Our turbines deliver reliable output.

Transcription

BR/2015/GBR/AR_Image
For our international contacts, please visit:
www.senvion.com
Senvion GmbH
Überseering 10
22297 Hamburg
Germany
Legal reference
T + 49 40 5555 090-0
This Annual Report contains statements oriented to future developments which are based on
F + 49 40 5555 090-3999
our current assumptions and prognoses. As a result of known as well as unknown risks,
[email protected]
www.senvion.com
uncertainty and influences, the actual results, financial situation or development may deviate
from the assumptions presented in this document. We shall not assume any obligation to
update any statements tuned to future developments.
Our turbines deliver
reliable output.
So do we.
Financial Highlights
of Fiscal Year 2015
Important Milestones
2015
CONSOLIDATED INCOME STATEMENT
9m15/16A
9m14/15A
Revenues in k EUR
1,683,038
1,465,376
Total performance in k EUR
1,650,234
1,444,128
Result from operating activities before
125,802
exceptional items from reorganisation in k EUR 60,450
Exceptional items from reorganisation in k EUR - 8,0100
0
Result from operating activities in k EUR
117,792
60,450
Result before income taxes in k EUR
102,436
47,152
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION Dec15A
Total assets in k EUR 1,773,643
Total equity capital in k EUR 606,593
Equity ratio
34 %
FURTHER PERFORMANCE INDICATORS Order backlog in EUR million Installed capacity worldwide in MW
January–March
>> Senvion delivers 18 turbines Senvion 6.2M126 for Nordergründe offshore wind farm
>> Senvion successfully commissions its largest wind turbine Senvion 6.2M152
>> Senvion delivers tallest onshore turbine type Senvion 3.2M114 to Belgium
>> Senvion delivers 54 turbines Senvion 6.2M126 for offshore wind farm Nordsee One
April–June
>> Senvion launches turbine for more stable grid feed-in for its 3.XM series
>> Senvion develops turbine Senvion 3.2M122 for even more efficient energy generation
>> Senvion wins four UK orders with Blue Energy totaling over 45 MW
>> Senvion wins new order of six Senvion 3.0M122 totaling 18 MW for Italian wind farm
>> Centerbridge completes acquisition of Senvion
>> Senvion connects its 6,000th wind turbine to the grid
>> Senvion wins orders totaling over 32 MW from its two-megawatt portfolio in France
July–September
>> Financial year 2014/15: Senvion increases revenue by 6.6%; EBITDA up 6.2%
>> Senvion opens R&D Center in India to further strengthen its TechCenter capabilities in Germany
>> Senvion ranked 2nd in wind installations with 285 MW in Germany
>> Senvion commissions 18 of its MM100 turbines in Poland
>> Senvion presents Senvion 3.4M140, its highest yield onshore wind turbine
>> Senvion erects its 2,000th onshore wind turbine in Germany
as at 31.12.2015
3,436
13,733.5
Number of installed turbines worldwide 6,625
Number of employees worldwide * 3,871
October–December
>> 109 MW order: Senvion signs its biggest UK contract to date to supply 32 turbines of the 3.XM series
>> Senvion supplies 16 turbines Senvion 3.4M104 to Vattenfall’s Ray Wind Farm, UK
>> Senvion wind turbine with Next Electrical System on the grid
>> Senvion acquires RodPack technology for more efficient blades
>> Senvion celebrates the commercial operation of its largest onshore project: the 350 MW Rivière-du-Moulin
Publication details
Published by
Senvion GmbH
Concept, Text, Editing, Realisation
Senvion Holding GmbH, Corporate Communications, Verena Puth
Juliane Hollenhorst PR
Design
Senvion GmbH/Marketing
Verinion GbR
Print/Processing
Müller Ditzen AG
* Permanet headcount
Editorial Deadline: January, 31 2016
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Content.
So do we.
Today and in the future.
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With everything the customer needs.
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And we develop markets.
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In every kind of wind.
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Also offshore. 30
For a renewable future.
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Our consolidated statements are available as a separate publication.
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So do we – today and in the future.
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Dear readers and wind energy supporters,
For Senvion, 2015 was marked by both continuity and
change in equal measure.
We continued to make great strides on our growth
trajectory onshore, offshore and in service. As expected
after 2014, the wind market experienced a slight upsurge in 2015, and Senvion was able to be competitive
in this market environment.
Senvion is working profitably – which is also a fundamental part of what we understand to be continuity. We
were able to improve the operating result, the margin,
and also net income for the year over the corresponding period the previous year. In the short fiscal year of
2015 (April 1, 2015 to December 31, 2015), we increased
our sales compared to the same period in the previous
year by 15 percent from EUR 1,465 m to EUR 1,683 m.
We were also able to increase our EBITDA by 68 percent
from EUR 100 m to EUR 168 m. Following the successful
takeover by Centerbridge Partners L.P., our equity has
increased significantly, and we invested immediately –
as announced – in particular in the development of new
products. You can read more about our products in this
part of the Annual Report. For the detailed figures,
please refer to our consolidated financial statements,
which are available as a separate publication.
2015 has also been a year of change. On the one hand,
change is naturally an integral element of our business.
We invest time and money in modifying our turbines,
not only to make them even more powerful, but also to
minimize costs. By doing so, we reduce power generation
costs while increasing the returns for our customers –
and ultimately the returns for us, too. The key premise in
all of this change is to maintain quality. What is known
as “Made in Germany,” is called “German Engineering
Excellence” at Senvion. This value, this requirement even,
is part of Senvion’s DNA.
Starting with the companies from which it has emerged,
Senvion has been an active player in this sector for
25 years, developing, producing and installing wind
turbines. During this time, we have been constituted in
various legal forms and worked under various ownership
structures. This has certainly been the major change
in the past fiscal year: From 2011, we were part of Suzlon
Energy Limited of India, but in April 2015, we were taken
over by Centerbridge Partners L.P. As a result, we have a
strong new partner at our side, with which we can –
and in 2015 were already able to – exploit the potential
of Senvion in the wind energy market even more dynamically. Our increased investments in product innovations
are already proof of this. And so is our networking
capital, which showed an impressive improvement of
EUR 219 m in the last nine months.
Our thanks
The past three years have been successful for Senvion, but
at the same time demanding, too. In a persistently
challenging environment, both in terms of the general
economy and our specific industry, we set out on a path of
change in 2013, beginning with our POWER program for
the future. Since then, we have taken great strides on
the path to becoming a more agile and competitive organization, and we have also not slackened in our cost
discipline. This has been a demanding time for our employees, and for that reason we would like to take this opportunity to thank all those – including former colleagues who
have left the company – who have shown outstanding
engagement and dedication. We would in particular like to
express our thanks to Andreas Nauen, who led the company successfully from 2007 to December 2015, thus also
through these times of change. We are delighted that he
will remain with us as a member of our advisory committee
and that we will continue to benefit from his experience
and expertise.
Our turbines deliver reliable output –
and so do we.
As at December 31, 2015, 6,600 of our wind turbines
generating a total rated output of 13,700 MW have been
installed. In the year currently under review, Senvion
recorded incoming orders for 1,218 MW (April to December 2014: 1,056 MW). We are one of the leading providers
in our market worldwide.
Cornerstones of our strategy
Senvion will continue to pursue the path it has mapped
out, and the sector in which we are active will continue
to grow. Experts from MAKE Consulting expect market
growth in annual onshore installation of 4.8 percent up
to 2020, and an increase in the annual installation of
offshore turbines of 45 percent from currently 2.0 gigawatts to 9.0 gigawatts in 2020.
It is expected that Europe will remain the largest onshore
market globally, and that this will continue to grow
steadily. We are one of the leading providers in our core
European markets and can boast a large number of
pioneering technical achievements. Our successful service
offering generates added value for our customers and
our company, while our offshore platform allows for
additional growth.
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The Senvion Management.
Our business model is designed in such a way
as to focus on the themes that match our abilities and generate value for us. Strategically,
we concentrate our efforts on the areas in
which we can play a role and on how we can
benefit from that. This means, for example, that
we are aiming to continue to grow in our core
markets of Germany, France, Australia, Canada,
and Great Britain by strengthening our offer
in low-wind turbines. According to the experts
from MAKE Consulting, installations at lowwind sites will grow to 50 percent of all new
installations by 2020; they currently account
for 29 percent.
We want to tap new markets in Turkey and
India, but countries such as Chile, Norway, and
Japan are also interesting for us. We have for
example proven in Australia and Canada that
we are able to develop markets. For each of
our target markets we have a specific strategy,
the right product, and also the right staff on
site for success.
How do we win? By focusing on minimizing
power generation costs, which in turn increases the returns for our customers. This
means that we will continuously invest in enhancing our products. For example, we launched
our most profitable onshore wind turbine for
low-wind sites, the Senvion 3.4M140 turbine,
in September 2015. MAKE Consulting awarded
this turbine its “Best in Class” honor. We
anticipate that the annual electricity production
of the turbine will be 20 percent higher than
in a Senvion 3.0M122 turbine. You can read
about the other projects we have undertaken
in the chapters “With everything the customer
needs” from page 10 onwards or “In every
kind of wind” starting on page 24.
Expectations for 2016
We also want to be the partner of choice for
our customers in 2016 when it comes to
the question of a suitable wind turbine and
the right service. Specifically, we are assuming
that the incoming order book will remain
an increase in sales in the 2016 fiscal year in
comparison with the 2015 fiscal year.
In order to achieve our targets, we need the
right staff and the right management with
the right experience – and that is something
we are convinced we have. Additionally, we
are very much looking forward to welcome
Dr. Christoph Seyfarth as our Chief Operating
Officer on 1st February 2016.
Thank you very much for your interest so far;
we would be delighted if you would continue
to give us your support.
Dr. Jürgen M. Geißinger, CEO
Kumar Manav Sharma, CFO
Dr. Jürgen M. Geißinger,
Chief Executive Officer (CEO)
Kumar Manav Sharma,
Chief Financial Officer (CFO)
The 56-year-old mechanical engineer has been Chief
Executive Officer (CEO) of Senvion since December 17,
2015. His sphere of responsibility covers Sales, Product
& Technology, Project Management, Human Resources,
Quality, Health & Safety, Strategic Business Development,
Compliance & Legal and Corporate Communications.
The 34-year-old computer engineering and business
management graduate joined Senvion in 2008 and was
appointed the company’s Chief Financial Officer (CFO)
on July 1, 2015. He is responsible for all areas of Finance
as well as for IT, Internal Audit and Risk Management,
and Support Functions.
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So do we – with every thing the customer needs.
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What we offer
We develop, produce, and market wind turbines –
with rated outputs of 2.0 to 6.2 megawatts and rotor
diameters of 82 to 152 meters – for almost any site.1
We also offer our customers project-specific turnkey,
service and maintenance, transport and installation as
well as foundation planning and construction solutions.
Senvion has 25 years of experience in this industry and
sees itself as a pioneer in this technology. “In every
technology-driven industry, the constant search for
improvements is the engine of innovation,” says Jasper
Salzwedel, Group Manager of Sales Team North at
Senvion Deutschland GmbH. “These innovations emerge
when visionaries combine their ideas and technological possibilities pragmatically with the requirements
and conditions of the market in order to create added
value, which goes down well with our customers,” he
continues. In the case of renewable energies, electricity
generation costs (levelized cost of electricity, or LCOE
for short) are constantly reduced as a result. Senvion’s
engineers focus on enabling our customers to achieve
a high average annual return (internal rate of return, or
IRR for short) by ensuring that they have to lay out as
little as possible for electricity generation costs. To this
end, there are two directions in which the impact is
felt – on the one hand, annual energy production (AEP)
can be increased, on the other, the costs of wind turbines are constantly being reduced.
You will find an overview of our product portfolio on page 42.
Source: MAKE Consulting, IEA WEO 2015 – New Policies Scenario
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The experts at MAKE Consulting expect the market for turbines for low wind sites to increase from 29 percent in 2014 to 50 percent in 2020.
So Senvion is perfectly positioned with its latest developments.
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Wind power is competitive
The production of wind energy onshore came close to
achieving grid parity back in 2014.2 What that means
is that the electricity generation costs of this renewable
energy source will soon be the same as the price of
electricity from conventional power sources. In 2015,
Senvion introduced some new innovations for its
turbines, each of which further reduces the LCOE and
increases the IRR.
Successes in 2015
In April, Senvion launched a new wind turbine on the
market for even more efficient energy generation.
The Senvion 3.2M122 represents the further development
of the Senvion 3.0M122. The Senvion 3.2M122 will
have a rated output of 3.2 MW and a rotor diameter of
122 meters. Thanks to the large rotor combined with the
hub height of 139 meters and the new electrical system
– more on this below – use at low-wind sites can be
made even more cost-effective and thus help to reduce
energy costs. “Thanks to the additional output that
this turbine model produces, customers can achieve a
two to three percent increase in yield per year in comparison to its predecessor,” states Jasper Salzwedel.
Senvion presented the design for its new most profitable
onshore wind turbine for low-wind sites3 to the public
at the Husum Wind energy trade fair in September. The
Senvion 3.4M140 will be fitted with a sound-optimized
blade profile and a new pitch control system to reduce
turbine load. This new control system enables the
physical forces that affect the blades to be managed in a
better way. Jasper Salzwedel notes: “We anticipate that
the annual electricity production of the turbine will be
“
These innovations emerge when visionaries combine
their ideas and technological possibilities pragmatically
with the requirements and conditions of the market.
Jasper Salzwedel, Group Manager of Sales Team North at Senvion Deutschland GmbH
”
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20 percent higher than a Senvion 3.0M122.” In addition,
the service life of the Senvion 3.4M140 is 25 years, an
extension of five years. Senvion is looking to install the
prototypes of this turbine in 2017.
The Senvion 3.4M114 NES was connected to the grid in
November. The NES included in the model’s name stands
for “Next Electrical System,” which consists of a fully
rated converter and an asynchronous generator. It
constitutes a further development of the previous system
based on the DFIG (Double Fed Induction Generator)
and enables electricity to be fed into the grid in a more
efficient and stable manner. With the NES, Senvion is
already able today to fulfill the increasing grid requirements which will apply in Germany and the EU for
connections to the high-voltage grid from 2017 onward.
Long-term implementation of these specifications is
also expected in many countries for connections to the
medium-voltage grid.
Jasper Salzwedel has no doubts: “Thanks to the use of
RodPack technology for more efficient rotor blades, our
turbines are set to make another giant stride forward in
the future.” This technology is based on cured, pultruded rods placed on a non-woven fabric. They will
replace the standard glass fiber fabrics used in the main
girders in future onshore and offshore blade designs.
It enables an optimized blade design as well as faster
and higher-quality blade production. RodPack enhances
material strength by almost 10 percent compared to
high-modulus glass and the standard, unidirectional
glass.
Photo: Foto Scheer
We purchased the technology in November 2015. Senvion
was ultimately convinced by the use of the technology
in the design of the longest blade produced at the
company: “We started using RodPack technology this
year in the 74.4-meter-long rotor blades of the Senvion
6.2M152 prototype in the vicinity of Bremerhaven, and
we are hugely delighted with the results we are seeing,‘4”
Jasper Salzwedel confirms, with great optimism.
The future of Senvion’s blade design:
Rodpack Technology enhances material strength and
enables an optimized blade design as well as faster
and higher-quality blade production.
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You can find the detailed results and read more on the topic of the 6.2M152 and our pioneering offshore achievements from page 30 onward.
Foundation of success
“We want to be the partner of choice for our customers
when it comes to products and services. So we generate value for them and, ultimately, also for ourselves of
course,” says Jasper Salzwedel, Group Manager of Sales
Team North at Senvion Deutschland GmbH, summarizes
his personal expectations. The 39-year-old joined Senvion
in 2011. “That is why we are not resting on our laurels,
but are working every day to provide full satisfaction for
our customers,” he says, describing the motivation that
drives the team.
