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ANNUAL REPORT 2011 - Standardkessel Baumgarte...Standardkessel Power Systems Holding GmbH...
Transcript of ANNUAL REPORT 2011 - Standardkessel Baumgarte...Standardkessel Power Systems Holding GmbH...
Standardkessel Power Systems
Holding GmbH
Baldusstrasse 13
47138 Duisburg / Germany
Phone: +49 (0) 203-452-0
Fax: +49 (0) 203-452-935
www.standardkessel.de
www.baumgarte.de
ANNUAL REPORT 2011
contents
1 company profile 04
core competence 06
editorial 08
2 products and services 10
plants and components 12
service 20
contracting 26
3 group management report 30
4 annual financial statement 40
consolidated balance sheet 42
consolidated statement of comprehensive income 44
consolidated cash flow statement 45
consolidated statement of changes in group equity 46
group notes 48
order intake 150.5
sales 163.1
order backlog 213.4
earnings before tax 6.4
employees 275
equity 28.7
cash & cash equivalents 85.9
Key figures 2011
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standardkessel baumgarte holding gmbh
standardkessel gmbh
baumgarte boiler systems gmbh
standardkessel baumgarte service holding gmbh
standardkessel baumgarte service gmbh
emc germany gmbh
environment & power company ltd.
standardkessel baumgarte
contracting gmbh
uK bioenergy ltd.
plants and components contractingservice
standardKesselpower systems holding gmbh
figures in million euros
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company profile
ideas full of energy.with more than 160 years of eXperience.
1 – company profile
core competence
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core competence
in a world with a growing demand for energy, the need to use energy resources as
efficiently as possible is increasing. as a result, our expertise in the thermal recycling
of a wide range of fuels is more in demand than ever. energy supply com panies,
municipalities, public utilities and industrial companies have been putting their trust in
the experience we have gained during the more than 160 years of history of standard-
kessel and baumgarte. they know: we understand our business. whether developing
customised energy concepts, realising complex and sophisticated turnkey plants,
supplying superior quality components or providing first-class service – our solutions
are backed 100% by ideas full of energy.
in conjunction with the debt crisis, which led to a slowdown in project
financing, the nuclear phaseout caused uncertainty on the markets
and consequently resulted in a decline in the awarding of contracts
for new construction projects in the financial year 2011. despite these
conditions, the standardkessel baumgarte group succeeded in re cording
a satisfactory intake of new orders due to its broad range of products
and services.
in light of the outdated and ageing fleet of power plants, a trend
towards decentralised energy production and an increase in waste in-
cineration, we expect a growing demand for our products in europe
in the medium term, and view our company group as being in an
excellent strategic position.
the plants and components division offers systems for recovering energy
from biomass, residues, waste heat downstream of gas turbines and
primary fuels, with a regional concentration on europe.
the service division provides numerous services for power plants, waste
incineration stations and industrial plants, beginning with intelligent
engineering aimed at modernisation as well as plant and operational
optimisation, and extending to assembly, installation and commissioning
up to maintenance and complete plant management.
the contracting division offers the complete design, planning and co-
ordination of energy and power generation projects from a single source.
the division provides services spanning project identification, project
development and realisation through to operation of the power genera-
tion plant and an equity interest. our customers can concentrate on their
core business, easing their balance sheets and save costs by outsourcing.
as a partner who can simultaneously play the role of contractor, plant
and system supplier and operator, we can significantly help reduce the
number of interfaces.
the standardkessel baumgarte group expects continued positive business
development in the 2012 and 2013 financial years. the market environ-
ment in the plants and components division offers excellent conditions
for growth and expansion. we anticipate further growth in the service
division, and expect that our contracting division will soon be providing
positive momentum for the entire group.
successful year despite uncertain marKets.
1 – company profile
editorial
Filip Ackerman, Jörg Klasen, Lutz Reinery (from left to right)
in 2011, the standardkessel baumgarte group continued its positive development
of the previous year. the group received orders in the amount of eur 150.5 million.
with 275 employees, the group achieved sales totalling eur 163.1 million in the
re porting year, thus realising pre-tax earnings of eur 6.4 million. at the balance sheet
date, the debt-free group had liquid assets amounting to eur 85.9 million.
economic equity was eur 28.7 million, with an equity value of 28.7%.
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products and services
there are many ways to generate heat, steam and electricity from a wide variety of
fuels. at standardkessel baumgarte, we know what they are. and more importantly:
we specialise in them. and that's exactly why you can profit from our expertise.
because we bring our unic and wide range of process know-how into every
pro ject – no matter which fuel it involves.
fueled by the passionto create perfect solutions.
2 – products and services
plants and components
plants and components
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Household, Industrial and Commercial Waste
the thorough, sustainable and environmentally-friendly disposal and
recycling of household waste and industrial waste is a global challenge.
we meet it with state-of-the-art plant technology.
Refuse Derived Fuels
the generation of refused derived fuels (rdfs) from waste is an import-
ant factor in the closed loop recycling economy. rdfs are used in power
plants for generating municipal energy and in industrial power plants
for meeting the demand for process energy.
Solid Industrial Residues,
Liquid and Gaseous Industrial Residues
the worldwide production of consumer goods is steadily increasing. the
industrial production residues arising from this can be used as alternative
fuels for generating energy. green and efficient.
Waste Wood, Wood Residues, Fresh Wood, Forest Waste,
Tree Prunings, Peat, Bark
wood of all types has always been used to generate heat and energy.
since the enactment of the german renewable energy sources act
(eeg), wood as a fuel has even been becoming increasingly important
as an eco-friendly source of energy in germany, and, due to similar
legis lation, in europe and across the entire world as well. the leading
european pioneer in this segment: standardkessel baumgarte.
Olive Waste, Rice Husks, Other Biogenic Residues
of course, along with wood, when it comes to eco-friendly co2-neu-
tral energy recovery, all other types of biogenic energy sources are
in demand, too.
Gas Turbine Exhaust Gas
heat recovery boilers downstream of gas turbines are important
process units for the efficient utilisation of energy arising from gas and
steam turbine processes. heat recovery boilers use the gas turbine waste
to generate steam, boost the overall efficiency of the system, and to
optimise the control characteristics as well.
Waste Heat and Exhaust Gases from Industrial Processes
waste air and exhaust gases generated during industrial processes
can potentially be used as high-energy heat sources. for example, via
heat recovery boiler systems placed downstream of the processes,
which convert the energy contained in the waste air and exhaust gas
into process steam for generating electricity or hot water.
Natural Gas, Heavy Fuel Oil, Light Fuel Oil
despite mounting energy and fuel costs worldwide, gas and oil are
still in great demand as fuels. the benefits of gas and oil include high
operational reliability and important characteristics such as quick-start
properties and load change rates.
Hard Coal, Brown Coal Briquettes, Brown Coal Dust
price stability and supply reliability are just two of the important factors
that make coal a suitable alternative fuel to natural gas and oil.
delivered from duisburg and bielefeld. in operation throughout the world: our plant and system solutions.
2 – products and services
plants and components
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1 moscow, russia
energy source: household waste
2 bernburg, germany
energy source: refuse derived fuel
3 weener, germany
energy source: refuse derived fuel
4 tiefstack, germany
energy source: gt waste gas, natural gas
5 twence, netherlands
energy source: waste wood, wood residue
6 eberswalde, germany
energy source: fresh wood
7 dunkirk, france
energy source: gt waste gas, blast furnace gas,
coke oven gas and natural gas
8 varel, germany
energy source: gt waste gas, natural gas
9 Jülich, germany
energy source: brown coal, hard coal
10 allington, united Kingdom
energy source: municipal, household and
industrial waste
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we offer customised technical solutions not only as a plant engineering and construction company– but also as an epcm contractor.
does your company require engineering and project management expertise needed
to erect, retrofit or modernise a power plant? or do you need additional capacities
right now? we have just the right solution for you: engineering, procurement and
construction management (epcm). we manage the entire project on your behalf –
without necessarily having to be a supplier ourselves.
a current example of this type of partnership is the modernisation of
the power plant operated by rwe in lingen, germany. on the basis of
the approval documents, standardkessel baumgarte first planned and
de veloped the overall process engineering and layout planning. after
extensive and close coordination and consultation with rwe, we then
prepared the tender documents for the external contracting of individual
lots. next step: the technical coordination and scheduling of the contract
award process and subsequent implementation of the detail engineering
by the selected suppliers in line with the customer’s specifications.
at the construction site, standardkessel baumgarte then assumed the
construction and commissioning management, supervising the installation
and start-up activities and supporting rwe during the inspection and
acceptance of the individual work and services performed by the various
subcontractors. conclusion: with standardkessel baumgarte as their
“extended right arm”, customers have an experienced planner and
project manager on their side.
Description of Project
rwe power ag operates two natural gas-fired combined cycle units
with a capacity of 410 mw at the emsland location in lingen. another
power plant unit, which was constructed as a combined gas and steam
cycle plant with an electric capacity of approximately 875 mw, went
into commercial operation in september 2010. due to the age of the
existing upstream gas turbines in the combined cycle units, they were
replaced by new gas turbines and further measures were taken to
modernise the existing plant.
The main tasks and phases of the project included the following:
• four gas turbines
• construction work such as foundations, supports, buildings and
enclosures
• transformers
• bypass stacks
• auxiliary air fans
• flue gas dampers for switchover in bypass operation
• integration of the flue gas ducts into the existing plant,
including the necessary modification measures
• infrastructure integration
• process instrumentation and control engineering
• electrical engineering
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» from the planning stage up
to realisation, we were com-
pletely satisfied throughout
the entire proJect«
» with regard to building the new upstream gas turbines,
we decided to award contracts on a lot-by-lot basis. since
we did not have the available capacities required to imple-
ment the project ourselves, we were looking for an expert
partner who could realise the modernisation of the power
plant without acting as a supplier at the same time.
standardkessel baumgarte was just the right choice for us.
under the general management of rwe technology, the
job involved the basic engineering, process technology
design, preparation of the tender documents, support in
selecting and acquiring the individual sub-contractors as
well as technical project support all the way through to the
initial commissioning. this type of project management and
implementation pays off for us. standardkessel baumgarte
did everything in line with our specifications – to the
complete satisfaction of rwe.«
dr michael fübi
member of the management board, rwe technology gmbh, essen, germany
Emsland Gas Power Plant, Lingen, Germany
number of gas turbines 4
electrical power output per gt 58 mw
exhaust gas emission per gt 168.6 kg/s
exhaust gas temperature at gt 429 °c
recommissioned in 2012
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2 – products and services
plants and components
building a plantis one thing. Keepingit up and running isanother of our specialities.
the efficiency of a power plant starts with the right engineering and ends with the
successful handover. because smooth and fault-free operation is absolutely essential.
that’s exactly what we focus on. with a broad range of services – from commissio-
ning and optimisation up to complete plant operation.
2 – products and services
service
service
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Engineering
we define tasks, prepare plant status reports,
evaluate measurements and measurement
protocols, recommend measures, and offer
planning and implementation engineering
as well as quality assurance services.
Modernisation
what options are there for modernising your
plant? we take an inventory of the current
status, prepare a list of measures and imple-
ment the modernisation plan as well.
Construction and Assembly
our scope of services includes taking stock of
the current status, preparing a list of measures
for the various modernisation options and
implementing the modernisation plan.
Commissioning
we perform functional checks, calibrations
and performance tests for the individual units,
conduct overall functional tests, pre-pare and
execute the trial operation – and subsequently
provide the performance record.
Maintenance
maintenance includes annual plant audits,
repairs, component optimisation and spare
parts management.
Plant Optimisation
we identify any need for optimisation with
regard to availability, emissions, operating
costs, efficiency, etc.
Plant Operation
we operate the complete plant on your be half.
after all, our service knows no bounds.
service Knows no bounds.even if we did not build the plant.
