Financial Statements of RWE AG for the Fiscal Year 1999/2000 Financial Statements of RWE AG
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Financial Statements of RWE AG for the Fiscal Year 1999/2000 Financial Statements of RWE AG The financial statements and the management report of RWE AG for the fiscal year 1999/2000 are published in the Bundesanzeiger and filed with the Commercial Register at the Essen Local Court, HRB 193.The RWE AG management report is combined with the Group’s management report. It is published on pages 28 to 51 in our Annual Report. A collective listing of the investments of the Group and of RWE AG in accordance with section 285, no. 11, and section 313, subsection 2, nos. 1 to 4, of the German Commercial Code is filed with the Commercial Register at the Essen Local Court. Financial Statements of RWE AG 2 Balance Sheet 2 Income Statement 3 Notes 4 Proposal for the Appropriation of Profit 15 1 Auditors’ Report 16 Principal Investments 18 The Boards 21 Balance Sheet as at June 30, 2000 ASSETS (cf. notes) 06/30/2000 06/30/1999 E million E million Fixed assets (1) Financial assets 9,951 10,104 Current assets Accounts receivable and other assets (2) Accounts receivable from subsidiaries 3,791 2,574 Accounts receivable from investees 89 • Other assets 120 14 Securities (3) 2,715 388 Cash and cash equivalents (4) 1,514 1,020 Prepaid expenses (5) 17 15 18,197 14,115 2 EQUITY AND LIABILITIES (cf. notes) 06/30/2000 06/30/1999 E million E million Equity (6) Subscribed capital Common shares 1,211 1,210 Preference shares 129 210 1,340 1,420 (authorized capital E 19 million) (contingent capital E 51 million) Capital reserve 1,697 1,617 Retained earnings 910 1,850 Distributable profit 523 556 4,470 5,443 Special reserves with an equity portion (7) • • Provisions (8) Provisions for pensions and similar obligations 3,634 3,458 Tax provisions 505 1,354 Other provisions 477 500 Liabilities (9) Accounts payable for supplies and services 12 9 Accounts payable to subsidiaries 4,715 3,220 Accounts payable to investees 4,271 – Other liabilities 113 131 18,197 14,115 •) negligible amount Income Statement for the year ended June 30, 2000 (cf. notes) 1999/2000 1998/1999 E million E million Net income from financial assets (12) 1,250 1,276 Net interest (13) – 72 –36 Other operating income (14) 60 1,285 Staff costs (15) – 43 – 31 Amounts written off financial assets and securities held as current assets – 31 –7 Other operating expenses (16) – 641 –300 Profit from ordinary activities 523 2,187 Extraordinary result (17) 0 – Taxes on income (18) 0 – 1,167 Net profit for the year 523 1,020 Profit brought forward from the previous year • • Transfer to retained earnings – – 464 3 Distributable profit 523 556 •) negligible amount AnhangNotes CHANGES IN FIXED ASSETS Accumulated Depreciation Cost of acquisition or construction depreciation Carrying amounts for the year Balance at Additions Disposals Balance at Balance at Balance at Balance at in E million 07/01/1999 06/30/2000 06/30/2000 06/30/2000 06/30/1999 Financial assets Investments in subsidiaries 1) 8,572 6,352 – 7,835 7,089 – 7,089 8,498 – Loans to subsidiaries 856 423 – 130 1,149 – 1,149 856 – Investments 1 198 – 114 85 • 85 1– Loans to investees • • – ••00• Securities held as fixed assets 2) 743 879 – 1,622 • 1,622 743 – Other loans 6 4 – 4 6–66– 10,178 7,856 – 8,083 9,951 • 9,951 10,104 • 1) In the previous year, the accumulated depreciation amounted to E 74 million. 2) In fiscal 1999/2000, the fixed asset securities were written back in the amount of E 0.2 million. •) negligible amount 4 General principles The financial statements have been the nature of expenditure method.The financial prepared in compliance with the provisions of the statements have been drawn up in euros (E); all German Commercial Code and the German Stock amounts are stated in millions of euros (E Corporation Act. Some individual items of the million). With effect from July 1, 1999, balance sheet and income statement have been LAHMEYER AG has been merged into RWE AG combined in order to improve clarity.These items pursuant to section 2, no. 1, of the German are stated and explained separately in the notes. Transformation Act. The income statement has been prepared using Accounting policies The investments in subsidiaries 6 %. In the course of the transfer to the pension and other enterprises are carried at cost, in obligations a distribution option was exercised. individual cases at lower fair values. All identifiable risks and contingent liabilities are The securities held as fixed assets are measured taken into account in the assessment of the other at the lower of cost and quoted market price. provisions. 