Core market of Germany
With a total newly installed capacity of 285 megawatts,
Senvion became the second-largest onshore wind turbine manufacturer in Germany in the first half of 2015.
But that’s not all: In September 2015, Senvion erected its
2,000th onshore wind turbine in Germany. Together, these
2,000 turbines generate over 2,565,000 kW per year
on average – enough power to supply over 2.5 million
private households in Schleswig-Holstein, MecklenburgWestern Pomerania and Bremen with renewable energy.
“The demand for all our turbines with their various rated
outputs, rotor diameters and tower heights, and the reliability that comes from outstanding service show us that
we are in the right position – from Bavaria to SchleswigHolstein,” says Japser Salzwedel. “Even if I am naturally
a little bit proud that we are a touch better – and by that
I mean number one on the market – in my home state
of Schleswig-Holstein.” The pride and aspiration of all
Senvion staff will ensure that Senvion will also continue
to be a pioneer in the industry in the future.
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So do we – and we develop markets.
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We develop markets.
Employing a workforce of over 3,900 staff, Senvion is
represented in Germany, France, Belgium, Great Britain,
Sweden, Poland, Romania, Italy, and Portugal as well as
on a global level in the US, China, Australia and Canada.
Like Germany, Great Britain, France and Australia, Canada
is one of Senvion’s core markets.
Canada is a country of large dimensions. For Senvion,
that is not simply on account of its massive geographical
scale, particular climatic conditions or the political
framework for wind power that varies from state to
state. For Senvion, Canada is also very special, given
that we signed the largest contract for onshore wind
turbines in our company’s history to date there back
in 2009. In 2015, we celebrated the commercial commissioning of our largest onshore project. But first
things first.
Market entry
Our first employee in Canada was Helmut Herold, who
is currently Senvion’s managing director in North America.
The market opportunities were great, and so a small
subsidiary was formed in 2007. 41-year-old Herold was
constantly flying back and forth between the company‘s
headquarters in Hamburg and the locations of potential
customers in Canada. The negotiations lasted one-and-a
half years, but the outcome spoke for itself: On November
26, 2009, we concluded our largest master agreement
to date, which features a capacity of up to 954 megawatts
for five wind power projects in the province of Quebec.
So Herold was finally able to pack his bags to move to
Canada with his family.
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11 percent market share
In 2014, Senvion had a market share in Canada of 11 percent according to the experts from MAKE Consulting, which
represented an increase of three percent over 2012. Helmut
Herold confirms: “‘Made in Germany,’ or ‘German Engineering Excellence’ as we say at Senvion, is a key factor for
this success. But it would not be possible without the firm
anchorage on site.” Discussions with local decision-makers
are of very great importance in Canada, but energy policy
falls under the exclusive remit of the provinces. An active
presence on site is therefore essential. For Helmut Herold,
many years of contact with decision-makers in the political
arena and with customers are also the key to success in
the future: “We aim to intensify our cooperation with our
existing companies, and further expand our service offer.”
“
We will make the constant expansion of
affordable green energy possible worldwide.
Helmut Herold, Managing Director North America
”
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We develop markets.
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Service within two hours
In the fiscal years 2012/2013, 2013/2014 and
2014/2015, Senvion achieved a growth rate of 22 percent (compound annual growth rate, or CAGR for short)
in revenues with service. The revenues of the current
fiscal year, ending December 31, 2015, confirm this
development. Nearly 75 percent or almost 10 gigawatts
of our turbine fleet are accompanied by a Senvion
service agreement. The customer can be offered three
different service packages, which cover the maintenance
of the wind turbines, repairs, remote monitoring, and
logistics. The service offering in the US is managed by
Herold’s team from Canada. Helmut Herold says: “When
something comes up, our engineers worldwide are
within two hours‘ drive of each onshore turbine thanks
to their local presence. In countries as large as Canada
and the US, the fact that the service is anchored locally
is a crucial plus point.”
Extreme weather conditions require specially tailored
products – like our cold climate version turbines, which
are fully functional even at temperatures of minus 40
degrees Celcius throughout their life cycle of 25 years.
Products specifically for this market
Extreme weather conditions – whether it is extreme
heat or extreme cold1 – require special products.
Therefore, we have installed the special cold climate
versions (CCV) of our MM82 and MM92 turbines in
Canada. These are characterized by the fact that they
maintain their full functionality, for example through
the use of low temperature steel, even in temperatures
of minus 40 degrees Celsius, extreme fluctuations in
temperature, and the wet Canadian weather conditions
marked by a great deal of ice and snow. And they do
so for their guaranteed life of 25 years.
Demand for regional expertise
Construction work on the Rivière-du-Moulin wind farm
in Quebec only commenced in 2013. Helmut Herold
confirms: “This project is a fantastic example of our
regional expertise, given that it was completed and put
into commercial operation two weeks ahead of schedule.
Especially because the terrain is so complex and the
weather conditions so difficult, the impressiveness of
this achievement cannot be emphasized highly enough.”
Largest wind farm comes on stream
Senvion’s largest single project on land worldwide can
also be found in Canada, more specifically in the unorganized territory of Lac-Pikauba in the regional business
community of Charlevoix, Lac-Ministuk and Fjord-duSaguenay in the province of Quebec. Put into operation
in November 2015, it comprises 175 Senvion MM92 and
MM82 turbines of the cold climate version (CCV). With
a total rated output of 350 megawatts, the Rivière-duMoulin wind farm is the largest onshore wind farm in
Senvion’s history and represents the first part of the
one-gigawatt master agreement that Senvion concluded
with the developer EDF EN Canada Inc. in 2009.
Affordable green energy throughout the world
Senvion is well positioned in all of its core markets.
New markets that Senvion is now turning its attention to
include India and Turkey, as they offer good general
conditions, the turbines are well suited for the local
wind conditions, and local expertise is on board. However, also markets in Northern Europe such as Norway, in
South America such as Chile, or also Japan are very
promising and will be looked into more intensively by
Senvion in future. Canada serves as a wonderful example
of how Senvion is able to conquer markets. Helmut
Herold is convinced: “We will make the constant expansion of affordable green energy possible worldwide.”
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You can learn about our hot climate version, which we deploy in Australia for example,
in detail on page 36. You will find an overview of all our products on page 42.
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We develop markets.
We develop markets.
Senvion turbines exceed a total installed capacity of
13.7 gigawatts worldwide. This represents approximately
3.4 percent of the globally installed capacity.
Germany
North America
Canada
1,091
USA
1,264
Total
2,355
France
UK
Spain
Canada
USA
Portugal
Netherlands
& Belgium
Sweden
Poland
Romania
Europe
4,514
Germany
France
1,921
UK
1,522
Italy
812
1,771
Others
10,540
Total
Japan
Czech Republic
Austria
China
Hungary
Italy
Turkey
India
Asia
China
234
Japan
118
India
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Total
375
Australia
Total
Date: December 31, 2015. Includes all installed and SCADA linked systems.
Senvion GmbH installations, starting 1987.
440
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So do we – in every kind of wind.
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Whether at sea or on land, in low, moderate or strong
winds, in cold climates or excessive heat, and regardless
of the requirements of the relevant market – Senvion
offers the right turbine for every wind class.
“
Pragmatic approach
The pragmatism of our approach can be illustrated with
an example from Great Britain: In September 2015,
we signed a contract in the UK for 32 turbines of the
Senvion 3.4M114 and Senvion 3.4M104 models. The
Beinneun wind farm will be erected in 2016 in the
Scottish Highlands, 15 kilometers west of Fort Augustus.
Winds are weak here, but these turbines are perfectly
suited for the prevailing conditions. To ensure that the
turbines comply with the strict tower height regulations
in Great Britain, we developed a tower with a special
hub height. The next challenge was the too narrow
access roads at the harbor of Kyle of Lochalsh. Our solution? Additional temporary unloading areas, so that we
can unload the components and transport them to
the site. “Our flexibility and our swift response times
even when faced with particular challenges are among
the crucial reasons why we won out over strong
competitors,” Keith Burns, Head of Sales Europe North,
is delighted to say.
We supply turbines to match all wind
and market conditions. Even if that
means developing a special tower height.
Richard Doherty, Business Development Manager
”
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Exceptional size
With a total rated output of 108.8 megawatts (MW), the
project is the largest onshore wind farm using Senvion
turbines in Great Britain. But that is not the only superlative about this project, confirms Richard Doherty: “It
took just seven months from Senvion submitting its first
offer to the contract being signed. That is incredibly
quick for such a record order. We have been active in
Great Britain for ten years now, and this contract highlights our growth trajectory here in bold.”
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Senvion is already making an important contribution to
the energy revolution worldwide today. We take our job
seriously – establishing wind power as a reliable and
sustainable energy source of the future. That is why we
invest heavily2 every year in the development and refinement of our products, in order to gradually bring down
electricity generation costs still further and thus make the
investment in a wind turbine even more profitable.
Our product range
Our product range is very broad. This increases the opportunities for our customers and at the same time minimizes
the risk for us. For we are flexibly positioned for every
possible market development and can take on an active
role wherever new opportunities arise.
For every wind class
Senvion offers turbines for every wind class,1 something
that is illustrated by various other orders from the 2015
fiscal year. In April, we signed a contract for 45 MW using
Senvion MM82 and Senvion MM92 turbines for wind
farms in Great Britain, where strong winds predominate.
We are delivering six Senvion 3.0M122 wind turbines
to Brienza in the south of Italy, which will achieve optimal
yield measured by the weak winds there. Moderate winds
prevail in Villacerf and Sévérac-Guenrouët in France, where
we installed 16 Senvion MM92 and Senvion MM100 wind
turbines in the fall of 2015 – they are part of a contract
we signed in June 2015. In July, we put 18 Senvion MM100
turbines into commission in Gizałki in Poland: With a
total rated output of 36 MW, these turbines will generate
enough electricity to provide 24,300 Polish households
with green energy. That is equivalent to the total number of
private households in the city of Konin in the vicinity of
the wind farm. In addition, the turbines will provide savings
of 24,000 tons of CO2 per year.
According to Keith Burns: “The wind energy industry in
Great Britain, for example, is facing several challenges.”
Since the general election in May 2015, it has been
confirmed that the feed-in tariff system will undergo
radical change. The government has announced an end to
onshore subsidies and the introduction of new planning
requirements, with the result that local authorities will
have the final say on projects. The tariff system previously
in force, the Renewable Obligation Certificate (ROC), will
end in March 2016, a year earlier than originally planned.
Equipped with corresponding transitional periods, a large
number of major projects, including the project in the
Scottish Highlands, will have to be completed swiftly so
that they can be assigned to this ROC certificate system.
Our two colleagues from the UK are certain that Senvion
will approach and solve this issue with great pragmatism.
Alongside the right turbines, we also have the right
team in place at Senvion.
“
You can discover in the overview of our products on page 42 what other products
we have and for which precise wind class each turbine is permitted to be used.
2
Find out more about how much we invest in the financial section of this Annual Report.
1
Our flexibility and our swift response times are
among the crucial reasons why we won out over
strong competitors.
”
Keith Burns, Head of Sales Europe North
30
31
So do we – also offshore.
32
Also offshore.
Pioneering in offshore
Making use of the wind that blows off the coast represents the best chance for replacing our energy supplies
worldwide. But there are some particular challenges
that have to be overcome offshore, as Cord Böker, Product
Line Manager Offshore, well knows: “Because the sites
are located far out at sea, are difficult to reach and
face potentially extreme wind and weather conditions,
the quality and reliability of the turbines are even more
critical to success than they are usually. But it’s worth it!“
At sea, and mainly at some distance from the coast,1
there is hardly any wind flatness, implying that technically mature wind turbines can feed electricity into the
grid almost without any interruption. Industry experts
from MAKE Consulting forecast an increase in the annual
installation of offshore wind turbines of 45 percent from
currently 2.0 gigawatts to 9.0 gigawatts in 2020. And at
that time, offshore wind energy may have reached grid
parity2 according to experts.
The offshore wind energy sector would not be where it
is today without Senvion’s pioneering achievements.
We strongly believe that we are one of three providers
worldwide to have multi-megawatt technology that has
proven to be commercially successful. We took the
first 5 MW turbine out to sea in 2004 and today possess
the greatest experience in the world with turbines of
5 MW or more – over 160 turbines of this type with a
total capacity of more than one gigawatt have already
been installed.
33
Successes 2015
The negotiations for the “Nordsee One“ offshore project
have taken four years, after all. From the initial discussions in 2011 to the financing commitment made in
March 2015, shortly before the 2015 fiscal year started.
Senvion will supply 54 Senvion 6.2M126 turbines to this
wind farm, which will be erected 40 kilometers north of
the island of Juist in Germany. After the planned completion in fall 2017, the wind farm will have an installed
capacity of 332 MW, which means it will be able to supply
more than 215,000 households with power annually.
Also in March 2015, Senvion signed another offshore contract for the supply of 18 Senvion 6.2M126 turbines for
the Nordergründe wind farm. Cord Böker feels a sense of
relief: “We have now been able to end a two-years period
in which no one involved in the sector signed a contract
in Germany because funding conditions were so unclear.
It has been two difficult years, but they are now going to
be followed by two good ones.“ Offshore production
capacity in Bremerhaven will be fully utilized for 24 months
thanks to these two orders.
Senvion is one of the few providers to have any experience at all in areas known as “far offshore” –
locations more than 50 km from the coast and where the water is more than 30 meters deep.
2
Grid parity means that the electricity generation costs of renewable energy sources are the same as the price of electricity from conventional electrical energy sources.
1
“
Offshore, the quality and reliability of the
turbines are even more critical to success
than they are usually.
Cord Böker, Product Line Manager Offshore
”
34
Also offshore.
Combined team effort
Cord Böker, 39, joined Senvion seven years ago, and as
chief offshore developer, also plays a coordinating
role. “Our offshore turbines are technically sophisticated
power plants. To ensure that our German engineering can
yield its full performance, all units have to work hand in
hand – from portfolio and product management, through
product line and cost management, all the way to technology and system integration. We don’t sell components,
we sell turbines. And that’s why our integrated setup
is exactly right,” stresses Böker. Electricity generation
costs and average returns are also the bottom line in the
offshore business. The chief offshore developer seizes
on every good idea to improve those figures, such as the
idea not to wait until the platform is already at sea to
attach the service crane that every offshore turbine needs
for lifting heavy loads. As Cord Böker knows: “If this crane
can be bolted to the foundation while it is still on land,
it makes a contribution to cost savings – which we can
then pass on to our customers.” He continues: “We sell an
overall concept, from the optimization of loads for a costefficient foundation structure and an optimized installation
plan to a sophisticated service concept that guarantees
high technical availability even far out at sea.”
In the history of the offshore industry, we have made
pioneering achievements. The Senvion 6.2M126
variant is the largest commercially available turbine
by power rating to date.
35
Continuous improvement in capacity
At the end of the day, only high technical availability
ensures high performance. And that is what Senvion’s
offshore turbines produce. Cord Böker knows this from
the time when he first started working for Senvion.
He was the project manager for the Ormonde wind farm,
an offshore installation in the Irish Sea, ten kilometers
west of Barrow-in-Furness in Great Britain. Comprising
30 turbines of the 5M model, the wind farm has supplied
electricity since the summer of 2011. Böker is obviously
proud of how the project has developed: “At Ormonde, we
are continually producing more and more output.”
Massive dimensions
The Senvion 6.2M126 planned for Nordsee One and Nordergründe is the largest commercially available turbine by
power rating to date. The nacelle alone is as big as two
single-family houses. Each rotor blade is more than 60
meters long and weighs about 23 tons. The rotor star has
a diameter of 126 meters, with the rotors sweeping an
area larger than two football pitches.