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christian fleing, dipl.-ing. (graduate engineer)
head of combustion test department
deutsches Zentrum für luft- und raumfahrt e. v.
» with standardKessel
baumgarte service,
we found Just the
right partner.«
2 – products and services
service
Air Preheater for DLR Test Facility, Cologne, Germany
medium compressed air
max. pressure 41 bar
max. temperature before air preheating 30 °c
max. temperature after air preheating 730 °c
max. throughput rate 40 kg/s
commissioned in 2011
» conventional gas and steam power plants will continue
to maintain a large share in the comprehensive energy
supply in the future. under these circumstances, it will
become increasingly important to compensate for the out-
put fluctuations of renewable energy sources. managing
and handling these quick load changes puts great demands
on the combustion systems. to test and further develop
these systems under realistic conditions, the existing test
facility at the dlr in cologne, germany, has been expanded.
standardkessel baumgarte service developed, manufac-
tured and installed the air preheater for the facility. since
october 2011, the world’s leading state-of-the-art and
high-perform-ance air preheater has been supplying valu-
able research data for the trial operation of combustion
chambers. the natural gas-fired combustion chamber heats
up the compressed air at 41 bar to a temperature of 730 °c.
standardkessel baumgarte service increased the previous
throughput rate of 30 kg/s to 70 kg/s. when selecting a
supplier for the air preheater for the dlr, it was important
to find a partner capable of meeting the complex require-
ments in an efficient and independent manner. standard-
kessel baumgarte service has just the know-how it takes.«
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2 – products and services
contracting
we design and plan energy concepts for the future. true to the motto: build, operate and own.
does your company need large amounts of energy? for example in the form of
electricity or process steam or to supply heat? good reasons to decide for our sbc
contracting model. to secure your independent energy supply.
contracting
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contracting: your declaration of independence when it comes to your energy supply.
the long-term availability of fuel is essential
to your success. after all, it is the largest cost
element in the operation of any power plant.
long-term delivery contracts with excellent
partners such as local municipalities, long-term
leases on cultivation areas for renewable fuels,
and participation in forestry opera tions – these
are just some of the ways to secure the avai-
lability of fuel for years to come.
with standardkessel baumgarte contracting,
you have a partner that has the necessary
technology, engineering, business and organi-
sational know-how. working together with
you, we can develop an economically viable,
sustainable project. we start with feasibility
analyses, engineering and operator models,
move on to financing, approval pro cedures and
construction, and then con tinue with opera-
tional management and mainten ance. secure
your long-term energy supply build on the
experience of our experts.
if you want to secure your energy supply and keep energy, operation and main-
tenance costs manageable and predictable, you need to explore new paths.
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group management report
1. Successful year despite uncertain markets due to nuclear phase-out
the standardkessel baumgarte group continued in 2011 the positive development of the previous
year. order intake of the group amounted to eur 150.5 million. the group realised sales revenues
of eur 163.1 million in the reporting period with a work force of 275, and achieved a profit before
tax of eur 6.4 million. the unindebted group had liquid funds at the balance sheet date of eur 85.9
million. economic equity was eur 28.7 million with an equity ratio of 28.7%.
together with the debt crisis, which led to restraint in project financing, uncertainty in the german
market as a result of uncertainty due to the nuclear phase-out caused a decline in the awarding
of orders for new construction projects in the past financial year. nevertheless, order intake of the
standardkessel baumgarte group was satisfactory owing to its broad-based product portfolio.
in the medium term, we anticipate a growth in demand for our products in europe due to the
outdated power plants, a trend towards distributed energy generation and an increase in waste
incineration, and believe our group of companies is strategically very well positioned.
the Plants and Components division offers systems to recover energy from biomass, residues,
waste heat downstream of gas turbines and primary fuels with a regional concentration on europe.
the european market for power plants using solid biomass continues to benefit from the political
parameters and support mechanisms. biomass is traditionally one of the key mainstays in the
provision of renewable energies in germany and europe. due to its ability to cover the base load
capacity, biomass is very attractive for the production of power. exclusively converting biogenic solid
fuels into electric power without simultaneously using the heat in a co-generation process is not as
a rule economically viable. the amendment to the eeg [renewable energy sources act] of January
2012 calls for the use of at least 60% of the heat generated. the market growth for biomass power
plants depends primarily on the availability of the fuel. studies assume that the total quantity of
wood required for use as a raw material and for energy will most likely increase much faster in the
coming years than the corresponding supply of raw materials. an increase in installed power capacity
expected in germany is very likely to take the form of smaller plants with a capacity of 0.5 to 5 mw.
since the disposal of untreated urban waste in europe is restricted by law, we also expect substantial
growth in the coming years in recovering energy from waste materials. now that the german market is
virtually saturated, we believe that most contracts in the next few years will be awarded in great brit-
ain. it is currently unclear how new growth markets such as poland, russia and other eastern european
countries will make a significant contribution to new business in the medium term. despite the high
demand, projects in these countries for the incineration of industrial and household waste will depend
on the political will, financial feasibility, the implementation of corresponding regulatory requirements
and local acceptance. at the same time, we expect a tendency towards ever larger projects.
the development of the market for our equipment and components for the use of primary fuels and
waste heat downstream of gas turbines to recover energy is fundamentally tied to the development
of new capacities for producing electric power in europe. the outlook here medium and long-term
is also very good: the majority of german and european power plants have reached their maximum
service life and are due for renewal. given the challenge of absorbing the fluctuations resulting from
the increased production of green electricity, we anticipate a trend towards smaller, distributed units
which correspond to our product portfolio. however, considerable uncertainty currently prevails on
the german market. the priority given to renewable energies in electricity input into the public grid
and in some cases low-priced imported electricity cause longer downtimes for conventional power
plants and consequently a reduced level of profitability and a restrained propensity to invest. the
funding programme for power plants planned by the federal government against this background is
being put at risk by general provisions of european law because the european commission has tied
funding for the construction of new power plants or retrofitting of old power plants solely to the use
of ccs technology (carbon dioxide capture and storage) in the future. due to the lack of agreement
among the federal states, it cannot be excluded that the ccs law which has been contested for years
will fail. the funding of new power plants at reasonable financing rates would then not be possible
in germany for the time being and therefore a market recovery in this segment in the short term
could not be expected.
the Service Division provides numerous services for power plants, incineration plants and industrial
plants, starting with intelligent engineering for modernisation and the optimisation of operations,
through installation and commissioning to maintenance and complete operation.
a main basis for successful growth in this field, in addition to the equipment provided by the
standardkessel baumgarte group, is the demand for modernisation and restructuring with the goal
of making older power plants more energy-efficient.
in addition to europe, the middle east is a main target market for the service division. the first larger
orders were successfully completed in Kuwait and saudi arabia. we anticipate continued significant
growth in this region.
the Contracting Division offers the entire design and coordination of an energy production project
from a single source. this covers all services from project identification through project development,
realisation, operation of the energy generation equipment through to participation with equity capital.
our customers can concentrate on their core business, relieve their balance sheet and participate in cost
savings through outsourcing. as a partner, which can simultaneously assume the role of contractor,
supplier of the equipment and operational manager, we contribute decisively in reducing interfaces.
we can secure the main factors for the success of a project - operating efficiency and functional
capability of the equipment and professional operational management - through our bundled know-
how. the contracting division is currently concentrating its activities on medium-sized biomass power
plants. the necessary know-how for the wood fuel required for these contracting projects is provided
by our minority participation, charles lebbe bvba, belgium, which operates in forestry.
2. Development of the business in 2011
Order intake, sales and order backlog
following the highest order intake realised in the history of the standardkessel baumgarte group
of eur 237.5 million the previous year, order intake in 2011 returned to the average of the last
few years at eur 150.5 million. due to the high backlog of orders, sales in 2011 were therefore
eur 163.1 million (eur 111.8 million in 2010).
the plants and components division once again generated the key share with an order intake of
eur 119.6 million (previous year eur 212.4 million) and sales of eur 140.1 million (previous year
eur 89.3 million). Key orders taken were an order to supply two radiant boilers in germany and an
order to supply a waste incineration line in great britain.
sales in the financial year consisted of three orders which were finally invoiced orders as well as work
on various orders.
group management report
for the 2011 financial year
32 33
the service division was again able to grow in 2011 and generated an order intake of eur 31.9 mil-
lion (eur 26.7 million in the previous year), maintaining sales of eur 24.0 million (eur 24.1 million
in the previous year).
given its business model, the contracting division, which is in the process of being established, does
not at present substantially contribute to sales and order intake but positive effects are expected here
for the utilisation of both the plants and components division and the service division.
as order intake was slightly lower than sales, the order backlog decreased from eur 226.0 million at
31 december 2010 to eur 213.4 million at 31 december 2011. mathematically, this order backlog
covers more than one year.
as a result of employment arising from the order situation, almost all fields of activity of the operating
companies - projects, engineering, purchasing, installation and commissioning - were fully utilised
in the reporting period.
Earnings situation
the result before taxes was eur 6.4 million (previous year eur 3.5 million) and this corresponds to
a return on sales of 3.9% (previous year 3.1%). this positive result was essentially due not only to
successful order processing but also to the control of technical and scheduled risks.
Assets and financial situation
the balance sheet total decreased slightly at 31 december 2011 to eur 130.3 million compared
with the previous year (eur 137.1 million). this decrease was primarily due to a slight downturn in
the business volume and the resulting change in freely available funds of eur 10.0 million. apart
from credit balances at banks including securities of eur 85.9 million, which alone accounted for
65.9% of the balance sheet total, the main assets were the intangible assets at eur 18.9 million,
accounts receivable from manufacturing orders at eur 7.9 million and trade accounts receivable at
eur 10.4 million.
apart from equity, material liabilities are the obligations from manufacturing orders at eur 52.6 mil-
lion and the provisions of eur 46.2 million. the standardkessel baumgarte group has no financial
liabilities and is therefore unindebted.
economic equity of the standardkessel baumgarte group on the balance sheet date 31 december
2011 was eur 28.7 million (previous year eur 26.3 million) including a subordinated shareholder
loan of eur 2.9 million. to determine the equity ratio, due to the high credit balances at banks typi-
cal in our kind of business, the balance sheet total was reduced by customer prepayments carried as
liabilities amounting to eur 30.5 million. the equity ratio thus determined is 28.7% compared with
29.2% at 31 december 2010.
high credit balances at banks including securities were due inter alia to the positive cash flows from
individual large orders. part of this amount is deposited to secure bank guarantees. at the end of
the financial year, the group had a guarantee line of eur 105.0 million which had been used in an
amount of eur 63.9 million or 60.9%.
Investments
the companies of the standardkessel baumgarte group invested eur 1.2 million (0.9 million in the
previous year) in intangible assets and property, plant and equipment in the past financial year.
the assets, financial and earnings situation as a whole of the standardkessel baumgarte group
continues to be stable.
