain 100.00% direct f
David McClure Ltd., Stockport Great Britain 100.00% indirect n
ATB Laurence Scott, Norwich Great Britain 100.00% indirect f
ATB BENELUX B.V., IJsselmuiden Netherlands 100.00% direct f
ATB Schweiz AG, Lenzburg Switzerland 99.20% direct f
ATB SEVER a.d., Subotica Serbia 70.59% direct f
ATB SEVER MAK dooel Macedonia 100.00% indirect n
ATB Motorentechnik (Asia) Pte Ltd., Singapore Singapore 88.36% indirect f
ATB COMPONENTS s.r.o., Ostrava Czech Republic 100.00% direct f
ATB Motors (Shanghai) Co. Ltd., Shanghai PR China 100.00% direct f
Lindeteves Jacoberg Limited, Singapore Singapore 59.69% direct f
Lindeteves Engineering Pte Ltd., Singapore Singapore 59.69% indirect f
Western Electric Asia Pte. Ltd., Singapore Singapore 59.69% indirect f
Lindeteves Marketing Services Pte Ltd., Singapore Singapore 59.69% indirect f
Lindeteves Jacoberg Tradings Sdn Bhd Singapore Singapore 59.69% indirect f
Brook Crompton International Pte Ltd., Singapore Singapore 59.69% indirect f
Western Electric Australia Pte Ltd., Granville Australia 59.69% indirect f
Schorch Elektrische Maschinen und Antriebe GmbH, M�nchengladbach Germany 59.69% indirect f
Lindeteves Jacoberg Holdings GmbH Germany, M�nchengladbach Germany 59.69% indirect f
Brook Crompton France SA, Paris France 59.69% indirect n
Brook Motors Limited, Huddersfield Great Britain 59.69% indirect f
Western Electric Pacific Ltd., Hong Kong Hong Kong 59.69% indirect f
Brook Crompton Greaves Ltd., Maharashtra India 59.69% indirect n
Brook Crompton Limited, Toronto Canada 59.69% indirect f
Linberg Sdn Bhd (Malaysia) Malaysia 59.69% indirect f
WE Motor Sdn Bhd (Malaysia) Malaysia 59.69% indirect f
Lindeteves Jacoberg Malaysia Sdn Bhd, Malaysia Malaysia 59.69% indirect f
Dabatera Sdn. Bhd., Malaysia Malaysia 59.69% indirect n
Western Electric New Zealand, Aukland New Zealand 59.69% indirect f
Brook Crompton B.V., Breda Netherlands 59.69% indirect f
Linberg Philippines Inc., Philippines Philippines 59.69% indirect f
Fabryka Silnik�w Elektrycznych TAMEL SA, Tarnow Poland 59.69% indirect f
Brook Crompton Motor USA Inc., Illinois USA 59.69% indirect f
Brook Crompton Western Electric Motor (Dalian) Corporation Ltd., Dalian PR China 59.69% indirect f
f... Fully consolidated entity n... Non-consolidated entity
ATB Annual Report 2007 86
Movement in intangible assets and property, plant
and equipment as at 31 December 2007
Change in cost of acquisition and production
of
entities
2007
2007 in
Dec
Jan
1 At 31
Additions Revaluation Currency differences Changes consolidated Disposals Reclassification Reclassification discontinued operations At
I. Intangible assets
Goodwill 44,455 0 0 -1,547 5,173 0 0 0 48,081
Concessions, trademarks and similar
rights, licences 68,740 503 0 -2,386 0 -62 0 -16 66,779
Capitalised development costs 5,409 3,467 0 52 0 -33 0 0 8,895
Intangible assets under finance leases 64 0 0 0 0 -64 0 0 0
Prepayments made for intangible
assets 0 23 0 0 0 0 0 0 23
118,668 3,993 0 -3,881 5,173 -159 0 -16 123,778
II. Plant, property and equipment
Land, real estate alike rights and
buildings including buildings on
non-owned land 166,171 125 0 1,530 0 -1,100 1,015 0 167,741
Land under finance leases 10,223 60 0 0 0 0 0 0 10,283
Technical equipment and machinery 246,187 2,836 0 203 1,693 -12,215 38,810 -1,135 276,379
Technical equipment and machinery
under finance leases 37,184 1,480 0 -1,633 0 0 -33,128 0 3,903
Other equipment, furniture and fixtures 31,962 1,598 0 -21 89 -2,549 110 0 31,189
Other equipment, furniture and fixtures
under finance leases 591 0 0 0 0 0 0 0 591
Prepayments and construction in
progress 7,936 5,645 0 231 0 0 -6,807 0 7,005
500,254 11,744 0 310 1,782 -15,864 0 -1,135 497,091
Total 618,922 15,737 0 -3,571 6,955 -16,023 0 -1,151 620,869
ATB Annual Report 2007 87
Accumulated depreciation and amortisation Carrying values
year of
of entities
2007
2007 financial in 2007 2006
down scheduled Dec
Jan
1 31 Dec Dec
At Depreciation/amortisation current Write-Revaluation Non-depreciation/amortisation Currency differences Change consolidated Disposals Reclassification Reclassification discontinued operations At 31 31
0 0 0 6,658 71 0 0 0 0 6,729 41,352 44,455
7,210 3,222 0 19,705 -878 0 -61 0 414 29,612 37,167 61,530
509 368 0 2,637 43 0 0 0 0 3,557 5,338 4,900
64 0 0 0 0 0 -64 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 23 0
7,783 3,590 0 29,000 -764 0 -125 0 414 39,898 83,880 110,885
69,544 4,368 1,750 0 539 0 -901 0 0 75,300 92,441 96,627
112 268 0 0 0 0 0 0 0 380 9,903 10,111
205,995 11,457 0 0 -883 718 -11,214 18,735 -109 224,699 51,680 40,192
19,962 404 0 0 -1,055 0 0 -18,735 0 576 3,327 17,222