Developed on the basis of the 6.2M126, the Senvion
6.2M152 model will make a significant contribution to the
reduction of the electricity generation costs of offshore
wind – with its rotor diameter extended to 152 meters, it
will produce around 20 percent more energy per year in
comparison to the 6.2M126. It has proved possible to
extend the certified life of the turbine by another five
years to 25 years, which also further reduces the LCOE.
The prototype of this turbine stands at Langen-Neuenwalde near Bremerhaven and has been feeding electricity
into the grid since the end of 2014. It has now been in
operation for over a year, and Cord Böker is obviously
proud of what has been achieved: “The turbine has a very
good availability of 99.6 percent. I’m from North Germany
and don’t often show my emotions, but when I heard
that, I just had to clap my hands in joy,” grins Böker.
Which is certainly what his customer, who is earning
money with this prototype, is doing as well.
Developing visions
But Cord Böker has no intention of resting on the laurels
of these pioneering achievements. Together with the
teams from research and development, and together
with his new colleagues from the research site opened in
India in 2015, he is working on a feasibility study for the
next offshore turbine that will come up with even more
capacity. Böker can hardly wait to turn another Senvion
vision into reality.
36
37
So do we – for a renewable future.
38
Sustainability is a central motivation and the vision
behind our daily activities. Our products convert wind
energy into electricity and thus play an important part
in protecting the global environment and achieving
national and international climate and environment
targets.
Positive momentum
The fundamentally positive momentum behind wind
power is documented in all the decisions taken globally
by the world’s politicians – the COP21 international
climate conference in Paris decided in November/December
2015 that global warming must be limited to 1.5 to 2
degrees Celsius in comparison to preindustrial standards.
For example, emerging countries are to be provided with
support to boost the use of renewable energies. In
an agreement in 2014, the EU decided to adopt the most
ambitious target worldwide: 27 percent of the energy
consumed throughout Europe is to be supplied from
renewable resources by 2030.
More than 13.7 gigawatts of renewable energy
Globally, Senvion has erected over 6,600 wind turbines
with a total rated output of over 13.7 gigawatts. We
reached a new milestone in May 2015 when the 6,000th
turbine was connected to the grid at a community wind
farm in North Rhine-Westphalia. In total, Senvion has
installed more than 600 wind turbines with a total
capacity of 1.4 gigawatts in the last fiscal year from April
2015 to December 2015.
39
Each country has its own path
Many countries such as Germany, Turkey, and India have
stable general conditions for expanding renewable
energies. So does Australia – after a phase of political
discussion and the wide-ranging suspension of new
investments that accompanied it, the Australian government has set a target for producing 33,000 GWh of
renewable electricity by 2020. At the same time, it has
cancelled auditing of the target every second year
(Renewable Energy Target, or RET for short). This basis
will enable additional capacity of around 6,000 megawatts (MW) of new wind installations in the period from
2016 to 2020.
“
The industry in Australia is ready and able
to start immediately, and to invest.
Chris Judd, Managing Director of Senvion Australia
”
40
41
Important decision
“The government’s decision was immensely important on
the road to a sustainable future,” notes Chris Judd,
Managing Director of Senvion Australia. “The industry is
ready and able to start immediately, and to invest. This
will create a lot of jobs and reduce the price of energy.”
Judd insists: “We notice it every day: People want more
renewable energy.” He experienced this for example in
Daylesford, a small town of 2,000 households in the local
government district of Hepburn Shire. It was here that a
group of citizens founded the Hepburn Wind Association
to combat climate change in Australia. Their dream was
to erect Australia’s first community wind farm, which
generates more energy than is needed to cover the local
demand for electricity. To that end, we supplied two wind
turbines of the MM82 type, and we benefited from the
experience that we had previously been able to gain in
the installation of turnkey community wind farms in other
countries – especially Germany.
“A project of this magnitude may not appear lucrative
to everyone, as the time spent on planning and designing
the wind farm and concluding the contract with the
customer can quickly take on less attractive dimensions
from a financial perspective. It was only thanks to our
experience with this type and size of project that we were
able to complete this project economically and to support
the community in Hepburn by building their wind farm.”
Pride and passion for the vision of a renewable future are
embedded deep in Senvion’s DNA. They are a strong building
block in Senvion’s foundations and an important starting
point for economically sustainable success.
Photo: Karl von Moller/Hepburn Wind
Total commitment to each project
46-year-old Chris Judd is still enthusiastic about this pilot
community-led project today: “This project shows that
a movement to build sustainable energy generation can
also emerge from a small group of committed citizens.”
Senvion will continue to build and install every single
turbine with passion and total commitment. Pride and
passion for the vision of a renewable future are
embedded deep in Senvion’s DNA. They are a strong
building block in Senvion’s foundations and an important
starting point for economically sustainable success.
Purchasing criterion: reliability
The choice of the supplier fell on Senvion at that time,
as Hepburn Wind wanted to invest exclusively in proven
and trusted, reliable wind turbines, and Senvion was
ready and able to deliver a turnkey wind farm. In view of
future major projects, Hepburn provided the Senvion
Australia team with the ideal opportunity to showcase
the successful delivery of turnkey wind farms. In order to
guarantee the wind farm’s operation even in the very high
temperatures that sometimes hit Australia, special hot
climate versions1 of our turbines were installed. Thanks
to the enhanced cooling of the converter, these turbines
can operate even in temperatures of up to 40 degrees
Celsius.
1
What is true of extreme heat in Australia is also true of extreme cold.
Read more about our cold climate versions and Senvion’s Canadian success story from page 16 onwards.
Rated power
Rotor diameter
Hub height
Certification
2,050 kW
82.0 m
58.5–59.0 m (50 Hz)
68.0–69.0 m (50 Hz)
78.0–80.0 m*
Up to IEC Class IA, up to WZ 4
*60 Hz as CCV only.
Rated power
1,800 kW (60 Hz)
2,000 kW (50 Hz)
Rotor diameter
78.0–80.0 m
98.0–100.0 m
Certification
IEC IIB, WZ 3
Rated power
3,000 kW
Hub height
Certification
Rated power
Rotor diameter
Hub height
Rotor diameter
Hub height
Certification
2,050 kW
92.5 m
68.0–68.5 m (50 Hz)
78.0–80.0 m
98.0–100.0 m*
Up to IEC Class IB, up to WZ 3
*60 Hz as CCV only.
100.0 m
Hub height
Rotor diameter
Rated power
122.0 m
100.0 m (60 Hz)
136.0–139.0 m (50 Hz)
IEC IIIA, WZ 3
3,400 kW
104.0 m
78.0–80.0 m
93.0 m
96.5–100.0 m
Rated power
Rotor diameter
Hub height
Certification
3,200 kW
122.0 m
136.0–139.0 m
(further hub heights to follow)
IEC IIIA, WZ 3
Rated power 3,370 kW (MV-side), 3,400 kW (LV-side)
Rotor diameter
Hub height
114.0 m
90.0–93.0 m
116.0–119.0 m
140.0–143.0 m
Certification
IEC IB/IIA, WZ 4
Certification
IEC IIA, WZ 4 / IEC IIIA, WZ 3
Rated power
3,400 kW
Rated power
3,400 kW
Rotor diameter
Hub height
114.0 m
90.0–93.0 m
(further hub heights to follow)
Rotor diameter
140.0 m
Hub height
107.0–110.0 m
127.0–130.0 m
Certification
IEC IIA, WZ 4
Certification
IEC IIIA, WZ 2
Rated power
6,150 kW
Rated power
6,150 kW
Rotor diameter
Hub height
Certification
126.0 m
Onshore 100.0–117.0 m
Offshore 85.0–95.0 m (site-specific)
Onshore IEC IB/IIA, WZ 4 coast
Offshore IEC IB/S
Rotor diameter
Hub height
Certification
152.0 m
Onshore 121.0–124.0 m
Offshore 95.0–110.0 m (site-specific)
Onshore IEC Class S, WZ 4 coast
Offshore IEC Class S
Financial Highlights
of Fiscal Year 2015
Important Milestones
2015
CONSOLIDATED INCOME STATEMENT
9m15/16A
9m14/15A
Revenues in k EUR
1,683,038
1,465,376
Total performance in k EUR
1,650,234
1,444,128
125,802
exceptional items from reorganisation in k EUR 60,450
Exceptional items from reorganisation in k EUR - 8,0100
0
Result from operating activities in k EUR
117,792
60,450
Result before income taxes in k EUR
102,436
47,152
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION Dec15A
Total assets in k EUR 1,773,643
Total equity capital in k EUR 606,593
Equity ratio
34 %
FURTHER PERFORMANCE INDICATORS Order backlog in EUR million Installed capacity worldwide in MW
January–March
>> Senvion delivers 18 turbines Senvion 6.2M126 for Nordergründe offshore wind farm
>> Senvion successfully commissions its largest wind turbine Senvion 6.2M152
>> Senvion delivers tallest onshore turbine type Senvion 3.2M114 to Belgium
>> Senvion delivers 54 turbines Senvion 6.2M126 for offshore wind farm Nordsee One
April–June
>> Senvion launches turbine for more stable grid feed-in for its 3.XM series
>> Senvion develops turbine Senvion 3.2M122 for even more efficient energy generation
>> Senvion wins four UK orders with Blue Energy totaling over 45 MW
>> Senvion wins new order of six Senvion 3.0M122 totaling 18 MW for Italian wind farm
>> Centerbridge completes acquisition of Senvion
>> Senvion connects its 6,000th wind turbine to the grid
>> Senvion wins orders totaling over 32 MW from its two-megawatt portfolio in France
July–September
>> Financial year 2014/15: Senvion increases revenue by 6.6%; EBITDA up 6.2%
>> Senvion opens R&D Center in India to further strengthen its TechCenter capabilities in Germany
>> Senvion ranked 2nd in wind installations with 285 MW in Germany
>> Senvion commissions 18 of its MM100 turbines in Poland
>> Senvion presents Senvion 3.4M140, its highest yield onshore wind turbine
>> Senvion erects its 2,000th onshore wind turbine in Germany
as at 31.12.2015
3,436
13,733.5
Number of installed turbines worldwide 6,625
Number of employees worldwide * 3,871
October–December
>> 109 MW order: Senvion signs its biggest UK contract to date to supply 32 turbines of the 3.XM series
>> Senvion supplies 16 turbines Senvion 3.4M104 to Vattenfall’s Ray Wind Farm, UK
>> Senvion wind turbine with Next Electrical System on the grid
>> Senvion acquires RodPack technology for more efficient blades
>> Senvion celebrates the commercial operation of its largest onshore project: the 350 MW Rivière-du-Moulin
Publication details
Published by
Senvion GmbH
Design
Verinion GbR
Print/Processing
Müller Ditzen AG
* Permanet headcount
BR/2015/GBR/AR_Image
www.senvion.com
Senvion GmbH
Überseering 10
22297 Hamburg
Germany
Legal reference
T + 49 40 5555 090-0
F + 49 40 5555 090-3999
[email protected]
www.senvion.com
uncertainty and influences, the actual results, financial situation or development may deviate
from the assumptions presented in this document. We shall not assume any obligation to
Our turbines deliver
reliable output.
www.senvion.com
Consolidated Financial Statements
2015
Senvion GmbH
Überseering 10
22297 Hamburg
Germany
Legal reference
T + 49 40 5555 090-0
F + 49 40 5555 090-3999
[email protected]
www.senvion.com
uncertainty and influences, the actual results, financial situation or development may deviate from
the assumptions presented in this document. We shall not assume any obligation to
for the short financial year ended
31 December 2015
2
Consolidated Financial
Statements of Senvion GmbH
3
4
Consolidated statement of financial position
Assets
Shareholders’ equity and liabilities
Notes
Current assets
Liquid funds
Gross amount due from customers for
contract work as an asset
Trade accounts receivable
Receivables from related parties
Inventories
Receivables from income taxes
Other financial assets
Other miscellaneous assets
Current assets
Assets of disposal Group classified as held for sale
Total current assets
Non-current assets
Other intangible assets
Goodwill
Property, plant and equipment
Other financial investment
Loans granted
Deferred taxes
Total other non-current assets
Total non-current assets
Total assets
2015/12/31
k EUR
2015/03/31
k EUR
5.1.1
417,732
301,375
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.1.6
49,372
230,751
199,504
415,053
2,664
11,557
87,316
1,413,949
58,753
178,008
32,009
582,710
1,986
2,234
96,160
1,253,235
5.3
0
1,413,949
16,461
1,269,696
Current liabilities
Short-term loans and current portion of long-term loans
Trade accounts payable
Liabilities to related parties
Advance payments received
Gross amounts due to customers
for contract work as a liability
Provisions
Deferred income
Income tax liabilities
Other financial liabilities
Other miscellaneous liabilities
Current liabilities
Liabilities of disposal Group classified as held for sale
Total current liabilities
5.2.1
5.2.2
5.2.3
145,663
15,632
193,198
4,004
1,028
0
171
359,696
1,773,645
126,361
15,632
205,188
66
2,752
6,062
3,662
359,723
1,629,419
Non-current liabilities
Long-term loans
Deferred taxes
Other non-current financial liabilities
Total non-current liabilities
Equity
Subscribed capital
Additional paid-in capital
Other reserves
Revaluation reserve
Currency translation
Cash flow hedging reserve
Retained earnings
Equity attributable to shareholders
of the parent company
Non-controlling interests
Total equity
Total equity and liabilities
Notes
2015/12/31
k EUR
2015/03/31
k EUR
8.2
5.4.1
5,982
379,748
12,501
291,410
7,568
337,189
10,851
264,139
5.1.2
5.4.2
5.4.3
5.4.4
5.4.5
5.4.5
71,847
216,978
26,147
62,376
22,267
37,390
1,126,646
78,907
236,593
33,454
27,070
22,511
18,118
1,036,400
5.3
0
1,126,646
2,396
1,038,796
5.5
5.2.3
10,503
29,903
0
40,406
14,346
36,274
1,000
51,620
5.6
5.6
9,220
299,220
7,055
776
143
6,136
291,098
9,220
299,220
3,097
776
3,164
– 843
220,426
606,593
0
606,593
1,773,645
531,963
7,040
539,003
1,629,419
5.6
5
6
Consolidated income statement
Consolidated statement of comprehensive income
Notes
6.1
5.2.1
2015/04/01
– 2015/12/31
(9 months)
k EUR
1,683,038
– 64,637
31,833
1,650,235
2014/04/01
– 2015/03/31
(12 months)
k EUR
1,921,819
4,394
38,767
1,964,980
2014/04/01
– 2014/12/31
(9 months)
k EUR
1,465,376
– 47,255
26,007
1,444,128
Other operating income
Cost of materials/cost of purchased services
Personnel expenses
Depreciation of property, plant and equipment
and amortization of intangible assets
Other operating expenses
reorganization expenses
6.2
6.3
37,690
– 1,186,201
– 172,124
33,738
– 1,476,859
– 208,929
23,882
– 1,079,210
– 153,249
6.4
– 41,711
– 162,086
– 53,898
– 188,917
– 39,227
– 135,874
125,804
70,115
60,450
Reorganization expenses
Result from operating activities
6.5
– 8,010
117,794
0
70,115
0
60,450
Interest and similar financial income
Interest and similar financial expenses
Result before income taxes
6.6
6.6
7,251
– 22,607
102,438
1,976
– 19,968
52,123
1,343
– 14,641
47,152
5.2.3
– 32,055
70,382
– 21,194
30,929
– 18,691
28,461
5.3
19
70,401
1,211
32,140
1,069
29,530
– 271
0
– 271
559
0
559
493
0
493
70,672
70,382
290
31,581
30,929
652
29,037
28,461
576
Revenues
Changes in work in progress
Work performed by the entity and capitalized
Total performance
Income taxes
Profit for the period from continuing operations
Profit for the period from discontinued operations
Net result for the period
Share of net result for the period attributable
to non-controlling interests
Continuing operations
Discontinued operations
Share of net result for the period attributable
to shareholders of the parent
Continuing operations
Discontinued operations
2015/04/01
– 2015/12/31
(9 months)
k EUR
2014/04/01
– 2015/03/31
(12 months)
k EUR
2014/04/01
– 2014/12/31
(9 months)
k EUR
70,401
32,140
29,530
Other comprehensive income to be reclassified
to profit of loss in subsequent periods (net of tax)
Cash flow hedges
Income taxes relating to cash flow hedges
Expenses/income of cash flow hedges after tax
Other comprehensive income
Total comprehensive income
9,885
– 2,906
6,979
– 3,128
3,851
74,252
– 3,517
1,027
– 2,490
3,565
1,075
33,215
– 2,052
598
– 1,454