5 Loans and employer-to-employee loans are Liabilities are generally stated at the amounts recognized at nominal value. repayable. Accounts receivable and other assets are dis- Contingent liabilities are valued according to the closed at nominal value after deduction of neces- extent of liability existing at the balance sheet sary value adjustments. All identifiable individual date. risks are taken into account.The securities held as current assets are carried at the lower of cost Foreign currency transactions are measured at and quoted market price. the exchange rate applicable at the time of first entry or, when hedged by futures, at the futures’ Provisions for pensions and similar obligations price. In the case of accounts receivable, are set up on the basis of actuarial computations liabilities and foreign exchange holdings, losses taking into account the 1998 guide tables by from fluctuations in the exchange rate are includ- Prof. Dr. Klaus Heubeck at an interest rate of ed in the results at the balance sheet date. Notes Notes to the balance sheet (1) Fixed assets The breakdown of the fixed asset items and Victoria Mathias Verwaltungsgesellschaft summarized in the balance sheet and their mbH and the energy supply business of the changes in the 1999/2000 fiscal year are shown former LAHMEYER company as well as a distri- on page 4. bution by RWE Gesellschaft für Beteiligungen mbH due to the withdrawal of a partial amount The additions to the investments in subsidiaries from the capital reserve. Moreover, the share essentially involve the shares added in the course capital of RWE International Financial Services of the merger of LAHMEYER into RWE AG as Ireland Ltd. was reduced two times. well as the capital increase at RWE Gesellschaft für Beteiligungen mbH, which was newly formed A genuine repurchase agreement has been in the reporting period, by contributing the shares concluded between RWE AG and RW in RWE Energie AG, Rheinbraun AG, and Beteiligungsgesellschaft für Bau und Logistik Victoria Mathias Verwaltungsgesellschaft mbH. GmbH, Cologne. Moreover, the companies of the energy supply 6 business of the former LAHMEYER company The additions to and disposals from the loans to have been contributed to RWE Energie AG. Also, subsidiaries predominantly concern the divisions a capital increase was effected at RWE Inter- of Mining and Raw Materials, Petroleum and national Financial Services Ireland Ltd. Chemicals as well as Environmental Services. The disposals chiefly refer to the contribution of The securities held as fixed assets are solely the shares in RWE Energie AG, Rheinbraun AG placed in special funds. (2) Accounts receivable and other assets 06/30/2000 thereof 06/30/1999 thereof in E million RT* > 1 year RT* > 1 year Accounts receivable from subsidiaries 3,791 – 2,574 – Accounts reveivable from investees 89 –•– Other assets 120 1 14 1 4,000 1 2,588 1 *) RT = remaining term •) negligible amount The accounts receivable from subsidiaries include The other assets primarily contain interest claims from loans, tax group accounting accruals and receivables, note loans as well as settlements and ongoing clearing transactions. tax refund claims. (3) Securities in E million 06/30/2000 06/30/1999 Investments in subsidiaries – 42 Own shares – 2 Other securities 2,715 344 2,715 388 In the fiscal year 2,541,532 common shares price of E 28.96 per no-par-value share as part were purchased on the capital market at an aver- of the wealth formation scheme as well as age acquisition price of E 38.02 per no-par-value 35,911 common shares at an average price of share.These shares account for E 6,506,321.92 E 16.85 on the occasion of service anniversaries. of the share capital (0.46 % of the subscribed A total of 597 common shares not needed were capital prior to capital reduction). In the course sold on the capital market at a price of E 40.00. of the merger of LAHMEYER into RWE AG, The total proceeds amounted to E 1,990,892 common shares of RWE AG were 21,469,511.54.The respective differences to the 7 handed over to the trustee in charge of the acquisition price were recognized by RWE AG exchange of shares.These shares account for E and its subsidiaries in results. 5,096,683.52 of the share capital (0.36 % of the subscribed capital prior to capital reduction). The other securities are fixed-interest securities from the placement of liquid funds. Employees of RWE AG and its subsidiaries received a total of 565,412 common shares at a (4) Cash and cash equivalents The cash and cash equivalents refer almost exclusively to balances with banks. (5) Prepaid expenses This item primarily covers rent prepayments. Notes (6) Equity Changes in equity Balance at Dividend Retirement Net profit Other Balance at 07/01/1999 payments of acquired for the year changes 06/30/2000 preference in E million shares Subscribed capital of RWE AG 1,420– – 1,340 82 – 2 Capital reserve of RWE AG 1,617 – 82 – – 2 1,697 Retained earnings Retained earnings for own shares 2 – – – – 2 – Other retained earnings 1,848 – – 940–910 2 Distributable profit 556 – 556 – 523 – 523 5,443 – 556 – 940523 04,470 In accordance with the resolution adopted by the Preference shares: 50,290,353 shares without 8 Annual General Meeting on November 18, 1999, voting rights to smoothen the share capital in the course of (9.6 % of the subscribed the euro conversion, capital was increased by capital) E 1,966,100.36 from corporate funds to E 1,421,574,144.00 by converting a correspond- Authorized capital in the amount of ing portion of the capital reserve.