3. Research and development
research and development at the standardkessel baumgarte group coordinates a large number of
order-based and interdisciplinary innovative projects. Know-how from our r&d activities is continu-
ously applied to current projects.
the group applies proven technology, as evidenced by many references. solutions are developed for
practically every order based on the selected boiler technology, taking into account the respective
technical specifications of customers. this results in the development of many individual solutions in
consultation with the customer to optimise the overall concept.
the outstanding event in the past business year was the acquisition of the licence, and therefore the
rights of use, for additional firing technology. the already existing technologies comprising a pusher-
type and travelling grate, were completed by a stationary fluidised bed combustion system. licensor
of this fluidised bed technology is hs-energieanlagen gmbh (hse) of freising. hse has been operating
in this market segment since 1993 and currently has reference plants with a wide fuel range in
operation. this technology will be applied in the fields of waste and biomass engineering. fluidised
bed technology enables us to widen our field of activities by applying fuels which hitherto could not
be used with existing grate technologies. we can therefore select solutions for our customers from
our entire range of technical possibilities and offer them the optimum firing concept tailored to their
specific application. the acquisition of this licence opens up a further market segment to our group
of companies and strengthens our competitiveness.
apart from the acquisition of this licence, various interdisciplinary innovative projects were coordi-
nated:
in the field of biomass incineration, corrosion measurements were performed online in a plant, which
fires waste wood of categories ai to aiv, to evaluate different biogenic residues in terms of their
damage potential and to analyse the effects of media temperatures (flue gas and steam). further-
more, a new system for the combustion of combined biomass was developed on the basis of proven
firing systems for mono combustion which takes into account the different properties of this biomass
and allows low emission combustion.
research and development work in the area of waste utilisation plants as in the past years focused on
combustion technology. furthermore, in order to secure and update our experience of the operational
behaviour of waste utilisation plants, especially with regard to contamination and corrosion behaviour,
systematic analyses of dust and slag, and of the contamination and corrosion behaviour of heating
surfaces were continued in different waste-fired boilers and extended by analyses of water and
steam. developments in improving the protection of boiler heating surfaces against corrosion were
consistently pursued and additional installations were made in existing equipment. development is
also focusing on an increase in efficiency with a view to increasing the utilisation efficiency of our
equipment. experience from a maintenance order in a rdf incineration plant was systematically
analysed. conclusions drawn from this are applied continuously to current projects.
the processing of a complex order for the first time with a 3d construction and planning tool has
almost been completed. experience gained from this will make a significant contribution to the
efficient processing of new orders.
3 – group management report
34 35
group management report
for the 2011 financial year
4. Procurement
the standardkessel baumgarte group is concentrating its three business divisions on engineering
services and project management and all related services. accordingly, the former in-house
manufacturing sites were closed or sold to cooperation partners in previous years. the equipment
and components designed and constructed by the operating companies today are manufactured by
appropriate sub-contractors and shipped from there directly to the respective construction site for
installation by specialist assembly companies. ongoing supervision of manufacturing and installation
by our own personnel guarantees a maximum of required quality.
the low structure of fixed costs resulting from this business model and therefore the high degree
of independence from fluctuations in demand was demonstrated by the group in the past years.
5. Employees
the standardkessel baumgarte group employed a work force of 275 (excluding trainees) at the
balance sheet date 31 december 2011 (275 employees at 31 december 2010).
the number of trainees in 2011 was slightly below the level of the previous year. our aim is to lay the
foundation for modern and consistent personnel development with 14 technical and 7 commercial
trainees. apart from classic training as technical draughtsman or industrial clerk, the group offers
motivated young persons the opportunity of completing a dual track training programme and
acquiring the qualification of bachelor of engineering. in addition, individual commercial trainees
are given targeted support in their studies to obtain a bachelor of arts degree in parallel to their
career, and students have the opportunity of gaining practical experience or writing practice-related
diploma theses.
as the need for well-trained and motivated employees will continue to increase, promotion of
employee competence and strengths is an integral part of our personnel policy. the basis for sound
personnel development already established in previous years was also continued in the past business
year through extensive personnel development programmes and individual support for employees.
these measures will be continued.
all employees were also able once again to profit from the performance-related and success-based
remuneration scheme in 2011.
6. Risk management
the standardkessel baumgarte group handles primarily long-term orders in plant construction. the
consolidated annual financial statements cover any recognisable risks from such orders. a sound
controlling system is used for the early recognition of risks from projects and order processing. in
addition, an early warning system for risks has been instituted. this early warning system aims to
identify risks from corporate activities systematically, to evaluate, control and monitor them according
to the risks involved. this is intended to pre-empt risks which could endanger the existence of the
company. risk management itself is subject to continuous development and improvement.
the main risks for the standardkessel baumgarte group are described below:
Sales market risks
the standardkessel baumgarte group operates in markets which are strongly influenced by legislation
(subsidies for renewable energies, landfill prohibitions etc.). given the general trend towards greater
environmental awareness, we anticipate if anything an increase in legislation in europe which will
allow us to expand our business.
our group of companies depends on the utilisation of its capacities. postponements or losses of
orders can cause temporary under-utilisation and the associated impact on results which we can
partly absorb through appropriate working time models.
the current economic situation can aggravate project financing for customers and therefore lead to
postponement or even the non-realisation of projects. in specific cases, we protect ourselves against
the default risk of important customers through default insurance.
we limit normal default risks through strict receivables management.
Procurement market risks
we limit strong fluctuations in the prices of raw materials by obtaining binding offers from our
suppliers before we enter into delivery obligations ourselves.
we counter any capacity bottlenecks and price increases expected from our suppliers by long-term
general agreements. at the same time this enables us to reduce the risk of depending on single
suppliers for components requiring specialist know-how.
the current economic situation can increase the default risk of key suppliers. we try to estimate
default probability and actively limit the risks also by using our knowledge of the industry.
Specific risks in plant engineering
the operating companies have focused consistently on key technologies. at the same time, new
projects are analysed in detail during the bidding stage and at interdisciplinary level in terms of their
risks. this enables us to avoid orders that cannot be handled technically and significantly limit any
other technical risks.
risks arise from the total systems we construct with their high individual volumes primarily from
impaired general conditions over the course of the project. at the same time, milestones and
manufacturing deadlines are usually subject to contractual penalties so that unforeseen risks in order
execution can jeopardise the order result. the standardkessel baumgarte group tries not to assume
all risks associated with the handling of major orders but to leave some risks with the customer,
and to pass on other risks to suppliers and insurers. residual risks are actively managed through
continuously optimised process organisation, the use of experienced and highly trained project
managers and the reduction of interfaces.
Personnel risks
the continued success of our group of companies depends on our ability to recruit and retain quali-
fied employees, also in the future. we counter the risk of losing good employees through personnel
development programmes and basic conditions to create a pleasant working environment.
36 37
3 – group management report
group management report
for the 2011 financial year
Financial risks
as our business requires a great number of guarantees, we have concluded several loan agreements
with banks and guarantee insurers which secure an adequate guarantee line for the standardkessel
baumgarte group. the standardkessel baumgarte group therefore depends on the financing of this
guarantee volume, without this however resulting in a risk to the company’s continued existence
which exceeds the level associated with any credit financing.
we minimise the risk from exchange fluctuations by hedging all material foreign currency receivables
and liabilities by way of forward exchange transactions.
7. Outlook
the standardkessel baumgarte group anticipates continued positive business development in the
2012 and 2013 financial years. the market environment in the plants and components division
provides a good basis for this. in the service division, we expect further growth and believe that the
contracting division will give positive impetus to the entire group in the short term.
the standardkessel baumgarte group took in an order for the delivery of a coke gas boiler at the
beginning of the 2012 financial year. project volumes awaiting contract awards therefore once again
offer the opportunity of satisfactory development in order intake in 2012.
this market situation together with the orders currently in execution allow us to project a positive
result before taxes in operating budget and medium-term planning.
duisburg, 16 march 2012
Jörg Klaus Klasen filip ackerman lutz reinery
38
group management report
for the 2011 financial year
1 2 3
annual financial statement
42 43
note 31.12.2011 (eur) 31.12.2010 (eur) 01.01.2010 (eur)
1 18,918,165.07 20,254,667.84 21,827,854.69
2 1,340,750.72 1,892,730.84 1,840,081.44
3 651,915.93 181,018.50 60,067.78
20,910,831.72 22,328,417.18 23,728,003.91
4 1,374,350.20 947,030.04 433,632.80
22,285,181.92 23,275,447.22 24,161,636.71
5 601,269.49 1,059,950.58 1,031,752.70
6 3,242.75 263,792.36 3,015,377.74
7 1,465,230.06 1,739,616.36 2,006,544.89
2,069,742.30 3,063,359.30 6,053,675.33
8 7,862,228.84 5,020,587.95 9,444,061.34
9 10,393,166.22 8,967,199.19 11,905,762.76
10 1,766,724.76 847,329.29 1,274,227.72
11 11,744,116.92 11,835,039.73 11,584,662.35
12 74,193,651.06 84,062,067.96 67,655,085.99
105,959,887.80 110,732,224.12 101,863,800.16
130,314,812.02 137,071,030.64 132,079,112.20
Long-term assets
intangible assets
property, plant and equipment
long-term financial assets
deferred income taxes
Other short-term assets
raw materials and consumables
current income taxes
other assets
Short-term financial assets
accounts receivable from manufacturing orders
trade accounts receivable
other financial assets
securities
cash on hand, credit balances
at banks and cheques
Equity
subscribed capital
capital reserve
profit reserves
minority interests
net income for the year
Subordinated shareholder loan
Long-term provisions
provisions for pensions
other provisions
Deferred income taxes
Long-term liabilities
due to banks
Short-term provisions
provisions for pensions
other provisions
Current income taxes
Short-term liabilities
Financial liabilities
obligations from manufacturing orders
trade accounts payable
accounts due to affiliated companies
not included in consolidation
other financial liabilities
other short-term liabilities
note 31.12.2011 (eur) 31.12.2010 (eur) 01.01.2010 (eur)
13
28,000.00 28,000.00 28,000.00
44,366.50 2,500.00 2,500.00
22,284,033.72 21,048,332.80 17,260,680.51
238,297.62 179,429.10 0.00
3,214,823.69 2,235,700.92 3,787,652.29
25,809,521.53 23,493,962.82 21,078,832.80
14 2,859,752.70 2,760,571.76 2,673,902.70
15 8,600,074.00 7,989,933.00 7,339,809.55
16 1,507,621.00 2,561,130.00 3,440,026.00
10,107,695.00 10,551,063.00 10,779,835.55
17 851,347.20 118,765.99 1,370,838.45
0.00 0.00 10,215,000.00
15 336,577.00 373,790.00 297,684.44
16 35,742,095.73 31,556,732.46 22,916,828.71
36,078,672.73 31,930,522.46 23,214,513.15
1,050,704.56 1,525,971.02 1,950,862.03
18 30,452,653.47 47,157,095.19 33,619,369.31
19 22,171,516.82 16,358,338.80 24,493,628.63
2,821.42 1,844.51 931.38
20 363,872.07 74,241.15 2,183,149.14
52,990,863.78 63,591,519.65 60,297,078.46
21 566,254.52 3,098,653.94 498,249.06
130,314,812.02 137,071,030.64 132,079,112.20
assets liabilities
consolidated balance sheet per ifrs
as of 31 december 2011
4 – annual financial statement
44 45
consolidated statement of comprehensive income
per ifrs for the period from 1 January to 31 december 2011
Sales revenues
cost of manufacturing
Gross income
administrative costs
cost of sales
research and development costs
other income
Operating result
financial income
financial expense
other financial result
Financial income
Consolidated result before taxes
taxes on income and earnings
Consolidated result after taxes
Minority interest
Consolidated result after taxes
and minority interest
components of other comprehensive income
during the reporting period
result from cash flow hedges,
valuation at market value
result from cash flow hedges,
valuation at fair value
result from currency conversion
at subsidiaries
actuarial gains/losses pensions
taxes on other comprehensive income
Other comprehensive income
Comprehensive income
note 2011 (eur) 2010 (eur)
22 163,143,404.14 111,849,547.60
28 -142,137,767.19 -95,435,551.21
21,005,636.95 16,413,996.39
-9,923,393.54 -7,675,072.03
-5,798,570.94 -5,054,831.44
-614,769.55 -889,511.16
23 686,617.36 0.00
5,355,520.28 2,794,581.76
1,962,355.66 1,082,699.65
-752,931.23 -820,998.15
-200,031.15 451,956.00
24 1,009,393.28 713,657.50
6,364,913.56 3,508,239.26
25 -2,589,570.73 -1,229,622.98
3,775,342.83 2,278,616.28
26 -103,725.80 45,967.17
3,671,617.03 2,324,583.45
-380,517.91 -77,039.03
-90,191.61 250,377.38
43,494.86 65,951.18
-250,298.00 -368,771.00
220,719.32 40,598.94
27 -456,793.34 -88,882.53
3,214,823.69 2,235,700.92
profit before taxes
taxes on income and earnings
depreciation, amortisation and write-offs on
intangible assets, and property, plant and equipment
financial result
change in provisions
change in inventories
obligations from manufacturing orders
trade accounts receivable
trade accounts payable
change in other assets
change in other liabilities
price gains and losses for securities
other financial result
cash inflow from interest
cash outflow for interest
Cash flow from operations
cash inflow from retirement of
fixed assets
financial assets
cash outflow for
intangible assets
property, plant and equipment
financial assets
Cash flow from investments
Free cash flow
minority interests in capital
minority interest in the result
changes in loans from credit institutions
distributions
Cash flow from financing activity
Change in freely available liquid funds
liquid funds as of 01.01.
liquid funds as of 31.12.