2,107
653
30,183
Share of total comprehensive income for the period attributable
to non-controlling interests from discontinued operations
– 378
1,962
1,159
Share of total comprehensive income for the period attributable
to shareholders of the parent company
74,630
31,253
29,024
7
8
Consolidated statement of cash flows
Notes
2015/04/01
– 2015/12/31
(9 months)
k EUR
2014/04/01
– 2015/03/31
(12 months)
k EUR
2014/04/01
– 2014/12/31
(9 months)
k EUR
102,457
53,334
48,221
44,657
– 7,251
22,607
– 19,615
53,898
– 1,976
19,968
– 33
39,227
– 1,343
14,641
– 5,564
28
71
33
6.6
6.6
4.19
– 606
219,929
1,114
– 9,757
– 2,775
350,788
0
30,055
1,976
– 25,406
– 11,884
120,003
0
76,463
1,343
– 21,346
– 11,385
140,290
5.2.2
5.2.1
767
– 35,348
1,812
– 43,555
1,441
– 29,670
5.2.2
5.1.4
– 17,812
– 177,325
0
– 39,290
0
102
– 31,141
0
102
5.3
4.19
– 5,526
– 235,244
0
– 80,931
0
– 59,268
4.19
5.1.1
– 3,843
– 3,843
111,701
300,049
411,750
417,732
– 7,544
– 7,544
31,528
268,521
300,049
301,375
– 5,562
– 5,562
75,460
268,521
343,981
346,271
5.3
8.2
5.3
5.3
0
– 5,982
411,750
– 716
0
6,242
– 7,568
300,049
– 663
4
5,799
– 8,089
343,981
– 1,106
3
Cash flow from operating activities
Result before income taxes
Adjustments for:
Depreciation on property, plant and equipment,
amortization of intangible assets
Interest income
Interest expenses
Increase/decrease in provisions
Profit/loss from sales of property, plant and equipment,
intangible and other long-term assets
Gain from loss of control in subsidiary from change in
ownership interest
Change in working capital
Interest received
Interest paid
Income tax paid
Cash flow from operating activities*
Cash flow from investing activities
Cash receipts from the sale of property, plant and
equipment, intangible and other long-term assets
Cash payments for the purchase of intangible assets
Cash payments from purchase of property, plant and
equipment and other long-term assets
Cash payments from loans granted to related parties
Acquisition of subsidiary: Net of cash acquired
Loss of control in subsidiary from change
in ownership interest
Cash flow from investing activities**
Cash flow from financing activities
Cash repayments of amounts borrowed
Cash flow from financing activities
Increase/decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
Liquid funds
Cash displayed in “Assets of disposal Group classified
as held for sale”
Short-term bank liabilities
Cash and cash equivalents at the end of the period
* thereof from discontinued operations
** thereof from discontinued operations
9
10
11
Consolidated statements of changes in shareholders’ equity
Subscribed
capital
Additional
paid-in capital
Revaluation
reserve
Currency
translation
Cash flow
hedging reserve
k EUR
9,220
k EUR
299,220
k EUR
776
k EUR
3,164
– 3,021
– 3,021
k EUR
– 843
6,979
6,979
Balance at 2015/12/31
9,220
299,220
776
6,136
Cash flow hedges
Comprehensive Income
Common control transactions
9,220
303,676
– 4,455
776
1,002
2,162
2,162
1,647
– 2,490
9,220
299,220
776
3,164**
Cash flow hedges
Comprehensive Income
Loss of control in subsidiary from change
in ownership interest
* Thereof from discontinued operations as of 31 December 2015: 0 k EUR
** Thereof from discontinued operations as of 31 March 2015: 2,333 k EUR (gain)
143*
Retained earnings
Equity attributable
to shareholders of
the parent company
k EUR
k EUR
220,426
531,963
70,672
70,672
6,979
– 3,021
70,672
74,630
Non-controlling
interests
Total
equity
k EUR
7,040
– 271
– 107
– 378
k EUR
539,003
70,401
6,979
– 3,128
74,252
0
– 6,662
– 6,662
291,098
606,593
0
606,593
– 2,490
188,844
31,581
31,581
505,165
31,581
– 2,490
2,162
31,253
– 4,455
5,077
559
1,403
1,962
510,242
32,140
– 2,490
3,565
33,215
– 4,455
– 843
220,426
531,963
7,040
539,003
12
Notes to the consolidated financial statements
as of and for the short financial year ended 31 December 2015
1Introduction
2
The Senvion Group (“Senvion” or the “Group”) with Senvion GmbH (formerly Senvion SE until 25 June 2015), Übersee
ring 10, 22297 Hamburg, Federal Republic of Germany, as its parent company, operates in the area of manufacturing
and selling wind energy turbines as well as developing and providing turnkey wind farms.
Senvion GmbH as well as the majority of the subsidiaries adopted a new financial year in 2015. The financial year of
Senvion ends on 31 December instead of 31 March. The financial year 2015 is a short nine-month financial year from
1 April 2015 to 31 December 2015. The following financial year 2016 will be a regular, twelve-month financial year
from 1 January 2016 until 31 December 2016.
Senvion GmbH voluntarily prepared consolidated financial statements for the short financial year ended 31 December
2015. Senvion will be included in the consolidated financial statements of the parent company, Senvion S.à r.l., as of
31 December 2015 and is therefore according to § 291 (1) of the German Commercial Code (HGB) exempt from preparing
and publishing consolidated financial statements. The consolidated financial statements for the year ended 31 December
2015 were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the
European Union.
The consolidated financial statements as of 31 December 2015 were approved by the Executive Board on 11 February 2016.
The consolidated financial statements are prepared with the Euro as the presentation currency. The income statement
is presented using the nature of expense method. Unless otherwise stated, all figures in the notes are accurate to
the nearest thousand euro (k EUR) using commercial rounding. This may cause sums and subtotals to deviate from its
arithmetical result by k EUR 1.
The consolidated financial statements are prepared on a historical cost basis, except for derivative and available-forsale financial instruments, which are measured at fair value as of the reporting date.
Change in the financial year
These consolidated financial statements present an additional comparative consolidated income statement and consoli
dated cash flow statement for the comparable 9-months period from 1 April 2014 to 31 December 2014 (9-months
comparative period 2014) and related note information for those additional statements.
13
14
3Consolidation
3.1
Principles of consolidation
These consolidated financial statements include all significant directly or indirectly controlled German and foreign
subsidiaries.
Subsidiaries are consolidated from the date of acquisition, being the date on which Senvion obtained control, and
continue to be consolidated until the date when such control ceases. Control is achieved when Senvion is exposed,
or has rights, to variable returns from its involvement with investee and has the ability to affect those returns through
its power over the investee. Specifically, Senvion controls an investee if and only if Senvion has:
Power over the investee (i. e. existing rights that give it the current ability to direct the relevant activities of the
investee)
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns
When Senvion has less than a majority of the voting or similar rights of an investee, Senvion considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
The contractual arrangement with other vote holders of the investee
Rights arising from other contractual arrangements
The Group’s voting rights and potential voting rights
Senvion re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
to one or more of the three elements of control.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using
consistent accounting policies. All intra-Group balances, transactions, unrealised gains and losses resulting from intraGroup transactions and dividends are eliminated in full. Profit or loss and each component of other comprehensive
income (OCI) are attributed to the shareholders of the parent company of the Group and to the non-controlling interests.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
If Senvion loses control over a subsidiary it:
Derecognizes the assets (including goodwill) and liabilities of the subsidiary
Derecognizes the carrying amount of any non-controlling interest
Derecognizes the cumulative translation differences, recorded in equity
Recognizes the fair value of the consideration received
Recognizes the fair value of any investment retained
Recognizes any surplus or deficit in profit or loss
Reclassifies the parent’s share of components previously recognized in OCI to profit or loss or retained earnings,
as appropriate
3.2
Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling
interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling
interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisitionrelated costs are expensed as incurred and included in administrative expenses.
If the business combination is achieved in stages, any previously held equity interest is remeasured at its acquisition
date fair value and any resulting gain or loss is recognized in profit or loss.
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date.
Contingent consideration classified as an asset or liability are within the scope of IAS 39 Financial Instruments and are
measured initially and subsequently at fair value with changes in fair value recognized in profit or loss.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the
amount recognized for non-controlling interests, and any previous interest held, over the net identifiable assets
acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration
transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities
assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the
reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration
transferred, then the gain is recognized in profit or loss within other operating income.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of
impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the
Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets
or liabilities of the acquiree are assigned to those units.
Business combinations under common control are not in the scope of IFRS 3. A business combination under common
control is a transaction whereby the Group acquires a business which is ultimately controlled by the same party before
and after the transaction. Senvion is applying the pooling of interest method to account for business combinations
under common control. Assets and liabilities of the transferred business are recorded on the basis of their carrying
amounts in the most recent consolidated financial statements of the transferring party. Comparative financial information
for periods before the transaction took place is not adjusted.
15
16
3.3
Scope of consolidation
3.3.2
3.3.1
Fully consolidated companies
The consolidated Group includes Senvion GmbH as well as the following German and foreign subsidiaries:
Project companies
Senvion Betriebs- und Beteiligungsgesellschaft mbH, Rendsburg, Germany
Senvion Windpark Betriebs GmbH, Hamburg, Germany*
Senvion Investitions- und Projektierungs GmbH & Co.KG, Rendsburg, Germany*
Windpark Blockland GmbH & Co. KG, Hamburg, Germany*
Yorke Peninsula Wind Farm Project Pty Ltd., Melbourne, Australia
Production and services companies
PowerBlades GmbH, Bremerhaven, Germany
Senvion Deutschland GmbH, Hamburg, Germany
REpower North (China) Ltd., Baotou, PR China**
PowerBlades S.A., Vagos, Portugal
Ventipower S.A., Oliveira de Frades, Portugal
RiaBlades S.A., Vagos, Portugal
Ventinveste Indústria, SGPS, S.A., Oliveira de Frades, Portugal
RETC Renewable Energy Technology Center GmbH, Hamburg, Germany
Senvion India Ltd., Pune, India
PowerBlades Industries Inc., Québec, Canada
Sales companies
Senvion France S.A.S., Courbevoie, France
Senvion Italia S.r.l., Milan, Italy
Senvion Holdings Pty Ltd., Melbourne, Australia
Senvion Australia Pty Ltd., Melbourne, Australia
Senvion (Beijing) Trading Co. Ltd., Beijing, PR China
Senvion USA Corp., Denver, U.S.A.
Senvion Canada Inc., Montreal, Canada
Senvion Benelux b.v.b.a., Ostend, Belgium
Senvion UK Ltd., Edinburgh, UK
Senvion Polska, Sp.z o.o., Warsaw, Poland
Senvion Portugal S.A., Porto, Portugal
Senvion Scandinavia AB., Västerås, Sweden
Senvion Romania SRL., Bucharest, Romania
Senvion Austria GmbH, Ernstbrunn, Austria
Senvion Netherlands B.V., Nijkerk, Netherlands
Senvion Turkey Rüzgar Türbinleri Limited irketi, Ankara, Turkey
Senvion (Shanghai) Trading Co. Ltd., Shanghai, PR China
Shelf or shell companies
WEL Windenergie Logistik GmbH, Schloß Holte-Stukenbrock, Germany
3.3.2.1 Changes in the scope of consolidation in the short financial year 2015
The establishment of Senvion (Shanghai) Trading Co. Ltd. was completed in June 2015.
2015/12/31
Share in %
100.00
–
–
–
80.00
2015/03/31
Share in %
100.00
100.00
100.00
100.00
80.00
100.00
100.00
–
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
53.87
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
–
100.00
100.00
* In the short financial year 2015 Senion Windpark Betriebs GmbH, Hamburg, Germany and Senvion Investitions-und Projektierungs GmbH & Co. KG, Rendsburg,
Germany were merged with Senvion Betriebs-und Beteiligungsgesellschaft mbH, Rendsburg, Germany. The Windpark Blockland was dissolved as a result of the merger.
** Reference is made to note 3.3.2.1 regarding interest retained
Changes in the scope of consolidation
After the entry of a new investor Senvion has no longer control over Repower North (China) Ltd. which had previously
been accounted for as a discontinued operation. The subsidiary was deconsolidated as a result of the loss in control
from the change in ownership interest. Senvion retained an interest in the company, which is 10.89 %. Senvion accounts
for its retained interest as an available-for-sale financial instrument (refer to Note 5.3 Non-current assets held for sale
and discontinued operation).
3.3.2.2Changes in the scope of consolidation in the financial year ended 31 March 2015
(the “financial year 2014/15”)
As part of the expansion of its service and marketing activities, Senvion GmbH established Senvion Netherlands B. V.,
headquartered in Nijkerk, Netherlands, in April 2014 as well as Senvion Turkey Rüzgar Türbinleri Limited irketi,
headquartered in Ankara, Turkey, in June 2014. In addition, Senvion GmbH has started to establish Senvion (Shanghai)
Trading Co. Ltd., headquartered in Shanghai, PR China since March 2015.
Senvion acquired 80 % of Yorke Peninsula Wind Farm Project Pty. Ltd., Melbourne, Australia in June 2014.
17
18
4
As Yorke Peninsula Wind Farm Project Pty Ltd., Melbourne, Australia, was previously controlled by Valum Holding B. V.,
Amsterdam, Netherlands, a 100 % subsidiary of Suzlon Energy Ltd., Pune, India, which also owned at the date of the
transaction 100 % of the shares in Senvion GmbH indirectly through its subsidiaries, the transfer was considered to be
a business combination under common control.
Therefore, the assets and liabilities of Yorke Peninsula Wind Farm Project Pty Ltd were recognized at their carrying value
recognized prior to the transaction in the IFRS financial statements of the then ultimate parent entity of Senvion GmbH.
The difference between the consideration transferred and the net assets recognized as of the transfer date were
recognized directly in equity. Comparative financial information for periods before the transaction was not adjusted.
The following table shows the carrying amounts of assets and liabilities recorded as of transaction date:
Carrying amounts
Other current assets
Intangible assets
Net assets acquired
Cost of acquisition
Amounts recorded directly in Equity
1 June 2014
k EUR
3
333
528
– 192
4,263
4,455
The purchase price liability was offset against an outstanding receivable of Suzlon Energy Ltd, Pune, India. The net
profit of the Group for the financial year 2014/2015 includes a net loss of 1 k EUR and no revenues from York Peninsula
Wind Farm Project Pty Ltd.
The entity Repower Northern Europe A/S, Aarhus was liquidated with effect from 30 September 2014 and is no longer
consolidated since then.
Accounting policies
The accounting policies applied in the consolidated financial statements for the short financial year ended
31 December 2015 were adjusted to reflect the new standards, as stated in Note 4.21 New accounting standards
and their application.
4.1
Liquid funds
Cash and Cash equivalents include cash at bank and in hand and short-term deposits with an original maturity of
three months or less. The cash equivalents are subject to an insignificant risk of changes in value.