29,841 1,098 0 0 -14 52 -2,533 0 0 28,444 2,745 2,121
203 93 0 0 0 0 0 0 0 296 295 388
0 0 0 0 0 0 0 0 0 0 7,005 7,936
325,657 17,688 1,750 0 -1,413 770 -14,648 0 -109 329,695 167,396 174,597
333,440 21,278 1,750 29,000 -2,177 770 -14,773 0 305 369,593 251,276 285,482
ATB Annual Report 2007 88
Auditor�s report
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Opinion
ATB Austria Antriebstechnik AG, Vienna for the financial year from Janu-ary Our audit did not give rise to any objections. Based on the results of our
1, 2007 to December 31, 2007. These consolidated financial state-ments audit in our opinion, the consolidated financial statements present fairly, in
comprise the balance sheet as at December 31, 2007, and the in-come all material respects, the financial position of the group as of December
statement, statement of changes in equity and cash flow statement 31, 2007, and of its financial perform�ance and its cash flows for the finan-cial
for the year ended December 31, 2007, and a summary of significant year from January 1, 2007 to January 31, 2007 in accordance with
accounting policies and other explanatory notes. International Financial Reporting Standards as adopted by the EU.
Management�s Responsibility for the Consolidated Financial Without qualifying our opinion, we draw attention to the statements made
Statements in the Consolidated Management Report and in section G.2.5 of the Notes
Management is responsible for the preparation and fair presentation of to the Consolidated Financial Statements regarding the Group�s liquidity
these con�solidated financial statements in accordance with International risk. It is correspondingly noted therein that the majority shareholder s sup-port
Financial Reporting Standards as adopted by the EU. This responsibility is required to ensure the Group�s solvency at any time and thus its
includes: designing, implement�ing and maintaining internal control relevant continued existence as a going concern as well as its financial flexibility for
to the preparation and fair presentation of financial statements that are the financing activities planned. The majority shareholder has agreed to
free from material misstatement, whether due to fraud or error; select-ing provide such required support by means of letters of financial support.
and applying appropriate accounting policies; and making account�ing
estimates that are reasonable in the circumstances. Report on Other Legal and Regulatory Requirements
Laws and regulations applicable in Austria require us to perform audit
Auditor�s Responsibility procedures whether the consolidated management report is consistent
Our responsibility is to express an opinion on these consolidated financial with the consolidated fi�nancial statements and whether the other dis-closures
state�ments based on our audit. We conducted our audit in accordance made in the consolidated ma�nagement report do not give rise
with laws and regulations applicable in Austria. Those standards re�quire to misconception of the position of the group.
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance whether the financial statements are free In our opinion, the consolidated management report for the group is
from material misstatement. consistent with the consolidated financial statements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the consolidated financial statements.
The procedures selected depend on the auditor�s judgment, including the Salzburg, May 23, 2008
assessment of the risks of material misstatement of the financial state-ments,
whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity�s preparation BDO Salzburg Wirtschaftspr�fungs GmbH
and fair presentation of the consolidated financial statements in order to
design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
entity�s internal control. An audit also includes evaluating the appropriate-ness
of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presen-tation
of the consolidated financial statements. We be�lieve that the audit Klemens Eiter Markus Trettnak
evidence we have obtained is sufficient and appropriate to pro�vide a basis Auditor and tax adviser Auditor and tax adviser
for our audit opinion.
In case of publication or transfer of the consolidated financial statement in a differing than the approved version (e.g. reduction or translation into other languages) it is not permitted to
neither quote the auditor�s certificate nor to refer to our audit without our authorization.
ATB Annual Report 2007 89
Locations
Head Office Netherlands
ATB Motorentechnik GmbH
ATB Austria Antriebstechnik AG Helgol�nder Damm 75 ATB Benelux B.V.