Change in liquid funds
note 2011 (eur) 2010 (eur)
6,364,913.56 3,508,239.26
25 -2,550,971.13 -582,159.40
1,2 1,702,719.74 2,402,409.57
24 -1,009,393.28 -713,657.50
15, 16 3,192,479.11 7,723,112.76
5,8 -2,382,959.80 4,395,275.51
18 -16,667,324.34 13,537,725.88
9 -1,421,218.03 2,938,563.57
19 5,814,154.93 -8,134,376.70
-631,447.48 571,910.45
-2,238,388.91 492,857.13
27, 30 -90,922.81 250,377.38
24 3,177.32 451,956.00
24 1,589,120.02 918,698.96
24 -18,227.74 -111,258.33
-8,344,288.84 27,649,674.54
2 650,000.00 447.00
3 15,908.52 6,459.28
1 -675,418.83 -413,289.75
2 -557,052.65 -468,917.99
3 -3,630.63 -127,410.00
-570,193.59 -1,002,711.46
-8,914,482.43 26,646,963.08
13 58,868.52 179,429.10
26 -103,725.80 45,967.17
0.00 -10,215,000.00
-1,000,000.00 0.00
-1,044,857.28 -9,989,603.73
-9,959,339.71 16,657,359.35
95,897,107.69 79,239,748.34
11, 12 85,937,767.98 95,897,107.69
-9,959,339.71 16,657,359.35
consolidated cash flow statement
for the period from 1 January to 31 december 2011
4 – annual financial statement
46 47
consolidated statement of changes in equity
for the period 1 January to 31 december 2011
01.01.2010
equity transactions
changes after tax
without effect on income
group result 2010
31.12.2010
distributions to shareholders
equity transactions
changes after tax
without effect on income
group result 2011
31.12.2011
subscribed capital minority profit reserves
capital reserve interests including
operating result
(eur) (eur) (eur) (eur)
28,000.00 2,500.00 0.00 21,330,459.43
0.00 0.00 179,429.10 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 2,324,583.45
28,000.00 2,500.00 179,429.10 23,655,042.88
0.00 0.00 0.00 -1,000,000.00
0.00 41,866.50 58,868.52 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 3,671,617.03
28,000.00 44,366.50 238,297.62 26,326,659.91
01.01.2010
equity transactions
changes after tax
without effect on income
group result 2010
31.12.2010
distributions to shareholders
equity transactions
changes after tax
without effect on income
group result 2011
31.12.2011
aggregate other comprehensive income
currency securities at cash flow actuarial Total equity
changes market value hedges gains / losses
pensions
(eur) (eur) (eur) (eur) (EUR)
-13,663.60 -352,593.07 84,130.04 0.00 21,078,832.80
0.00 0.00 0.00 0.00 179,429.10
44,362.48 168,417.91 -51,820.79 -249,842.13 -88,882.53
0.00 0.00 0.00 0.00 2,324,583.45
30,698.88 -184,175.16 32,309.25 -249,842.13 23,493,962.82
0.00 0.00 0.00 0.00 -1,000,000.00
0.00 0.00 0.00 0.00 100,735.02
29,870.87 -61,841.91 -255,042.13 -169,780.17 -456,793.34
0.00 0.00 0.00 0.00 3,671,617.03
60,569.75 -246,017.07 -222,732.88 -419,622.30 25,809,521.53
4 – annual financial statement
48 49
I. Explanations on the companies included in the consolidated financial statements and their basis of valuation
General information
standardkessel power systems holding gmbh (spsh) is the parent company of the standardkessel
baumgarte group which is active as a supplier for the construction of boiler plants for the generation
of heat and electric power, in part also for the turn-key construction of complete power plants as
well as for the production of steam boilers and related equipment. a further field of activity involves
qualified services as well as contracting for boiler plants.
spsh has its registered office at baldusstrasse 13, 47138 duisburg (germany).
the following companies are included in the consolidated financial statements.
apart from the above-mentioned companies, two subsidiaries were established in the reporting year.
due to reasons of materiality, they were not included in the consolidated financial statements as they
are not operating. two participations were liquidated in 2011.
all amounts stated in the notes are shown in Keur.
the audited consolidated financial statements and the group management report will be deposited
with duisburg local court under hrb 17458. the financial statements are expected to be released
for publication by the management of standardkessel power systems holding gmbh at the end of
may 2012.
Accounting principles
the consolidated financial statements of spsh as the reporting parent company for the financial
year from 1 January to 31 december 2011 were prepared in application of § 315a hgb [german
commercial code] in accordance with the international financial reporting standards (ifrs) of the
international accounting standards board (iasb), london, as these standards have been adopted / have
to be applied by the european union. all valid and mandatory standards as of the balance sheet date
were applied. in addition, the interpretations of the international financial reporting interpretation
committee (ifric) were observed. further disclosure requirements under section 315 a hgb were
also met.
group notes
as of 31 december 2011
Domestic companies
standardkessel power systems holding gmbh
47138 duisburg, baldusstrasse 13
standardkessel baumgarte holding gmbh
47138 duisburg, baldusstrasse 13
standardkessel gmbh
47138 duisburg, baldusstrasse 13
baumgarte boiler systems gmbh
33647 bielefeld, senner strasse 115
standardkessel baumgarte service holding gmbh
46049 oberhausen, duisburger strasse 375
standardkessel baumgarte service gmbh
46049 oberhausen, duisburger strasse 375
emc germany gmbh
46049 oberhausen, duisburger strasse 375
standardkessel baumgarte contracting gmbh
47138 duisburg, baldusstrasse 13
(spsh)
(sbh)
(sKg)
(bbs)
(sbsh)
(sbs)
(emc)
(sbc)
Foreign companies
environment & power company ltd.
dammam al-Khobar coastal rd.
al-Khobar 31952, saudi arabia
too "emc Kazakhstan" llp
(company name changed into too emc standardkessel
baumgarte Kazakhstan llp as of 24 January 2011)
120001 Kyzylorda a. bokeikhan 47, Kazakhstan
uK bioenergy ltd.
ng13 8pt, nottingham, 4 bridle ways,
great britain
(epco)
(emc KZ)
(uKb)
4 – annual financial statement
group notes
50 51
Standards Interpretations To be applied to
financial years as of
Planned first-time
application as of
ifrs 1
limited exemption from comparable disclosures according
to ifrs 7 1 Jul 2010 1 Jan 2011
three amendments to ifrs 1 - amendments of accounting
and valuation principles, exemption regarding assumed cost
of acquisition or cost of manufacturing given event-driven
determination of the fair value and assumed cost of acquisition
or cost of goods manufactured for undertakings subject to
price regulation 1 Jan 2011 1 Jan 2011
ifrs 3 amendments to ifrs 3 (2008) 1 Jul 2010 1 Jan 2011
ifrs 7 amendments to ifrs 7 1 Jan 2011 1 Jan 2011
ias 1 amendments to ias 1 1 Jan 2011 1 Jan 2011
ias 24 related party disclosures 1 Jan 2011 1 Jan 2011
ias 27 (2008) amendments to ias 27 (2008) 1 Jul 2010 1 Jan 2011
ias 32 classification of subscription rights 1 feb 2010 1 Jan 2011
ias 34 amendments to ias 34 1 Jan 2011 1 Jan 2011
ifric 13 amendments to ifric 13 1 Jan 2011 1 Jan 2011
ifric 14
voluntary prepaid contributions within the scope of
minimum funding requirements 1 Jan 2011 1 Jan 2011
ifric 19 extinguishing financial liabilities with equity instruments 1 Jul 2010 1 Jan 2011
Effects of new accounting standards
Accounting standards to be applied for the first time in the current financial year
the international accounting standards board (iasb) has adopted a number of changes in the existing
international financial reporting standards (ifrs) as well as some new ifrs have been mandatory since
1 february 2010. the following standards and interpretations to be applied for the first time in the
financial year have no material effects on the consolidated financial statements of spsh or have no
effects in the absence of relevant facts.
Accounting regulations that are published but not yet to be applied:
the following new and amended standards and interpretations had been adopted by the date the
consolidated financial statements were prepared as of 31 december 2011. they will, however, only enter
into force at a later date and were not applied to these consolidated financial statements in advance.
Standards Interpretations To be applied to
financial years as of
EU endorsements
(31 Dec 2011)
Planned first-time
application as of
ifrs 1
deletion of references to fixed transition
dates for first-time adopters of the ifrs 1 Jul 2011 pending 1 Jan 2012
severe hyperinflation 1 Jul 2011 pending 1 Jan 2012
ifrs 7
enhancement of disclosures about
transfers of financial assets 1 Jul 2011 given 1 Jan 2012
ifrs 9
financial instruments: classification
and measurement (financial assets) 1 Jan 2015 pending 1 Jan 2015
financial instruments: classification
and measurement (financial liabilities) 1 Jan 2015 pending 1 Jan 2015
ifrs 10 consolidated financial statements 1 Jan 2013 pending 1 Jan 2013
ifrs 11 Joint arrangements 1 Jan 2013 pending 1 Jan 2013
ifrs 12 disclosure of interests in other entities 1 Jan 2013 pending 1 Jan 2013
ias 27 (2011) separate financial statements 1 Jan 2013 pending 1 Jan 2013
ias 28 (2011)
investments in associates and
Joint ventures 1 Jan 2013 pending 1 Jan 2013
ias 13 fair value determination 1 Jan 2013 pending 1 Jan 2013
ias 1 (2011) amendments to ias 1 1 Jul 2012 pending 1 Jan 2013
ias 12 amendments to ias 12 1 Jan 2012 pending 1 Jan 2012
ias 19 amendments to ias 19 1 Jan 2013 pending 1 Jan 2013
ifric 20
stripping costs in the production
phase of a surface mine 1 Jan 2013 pending 1 Jan 2013
group notes
as of 31 december 2011
4 – annual financial statement
group notes
Standards / Interpretations
Standards / Interpretations
52 53
the iasb published the revised standards ifrs 10 (consolidated financial statements) and ifrs 12
(disclosure of interests in other entities) in may 2011. first-time application of the standards is
mandatory for the financial years beginning on or after 1 January 2013. adoption in european law
is still pending. the iasb published ifrs 9 (financial instruments) with rules to classify and measure
financial assets in november 2009, and rules to classify and measure financial liabilities in october
2010. application of ifrs is mandatory for financial years beginning on or after 1 January 2015.
ifrs 10 redefines full consolidation and eliminates existing inconsistencies. the purpose is above all to
provide a new, uniform definition of the term control and explicit consolidation regulations in the case
of de-facto control. the purpose of ifrs 12 in contrast is to ensure a higher degree of consistency and
transparency of disclosures in the notes on the fully consolidated companies (but also other associates).
the impact on the consolidated financial statements of spsh is currently under examination.
ifrs 9 requires the financial assets to be measured in one of the following two classifications:
"at amortised cost" or "at fair value". ifrs 9 further contains an option to designate measurement
at fair value. financial assets that would normally be classified "at amortised cost" can be classified
"at fair value" if this eliminates or significantly reduces a measurement or recognition inconsistency.
it is mandatory to classify equity instruments "at fair value". the impact on the consolidated financial
statements of spsh is currently under examination.
the other amendments are not expected to have any material impact on the consolidated financial
statements of spsh.