4.2
Receivables and other financial assets
Trade receivables, receivables from related parties and other primary financial assets designated to the loans and
receivables category are carried at fair value plus transaction costs on initial recognition. Subsequent measurement is
at amortized cost using the effective interest rate method. Valuation allowances for impairment are determined on
the basis of past experience and individual risk assessments. Valuation allowances on trade receivables are reported in
an allowance account for impairments or in the form of a direct write-down of the carrying amount of the receivable
depending on the reliability of the assessment of the risk of impairment. An impairment loss is recognized when the
carrying amount of a financial asset is higher than the present value of the expected future cash flows.
The Group assesses, at each reporting date, whether there is objective evidence that a financial asset or a Group of
financial assets is impaired. An impairment exists if one or more events have occurred since the initial recognition
of the asset (an incurred ‘loss event’), which have an impact on the estimated future cash flows of the financial asset
or the Group of financial assets. The following triggers, amongst other things, may provide objective evidence of
impairment:
Significant financial difficulty of the obligor;
The lender granting a concession to the borrower for economic or legal reasons relating to the borrower’s financial
difficulty;
Likely insolvency or need for restructuring on the part of the borrower;
Loss of an active market for the financial asset due to financial difficulties.
4.3Inventories
Inventories comprise raw materials and supplies and work in progress. Raw materials and supplies are carried at the
lower of cost or net realizable value. Work in progress is measured at the lower of cost or net realizable value. Net
realizable value is the estimated selling price less the estimated costs of completion and the estimated costs necessary
to make the sale. The cost of inventories is calculated using the weighted average cost basis and comprises all costs
of purchase and other costs incurred in bringing the inventories to their present location and condition. In addition to
material and production overheads, manufacturing costs comprise overheads attributable within the meaning of IAS 2.
19
20
4.4
Property, plant and equipment is stated at cost and depreciated on a straight-line basis over their useful life.
Cost includes all expenses for purchasing the assets, insofar as these can be reliably calculated or estimated.
The manufacturing costs of internally generated equipment comprise direct costs as well as attributable overheads.
The assessment of depreciation is based on the following estimated useful lives:
Buildings
Technical equipment, plant and machinery
Office and operating equipment
Useful life
in years
25 – 50
5 – 12
3 – 14
4.5
Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
in a business combination is their fair value at the date of acquisition. Internally generated intangibles, excluding
capitalized development costs, are not capitalized and the related expenditure is reflected in profit or loss in the period
in which the expenditure is incurred.
Research costs are expensed as incurred. Development expenditures on an individual project are recognized as an
intangible asset when the Group can demonstrate:
The technical feasibility of completing the intangible asset so that the asset will be available for use or sale
Its intention to complete and its ability and intention to use or sell the asset
How the asset will generate future economic benefits
The availability of resources to complete the asset
The ability to measure reliably the expenditure during development
Capitalized development costs comprise all direct costs and overheads attributable to the development process.
Development costs that account for customer specific production orders are recorded in capitalized orders.
Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated
impairment losses.
Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever
there is an indication that the intangible asset may be impaired. The amortization period and the amortization method
for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in
the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset
are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting
estimates. Amortization of the asset begins when development is complete and the asset is available for use. For
development costs, amortization is recognized on a straight-line basis from the start of production for the expected
product lifetime of the developed models or technologies.
Capitalized development costs
Licenses, software
Useful life
in years
5
3
4.6
Impairment of property, plant and equipment and intangible assets
Senvion GmbH performs impairment testing for items of property, plant and equipment and intangible assets whenever
there is a trigger for a potential impairment.
In accordance with IAS 36, annual goodwill impairment testing is performed at the level of the cash generating units
(or group of cash-generating units) at which goodwill is monitored for internal management purposes (impairment-only
approach).
These cash-generating units generally correspond to the individual Group companies. This does not include group
companies whose cash inflows are not independent from other Group entities. In such cases, the Group companies in
question form a Group of cash-generating units for impairment testing purposes.
The recoverable amount is calculated on the basis of the value in use. The annual impairment test for the short financial
year ended 31 December 2015 was performed as of 31 December 2015 (prior period: 31 December 2014). Value in use
is calculated on the basis of the budget for the next three financial years (for the financial year 2014/15 additionally
under consideration of the last quarter of the respective period.) The discount rate of 6.3 % (previous period: 6.5 %) is
calculated using the WACC (weighted average cost of capital) approach. The beta factor applied in the calculation and
the ratio of the fair value of equity to debt were determined by reference to a corresponding peer “Group”. The significant
assumption underlying the budget is the projected number of turbines installed and sold in the respective period.
This assumption is based both on the existing order backlog including work in progress as of 31 December 2015 and
31 March 2015. There was a sales increase projected in the actual detailed planning for 2016, based on projected
12-month revenues for the actual period, with a stable EBITDA and EBIT margin applied. For 2017 and 2018 a small sales
increase is planned with stable EBITDA and EBIT margin. The growth rate used to extrapolate cash-flow projections
beyond the detailed planning period was in the short financial year 2015 as well as in financial year 2014/15 1.0 %.
21
22
Impairment is recognized for other intangible assets and property, plant and equipment if certain events or develop
ments result in the carrying amount of the asset no longer being covered by the expected proceeds of disposal or the
discounted net cash flows from continued use. If the recoverable amount of individual assets cannot be calculated, the
cash flow is calculated for the next highest “Group” of assets for which such a cash flow can be calculated. Impairment
losses are reversed if the reasons for their recognition no longer apply in subsequent periods.
Impairment cannot be reversed in excess of the carrying amount that would have applied if no impairment had been
recognized. Goodwill impairment will not be reversed.
4.7
Non-current assets held for sale and discontinued operations
The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered
principally through a sale transaction rather than through continuing use. Non-current assets and disposal groups
classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. The
criteria for held for sale classification is regarded as met when the sale is highly probable and the asset or disposal
Group is available for immediate sale in its present condition and the sale is expected to qualify for recognition as
a completed sale within one year from the date of classification.
Discontinued operations are excluded from the results of continuing operations and are presented as a single amount
as profit or loss after tax from discontinued operations in the consolidated income statement. Property and equipment
and intangible assets are not depreciated or amortized once classified as held for sale.
The activities of REpower North (China) Ltd. were displayed as a discontinued operation until 30 November 2015
(refer to Note 5.3 Non-current assets held for sale and discontinued operations).
4.8
Loans granted
Loans granted which are allocated to the loans and receivables category are carried at fair value on initial recognition.
Subsequent measurement is at amortized cost using the effective interest rate method.
4.9Provisions
Provisions are recognized in accordance with IAS 37. These relate to legal or constructive obligations for which
settlement is probable to result in an outflow of financial resources and whose amount can be reliably estimated.
Warranty Provisions
Warranty provisions are recognized both for individual risks from technical issues which affect individual wind turbine
generators (“WTGs”), a specific series of WTGs or specific components across a number of different WTGs (specific
warranty provisions) and for risks and defects of smaller nature which generally occur in every sold WTG during the
warranty period (general warranty provisions). Warranty provisions are assurance type warranties which are recognized
for the legal or contractual warranty period.
– Specific warranty provisions
Specific technical warranty risks can be individually quantified by comprehensive documentation and are taken into
consideration in the form of individual provisions. The economic risk and the level of provisioning are evaluated on an
ongoing basis in coordination with the technical departments, taking existing risks into account. Specific warranty
provisions comprise issues falling within the legal warranty period of 2 years as well as issues for which warranty arises
from contractual service agreements.
– General warranty provisions
Provisions are recognized for risks and defects of smaller nature which generally occur in every sold WTG on the basis
of past experience. General warranty provisions are determined as follows: for turbines erected, provisions are
recognized for the anticipated future costs per year for the entire legal warranty period of 2 years. The anticipated costs
are determined on the basis of past experience and reviewed on an ongoing basis. Due to the uncertainty involved
the estimated costs, and hence the amount of the provisions, may differ from actual costs.
Restructuring Provisions
Restructuring provisions are recognized only when the Group has a contractual or constructive obligation, which is
when a detailed formal plan identifies the business or part of the business concerned, the location and number
of employees affected, a detailed estimate of the associated costs, and an appropriate timeline, and the employees
affected have been notified of the plan’s main features.
4.10
Trade Liabilities
Trade accounts payable are measured at amortized cost using the effective interest rate method.
4.11
Revenue recognition
Revenues include all revenues from the sale of wind energy turbines, license revenues, electricity revenues and
revenues from service and maintenance contracts.
Wind Turbines
Revenues from the sale of wind turbines include the production, delivery and installation of wind turbines.
To a limited degree Senvion sells single components and spare parts of wind turbines.
The production, delivery and installation of wind turbines consist principally of fixed price contracts. If the outcome
of such a contract can be reliably measured, in accordance with IAS 11, revenues associated with the construction
contract is recognized by reference to the stage of completion of the contract activity at year end (the percentage of
completion method). The outcome of a construction contract can be estimated reliably when:
The total contract revenues can be measured reliably,
It is probable that the economic benefits associated with the contract will flow to the entity,
The costs to complete the contract and the stage of completion can be measured reliably, and
The contract costs attributable to the contract can be clearly identified and measured reliably
so that actual contract costs incurred can be compared with prior estimates.
When the outcome of a construction cannot be estimated reliably (generally during early stages of a contract),
contract revenues are recognized only to the extent of costs incurred that are expected to be recoverable.
Contract revenues correspond to the initial amount of revenues agreed in the contract and any variations in contract
work, claims and incentive payments to the extent that it is probable that they will result in revenues, and they can
be reliably measured.
The accounting policy for the recognition of revenues and the method to determine the stage of completion of the
contract for the sale of wind turbines is as follows:
23
24
– Onshore wind turbines
In applying the percentage of completion method, revenues recognized correspond to the total contract revenues
multiplied by the degree of completion measured based on achievement of defined milestones. Senvion identified the
following individual milestones which are significant to the overall completion of the contract.
Interest income
Interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated
future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropri
ate, to the net carrying amount of the financial asset or liability at initial recognition of the financial instrument.
Milestone
Transit
Delivery on site
Installation
4.12
Commissioning
Final acceptance
Description
Components are dispatched to site individually
Components arrive at site and are complete
Wind energy turbine is erected and installation work performed.
Wind energy turbine is connected to Grid
Test run period start, sign-off on full erection by the client
All remaining work is completed
Revenues recognized under this milestone-method correspond with the value created at this step in the process of an
onshore wind farm project.
Cost incurred which relate to future activity or cost for projects which have not yet been dispatched to site are
capitalized as inventories (work-in-progress).
Income tax expense
Current income tax
Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered
from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted, at the reporting date in the countries where the Group operates and generates taxable
income.
Deferred tax
Deferred taxes are recognized using the liability method. According to this method deferred taxes are generally
recognized on temporary differences between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, except:
– Offshore wind turbines
In applying the percentage of completion method, revenues recognized correspond to the total contract revenues
multiplied by the actual completion rate based on the proportion of total contract costs incurred to date and the
estimated total contract costs (cost-to-cost method). Contract costs include costs that relate directly to the specific
contract and costs that are attributable to contract activity in general and can be allocated to the contract. Costs
that relate directly to a specific contract comprise: site labor costs (including site supervision); costs of materials used
in construction; costs of design, and technical assistance that is directly related to the contract.
As offshore wind turbine projects significantly differ from onshore wind turbine projects in terms of contractual
arrangements, installation and progress risks, financing and term of production and construction, logistic and
environmental risk, the cost-to-cost method most reliably reflects actual progress towards completion.
Projects are presented in the statement of financial position as gross amount due from or to customers for contract
work as an asset. If the revenues recorded exceed the invoiced instalments, the contract will be presented as an asset.
If the invoiced instalments exceed the revenues recorded, the contract will be presented as a liability.
Single components and spare parts
Revenues from single components and spare parts are recognized in accordance with IAS 18. They are regarded as
sold when the significant risks and returns have been transferred to the buyer. For conditional exchanges, revenues are
recognized only when all the significant conditions are satisfied.
License, electricity and service and maintenance
Revenues from licenses and electricity are also treated according to IAS 18. License revenues are generated from
volume-based licenses. Revenues from service and maintenance contracts are recognized as the respective services are
rendered; advance payments are deferred.
When the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss
In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests
in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable
that the temporary differences will not reverse in the foreseeable future
Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:
When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss
In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests
in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be available against which the temporary
differences can be utilized
25
26
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be
utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that
it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.
Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items
are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.
Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that
date, are recognized subsequently if new information about facts and circumstances change.
4.13
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes
a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All
other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other
costs that the Group incurs in connection with the borrowing of funds.
The Group considers assets with a construction or production term beyond 12 months as qualifying assets. For the
purpose of determining the amount of borrowing cost eligible for capitalization when funds are borrowed generally, the
Group computes a weighted average of borrowing cost, which is then applied to qualifying assets as a capitalization
rate. The weighted average of borrowing cost is determined for each subsidiary individually when this is appropriate.
4.14
Government grants (investment subsidies)
Government grants are recognized depending on the nature of the subsidized expenses. Insofar as subsidies relate to
capitalized assets, the grants received serve to reduce the cost of the subsidized assets. Grants provided as an ex
penditure allowance are recognized in the consolidated income statement of the financial year in which the subsidized
expenses are incurred.
4.15
Transactions in foreign currencies
The Group’s financial statements are presented in Euros, which is also the parent company’s functional currency. For
each entity the Group determines the functional currency and items included in the financial statements of each entity
are measured using that functional currency.
Transactions and balances
Transactions in foreign currencies are initially recorded by Senvion and the subsidiaries at their respective functional
currency spot rates prevailing at the date the transaction first qualifies for recognition. Monetary assets and liabilities
denominated in foreign currencies are translated at the functional currency spot rate of exchange ruling at the
reporting date. Differences arising on settlement or translation of monetary items are recognized in profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the ex
change rates at the dates of the initial transactions.
Group companies
On consolidation, the assets and liabilities of foreign operations are translated into Euro at the rate of exchange pre
vailing at the reporting date and their income statements are translated at the monthly average exchange rates. Fair
value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of foreign operations are
treated as assets and liabilities of the foreign operation and translated at the spot rate of exchange at the reporting
date. The exchange differences arising on translation for consolidation are recognized in OCI. On disposal of a foreign
operation, the component of OCI relating to that particular foreign operation is recognized in profit or loss.
Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts
of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation and
translated at the spot rate of exchange at the reporting date.
4.16
Senvion discloses reorganization expenses separately by virtue of their nature, size or incidence to allow a better
understanding of the underlying performance of the Group (refer to Note 6.5 Reorganization expenses).
4.17
Share-based payments
When participation rights are granted to employees of the Group by an entity outside the Group, Senvion accounts
for these transactions as equity-settled-plans when
The participation rights granted are its own equity instruments, or
Senvion has no obligation to settle the share-based payment transaction.
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an
appropriate valuation model (Black-Scholes Valuation). Expense is recognized based on the fair value so determined
and the expectation of how many awards will ultimately vest. Reference is made to Note 10 Related parties.
4.18
Financial instruments
A financial instrument is any contract that gives rise to a financial asset to one entity and a financial liability or equity
instrument of another entity. Financial instruments are recognized as soon as a Senvion company becomes a party to a
financial instrument. Financial assets are recognized on delivery, i.e. the date of order fulfilment. Derivative financial
instruments are recognized at the trade date. Financial assets and financial liabilities are generally reported separately;
they are only offset if the reporting entity has a right to offset and the intention to settle on a net basis.
27
28
Financial instruments consist of cash and cash equivalents, receivables, equity instruments held in other companies
(i. e. shares in project corporations) and other financial assets as well as financial liabilities and loans, insofar as these
are based on contracts. The initial recognition of financial assets is at fair value plus directly attributable transaction
costs, insofar as the financial assets are not recognized at fair value through profit and loss. Subsequent measurement
is at fair value or amortized cost using the effective interest rate, depending on the designation of the individual
financial instruments to the IAS 39 categories.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
Financial liabilities are carried at fair value less transaction costs on initial recognition and at amortized cost using the
effective interest rate method in subsequent measurement.
Assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:
Financial assets are derecognized if the rights to the cash flows resulting from the assets have expired or substantially
all of the risks have been transferred to a third party such that the criteria for derecognition are met. Financial liabilities
are derecognized if the relevant obligations have expired or been cancelled.
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of fin
ancial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention
to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
Derivative financial instruments used to hedge foreign exchange and interest rate risks. Derivative financial instruments
are carried at fair value. The recognition of changes in the fair value of derivative financial instruments depends on
whether these instruments are deployed as hedging instruments and the conditions for hedge accounting in accordance
with IAS 39 are met.
If these conditions are not met despite the existence of a hedging relationship, the derivative financial instruments
are allocated to the category “at fair value through profit and loss” and the changes in fair value are recognized
directly in income.
The effective portion of the change in the fair value of a derivative financial instrument which was classified as a
hedging instrument and which meets the definition of a cash flow hedge is recognized in other comprehensive income,
net of tax. The ineffective portion is recognized in profit or loss. The effective portion is recognized in profit or loss
when the hedged item is also recognized in profit or loss.
The Group measures financial instruments such as derivatives at fair value at each reporting date. Fair value related
disclosures for financial instruments that are measured at fair value or where fair values are disclosed, are summarized in
the Notes 8.2 Information on the nature and extent of risks associated with financial instruments and 8.3 Information
on significance of financial instruments for the consolidated financial statement.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability
or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the
most advantageous market must be accessible by the Group.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
4.19
Use of assumptions
The preparation of these consolidated financial statements requires the Group’s management to make estimates and
assumptions that form the basis for the value of assets and liabilities and income and expenses in the respective
financial years. Key estimates and assumptions relate to impairment tests (refer to Note 4.6 Impairment of property,
plant and equipment and intangible assets), warranty provisions (refer to Note 5.4.2 Provisions), the realization of
revenues according to the percentage of completion method (refer to Note 5.1.2 Gross amount due from/to customers
for contract work as an asset/as a liability) and income taxes (refer to Note 5.2.3 Income taxes) and are described below:
Impairment tests
The recoverable amount used in the impairment test is most sensitive to the discount rate used for the discounted
cash flow model as well as the expected future cash inflows and the growth rate used for extrapolation purposes.
The key assumptions used to determine the recoverable amount for the different cash generating units are
disclosed and further explained in Note 4.6 Impairment of property, plant and equipment and intangible assets.
Warranty provisions
Specific warranty provisions include expenses for material and labor, which will be incurred to repair individual
defects which fall within the respective warranty period. The amount of cost provided is subject to estimates, such
as the population of affected turbines as well as the severance and complexity of technical defects.
General warranty provisions are accounted for based on a historical 5 year average cost rate per turbine class.
For more information, refer to Note 5.4.2 Provisions.
29
30
Revenues according to the percentage of completion method
The percentage of completion and the revenues to recognize are determined on the basis of a large number of
estimates, such as estimated future cost to complete a project. Consequently, the Group has implemented an
internal financial budgeting and reporting system to adequately measure incurred and future cost required to
completion. The Group reviews monthly the estimates of contract revenue and contract costs as the contract
progresses (refer to Note 5.1.2 Gross amount due from/to customers for contract work as an asset/as a liability).
Judgment has also been exercised in determining the percentage of completion allocated to each individual
milestone. In determining the percentage of completion per milestone event, which is then applied to all projects,
management has considered common technical risks arising during production, logistics, installation and
construction as well as contractual arrangements with its customers.
Income taxes
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the
amount and timing of future taxable income. Given the wide range of international business relationships,
differences arising between the actual results and the assumptions made, or future changes to such assumptions,
could necessitate future adjustments to tax income and expense already recorded. The Group establishes
provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the
respective countries in which it operates. The amount of such provisions is based on various factors, such as
experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the
responsible tax authority (refer to Note 5.2.3 Income taxes).
4.20
Information on the consolidated statement of cash flows
The cash and cash equivalents shown in the consolidated statement of cash flows contain cash and bank balances.
Short-term bank liabilities are deducted.
The indirect method was used to calculate the cash flow from operating activity. The consolidated statements of cash
flows start with result before income taxes from continuing and discontinued operations. The cash outflows from
interest and taxes were allocated to ongoing business activity and recognized separately there.
4.21
New accounting standards and their application
Financial reporting at Senvion GmbH in accordance with the IFRS is based on the IASB accounting standards adopted
by the European Commission in the context of the endorsement process for the European Union, in accordance with
Regulation (EC) no. 1606/2002. The new IFRSs and amendments to existing IFRSs published by the IASB are mandatory
only following a corresponding resolution by the Commission as part of the endorsement process.
The following standards and interpretations published by the IASB and IFRIC are not yet mandatory because they have
not yet been endorsed by the EU or the date of their first mandatory application has not yet been reached and are also
not early adopted by the Group:
Standards/interpretations
IFRS 9
IFRS 11
IFRS 15
IFRS 16
IAS 1
IAS 12
IAS 16 and
IAS 38
Annual
Improvements
Financial Instruments
Amendment: Accounting
for Acquisition of Interests
in Joint Operations
Revenue from Contracts
with Customers
Leases
Disclosure Initiative
Recognition of Deferred Tax Assets
for Unrealised Losses
Property, Plant and Equipment
and Intangible asstes
Improvements to IFRS
(2012 – 2014)
Mandatory
application
Expected:
1 January 2018
Endorsement
by European
Commission
No
Expected
Effects
Effects are still
analyzed
1 January 2016
Expected:
1 January 2018
Yes
1 January 2019
1 January 2016
No
Yes
No effects
Effects are still
being analyzed
Effects are still
being analyzed
No material effects
1 January 2017
No
No material effects
1 January 2016
Yes
No material effects
1 January 2016
Yes
No material effects
No
IFRS 15 – will replace all existing IFRS guidance on revenue recognition, including IAS 11. It introduces a five-step
approach to revenue recognition and specific new guidance on when revenues can be recognized in a way similar to
the percentage of completion approach currently used by the Group. Hence, this new guidance is most relevant to
the Group and needs to be analyzed in detail. Based on its preliminary assessment the Group expects that it will still
be permitted to recognize revenues over time under the new standard.
IFRS 16 – will replace current IAS 17. The new standard no longer distinguishes between finance and operating leases
for lessees, but rather requires that most leases are recognized as assets and liabilities at inception, subject to some
limited exceptions. Refer to Note 7 “Contingent liabilities and other financial obligations” on the Group’s current ex
posure to operating leases that may need to be recognized in the balance sheet under the new standard.
IFRS 9 – Financial Instruments will replace IAS 39 Financial Instruments: Recognition and Measurement and all previous
versions of IFRS 9. IFRS 9 brings together all three aspects of the accounting for financial instruments project:
classification and measurement, impairment and hedge accounting. The Group plans to adopt the new standard on the
required effective date. All three aspects of IFRS 9 are still being analyzed by the Group, especially regarding the
impairment requirements of IFRS 9. The Group expects changes from first adoption to its allowances and continues to
perform a detailed assessment to determine the extent and impact of the revised requirements, although such is
currently estimated not to materially affect profit & loss and equity.
31
32
5
Consolidated statement of financial position
5.1
Total current assets
The contract revenues for the respective financial years were as follows:
5.1.1
Liquid funds
In the financial year presented there were no material restrictions on access to liquid funds.
5.1.2
Gross amount due from/to customers for contract work as an asset/as a liability
This item is used to report work in progress which is recognized using the percentage-of-completion method in
accordance with IAS 11. Advance payments on the contracts recognized are deducted directly.
Contract revenue for the period
2015/04/01
– 2015/12/31
2014/04/01
– 2015/03/31
k EUR
1,503,187
k EUR
1,706,829
The aggregated amount of costs incurred to date for the respective financial years was as follows:
Gross amount due from or to customers
Less advance payments received
2015/12/31
k EUR
714,015
– 736,490
– 22,475
2015/03/31
k EUR
946,603
– 966,757
– 20,154
The net amount of – 22,475 k EUR (previous year: – 20,154 k EUR) presented consists of gross amounts due from
customers for contract work as an asset with an amount of 49,372 k EUR (previous year: 58,753 k EUR) and due
to customers as a liability with an amount of 71,847 k EUR (previous year: 78,907 k EUR).
2015/12/31
k EUR
2,586
0
0
538
3,124
2015/03/31
k EUR
0
0
0
2,586
2,586
2015/03/31
k EUR
– 810,057
5.1.3
Trade accounts receivable primarily relate to receivables from customers for the delivery of wind turbines and from
service and maintenance contracts.
Trade accounts receivable (after bad debt allowances)
Bad debt allowances on gross amounts due developed as follows:
Changes in bad debt allowances
At the start of the financial year
Reversals
Utilisations
Additions
At the end of the financial year
Aggregated amount of costs incurred to date
2015/12/31
k EUR
– 581,326
2015/12/31
k EUR
230,751
2015/03/31
k EUR
178,008
2015/12/31
k EUR
16,800
954
– 2,389
– 890
– 186
14,289
2015/03/31
k EUR
6,220
11,952
– 631
– 550
– 191
16,800
Bad debt allowances on trade accounts receivable developed as follows:
Changes in bad debt allowances
At the start of the financial year
Additions
Utilisations
Reversals
Reclassifications
At the end of the financial year
33
34
5.1.4
The maturity structure of trade accounts receivable was as follows:
as of 2015/12/31
Trade accounts receivable before
bad debt allowances
Thereof past due but not impaired
Thereof past due and impaired
Bad debt allowances
Trade Accounts receivable after
bad debt allowances
Not past due as
of the end of the
reporting period
nor impaired
As of the end of the reporting period
past due as follows
k EUR Less than
30 days
k EUR
Between 30
and 180 days
k EUR
More than
180 days
k EUR
245,040
43,365
18,188
14,289
183,487
–
–
0
10,127
10,127
0
0
18,517
18,247
270
135
32,909
14,991
17,918
14,154
230,751
183,487
10,127
18,382
18,755
k EUR k EUR k EUR
k EUR
k EUR
194,808
27,095
19,558
16,800
148,155
–
–
33
11,598
11,535
63
52
22,990
11,194
11,796
10,295
12,065
4,366
7,699
6,420
178,008
148,122
11,546
12,695
5,645
k EUR Receivables from related parties
This item is composed of as follows:
Senvion Holding GmbH
Suzlon Energy Australia Pty Ltd
Other
2015/12/31
k EUR
199,504
0
0
199,504
2015/03/31
k EUR
0
31,806
203
32,009
In July 2015 Senvion GmbH granted Senvion Holding GmbH, its direct parent entity, a loan of 177.3 m EUR with a
maturity until December 2016. Accrued interest from this loan amounts to 6,137 k EUR as of 31 December 2015.
5.1.5Inventories
as of 2015/03/31
Trade accounts receivable before
bad debt allowances
Thereof past due but not impaired
Thereof past due and impaired
Bad debt allowances
Trade Accounts receivable after
bad debt allowances
In the case of the trade accounts receivable that were neither impaired nor past due, there was no evidence of the debtors
being unable to meet their payment obligations as of the reporting date. For further information on the treatment
of financial risks refer to Note 8.2 Information on the nature and extent of risks associated with financial instruments.
Senvion GmbH requires collateral from its customers depending on the outcome of credit checks. Collateral is generally
requested after signature of the purchase contract in the form of bank guarantees or warranties for the purchase
price less any advance payments made. Accordingly, the nominal value of the collateral received typically exceeds the
current level of accounts receivable. As of 31 December 2015, the value of the collateral received was 2,845.25 m EUR
(previous year: 2,700.69 m EUR).
There were no trade accounts receivables whose terms were renegotiated and that would otherwise have been overdue
or impaired as of 31 December 2015.
Raw materials and supplies
Work in progress
2015/12/31
k EUR
269,191
145,862
415,053
2015/03/31
k EUR
372,212
210,498
582,710
2015/12/31
k EUR
442,006
398,381
43,625
– 26,953
415,053
2015/03/31
k EUR
595,388
571,117
24,271
– 12,678
582,710
Valuation allowances on inventories were as follows:
Inventories before valuation allowances
Thereof not impaired
Thereof impaired
Valuation allowance
Expenses for raw materials and supplies amounted to 946,320 k EUR (previous year: 990,387 k EUR; 9-months
comparative period 2014: 724,881 k EUR).
35
36
5.1.6
Other financial assets
Derivative financial instruments
Others
Other miscellaneous assets
Receivables from other taxes
Advance payments on inventories
Deferred financing fees for guarantees
Others
5.2
2015/12/31
k EUR
9,136
2,421
11,557
2015/03/31
k EUR
0
2,234
2,234
44,226
20,077
0
23,013
87,316
33,075
30,155
3,662
29,268
96,160
Total non-current assets
5.2.1
Other intangible assets
In the short financial year 2015 research and development costs amounted to 48,683 k EUR (previous year: 57,505 k EUR;
9-months comparative period 2014: 39,530 k EUR).
Of the development costs 31,834 k EUR (previous year: 38,767 k EUR; 9-months comparative period 2014: 26,007 k EUR)
were capitalized in the short financial year 2015. Amortization of capitalized development costs amounted to 11,346 k EUR
(previous year: 14,486 k EUR; 9-months comparative period 2014: 12,016 k EUR) in the short financial year 2015.
5.2.2
Land and buildings relate primarily to the Group’s own production sites and administrative buildings. Technical equip
ment and machinery primarily relates to facilities for the production of wind turbines. No own work was capitalized in
either the current year or the previous years presented.
At the reporting date, assets under construction relate primarily to expenses for the construction of rotor blade molds.
Land and buildings of Senvion GmbH in the amount of 46,678 k EUR serve as collateral in the financial years presented
(refer to Note 5 Long-term loans).