Hohenstaufengasse 7 26954 Nordenham Tasveld 14
A-1010 Vienna Phone: +49 4731 365-0 NL-8271 RW IJsselmuiden
Phone: +43 1 902 50 0 Fax: +49 4731 365-159 Phone: +31 0 38 44 321-10
Fax: +43 1 902 50 110 E-mail: [email protected] Fax: +31 0 38 44 321-11
E-mail: [email protected] E-mail: [email protected]
www.atb-motors.com Schorch Elektrische Maschinen und
Antriebe GmbH
Poland
Breite Stra�e 131
Austria
41238 M�nchengladbach Fabyka Silnikow Elektrycznych
ATB Motorenwerke GmbH Phone: +49 2166 925-0 Tamel SA
G.-Bauknecht-Stra�e 1 Fax: +49 2166 925-100 Ul. Elektryczna 6
8724 Spielberg, Austria E-mail: [email protected] 33-100 Tarnow
Phone: +43 3577 757-0 Phone: +48 14 632 1133
Fax: +43 3577 757-182 Fax: +48 14 621 9664
Great Britain
E-mail: [email protected] E-mail: [email protected]
ATB Morley Ltd.
ATB Technologies GmbH Bradford Road, Leeds
Serbia
Millennium Park 11 West Yorkshire
6890 Lustenau LS28 6QA ATB SEVER a.d.
Phone: +43 5577 90 10-0 Phone: +44 113 257-1734 Magnetna polja 6
Fax: +43 5577 90 10-110 Fax: +44 113 257-0751 24000 Subotica
E-mail: [email protected] E-mail: [email protected] Phone: +381 24 548-111, 548-222
Fax: +381 24 546-893
David McClure Ltd. E-mail: [email protected]
France
Range Road, Adswood
ATB Selni SAS Stockport, Cheshire
Singapore
6 rue Louise Michel Phone: +44 161 475 5791
BP 24 Fax: +44 161 475 5810 Lindeteves-Jacoberg Ltd.
58028 Nevers Cedex 158 Cecil Street
Phone: +33 3 86 93 42-00 ATB Laurence Scott Ltd. #09-03 Dapenso Building
Fax: +33 3 86 93 42-22 NR1 1JD Norwich, Norfolk, Singapore 069545
E-mail: [email protected] PO Box 25 Hardy Road Phone: +65 6227 0308
Phone: +44 1603 628 333 Fax: +65 6227 0605
Fax: +44 1603 619 788 E-mail: [email protected]
Germany
E-mail: [email protected]
ATB Antriebstechnik GmbH
Switzerland
Silcherstra�e 74 Brook Crompton Ltd.
73642 Welzheim St Thomas Road ATB Schweiz AG
Phone: +49 7182 14-1 Huddersfield Industriestrasse 28
Fax: +49 7182 14-590 West Yorkshire 5600 Lenzburg
E-mail: [email protected] HD13LJ Phone: +41 62 8 85 70-10
Phone: +44 1484 557 200 Fax: +41 62 8 85 70-15
Fax: +44 1484 557 201 E-mail: [email protected]
E-mail: [email protected]
ATB Annual Report 2007 90
Contact
For further information please contact us at:
HEAD OFFICE
ATB AUSTRIA ANTRIEBSTECHNIK AG
Hohenstaufengasse 7
A-1010 Vienna
Phone: +43 1 902 50 0
Fax: +43 1 902 50 110
E-mail: [email protected]
www.atb-motors.com
This annual report can be downloaded from the website
www.atb-motors.com
The annual report of A-TEC Industries AG can be downloaded from the
website www.a-tecindustries.com.