Components of the consolidated financial statements
in addition to the balance sheet and the statement of comprehensive income, a cash flow statement
and the development of the equity are shown.
in order to improve the clarity of the presentation, various line items in the consolidated balance sheet
and the consolidated statement of comprehensive income are combined. these line items are broken
down and explained accordingly in the notes. the statement of comprehensive income was established
using the cost of sales method.
Consolidated companies and consolidation
the companies under the control of spsh are included in these consolidated financial statements. the
annual financial statements of the companies included in the consolidated financial statements are
set forth according to uniform accounting and valuation methods as of the same balance sheet date
as the financial statements for the parent company.
the consolidation of capital was in accordance with the acquisition method by setting off the cost of
acquisition against the net assets valued proportionately attributable to the parent company as of the
date of acquisition. intangible assets identified at the time of acquiring an enterprise are only separately
accounted for if the requirements of ias 38 are satisfied. furthermore, losses carried forward for tax
purposes are entered as deferred tax claims. adjustments to the valuation of the assets entered as of
the date of acquisition are made within twelve months after the acquisition for the benefit of or to the
detriment of the value of the assets.
the participating interest in the company environmental & power company ltd. (epco) established the
previous year was increased from 60% to 70% through a fiduciary agreement with a co-shareholder.
sbsh now holds 2,100 shares out of a total of 3,000 issued shares. additional cost of acquisition was
incurred amounting to Keur 38. the difference vis-à-vis the 10% share in the equity of epco was
transferred in an amount of Keur 42 to the capital reserve. the shares now correspond to a share in
the capital of Keur 556 at 31 december 2011. the remaining 900 shares which are not held by the
group correspond to Keur 238 at 31 december 2011.
group notes
as of 31 december 2011
4 – annual financial statement
group notes
54 55
an overview of the companies included in the consolidated financial statements with their individual
financial statements is set forth below:
the deliveries of goods and services as well as the expenses, earnings and interim profits, receivables
and liabilities between the individual companies within the group were eliminated.
Accounting and valuation methods
Goodwill
goodwill is the asset-side balancing item between cost of acquisition and the fair value of assets
acquired and debt incurred in the context of acquiring an enterprise. goodwill is shown on the assets
side of the balance sheet and is not subject to any scheduled depreciation, but an impairment test is
carried out at least once annually based on the cash flow forecast in order to determine any potential
need for extraordinary depreciation. there was no need for devaluation for the domestic companies in
2011. there was an impairment in value of Keur 169 for the foreign companies due to the decision
to liquidate too emc standardkessel baumgarte Kazakhstan llp in 2011.
Intangible assets
depreciable intangible assets acquired for payment are reported at cost of acquisition less scheduled
depreciation on a straight-line basis (useful life three to ten years).
impairment is assessed according to occurrence by comparing the book value and the realisable
amount. the realisable amount corresponds to the fair value less sales costs or the cash value which-
ever is higher of the future attributable cash flow due to continued use of the asset. if the book value
is higher than the realisable amount, the asset is depreciated by the resulting difference.
research costs are treated as ongoing expense according to ias 38. development costs are capitalised
according to ias 38, if the conditions to do so are met.
Property, plant and equipment
property, plant and equipment are valued according to the cost method of ias 16 at cost of acquisition
or manufacturing, reduced by scheduled and, where applicable, also unscheduled deprecation. repair
costs and interest on third party capital are reported as ongoing expense unless interest on third party
capital must be reflected for qualified assets according to ias 23.
scheduled depreciation is determined pro rata temporis based on expected useful life according to
the straight-line method. scheduled depreciation is based on the following useful lives established as
uniform across the group:
name
standardkessel power systems holding gmbh,
duisburg
standardkessel baumgarte holding gmbh,
duisburg
standardkessel gmbh, duisburg
baumgarte boiler systems gmbh, bielefeld
standardkessel baumgarte
service holding gmbh, oberhausen
standardkessel baumgarte
service gmbh, oberhausen
emc germany gmbh, oberhausen
standardkessel baumgarte contracting gmbh,
duisburg
too emc standardkessel baumgarte
Kazakhstan llp, Kyzylorda, Kasakhstan
environment & power company ltd.,
al-Khobar, saudi arabia
uK bioenergy ltd., nottingham, great britain
equity at group
31.12.2011 share in
Keur %
6,557 100
22,346 100
10,090 100
11,195 100
3,168 100
207 100
-292 100
494 100
-39 100
794 70
-97 100
3 to 10 years
5 years
10 years
10 years
10 years
licences
cad system library
calculation programmes
sales archive
engineering archive
group notes
as of 31 december 2011
4 – annual financial statement
group notes
56 57
property, plant and equipment are subject to unscheduled depreciation if an impairment in value is
indicated and the realisable amount is below the cost of acquisition or manufacturing carried forward.
a write-up is performed if the reasons for unscheduled depreciation in previous years are no longer
applicable.
Long-term financial assets
long-term financial assets are capitalised at cost of acquisition according to ias 39 if they are loans
and receivables. they have terms of up to five years. other long-term financial assets are written down
to the lower value as necessary on the balance sheet date. they are written off when they are sold or
mature. participations in non-consolidated subsidiaries are reported at fair value according to ias 39.
Inventories
inventories are valued at cost of acquisition or manufacturing or at the lower net realisable value. cost
of manufacturing includes the directly attributable cost of manufacturing and the fixed and variable
cost of material and manufacturing overhead expenses attributable at a pro rata share. overhead
cost allocations are on principle determined on the basis of normal capacity. sales costs, general
administration costs and interest on third party capital are not capitalised.
raw materials and consumables are valued at the average purchasing prices plus ancillary costs, less
cash discounts, taking the net realisable value into account.
Other short-term assets and short-term financial assets
other short-term assets and short-term financial assets are reported at cost of acquisition or the lower
fair value. apparent individual risks in accounts receivable are accounted for by way of individual value
adjustments. Zero interest receivables with a remaining term of more than one year are discounted.
write-ups are performed if the reasons for an individual value adjustment made in previous years no
longer exist. receivables and liabilities in foreign currencies are translated at the rate on the balance
sheet date. value adjustments as a result are treated as affecting net income.
Manufacturing orders
manufacturing orders are recognised using the percentage of completion method (p.o.c.). the
percentage of completion is calculated from the share of the order costs incurred up to the balance
sheet date in the expected total order costs (cost-to-cost method). sales revenues and cost of
manufacturing are reported based on the expected order revenues and the expected order costs
according to the percentage of completion achieved. parts of trade orders valued per p.o.c. are
recognised in the balance sheet as accounts receivable from manufacturing orders. payments on
account received for orders valued in accordance with the p.o.c. are deducted for specific orders up
to the amount of the receivable, any excess is carried in payments on account received.
anticipated losses from manufacturing orders are recognised in the balance sheet as expense
immediately i.e. at the time they are identified. if the result of a manufacturing order is not yet
sufficiently certain, the proceeds are reported only in the amount of the order costs incurred (zero
profit method). the profit portion is only realised when completion has advanced so far that proceeds
from the order and costs still to be incurred can be estimated reliably.
the orders valued according to the zero profit method are reported in the statement of comprehensive
income as sales revenues and cost of manufacturing in the amount of the costs incurred and are
reported in the balance sheet as accounts receivable from manufacturing orders.
Provisions
provisions for pension obligations are valued in compliance with ias 19 according to the projected unit
credit method, taking future developments in salaries and pensions into account insofar as these involve
defined benefit pension plans. except for the interest rate component and actuarial gains and losses,
when reporting pension obligations in the balance sheet, the balance of all income and expenses is
reported in the operating income. the interest component is reported in the financial result.
the method for reporting actuarial gains and losses within the current valid ias 19 was changed.
they are now reported in other comprehensive income in the reporting period in the statement of
comprehensive income. this change in reporting method was made because the euro crisis at the
end of the 2011 financial year had resulted in a markedly higher volatility of interest rates which led
to a sharper swing in the actuarial gains and losses. their reporting in other comprehensive income
improves insight into the group’s assets and earnings position. comparable amounts from the previous
year were reclassified from cost of manufacturing to other comprehensive income.
other provisions are established according to ias 37 for all risks and contingent liabilities apparent on
the balance sheet date, resulting from past transactions or past events where their amount or date of
maturity is uncertain, at the amount at which they are expected to be incurred. provisions with a term
of more than one year are discounted.
we set up provisions for warranties at the time of final invoicing of the orders to the customers. they
are set up on the basis of the expense for warranty incurred in the past, the warranty period and the
sales subject to warranty. in addition, individual provisions for warranties are established for individual
claims. provisions for costs not yet charged and for other order-related obligations are valued based
on expected work still to be performed, and in the case of obligations to render work in kind, at the
cost of manufacturing still to be incurred.
20 to 50 years
8 to 20 years
5 to 15 years
3 to 13 years
buildings
installations on land
plant and machinery
fixtures and fittings
group notes
as of 31 december 2011
4 – annual financial statement
group notes
58 59
Liabilities
liabilities are generally recognised for the first time in the balance sheet at the amount of the
consideration received. liabilities are generally recognised in subsequent periods with the cost of
acquisition carried forward (applying, if appropriate, the effective interest method). liabilities with
terms of more than twelve months are reported at their cash value. liabilities in foreign currencies are
translated at the rate on the balance sheet date.
Estimates
when preparing the consolidated financial statements, assumptions were made and estimates applied
which impacted on the amount and reporting of the assets and liabilities, income and expenses and
contingent liabilities reported in the balance sheet. the assumptions and estimates essentially relate to
the determination of economic useful life as uniform across the group, assumptions on the degree of
completion and the total costs of customer-specific manufacturing orders, the reporting of provisions
in the balance sheet and the possibility of realising future tax relief. the assumptions on which a
respective estimate is based are explained in the individual balance sheet items and the statement of
comprehensive income. actual values can in some cases deviate from the assumptions and estimates.
such deviations are taken into account as soon as they become known.
Deferred income taxes
deferred income taxes are recognised based on the balance sheet oriented asset and liability method.
income taxes are deferred for temporary differences between valuations for tax purposes and valuations
entered in the balance sheet, for consolidation processes and for tax losses carried forward.
deferred tax assets are only recognised to the extent that the related tax reductions are likely to occur.
losses carried forward are only included in the tax deferrals to the extent that, on the basis of the fore-
cast results for tax purposes, taxable income is expected in the future which will be sufficient to realise
the deferred income tax assets.
deferred income taxes are valued at the tax rates anticipated in the individual countries on the date
of their realisation. changes in tax rate are taken into account according to ias 12 as soon as the
substantive legislation process has been completed.
Income and expenses
the statement of comprehensive income is prepared using the cost of sales method and follows the
one statement approach in ias 1.81(a).
sales revenues are posted at the time the deliveries or services are provided and the risk has passed to
the customer. sales revenues are reduced by cash discounts, customer bonuses and rebates. where
manufacturing orders are long-term, sales are reported according to the percentage of completion
method (p.o.c.). for more details, please refer to the explanations on the manufacturing orders.
other income is reported if its cause was not operational.
operating expense is reported as expense when a service is used, expenses for advertising and sales
promotion and other sales-related expenses are reported at the time they are incurred. interest income
and expense and other costs for third party capital are reported as income or losses as accrued.