37
38
39
Consolidated statements of changes in intangible assets and property, plant and equipment
I. Intangible Assets
1. Software and other licences
2. Goodwill
3. Development costs
4. Advance payments
Total intangible assets
II. Property, plant and equipment
1. L and, leasehold rights and
buildings on non-owned land
2. Technical equipment, plant
and machinery
3. O
ther equipment, fixtures,
fittings and equipment
4. Advance payments and plant and
machinery in process of constrution
Total property, plant and equipment
Total
Balance
2015/04/01
k EUR
Acquisitions and production costs
Additions Reclassifications
Disposals
Balance
2015/12/31
k EUR
Balance
2015/04/01
k EUR
Additions
Depreciation and amortization
Restructuring
Disposals
expenses*
k EUR
k EUR
Book values
k EUR
k EUR
k EUR
Exchange
differences
k EUR
46,173
18,870
147,892
3,188
216,123
1,678
0
31,834
1,868
35,380
2,870
0
0
– 2,870
0
– 17
0
0
0
– 17
– 42
0
0
0
– 42
50,662
18,870
179,726
2,186
251,444
31,514
3,238
39,378
0
74,130
4,632
0
11,346
61
16,039
0
0
0
0
0
– 9
0
0
0
– 9
– 11
0
0
0
– 11
36,126
3,238
50,724
61
90,149
14,536
15,632
129,002
2,125
161,295
14,659
15,632
108,514
3,188
141,993
130,730
771
1,092
-48
– 485
132,060
20,850
3,899
2,421
– 4
– 146
27,020
105,040
109,880
140,976
6,112
2,939
– 1,556
– 309
148,162
87,941
15,224
524
– 1,085
– 132
102,472
45,690
53,035
71,564
7,997
66
– 1,388
– 168
78,071
47,482
6,549
0
– 1,216
– 130
52,685
25,386
24,082
20,105
363,375
579,498
3,098
17,978
53,358
– 4,097
0
0
– 100
– 3,092
– 3,109
– 10
– 972
– 1,014
18,996
377,289
628,733
1,914
158,187
232,317
0
25,672
41,711
0
2,945
2,945
0
– 2,305
– 2,314
0
– 408
– 419
1,914
184,091
274,240
17,082
193,198
354,493
18,191
205,188
347,181
k EUR
Exchange
differences
k EUR
Balance
2015/12/31
k EUR
2015/12/31
k EUR
2015/03/31
k EUR
* Refer to Note 6.5 Reorganization expenses
40
I. Intangible Assets 1. Software and other licences
2. Goodwill
3. Development costs
4. Advance payments
Total intangible assets
II. Property, plant and equipment
1. L and, leasehold rights and
buildings on non-owned land
2. Technical equipment, plant
and machinery
3. O
ther equipment, fixtures,
fittings and equipment
4. Advance payments and plant and
machinery in process of constrution
Total property, plant and equipment
Total
Balance
2014/04/01
k EUR
Acquisitions and production costs
Additions
Reclassifi
Disposals
from first
cations
consolidation
k EUR
k EUR
k EUR
k EUR
Additions
Exchange
differences
Balance
2015/03/31
Balance
2014/04/01
Additions
k EUR
k EUR
k EUR
k EUR
Depreciation and amortization
Additions
Reclassifi
Disposals from first
cations
consolidation
k EUR
k EUR
k EUR
41
Book values
Exchange
differences
Balance
2015/03/31
2015/03/31
2014/03/31
k EUR
k EUR
k EUR
k EUR
38,028
18,870
109,125
1,935
167,958
1,641
0
38,767
3,137
43,545
391
0
0
0
391
6,262
0
0
– 1,884
4,378
– 162
0
0
0
– 162
13
0
0
0
13
46,173
18,870
147,892
3,188
216,123
21,750
3,238
24,892
0
49,880
5,831
0
14,486
0
20,317
56
0
0
0
56
4,034
0
0
0
4,034
– 160
0
0
0
– 160
3
0
0
0
3
31,514
3,238
39,378
0
74,130
14,659
15,632
108,514
3,188
141,993
16,278
15,632
84,233
1,935
118,078
125,942
752
0
3,890
– 336
482
130,730
20,076
4,837
0
– 4,018
– 125
80
20,850
109,880
105,866
123,421
11,308
0
6,536
– 760
471
140,976
66,827
20,992
0
349
– 416
189
87,941
53,035
56,594
63,118
8,785
0
756
– 1,683
588
71,564
40,558
7,752
0
– 46
– 1,193
411
47,482
24,082
22,560
18,435
330,916
498,874
17,563
38,408
81,953
0
0
391
– 15,560
– 4,378
0
– 354
– 3,133
– 3,295
21
1,562
1,575
20,105
363,375
579,498
2,233
129,694
179,574
0
33,581
53,898
0
0
56
– 319
– 4,034
0
0
– 1,734
–1,894
0
680
683
1,914
158,187
232,317
18,191
205,188
347,181
16,202
201,222
319,300
42
5.2.3
Income taxes
Current income tax expense in the individual countries and deferred taxes are reported as income taxes.
Income tax expense is composed as follows:
Deferred taxes
thereof temporary differences
thereof tax loss carryforwards and tax credits
Current income taxes
Current income taxes for previous years
Income taxes
2015/04/01
2014/04/01
– 2015/12/31 – 2015/03/31
k EUR
k EUR
– 3,422 – 6,769
– 5,599 – 19,194
2,177 12,425
24,051 25,354
11,426 2,609
32,055
21,194
2014/04/01
– 2014/12/31
k EUR
7,496
– 3,659
11,155
8,681
2,514
18,691
The corporation tax rate for companies in Germany was 15 % plus the solidarity surcharge of 5.5 % of this amount,
meaning that the total corporation tax rate was 15.825 % in all periods presented. Including trade tax, the total tax
rate of the Group was 29.395 % in the short financial year 2015 (previous year: 29.395 %; 9-months comparative
period 2014: 29.11 %). With regard to minimum taxation, the utilization of tax loss carry forwards in Germany is
restricted. There are no restrictions for a positive basis of assessment of up to 1 m EUR. No more than 60 % of any
amounts exceeding this level may be reduced by offsetting against existing tax loss carry forwards in the period.
Unused tax loss carry forwards are carried forward to the next period. There are no temporary restrictions to carry
forward unused tax losses in German tax law.
The effects of different tax rates in Germany and abroad compared with the tax rate of the Group are presented under
tax rate differences in the following reconciliations:
IFRS result profit before income tax from continuing
operations
Expected income taxes
Income taxes for previous year
Non-deductible operating expenses
Additions to/reductions in trade income tax
Changes in tax rates
Ineligible foreign taxes
Different tax rates
Valuation adjustment of deferred taxes on tax loss carryforwards
Other tax effects
Actual income taxes
2015/04/01
– 2015/12/31
k EUR
2014/04/01
– 2015/03/31
k EUR
2014/04/01
– 2014/12/31
k EUR
102,438 30,112 368 768 304 356 0 – 271 – 121 539 32,055
52,123
15,322
2,609
1,420
429
10
240
– 59
1,733
– 510
21,194
47,152
13,726
2,514
924
276
0 0 – 467
1,751
– 33
18,691
The non-deductible operating expenses primarily result from special features of the tax regulations of the country of
residence of foreign subsidiaries.
The effect of income taxes for previous years of 368 k EUR relates to current income tax expense in the amount of
11,426 k EUR and deferred tax income of 11,058 k EUR. The current income tax expenses mainly relate to the tax audit
of Senvion GmbH in Germany for fiscal periods 2008 to 2012. As a result of the tax audit, the tax base of assets and
liabilities was adjusted for previous years. A deferred tax asset was recorded on the temporary differences arising from
the revision of tax bases for previous years with a corresponding deferred tax income being recorded.
The effect of income taxes for previous years in the amount of 2,609 k EUR in financial year 2014/2015 related in
the amount of 1,500 k EUR to the finalization of the tax audit in Italy and in the amount of 1,100 k EUR to Canadian
withholding tax.
43
44
Deferred tax assets and deferred tax liabilities are composed as follows as of the respective reporting dates:
Deferred tax assets
Tax loss carryforwards and tax credits
Provisions
Inventories and receivables
Other
Total deferred tax assets
Offsetting
Deferred tax assets after offsetting
Deferred tax liabilities
Gross amounts due from customers for contract work
Development costs
Other
Total deferred tax liabilities
Offsetting
Deferred tax liabilities after offsetting
2015/04/01
– 2015/12/31
k EUR
2014/04/01
– 2015/03/31
k EUR
3,871
31,215
0 25
5,306
40,417
– 40,417
0
6,228
40,690
2,024
32
3,795
52,769
– 46,707
6,062
25,684
39,406
576
4,654
70,320
– 40,417
29,903
45,669
33,974
537
2,801
82,981
– 46,707
36,274
According to IAS 12 deferred taxes have to be recognized for temporary differences between the tax base of invest
ments in subsidiaries, associates and interests in joint ventures and the equity of these subsidiaries, associates and
joint ventures in Group accounting (so called outside basis differences) to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences can be utilized. As Senvion GmbH and the
concerned subsidiaries qualify as limited liability companies a future reverse of these differences will mainly be tax
exempt according to § 8b KStG and hence qualify as a permanent difference. According to IAS 12.39 no deferred tax
liability shall be recognized for any possible temporary differences (e. g. resulting from fictitious 5 % non-deductible
expenses related to tax free income from subsidiaries (§ 8b III KStG)) if the parent company is able to control that the
temporary differences will not reverse in the foreseeable future. As no reversal of such temporary differences is
expected, the existing deferred taxes liability related to outside basis differences of 467 k EUR were not recognized.
5.3
Non-current assets held for sale and discontinued operations
REpower North (China) Ltd. produces wind turbines for the north Chinese market. The assets and liabilities of REpower
North (China) Ltd. were recognized as held for sale as a consequence of the initiated sales activities of the shares in
REpower North (China) Ltd. until 30 November 2015.
During the financial year 2014/2015 the shareholders resolved to increase capital by a third investor, who is about to
become the controlling shareholder through that transaction, was concluded by a shareholder resolution. A corre
sponding letter of intent with this investor was already signed in January 2015. The entry of the new investor was
delayed due to legal requirements in China. The entry of the new investor occurred in December 2015. After the entry
of the new investor Senvion has no longer control over REpower North (China) Ltd. Senvion retained an interest in
the company, which is 10.89 %. Senvion accounts for its retained interest as an available-for-sale financial instrument,
which is presented under other financial instrument.
Deferred taxes include deferred tax liability of 2,555 k EUR (previous year: deferred tax assets of 351 k EUR; 9-months
comparative period 2014: deferred tax liabilities of 79 k EUR) for temporary differences recognized in other
comprehensive income.
The gain associated with the loss of control over REpower North (China) Ltd. is calculated as follows:
Deferred taxes on tax loss carry forwards are recognized in the amount of the expected utilizable tax losses of the
German and international Group companies. The key factor for determining the value of deferred tax assets is the
estimated reversal of the measurement differences and the usability of the tax loss carry forwards which led to deferred
tax assets. This depends on the occurrence of future taxable profit during the periods in which tax measurement
differences are reversed and tax loss carry forwards can be utilized and on the reversal of temporary differences.
According to the current status, tax loss carry forwards, for which deferred tax assets were recognized, can be carried
forward without restriction in subsequent years in all countries where tax loss carry forwards exist.
Net assets of REpower North (China) Ltd.
Fair value of investment retained
Carrying amount of non-controlling interests including attributable
components of other comprehensive income
Amounts recognized in other comprehensive income by the parent
and reclassified to profit or loss
Gain associated with loss of control
No deferred tax assets were recognized on corporation tax losses totaling 3,965 k EUR, (previous year: 7,451 k EUR;
9-months comparative period: 11,263 k EUR) as well as trade tax losses of 39 k EUR (previous year: 203 k EUR;
9-months comparative period: 96 k EUR) due to the lack of prospects for offsetting in the near future.
The fair value of the investment retained has been measured using level 3 inputs in the sense of the fair value hierarchy
of IFRS 13. These level 3 inputs include the “capital increase and share transfer agreement” dated 14 December 2015
and appraisal reports prepared in conjunction with the capital increase. The fair value of the non-controlling interest in
one of the subsidiaries of Senvion GmbH has been derived from a draft share transfer agreement, which was executed
subsequent to the acquisition in December 2015. The subsidiary (Repower North (China) Ltd.) was deconsolidated
subsequently on 30 November 2015. The amount of liquid funds in REpower North (China) Ltd. over which control was
lost amounts to 5,526 k EUR.
30 November 2015
k EUR
– 12,885
3,938
6,662
2,891
606
45
46
As of 30 November 2015 (date of loss of control) and as of 31 March 2015 the assets and liabilities of Repower North
(China) were composed of as follows:
Assets of disposal group classified as held for sale
Inventories
Liquid Funds
2015/11/30
k EUR
2015/03/31
k EUR
5.4.1
Advance payments received
Advance payments from customers for orders for which no production work has been carried out are reported as
advance payments received.
6,425
5,526
3,075
15,026
6,742
6,242
3,477
16,461
Liabilities of disposal group classified as held for sale
Advance payment received
Provision and other liabilities
130
2,011
2,141
322
2,074
2,396
Cumulative other comprehensive income
associated with the discontinued operations
Currency translation differences
4,099
4,330
For the short financial year 2015, the financial year 2014/15 and the 9-months comparative period 2014 profit/loss
from discontinued operations were composed as follows:
Income
Expenses
Earnings before taxes from discontinued operations
Taxes
Earnings after taxes from discontinued operations
Gain associated with loss of control
Profit for the period from discontinued operations
5.4
2015/04/01
– 2015/12/31
9 months
k EUR
589
1,176
– 587
0
– 587
606
19
2014/04/01
– 2015/03/31
12 months
k EUR
3,846
2,635
1,211
0
1,211
–
1,211
2014/04/01
– 2014/12/31
9 months
k EUR
3,293
2,224
1,069
0
1,069
–
1,069
5.4.2Provisions
Provisions developed as follows in the short financial year 2015.
Specific warranty provisions
General warranty provisions
Warranty provisions
Other provisions
Total provisions
As of
2015/04/01
k EUR
199,567
34,242
233,809
2,784
236,593
Addition
k EUR
16,997
29,130
46,127
9,061
55,188
Utilization
k EUR
– 49,378
– 19,980
– 69,358
– 1,471
– 70,829
Reversal
k EUR
0
– 3,821
– 3,821
– 153
– 3,974
As of
2015/12/31
k EUR
167,186
39,571
206,757
10,221
216,978
Specific warranty provions as of 31 December 2015 mainly contain expected cost for technical issues with regard
to offshore blades for the 6XM WTG series. In the current short financial year, cost of 13,495 k EUR in regard of this
technical issue were incurred (previous year: 17,742 k EUR; 9-months comparative period 2014: 9,522 k EUR).
The development of general warranty provisions reflects the increase in the number of WTGs sold and falling within
the legal 2-year warranty period.
Due to the restructuring and closure of the blade factory in Ontario, Canada a restructuring provision amounting to
3,103 k EUR was recognized according to IAS 37 within other provisions (refer to Note 6.5 Reorganization expenses).
5.4.3
Deferred income
Prepayments for revenues from service and maintenance are reported as deferred income. Straight-line amortization
is applied for these deferred positions over the entire term of the rendered service.
47
48
5.6
Total equity capital
The change in equity components is shown in the consolidated statement of changes in shareholders’ equity.
5.4.4
Other current liabilities
Other current liabilities are composed as follows:
Liabilities to employees
Other
Miscellaneous other liabilities
Liabilities from other taxes
Social security liabilities
Other
2015/12/31
k EUR
2015/03/31
k EUR
20,186
800
1,281
22,267
20,578
1,325
608
22,511
25,639
1,853
9,898
37,390
8,739
1,531
7,848
18,118
5.5
Long-term loans
Long-term loans totaling 10,503 k EUR (previous year: 14,346 k EUR) as of 31 December 2015 relate to liabilities to
banks. The interest rate for bank loans remained unchanged between 3.64 % and 5.5 % per annum.
Effective 29 April 2015 Senvion GmbH acceded a new syndicated line of credit for 950,000 k EUR. 825,000 k EUR of
this syndicated credit line can be utilized in the form of guarantees and 125,000 k EUR as a cash loan until 31 March
2020. Deferred financing fees in the amount of 7,018 k EUR for the syndicated loan taken out in March 2014 were
expensed in the short financial year 2015. The syndicated line of credit was secured by way of rights from registered
patents and patent applications of Senvion GmbH as well as a pledge of the liquid funds of Senvion GmbH. The banking
syndicate received a blanket assignment of outstanding receivables of Senvion GmbH as well as an assignment of
finished goods, work in progress as well as raw materials and supplies by way of additional security. Furthermore, the
line of credit agreement contains rights of termination for the lender that become effective as soon as specific events
of defaults occur. These breaches of contract may include the conclusion of control and profit transfer agreements,
failure to comply with certain financial covenants, or a change of control. Moreover, dividend payments are permitted
only to a limited extent.
For details regarding the utilization of the line of credit refer to Note 8.2 Liquidity risk.
Subscribed capital
At 31 December 2015 and 31 March 2015 the subscribed share capital of Senvion GmbH amounted to 9,220,179 EUR
and was divided into 1 value ordinary bearer share with a notional interest in the share capital of 9,220,179 EUR.
Additional paid-in capital
The additional paid-in capital originally resulted from the initial public offering of Senvion GmbH in 2002.
In the financial year 2014/15 capital reserves decreased by 4,455 k EUR is due to the acquisition of 80 % of the shares
in Yorke Peninsula Wind Farm Project Pty Ltd, Melbourne, Australia from Suzlon Energy Australia Pty Ltd, Australia, which
was considered a related party and at the point in time of the transaction part of the group of the former shareholder
of Senvion GmbH. As this was a business combination under common control the difference between the consideration
transferred and the balance of the carrying amount of the transferred assets and liabilities was offset against additional
paid-in capital, refer also to Note 3.3.2.2 Changes in the scope of consolidation in the financial year 2014/15.
