Consolidated management report

6. Asset and capital structure

At 30 September 2008, the balance sheet total of the Wien Energie Group stood at EUR 4,834m, equivalent to 6.5% or EUR 297m higher than on the balance sheet date of the prior year. A part of this increase is attributable to a rise in the value of non-current assets as a result of investment activity. The main focus has been investments in power generation plant and network infrastructure. Fixed assets, equivalent to 73% of all non-current assets, represent the largest single position; followed by around 23% for financial assets. This position recognises long-term financial investments which are organised in special security funds largely held as a means of covering pension obligations.

The value of the position Current assets rose compared to the previous balance sheet date by EUR 198m to EUR 672m. This development is primarily due to accounts receivable which were higher as a result of the colder weather and effective date accounting methods.

The accrued income and prepayments position is largely accounted for by annually declining differential amounts arising out of provisions for pensions which are not yet recognised in income.

The value of shareholder equity rose by nearly 7% to EUR 1,265m due to the positive result of the 2007/2008 financial year and the retention of profits from the prior year after taking into account the distribution of a dividend to the shareholder Wiener Stadtwerke Holding AG.

The Group’s long-term borrowings relate predominantly to provisions for pensions, construction costs, investment grants and long-term loan liabilities. The largest single proportion of these is accounted for by provisions for pension obligations in the amount of EUR 2,011m. Pursuant to the Allocation Act (Zuweisungsgesetz), the Wien Energie Group is required to compensate the City of Vienna for the pension expenses of the municipal employees it has been assigned. This gives rise to a direct pension obligation and a proportion of third-party borrowings which are considerably higher than those of other players in the energy sector, and an equity ratio which, at 26%, is below the industry average. On the balance sheet date, the value of long-term borrowings stood EUR 41m higher than twelve months previously at EUR 2,848m.

At 30 September 2008, short-term borrowings amounted to EUR 722m, equivalent to EUR 173m higher than at the close of the prior period, due to the raising of loans for investments in the heating division.

The equity ratio of around 26% is essentially unchanged vis-à-vis the prior year. The equity-to-fixed-assets ratio continues to indicate that the long-term financing of fixed assets is possible solely on the basis of shareholder’s equity (i.e. the ratio continues to exceed 100%).