Currency translation
the respective transaction rates during the year are used as the basis for translating foreign currency
amounts into euro. at the end of the year, the outstanding balances in foreign currency are translated
at the currency exchange rate on the balance sheet date, and currency differences resulting from the
valuation of foreign exchange positions are reported as income or losses.
Cash flow statement
the cash flow statement was prepared in accordance with the provisions of ias 7. in the cash flow
statement, the cash flows are broken down into the areas of cash flow from operations, cash flow
from investments, and cash flow from financing activities. the indirect method is used to determine
the cash flow from operations.
operating income and expense which do not affect the cash flow are eliminated in the cash flow from
operations. this shows the change in liquidity as a result of profit/loss for the year.
cash flow from investments contains the investments in intangible assets, property, plant and equip-
ment and financial assets affecting finances as well as cash inflow from the retirement of intangible
assets, property, plant and equipment, participations and loans.
cash flow from financing activities includes all corporate activities which lead to a change in the
amount and structure of the equity and third party capital.
funds for financing purposes include the balance sheet items "securities", "cash on hand, credit
balances at banks and cheques".
group notes
as of 31 december 2011
4 – annual financial statement
group notes
60 61
II. Explanations on the consolidated balance sheet
1 Intangible assets
goodwill of Keur 15,079 (previous year Keur 15,248) resulting from the acquisition of companies
is reported. this applies to standardkessel gmbh with Keur 9,679 and to baumgarte boiler systems
gmbh with Keur 5,400. impairment in the value of the goodwill of too emc standardkessel baum-
garte Kazakhstan llp of Keur 169 is reported in other financial result.
licenses, software and similar rights have pre-defined useful lives. scheduled depreciation for this is
Keur 1,843 (previous year Keur 1,985) and is included in the functional costs, in particular in the
cost of manufacturing. remaining useful life of the intangible assets taken into account in 2007 in
the context of the purchase price allocation is one to six years.
gross book value at 01.01.2011
cumulative depreciations 01.01.2011
situation on 01.01.2011
additions
retirements
depreciations
- additions
- retirements
impairment in value
situation on 31.12.2011
gross book value at 31.12.2011
cumulative depreciations 31.12.2011
goodwill licences, software, intangible
similar rights assets
15,248 13,837 29,085
0 -8,830 -8,830
15,248 5,007 20,255
0 675 675
0 0 0
0 -1,843 -1,843
0 0 0
-169 0 -169
15,079 3,839 18,918
15,248 14,512 29,760
0 -10,673 -10,673
gross book value at 01.01.2010
cumulative depreciations 01.01.2010
situation on 01.01.2010
additions
retirements
depreciations
- additions
- retirements
situation on 31.12.2010
gross book value at 31.12.2010
cumulative depreciations 31.12.2010
goodwill licences, software, intangible
similar rights assets
15,248 13,431 28,679
0 -6,851 -6,851
15,248 6,580 21,828
0 413 413
0 -7 -7
0 -1,985 -1,985
0 6 6
15,248 5,007 20,255
15,248 13,837 29,085
0 -8,830 -8,830
group notes
as of 31 december 2011
4 – annual financial statement
group notes
62 63
2 Property, plant and equipment
the scheduled depreciations on property, plant and equipment in the amount of Keur 488 (previous
year Keur 415) are included in the functional costs, in particular in the cost of manufacturing.
3 Long-term financial assets
participations of Keur 146 (previous year Keur 143) are held in four companies which were not
valued in the consolidation or were valued at equity because of their insignificance. in the case of
one company, there is no relevant influence as a result of the participation. this excluded companies
are reported in principle at fair value according to ias 39 which corresponds to the amortised costs.
there is also a long-term portion of a purchase price receivable of Keur 480 (previous year Keur 0)
and long-term loans of Keur 26 (previous year Keur 38).
valuation was at cost of acquisition.
gross book value at 01.01.2011
currency changes gross value
cumulative depreciations 01.01.2011
currency changes cum. depreciations
situation on 01.01.2011
additions
retirements
depreciations
- additions
- retirements
situation on 31.12.2011
gross book value at 31.12.2011
cumulative depreciations 31.12.2011
gross book value at 01.01.2010
cumulative depreciations 01.01.2010
situation on 01.01.2010
additions
retirements
depreciations
- additions
- retirements
situation on 31.12.2010
gross book value at 31.12.2010
cumulative depreciations 31.12.2010
real technical plant other plant, fixed
estate and machinery fixtures and assets
fittings
2,285 109 4,848 7,242
0 0 -2 -2
-1,556 -82 -3,712 -5,350
0 0 3 3
729 27 1,137 1,893
0 7 551 558
-2,188 0 -1,611 -3,799
-69 -5 -414 -488
1,600 0 1,577 3,177
72 29 1,240 1,341
97 116 3,786 3,999
-25 -87 -2,546 -2,658
real technical plant other plant, fixed
estate and machinery fixtures and assets
fittings
2,285 119 4,475 6,879
-1,466 -82 -3,490 -5,038
819 37 985 1,841
0 0 469 469
0 0 -105 -105
-90 -6 -319 -415
0 0 103 103
729 31 1,133 1,893
2,285 119 4,839 7,243
-1,556 -88 -3,706 -5,350
group notes
as of 31 december 2011
4 – annual financial statement
group notes
64 65
4, 17 Deferred income taxes
deferred income taxes are established pursuant to ias 12 for valuation differences between the tax
balance sheets of the individual companies and the consolidated financial statements. the tax rates
for deferred income taxes within the group are on average 32.7% (previous year 32.7%).
deferred taxes on losses carried forward were shown as assets to the extent that they are likely to be
set off against future profits. no deferred tax assets were reported for tax losses carried forward for
corporation tax of Keur 4,783 (previous year Keur 4,055) and trade tax of Keur 4,408 (previous year
Keur 3,708) because it is not certain whether they will effectively result in tax relief.
temporary differences between the valuations in the ifrs consolidated financial statements and the
respective tax valuation impact on the tax deferrals reported in the balance sheet are as follows:
deferred tax claims from losses resulting from cash flow hedges and currency translation differences
from economically independent foreign units that are neutral in their effect on profits had the effect
of increasing equity by Keur 140 (previous year Keur 40). actuarial losses from the calculation of
pension provisions reported for the first time in the oci which are neutral in their effect on profits
have also been allocated to deferred tax claims with the effect of increasing equity by Keur 81. the
stated effects on equity are shown in the statement of comprehensive income.
5 Raw materials and consumables
the total book value of the raw materials and consumables reported in the balance sheet on the bal-
ance sheet date is Keur 601 (previous year Keur 1,060). the amount of the write-downs posted is
Keur 1,340 (previous year Keur 1,138) and is included in cost of manufacturing (note 28).
6 Current income taxes
current income taxes primarily include receivables from tax offices from interest income tax.
7 Other assets
individual value adjustments were made on receivables from other taxes (primarily foreign turnover
taxes) of Keur 642 (previous year Keur 665).
Long-term assets
intangible assets
property, plant and equipment
long-term financial assets
Short-term assets
accounts receivable from
manufacturing orders
receivables and other assets
Long-term liabilities
provisions for pensions
Short-term liabilities
other provisions
liabilities and other
tax losses carried forward
Sub-total
balance of deferred taxes
carried as assets and liabilities
Value shown in the balance sheet
31.12.2011 31.12.2011 31.12.2010 31.12.2010
assets liabilities assets liabilities
1,271 910 1,576 1,335
21
3,155 1,265
113 241
873 742
239 3
134 71 1,181
2,255 2,514
4,772 4,249 4,853 4,025
-3,398 -3,398 -3,906 -3,906
1,374 851 947 119
receivables from other taxes
accrual for payments relating to other periods
31.12.2011 31.12.2010
1,138 766
327 974
1,465 1,740
group notes
as of 31 december 2011
4 – annual financial statement
group notes
66 67
8 Accounts receivable from manufacturing orders
the items bear no interest. by accounting for appropriate reductions in value, the book values corre-
spond to the fair values.
9 Trade accounts receivable
trade accounts receivable are reported at Keur 10,393 (previous year Keur 8,967). short-term
receivables do not bear interest and are recognised at cost of acquisition. doubtful customer accounts
are recognised at the lower recoverable amount. accounts receivable valued in foreign currencies are
valued at the average exchange rate on the balance sheet date. this results on balance in a currency
loss of Keur 3 (previous year currency loss of Keur 17).
completed orders finally invoiced to customers are reported in trade accounts receivable. the so-
called retention money is as a rule replaced by submission of a performance bond so that there are no
receivables with a term of more than one year. all receivables amounting to Keur 10,393 (previous
year Keur 8,967) are therefore due within one year. when receivables are paid, they are eliminated
from the accounts. the book values correspond to the fair values.
as far as the trade accounts receivable are concerned where neither the value is reduced nor payment
delayed, there are no indications at the balance sheet date that the debtors will not meet their
payment obligations (see table following the explanations on other financial assets).
value adjustments to the trade accounts receivable of Keur 1,108 (previous year Keur 3,302) were
carried out (see table following the explanations on other financial assets).
10 Other financial assets
these are loans and other receivables. there are no indications that the debtors will not meet their
payment obligations.
other financial assets in foreign currency with a fixed value date are valued at the forward exchange
hedge rate on the balance sheet date.
the individual value adjustments developed as follows:
Receivables not yet invoiced
cost of manufacturing
plus p.o.c. result
"Zero profit" receivables not yet invoiced
payments on account made
less payments on account received
31.12.2011 31.12.2010
172,271 122,540
17,502 13,421
3,306 2,964
1,851 1,549
-187,068 -135,453
7,862 5,021
gross value
thereof neither reduced in value
nor overdue at the balance sheet date
Not adjusted in value,
overdue in the time bands
overdue less than 30 days
overdue between 30 and 60 days
overdue between 61 and 90 days
overdue between 91 and 180 days
overdue between 181 and 360 days
overdue more than 360 days
trade accounts trade accounts other financial other financial
receivable receivable assets assets
31.12.2011 31.12.2010 31.12.2011 31.12.2010
11,501 12,269 1,767 847
3,511 7,450 1,739 840
970 300 0 1
519 429 0 5
1,085 0 0 0
757 36 0 0
829 80 3 1
2,722 672 25 0
2011
trade accounts receivable
2010
trade accounts receivable
other financial assets
01.01. drawdown reversal appropriation 31.12.
3,302 -3,282 0 1,088 1,108
01.01. drawdown reversal appropriation 31.12.
3,527 0 -253 28 3,302
15 -10 -5 0 0
group notes
as of 31 december 2011
4 – annual financial statement
group notes
68 69
11 Securities
the securities are intended for short-term management of liquidity. the securities amounting to Keur
11,744 (previous year Keur 11,835) are bearer bonds of Keur 8,004 (previous year Keur 8,129) which
are classified "available for sale". they are reported in the balance sheet at market value. the interest
rate is on average 2.75% p.a. (previous year 2.75% p.a.). there were price losses in the securities of
Keur 125 (previous year price losses of Keur 11) which were set off in equity resp. the statement of
comprehensive income without effect on income. the trading date is decisive for reporting the regular
acquisition and sale of securities in the balance sheet. they are valued on the basis of market values on
an active market.
due to ongoing uncertainty on the capital market, the recovery of the other securities (shares in funds)
has been moderate. the valuation of the securities of Keur 3,740 (previous year Keur 3,706) led to
a price gain of Keur 34 (previous year price gain of Keur 261) as of the balance sheet date. these
securities are classified "available for sale".
reference is also made in this regard to (30) financial instruments.
12 Cash on hand, credit balances at banks and cheques
Keur 31,943 (previous year Keur 42,518) of the credit balances at banks were deposited to secure
bank guarantee lines according to term.