ATB Annual Report 2007 91
Editorial
details
Published by:
ATB Austria Antriebstechnik AG
www.atb-motors.com
Investor Relations:
Gerald Wechselauer
Support and copy:
PLEON Publico Public Relations & Lobbying
www.pleon-publico.at
Design:
section.d
www.sectiond.at
ATB AUSTRIA ANTRIEBSTECHNIK AG
Hohenstaufengasse 7
A-1010 Vienna
Phone: +43 1 902 50 0
Fax: +43 1 902 50 110
E-Mail: [email protected]
www.atb-motors.com
<MSTARMODIFIED TYPE=BS><41>
Consolidated balance sheets
000 EUR 31.12.2007 31.12.2006
Property, plant and equipment 167,396 174,597
Intangible assets 83,880 110,885
Deferred tax assets 4,826 5,930
Available-for-sale financial assets 1,243 3,280
Other non-current financial assets 549 129
total Non-current assets 257,894 294,821
Inventories 67,550 59,662
Trade and other receivables 74,977 63,021
Receivables from construction contracts 14,679 7,783
Cash and cash equivalents 10,108 19,871
total Current assets 167,314 150,337
Assets from discontinued operations 3,331 11,625
TOTAL ASSETS 428,539 456,783
Equity
Share capital 26,657 21,810
Capital reserves 30,570 3,417
Currency translation differences 878 45
Accumulated profit/loss -11,989 22,530
Negative minority interests -8,903 -3,104
Majority shareholders interests 37,213 44,698
Minority interests 1,250 12,553
total Equity 38,463 57,251
Long-term borrowings 82,039 112,900
Liabilities to Group Non-current 44,735 0
Long-term obligations to employees 42,568 42,690
Other long-term provisions 1,289 1,127
Deferred tax liabilities Non-current 13,633 21,925
total Non-current liabilities 184,264 178,642
Trade payables including customer prepayments 52,614 53,820
Group payables 55,951 81,105
Short-term provisions 6,096 8,330
Other short-term liabilities 28,710 35,070
Current tax payable 2,418 428
Short-term borrowing 49,655 32,747
total Current liabilities 195,444 211,500
Liabilities from discontinued operations 10,368 9,390
TOTAL EQUITY AND LIABILITIES 428,539 456,783
</MSTARMODIFIED TYPE=BS>
<MSTARMODIFIED TYPE=CF><31>
Consolidated cash flow statement
000 euro 31.12.2007 31.12.2006 TEUR TEUR
Cash flow from operating activities
Cash generated from current operations -9,159 14,970
Taxes paid -1,703 -879
Cash flow from operating activities -10,862 14,091
Cash flow from investing activities
Acquired company interests less net cash acquired -5,511 -17,197
Acquired intangible assets -3,993 -2,579
Acquired plant, property and equipment -11,743 -11,876
Acquired financial assets 0 -75
Proceeds from the disposal of property, plant and equipment 210 1,718
Change in finance lease liabilities and grants received 1,414 0
Interest received 0 207
Cash flow from investing activities -19,623 -29,802
Cash flow from financing activities
Increase in share capital 4,847 0
Increase in capital reserve 27,153 0
Dividend payments -78 -4,596
Payments to minority shareholders 0 -25
Inflow from loan liabilities to third parties 30,067 37,606
Outflow from loan liabilities to Group entities -25,559 0
Interest paid -15,574 -5,123
Cash flow from financing activities 20,856 27,862
Cash and cash equivalents at beginning of period 19,871 8,322
Decrease/increase in cash and cash equivalents -9,629 12,151
Effect of exchange rate changes on cash and cash equivalents -134 -167
Outflow of cash from reclassification as discontinued operations 0 -435
Cash and cash equivalents at end of period 10,108 19,871
</MSTARMODIFIED TYPE=CF>
<MSTARMODIFIED TYPE=IS><28>
Consolidated income statement
thousand euro 31.12.2007 31.12.2006
Sales revenues 417,297 300,909
Change in inventories -2,394 3,127
Own work capitalised 4,932 3,774
Cost of materials and services -217,098 -164,631
Personnel expenses -132,626 -104,111
Depreciation and amortisation of fixed assets -21,278 -16,400
Other operating income 14,046 17,828
Other operating expenses -52,101 -31,519
Write-down of impaired intangible assets -29,000 0
Operating result (EBIT) -18,222 8,977
Financing expenses -20,930 -10,542
Financing income 538 787
Financial result -20,392 -9,755
Earnings before taxes -38,614 -778
Income tax 1,388 -151
Profit/loss from continued operations -37,226 -929
Profit/loss from discontinued operations -15,890 -1,602
Net profit/loss for the year -53,116 -2,531
thereof minority interests -12,096 470
thereof majority interests -41,020 -3,001
undiluted earnings per share -4.51 -0.33
Diluted earnings per share -4.51 -0.33
Weighted average number of shares 9,093,151 9,000,000
Weighted average number of shares-dilutive 9,093,151 9,000,000
</MSTARMODIFIED TYPE=IS>
<MSTARMODIFIED TYPE=FileHead>
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</MSTARMODIFIED TYPE=FileHead>
<MSTARMODIFIED TYPE=AdditionalInfo>
<AdditionalInfo ManualModified="1"><NonAffiliateValue><Value>-1</Value><Date>0001-01-01T00:00:00</Date></NonAffiliateValue><SharesOutstanding><Value>9093151</Value><Date>2007-12-31T00:00:00</Date></SharesOutstanding><AuditorName><Value>-1</Value><Date>0001-01-01T00:00:00</Date></AuditorName><AuditingReport><Value>-1</Value><Date>0001-01-01T00:00:00</Date></AuditingReport><TotalRiskBaseCapital><Value>-1</Value><Date>0001-01-01T00:00:00</Date></TotalRiskBaseCapital></AdditionalInfo>
</MSTARMODIFIED TYPE=AdditionalInfo>