13 Equity
the four shares in spsh are fully paid up. equity reported by the company of Keur 25,810 (previous
year Keur 23,494) is the subject of capital management. this capital management aims to ensure
adequate creditworthiness and compliance with national and international criteria for project tenders
through an appropriate equity ratio. adequate capital in the form of equity and third party capital is
assured and made available to all group companies.
the management of spsh proposes a profit distribution of Keur 3,000 from the 2011 result.
the standardkessel baumgarte group complied during the entire reporting period and at the balance
sheet date with the equity covenant with the guarantors of Keur 21,000 to be applied at the
reporting date 31 december 2011. the covenants agreed in previous years were each complied with.
14 Subordinated shareholder loan
the majority shareholder granted a euribor subordinated maturity loan, bearing interest of 3% over
3 months, of Keur 2,860 (previous year Keur 2,761).
15 Provisions for pensions
the company pension plans of the companies for their employees are essentially based on direct,
defined benefit pension commitments within the meaning of ias 19. length of service with the
company and the pensionable remuneration are as a rule decisive factors when assessing pensions.
these pension commitments are financed by making provisions for pensions. provisions for pensions
are actuarially valued according to the projected unit credit method, taking into account future
developments. actuarial gains and losses are accounted for without impact on the result.
realistic assumptions, valid at the balance sheet date, are used among other things for the imputed
interest rate as well as for future salary increases with final salary pension commitments and for
future pension adjustments. the interest component contained in the pension expenses is reported
within interest expense.
Information on defined benefit plans
the companies have direct pension obligations based on individual commitments and a general policy.
the following arrangements apply to the valuation of pension obligations derived from a pension plan
dated 2 January 1989 and from the general terms and conditions for management pensions dated
may 1998 of a former parent company.
a retirement pension is paid when the employee attains the age of 65, or on drawing a retirement
pension from the statutory pension scheme, or when the pensionable age limit is brought forward.
in addition, there are agreements on disability, orphans and widows’ pensions.
a pension payable monthly is provided when the employee attains the age of 65 or is unable to work
prior to that date.
as of 31 december 2011, there is a change in the number of prospective beneficiaries and pensioners.
223 prospective beneficiaries (previous year 217), 109 vested pension rights (previous year 109) and
239 pensioners (previous year 230) are accounted for in the plans as of 31 december 2011. for
the companies, the cash value of the pension obligations was determined based on the following
assumptions:
the biometric calculation is based on the mortality tables 2005g of prof. dr. Klaus heubeck.
the provisions for pensions have developed as follows over the course of the financial year:
accounting interest rate
pensions trend
salary trend
31.12.2011 31.12.2010
4.90 % 5.25 %
2.00 % 2.00 %
2.00 % 2.00 %
group notes
as of 31 december 2011
4 – annual financial statement
group notes
70 71
provisions for pensions in the balance sheet are derived as follows from the value of the obligations:
the cash value of the pension commitments shows the actual target value for the valuation pursuant
to ias 19. the actuarial cash value of the future benefits or claims for future pension benefits earned
by the beneficiaries under the respective pension plan on the valuation date was established as a
provision.
other pensions include a purchase-price annuity.
pension expenses for the respective period comprise the following and are reported in the line items
indicated in the statement of comprehensive income:
the actuarial gains and losses of Keur -251 (previous year Keur -369) are reported for the first time
as other comprehensive income/loss for the period. the previous year’s presentation was adapted. of
the provisions for pensions and similar obligations, Keur 337 (previous year Keur 374) are expected
to fall due in the subsequent financial year.
the obligations will be financed exclusively from provisions.
16 Other provisions
the provisions for warranties cover statutory and contractual warranty obligations. the accrual for
costs not yet invoiced relates to outstanding supplier invoices, expenditure for remedying defects and
other order-specific obligations.
the obligations for and towards employees exist to cover anniversaries, redundancy payments, pre-
retirement part-time programmes, bonuses, special remuneration, overtime and accumulated time,
vacation and the mutual indemnity association. the long-term component of these provisions is
discounted. there was an increase in the discounted amount of Keur 116 (previous year Keur 58)
from Keur 63 to Keur 179 over time. the discounting rate reduced compared with the previous year
by 0.35% to 4.90% (previous year 5.25%). other sundry accruals relate to numerous individual risks.
no claims for reimbursement have been capitalised for the accrued risks.
17 Deferred income taxes
see the specific details in the overview (4) for the origin of deferred income taxes.
situation on 01.01.
expenditure for additional pension rights
acquired during the financial year
interest expense for rights already acquired
actuarial gains / losses
benefits paid out
situation on 31.12.
2011 2010
8,364 7,637
212 207
441 442
251 369
-331 -291
8,937 8,364
cash value of future benefits from
defined benefit obligations
other pensions
situation on 31.12.
31.12.2011 31.12.2010 31.12.2009 31.12.2008
8,883 8,316 7,589 7,422
54 48 48 51
8,937 8,364 7,637 7,473
expenditure for additional pension rights
acquired during the financial year
interest expense for rights
already acquired (interest cost)
pension expenditure for the period
item in statement of
comprehensive income 2011 2010
(28) 212 207
(24) 441 442
653 649
warranties
costs not yet invoiced
other order-related accruals
obligations for and towards employees
other sundry accruals
situation on drawdown reversal appropriation situation on
01.01.2011 31.12.2011
17,031 -1,814 -3,692 4,479 16,004
10,494 -2,230 -4,140 8,881 13,005
0 0 0 356 356
5,254 -4,414 -413 6,217 6,644
1,339 -942 -369 1,213 1,241
34,118 -9,400 -8,614 21,146 37,250
group notes
as of 31 december 2011
4 – annual financial statement
group notes
72 73
18 Obligations from manufacturing orders
payments on account received from p.o.c. and zero profit orders are deducted on an order-by-order
basis up to the amount of the receivable. any excess is carried as a liability from manufacturing orders.
19 Trade accounts payable
trade accounts payable are reported at the repayable amount. liabilities denominated in foreign
currency are reported at the mean value at the balance sheet date. given the term, the book value is
a reasonable approach to the fair value. obligations are all short-term.
this results on balance in a currency gain of Keur 5 (previous year currency gain of Keur 3).
20 Other financial liabilities
the liabilities exist primarily towards other third parties.
other financial liabilities are reported as short-term liabilities because they are due within one year.
for this reason, the repayable amount corresponds to the fair value.
21 Other short-term liabilities
short-term liabilities owed to tax authorities for turnover tax and wage tax withheld are primarily
reported here. the liabilities are reported at their repayable amount.
III. Explanations on the consolidated statement of comprehensive income
22 Geographic breakdown of revenues
sales revenues from customer-specific manufacturing orders according to p.o.c. and zero profit amount
to Keur 144,024 (previous year Keur 108,695). sales revenues relate mainly to the construction of
new boiler systems.
23 Other income
book profit from the disposal of two building leases on commercial property is reported here.
payments on account
received for orders
set off p.o.c. receivables
set off "zero profit"
receivables not yet invoiced
31.12.2011 31.12.2010
217,521 182,610
-185,831 -134,474
-1,237 -979
30,453 47,157
germany
other eu member states
other european countries
africa
america
asia
2011 2010
108,961 85,689
41,456 10,944
56 162
0 8
1,220 719
11,450 14,328
163,143 111,850
group notes
as of 31 december 2011
4 – annual financial statement
group notes
74 75
24 Financial result
proceeds from the liquidation of two participations amounted to Keur 3.
25 Taxes on income
Reconciliation of expected and actual income tax expense
the table below shows a reconciliation statement of expected and actual income tax expense:
the result before income taxes is multiplied by the average group income tax rate of 32.7% (previous
year 32.7%) which consists of trade tax 16.9% (previous year 16.9%), corporation tax of 15.0% and
the solidarity surcharge (5.5% of the corporation tax).
there are unlimited losses carried forward for corporation tax of Keur 14,713 (previous year Keur
17,315) and trade tax of Keur 8,393 (previous year Keur 6,131). thereof Keur 9,930 (previous year
Keur 13,260) were taken into account for corporation tax and Keur 3,985 (previous year Keur
2,423) for trade tax. further losses carried forward of Keur 4,783 (corporation tax) and Keur 4,408
(trade tax) were not taken into account as application cannot be expected within the planning period.
interest and similar income
interest and similar expense
interest component in appropriation
to provisions for pensions
interest income on other provisions
interest expense on other provisions
book profit from disposal of financial assets
impairment of goodwill
other
2011 2010
1,589 856
-118 -215
-441 -442
373 227
-194 -164
3 452
-169 0
-34 0
1,009 714
current income taxes
deferred income taxes
2011 2010
-2,064 -2,954
-526 1,724
-2,590 -1,230
Result before income taxes
expected income tax expense at
an average group income tax rate
of 32.7% (previous year 32.7%)
new tax losses
carried forward which are unusable
addition to tax losses
carried forward
depreciation of capitalised
deferred taxes in previous years
effects of adjustment of deferred taxes
due to change in tax rate to 32.7%
different foreign tax rates
and non-allowable foreign taxes
additional payments /
refunds of taxes previous years
tax relief due to income / expense from
valuation of securities at market price
other tax effects
(non-deductible expenses,
trade tax adjustments)
Recognised income tax expense
2011 2010
6,365 3,508
-2,081 -1,145
-903 -63
679 55
-165 0
0 -37
129 -178
-133 126
0 40
-116 -28
-2,590 -1,230
group notes
as of 31 december 2011
4 – annual financial statement
group notes
76 77 76
26 Minority interest
the 30% share of epco in the result is reported here.
27 Components of other comprehensive income during the reporting period
the components of other comprehensive income (oci) are reported in other comprehensive income.
deferred taxes recognised in the statement of comprehensive income without impact on profits from
the above-mentioned effects total Keur 221 (previous year Keur 40).
28 Other information on the statement of comprehensive income
Cost of materials
Personnel expenses
expenses for retirement pensions amount to Keur 212 (previous year Keur 207). they do not include
the interest component in the appropriation to the provisions for pensions of Keur 441 (previous year
teur 442). this is reported in the financial result.
Average headcount for the financial year
the average number of employees in the reporting period was 267 (previous year 266).
2011
result from cash flow hedges,
valuation at market value
result from cash flow hedges,
valuation at fair value
result from foreign currency
translation, subsidiaries
actuarial gains/losses,
pensions
2010
result from cash flow hedges,
valuation at market value
result from cash flow hedges,
valuation at fair value
result from foreign currency
translation, subsidiaries
actuarial gains/losses,
pension
gross deferred tax net
expense/charge
-381 125 -256
-90 29 -61
43 -14 29
-250 81 -169
-678 221 -457
gross deferred tax net
expense/charge
-77 25 -52
251 -82 169
66 -22 44
-369 119 -250
-129 40 -89
cost of raw materials and consumables
and for goods for resale
cost of purchased services
2011 2010
-25,067 -4,185
-91,575 -69,772
-116,642 -73,957
salaries and wages
social security, pension
and other benefits
2011 2010
-23,960 -20,752
-3,186 -3,426
-27,146 -24,178
group notes
as of 31 december 2011
4 – annual financial statement
group notes
78 79
IV. Other information
29 Auditor’s fees
the following fees were incurred for services provided by warth & Klein grant thornton ag
wirtschaftsprüfungsgesellschaft, düsseldorf for the 2011 financial year:
fees for audits include remuneration for auditing the consolidated financial statements and for auditing
the financial statements of spsh and its domestic subsidiaries.
30 Additional information on financial instruments
financial instruments at the balance sheet date are as follows:
audits
tax consultancy services
other services
2011 2010
220 204
95 103
33 5
348 312
Assets
Valuation at cost of acquisition
long-term loans
long-term financial assets
accounts receivable from
manufacturing orders
trade accounts receivable
other financial assets
cash on hand, credit balances
at banks and cheques
Valuation at fair value
participations
securities
valuation 31.12.2011 31.12.2011 31.12.2010 31.12.2010
category book value fair value book value fair value
acc. to ias 39
l&r 26 26 38 38
l&r 480 480 0 0
l&r 7,862 7,862 5,021 5,021
l&r 10,393 10,393 8,967 8,967
l&r 1,767 1,767 847 847
l&r 74,194 74,194 84,062 84,062
94,722 94,722 98,935 98,935
afs 146 146 143 143
afs 11,744 11,744 11,835 11,835
11,890 11,890 11,978 11,978
group notes
as of 31 december 2011
4 – annual financial statement
group notes
80 81
financial instruments are in principle reported as of the date of performance.
liquid funds, trade accounts receivable and manufacturing orders and other financial assets have mainly
short residual terms. their book values therefore correspond on the balance sheet date approximately
to the fair value. the fair values of long-term financial assets correspond to the cash values of the
payments connected therewith, taking into account the respective current market parameters. the
market valuation of the afs securities gave rise to expenditure of Keur 125 (previous year Keur 11)
and income of Keur 34 (previous year Keur 262).
terms for trade accounts payable and other financial liabilities are generally short. the values reported
in the balance sheet are approximately the fair values. Keur 31,943 (previous year teur 42,518) of
the financial instruments were pledged as security for guarantees.
the group’s financial division provides services for the subsidiaries. it monitors and controls the
financial risks connected with the group’s subsidiaries through internal risk reporting which analyses
risks in terms of scale and scope. these risks include the market risk with interest induced cash flow
risks, foreign currency exposure, default risk and liquidity risk.
the group strives to minimise the impact of such risks through appropriate financial instruments. these
include the hedging of foreign currency transactions stipulated in the group guidelines, and regula-
tions on interest and default risks. regulations on the investment of surplus liquidity are established
in agreement with the management. financial instruments are not used for speculative purposes.
the financial division reports to the respective group management on a monthly basis.
Market risks
1. Interest rate risks
the group is exposed to financial market risks due to fluctuations in interest rates on its cash invest-
ments due to receiving payments on account for financing its orders.
existing interest rate risks are reported according to ifrs 7 in a sensitivity analysis which examines the
effects of hypothetical changes in the market interest rates on the result and equity. if the market
interest level for exposure on the balance sheet date had been 100 base points higher (lower), the
result would have been Keur 916 (previous year Keur 704) higher (higher), and equity Keur 916
(previous year Keur 704) higher (higher).
2. Foreign exchange risks
foreign exchange risks result solely from operating activities. in order to hedge foreign exchange risks,
forward exchange transactions (cash flow hedges) are used. all material foreign exchange risks are
considered in hedge accounting. negative market values of Keur 332 (previous year Keur 48) are
reported under other financial assets and will mostly be completed in the 1st half of 2012 at Keur
162. the cash flow hedges which involve security affecting the balance sheet are Keur 49 (previous
year Keur 39) and for expected future cash flows Keur 283 (previous year Keur 9). the effective
part of the cash flow hedges is reported initially in equity with a neutral effect on the result. at the
time of realising the underlying transaction, the contribution to results of the hedging transaction is
transferred to the statement of comprehensive income.
a sensitivity analysis is conducted to show the market risk from fluctuations in the exchange rate.
we have applied an unfavourable hypothetical change of 10% in the exchange rates of the euro
compared with all currencies based on the year-end exchange rate of these currencies. the estimated
hypothetical loss of cash flows from derivative and non-derivative financial instruments would be Keur
971 (previous year Keur 495). Keur 863 (previous year Keur 296) thereof apply to Kwd and Keur
108 (previous year Keur 198) thereof apply to other currencies.
Keur 883 (previous year Keur 361) of the estimated hypothetical loss apply to derivatives which were
used to hedge our anticipated exposure from planned sales in foreign currency. these transactions
meet the requirements of hedge accounting, the corresponding changes in value are reported in equity
(other comprehensive income).
other losses of Keur 88 (previous year Keur 134) are allocated to account balances in foreign
currencies.
Liabilities
Valuation at cost of acquisition
obligations from manufacturing orders
accounts due to affiliated companies
not included in consolidation
other financial liabilities
According to valuation categories
loans and receivables (l&r)
available for sale (afs)
financial liabilities at amortised costs (flac)
valuation 31.12.2011 31.12.2011 31.12.2010 31.12.2010
category book value fair value book value fair value
acc. to ias 39
flac 52,624 52,624 63,515 63,515
flac 3 3 2 2
flac 364 364 74 74
52,991 52,991 63,591 63,591
94,722 94,722 98,935 98,935
11,890 11,890 11,978 11,978
52,991 52,991 63,591 63,591
group notes
as of 31 december 2011
4 – annual financial statement
group notes
82 83
Default risks
the maximum default risk of the financial assets is Keur 32,418 on the balance sheet date (previous
year Keur 26,851) and corresponds to the book values reported in the balance sheet of Keur 32,418
(previous year Keur 26,851).
the risk of accounts receivable from customers can be classified as low due to continuous credit
assessment and a high proportion of payments on account. the default risk for other original financial
instruments shown on the assets side is also considered low because contracting partners are exclusively
public authorities or financial institutions with the best credit-worthiness.
individual value adjustments of financial assets are carried out if the book value of the financial asset is
higher than the cash value of future cash flow. they are triggered by financial difficulties, a customer’s
insolvency, breach of contract, or a customer’s material default in payment.
Liquidity risks
liquidity for the standardkessel baumgarte group means not only solvency in a narrow sense of the
term but also availability of the necessary financial margin for the underlying transaction through
adequate credit lines. to ensure financial liquidity, a liquidity reserve is held in the form of liquid funds
and credit lines for guarantee credits. the group maintains credit lines to banks and credit insurers with
a guarantee facility of Keur 105,000 (previous year Keur 105,000). the following payment commit-
ments (interest payments calculated on the basis of the interest rate at 31.12. and repayments) result
from the financial liabilities in subsequent years:
31 Other financial obligations
the existing guarantee is secured by the pledging of all shares in the companies of the standardkessel
baumgarte group, the assignment of the claims of these companies under insurance contracts, except
for car insurances, and the pledging of credit balances which the group companies maintain at the
lead bank.
other financial obligations are derived largely from tenancy agreements, operative leasing agreements
for cars and office equipment with the following terms:
32 Related parties
apart from the shareholder loan stated in (14), there are no other transactions with related parties
that require disclosure.
a managing shareholder charged a total of Keur 114 (previous year Keur 124) in 2011 for various
brokerage and consulting services.
spsh was granted an option to acquire 35% of the shares in a company by a majority shareholder.
this option can be exercised at any time as long as the majority shareholder holds the relevant shares.
the option price is determined by a fixed factor relating to the nominal value.
the value of the option cannot be reliably determined because of a lack of available information on
the earnings position and performance planning of the company in question.
financial liabilities
other financial liabilities
31.12.2011
other financial liabilities
31.12.2010
book value cash flows cash flows cash flows
< 1 year 1-5 years > 5 years
364 364 0 0
74 74 0 0
31.12.2011
31.12.2010
up to 1 year between 1 and 5 years more than 5 years
5.065 4.802 500
2.572 3.168 337
group notes
as of 31 december 2011
4 – annual financial statement
group notes
84 85
33 Corporate bodies
the managing directors of standardkessel power systems holding gmbh in the 2011 financial year were:
dipl.-ing. Jörg Klaus Klasen, dorsten
filip ackerman, beersel / belgium
dipl.-Ök. lutz reinery, wuppertal
duisburg, 16 march 2012
the management
Jörg Klaus Klasen filip ackerman lutz reinery
Auditor’s Report
we have audited the consolidated financial statements prepared by standardkessel power systems
holding gmbh, duisburg, comprising the balance sheet, statement of comprehensive income, cash
flow statement, statement of changes in equity and the notes to the consolidated financial statements,
together with the group management report for the business year from 1 January to 31 december
2011. the preparation of the consolidated financial statements and the group management report in
accordance with ifrss as adopted by the eu, and the additional requirements of german commercial
law pursuant to § 315a (1) hgb are the responsibility of the parent company´s management. our
responsibility is to express an opinion on the consolidated financial statements and the group
management report based on our audit.
we conducted our audit of the consolidated financial statements in accordance with § 317 hgb
and german generally accepted standards for the audit of financial statements promulgated by the
institut der wirtschaftsprüfer (idw). those standards require that we plan and perform the audit
such that misstatements materially affecting the presentation of the net assets, financial position
and results of operations in the consolidated financial statements in accordance with the applicable
financial reporting framework and in the group management report are detected with reasonable
assurance. Knowledge of the business activities and the economic and legal environment of the group
and expectations as to possible misstatements are taken into account in the determination of audit
procedures. the effectiveness of the accounting-related internal control system and the evidence
supporting the disclosures in the consolidated financial statements and the group management report
are examined primarily on a test basis within the framework of the audit. the audit includes assessing
the annual financial statements of those entities included in consolidation, the determination of entities
to be included in consolidation, the accounting and consolidation principles used and significant
estimates made by management, as well as evaluating the overall presentation of the consolidated
financial statements and the group management report. we believe that our audit provides a
reasonable basis for our opinion.
with the exception of the following qualification our audit has not led to any reservations: in contravention
of §§ 315a (1) and (3), 314 (1) 6 hgb and ias 24.16, the total remuneration earned by the executive
board of standardkessel power systems holding gmbh is not disclosed in the notes to the consolidated
financial statements.
in our opinion, based on the findings of our audit, the consolidated financial statements of standardkessel
power systems holding gmbh for the business year from 1 January to 31 december 2011 with this
qualification comply with the ifrss as adopted by the eu, and the additional requirements of german
commercial law pursuant to § 315a (1) hgb and give a true and fair view of the net assets, financial
position and results of operations of the group in accordance with these requirements. the group
management report is consistent with consolidated financial statements which comply with the ifrss
and the additional german commercial law regulations to be applied according to § 315a (1) hgb and
as a whole provides a suitable view of the group’s position and suitably presents the opportunities and
risks of future development.
düsseldorf, 16 march 2012
warth & Klein grant thornton ag
wirtschaftsprüfungsgesellschaft
dipl.-Kfm. Joachim riese dipl.-Kfm. wolfgang pätzold
wirtschaftsprüfer wirtschaftsprüfer
group notes
as of 31 december 2011
4 – annual financial statement
group notes
86 87 86
Standardkessel GmbHbaldusstrasse 13
47138 duisburg, germany
phone: +49 (0) 203-452-0
fax: +49 (0) 203-452-211
www.standardkessel.de
Baumgarte Boiler Systems GmbHsenner strasse 115
33647 bielefeld, germany
phone: +49 (0) 521-94 06-0
fax: +49 (0) 521-94 06-132
www.baumgarte.com
Standardkessel Baumgarte Service GmbHbaldusstrasse 13
47138 duisburg, germany
phone: +49 (0) 203-452-0
fax: +49 (0) 203-452-211
www.skg-bbs-service.de
Environment & Power Company Ltd.dammam al-Khobar coastal rd.
al-Khobar 31952, saudi arabia
phone: +966 3858 8510
fax: +966 3858 8513
emc Germany GmbHduisburger strasse 375
46049 oberhausen, germany
phone: +49 (0) 208-30 66 83-0
fax: +49 (0) 208-30 66 83-99
www.emc.biz
emc Standardkessel Baumgarte Kazakhstan LLPalikhan bokeikhan street 47
120001 Kyzylorda, Kazakhstan
phone: +7 7242-23 88-91
fax: +7 7242-23 88-95
www.emc-Kazakhstan.com
Standardkessel Baumgarte Contracting GmbHbaldusstrasse 13
47138 duisburg, germany
phone: +49 (0) 203-452-0
fax: +49 (0) 203-452-211
www.sbcontracting.de
UK Bioenergy Ltd. office
century business centre
manvers way
s63 5da rotherham, great britain
phone: +44 1709-300-160
www.uK-bioenergy.com