Non-controlling interests
Non-controlling interests related to the shares held by third parties in international Group companies. These mainly
included shares of third parties in REpower North (China) Ltd. (refer to Note 5.3 Non-current assets held for sale and
discontinued operations).
49
50
6
Consolidated income statement
6.1Revenues
In the short financial year 2015 as well as in the financial year 2014/2015 and in the comparative period ended
December 2014, the operations of companies of Senvion Group related almost exclusively to the development and
manufacturing of wind turbines and wind turbine projects.
Revenue from sale of onshore wind turbines
Revenue from sale of offshore wind turbines
Services
Other
Revenues
2015/04/01
– 2015/12/31
k EUR
1,432,233
70,954
177,245
2,606
1,683,038
2014/04/01
– 2015/03/31
k EUR
1,605,483
101,346
194,026
20,964
1,921,819
2014/04/01
– 2014/12/31
k EUR
1,236,359
73,567
138,058
17,392
1,465,376
Revenues from sale of onshore wind turbines analyzed by geographies are as follows:
Germany
Canada
United Kingdom
France
Australia
USA
Rest of the world
Revenues from sale of onshore wind turbines
2015/04/01
– 2015/12/31
k EUR
562,339
245,926
193,827
113,776
37,821
326
278,218
1,432,233
2014/04/01
– 2015/03/31
k EUR
763,250
187,480
109,822
176,078
203,125
85
165,643
1,605,483
2014/04/01
– 2014/12/31
k EUR
563,359
179,859
64,218
145,693
179,907
70
103,253
1,236,359
The 3.2M has a nominal power output of 3.2 MW, hub heights ranging from 136 to 139 meters and a rotor
diameter of 122 meters
The 3.4M model has a nominal power output of 3.4 MW, hub heights ranging from 78 meters to 143 meters
and a rotor diameter between 104 and 140 meters
Our offshore portfolio consists of 5M models with 5MW output and the 6.XM series that consists of the
Senvion 6.2M126 and the Senvion 6.2M152 with 6.15 MW output
Revenues from the sale of wind turbines analyzed by turbine type are as follows:
MM92
3.2M
MM100
3.4M
MM82
6M
3.0M
6M+
5M
Revenues from sale of wind turbines
6.2
2015/04/01
– 2015/12/31
k EUR
521,464
423,376
179,599
157,042
117,701
54,214
33,051
9,233
7,507
1,503,187
2014/04/01
– 2015/03/31
k EUR
613,230
585,921
130,680
113,147
109,908
101,346
52,597
0
0
1,706,829
2014/04/01
– 2014/12/31
k EUR
530,823
446,501
84,212
96,415
68,348
73,567
10,060
0
0
1,309,926
2015/04/01
– 2015/12/31
k EUR
22,386
4,899
2,768
1,773
890
298
4,676
37,690
2014/04/01
– 2015/03/31
k EUR
15,105
7,536
5,920
1,754
895
1,278
1,250
33,738
2014/04/01
– 2014/12/31
k EUR
7,541
6,354
5,678
2,015
825
780
689
23,882
Other operating income
Other operating income is composed as follows:
Senvion has a multi-MW product portfolio, which ranges from 2 to 6.15 MW wind turbines optimized for different
wind speeds and locations:
The MM82 model has a nominal power output of 2.05 MW, the hub heights range between 58.5 and 80 meters
and it has a rotor diameter of 82 meters
The MM92 model has a nominal power output of 2.05 MW, the hub height ranges from 68 to 100 meters and
it has large rotor diameter of 92.5 meters
The MM100 model has a nominal power output of 1.8 MW (60 Hz) or 2.0 MW (50 Hz), hub heights of 78 to
100 meters and a rotor diameter of 100 meters
The 3.0M model has a nominal power output of 3 MW, a hub height of 100 metres (60 Hz) or 136 to 139 meters
(50 Hz) and a rotor diameter of 122 meters
Currency translation gains
Insurance payments/compensations
Income from hedging transactions
Investment subsidies, research and development subsidies
Income from reversal of bad debt allowances
Income from reversal of provisions
Other
Refer to Note 6.4 “Other operating expenses” for currency translation losses.
51
52
6.3
Personnel expenses
Wages and salaries
Social security contributions
2015/04/01
– 2015/12/31
k EUR
144,625
27,499
172,124
2014/04/01
– 2015/03/31
k EUR
175,318
33,611
208,929
2014/04/01
– 2014/12/31
k EUR
128,730
24,519
153,249
The average number of employees of the short financial year 2015 was 3,817 (previous year: 3,460, 9-months
comparative period 2014: 3,405).
The amount paid by the company as contribution to the state pension schemes amount to 7.4 m EUR in the short
financial year 2015 (previous year: 8.8 m EUR, 9-months comparative period 2014: 6.7 m EUR).
6.4
Other operating expenses
Other operating expenses are composed as follows:
Purchased services
Legal and consulting costs
Currency translation losses
Office and land costs
IT & telecommunication costs
Travel expenses
Cost of training and appointing staff
Compensation for loss of production
Vehicle costs
Write-offs/write-downs of receivables
Expense from hedging transactions
Other
2015/04/01
– 2015/12/31
k EUR
32,905
32,469
18,906
12,447
10,223
8,752
7,494
6,735
5,851
3,999
2,992
19,313
162,086
2014/04/01
– 2015/03/31
k EUR
28,781
40,338
13,870
15,051
14,255
10,710
8,326
17,334
8,917
8,106
5,305
17,924
188,917
2014/04/01
– 2014/12/31
k EUR
20,662
30,051
6,793
11,202
10,898
7,936
5,656
9,590
6,555
12,488
4,466
9,577
135,874
6.5
On 22 October 2015 Senvion GmbH decided to restructure its subsidiary PowerBlades Inc., Ontario, Canada. The closure
of the factory resulted in restructuring costs of 8,010 k EUR and was caused by low order intake volume whereby the
factory could not establish a cost-covering production. The restructuring costs are composed of employee termination
benefits 1,960 k EUR, cost of sales 1,236 k EUR, impairments 2,945 k EUR and other operating expenses amounting to
1,869 k EUR.
6.6
Financial result
Other interests and similar expenses largely relate to guarantee commissions and interest on loans taken out by the
Senvion GmbH (refer to Note 8.2 Information on the nature and extent of risks associated with financial instruments).
In addition, an amount of 7,018 k EUR for deferred financing fees was expensed (refer to Note 5.5 Long term loans)
in the short financial year ending 31 December 2015.
53
54
7
Contingent liabilities and other financial obligations
Other financial obligations
Obligations from leases and rental contracts
Due within one year
Due within 1 and 5 years
Due in more than 5 years
Purchase commitments
thereof for purchase of inventories
thereof for purchase of property, plant and equipment
8
2015/12/31
k EUR
2015/03/31
k EUR
22,168
28,356
37,811
88,335
595,004
588,739
6,265
13,631
25,361
31,667
70,659
546,879
544,890
1,989
All leases at Senvion GmbH and the companies included in the scope of consolidation are operating leases.
Lease payments are recognized directly in income on a straight-line basis over the term of the lease.
Obligations from leases and rental contracts relate primarily to obligations for the rental of office and warehouse
space. Expenses amounting to 16,279 k EUR (previous year: 16,678 k EUR, 9-months comparative period 2014:
12,776 k EUR) were recognized for leases and rental contracts.
Financial risks and financial instruments
8.1
Principles of risk management
With regard to its assets, financial liabilities and planned transactions, Senvion is subject to risks arising from changes
in raw materials and purchase prices, exchange rates, interest rates and share prices. The aim of financial risk manage
ment is to limit these market risks through ongoing operating and financially oriented activities. To this end, specific
hedging instruments are employed depending on the assessment of the respective risk. Risks are only hedged if they
affect the Group’s cash flow. Derivative financial instruments are only employed to hedge exchange rate risks, particularly
those relating to larger customer or purchasing contracts in foreign currency, and are not used for trading or other
speculative purposes.
The principles of financial policy were agreed on an annual basis by the Executive Board and monitored by the Super
visory Board, until the Supervisory Board was dissolved in connection to the change of legal corporate form to “GmbH”.
The implementation of financial policy and ongoing risk management is the responsibility of the Group’s treasury
department with the involvement of the Group’s controlling department. Certain transactions require the prior consent
of the Executive Board, which is also regularly informed of the scope and amount of the current risk exposure. The
treasury department considers the effective management of financial instruments and market risks as one of its main
functions. In order to assess the effects of the different events on the market, simulation calculations are performed
using various worst-case and market scenarios.
8.2
Information on the nature and extent of risks associated with financial instruments
Credit and default risk is constantly monitored. Before entering into purchase and delivery contracts, the Group checks
the customer’s credit rating using a standardized credit check process including the evaluation of information from
external rating agencies and credit agencies and the analysis of financial information. The Group requires collateral
depending upon the rating’s results and materiality considerations. The result of the credit check process is documented
for each customer.
The credit and default risk of financial assets is limited to a maximum of the amounts reported on the asset side of
the consolidated statement of financial position.
Exchange rate risks only exist insofar as deliveries are made to countries outside the euro zone or cross-border deliveries
are made from such countries. Risks within the meaning of IFRS 7 arise from financial instruments that are denomi
nated in a currency other than the functional currency and that are of a monetary nature; exchange rate differences
arising from the translation of financial statements into the Group currency are not included.
IFRS 7 requires a currency sensitivity analysis showing the effects of hypothetical changes in relevant risk variables on
earnings and shareholders’ equity. Foreign currency sensitivity is calculated for primary monetary financial instruments
(cash and cash equivalents, trade receivables and payables, other assets and other liabilities) by simulating a 10 %
increase or decrease in the value of all foreign currencies against the functional currency.
55
56
The simulated appreciation or devaluation of the relevant currencies would have impacted the financial statements for
the period ending 31 December 2015 as follows:
Currency risk
The following table presents the impact from changes in foreign currency exchange rates on the Group’s net profit for
all material foreign currencies.
2015/12/31
Sensitivity analysis – Total
Exchange rate + 10 %
Exchange rate– 10 %
2015/03/31
2014/12/31
USD
– 549
671
USD
– 412
503
USD
234
– 287
AUD
CAD
Profit impact in k EUR
– 1,033
– 2,606
1,263
2,417
AUD
CAD
– 716
2,549
875
– 3,273
AUD
CAD
– 1,666
1,285
2,036
– 778
At Senvion GmbH, exchange rate risk primarily arises from operating activities when contracts are concluded in a
currency other than the EUR. The primary risks are in connection with foreign currencies presented in the table above.
The treasury department centrally identifies and monitors potential exchange rate risks from transactions and payments
in foreign currency. Regarding transactions in foreign currency, subsidiaries and other departments report directly to
the treasury department. The Group hedges individual transactions and payments in foreign currency against potential
risks from a change in exchange rates. Cash outflows and inflows in the same foreign currency are offset and the net
exposure is calculated and separately monitored for each foreign currency.
GBP
– 2,251
2,752
GBP
– 133
163
GBP
– 557
681
A change in foreign currency exchange rates would have no impact on the Group’s net profit for financial instruments
designated as hedges. The following table presents the impact on the Group’s equity/other comprehensive income from
changes in the fair value of derivative financial instruments.
2015/12/31
Fair value of derivative financial instruments designated as cash flow hedges
Impact on equity in k EUR
15,370
– 18,785
2015/03/31
2,674
– 3,268
2014/12/31
– 2,360
1,931
The risk position per currency measured in this manner is monitored and managed by the treasury department. Hedges
are concluded to limit this risk. Exchange rate risks in the Company’s operating activities are hedged using forward
exchange contracts, currency swaps, currency options and structured derivatives.
Transacting or holding such contracts for trading or speculation purposes is not permitted. Derivative financial
instruments that do not meet the conditions for hedge accounting are placed in the “held for trading” category.
Liquidity risk
Liquidity risk is monitored as part of rolling liquidity planning. Financing is provided mainly through advance payments
for projects from customers. Payments made and received are monitored continuously as part of liquidity planning.
The utilization regarding the syndicated line of credit and other guarantees as of 31 December 2015 is as follows:
2015/12/31
Syndicated line of credit
Guarantees
Cash loan
Guarantees other
Total
Credit facility total
m EUR
950.0
825.0
125.0
42.3
992.3
Utilized
m EUR
479.0
479.0
0.0
32,6*
511.6
Remaining
m EUR
471.0
346.0
125.0
9.7
480.7
Credit facility total
m EUR
850.0
820.0
30.0
10.6
860.6
Utilized
m EUR
369.3
367.9
1,4*
4.9
374.2
Remaining
m EUR
480.7
452.1
28.6
5.7
486.4
* thereof 1.7 m EUR from rental guarantees
2015/03/31
Syndicated line of credit
Guarantees
Cash loan
Guarantees other
Total
* from rental guarantees
For further details to the credit facilities please refer to Note 5.5 Long-term loans.
57
58
Maturity of financial liabilities
The following tables show the contractually agreed, undiscounted interest and principal payments for the Senvion Group’s
primary financial liabilities and derivative financial instruments with a negative fair value as of 31 December 2015 and
31 March 2015. Derivatives with positive fair values constitute assets, and hence are not included.
Short-term loans and current portion
of long-term loans
thereof redemption payments
thereof interest payments
Derivatives
Long-term loans
Total
of long-term loans
Derivatives
Long-term loans
Total
Carrying amount
as of 2015/12/31
k EUR
Cash flows
up to 1 year
k EUR
Cash flows
between
1 and 5 years
k EUR
Cash flows
more than 5
years
k EUR
5,982
379,748
12,501
800
10,503
21,467
431,001
6,634
5,982
652
379,748
12,501
800
0
0
0
21,467
421,150
0
0
0
0
0
11,209
10,503
706
0
11,209
0
0
0
0
0
0
0
0
0
0
Carrying amount
as of
2015/03/31
k EUR
Cash flows
up to 1 year
k EUR
Cash flows
between
1 and 5 years
k EUR
Cash flows
more than 5
years
k EUR
7,568
337,189
10,851
1,325
14,346
22,186
393,465
8,461
7,568
893
337,189
10,851
1,325
0
0
0
21,186
379,012
0
0
0
0
0
0
15,067
13,901
1,166
1,000
16,067
0
0
0
0
0
0
454
445
9
0
454
Interest rate risk
The Company does not have any material assets or liabilities that are sensitive to interest rates as all loans have fixed
interest rates.
The recording, measurement and monitoring of potential interest rate risks from external financing is performed
centrally by the treasury department. Hedges may be concluded to limit interest rate risks. Interest rate risks are hedged
using interest rate swaps, interest rate caps and derivatives if deemed material. Transacting or holding such contracts
for trading or speculation purposes is not permitted.
Financial derivatives
The following table shows the carrying amounts and nominal volumes of financial derivatives as of 31 December 2015
and 31 March 2015 respectively:
Assets
Forward exchange contracts
not used in hedges
used in cashflow hedges
Liabilities
Currency swaps
not used in hedges
not used in hedges
Currency option transactions
not used in hedges
2015/12/31
Carrying amount
Nominal value
k EUR
k EUR
387
4,351
8,749
172,329
0 0 733
67
0 0 0 9,969
6,510
0 2015/03/31
Carrying amount
Nominal value
k EUR
k EUR
0
0
0
0
51
20,764
50
2,715
38
8,723
1,153
30,889
33
5,684
The effective portion of the changes in the fair value of financial derivatives used in cash flow hedging recognized
in other comprehensive income, net of taxes, amounted to 6,979 k EUR (previous year: – 2,490 k EUR, 9-months com
parative period 2014: – 1,455 k EUR).
During the short financial year 2015, the amount transferred from other comprehensive income to profit or loss as
part of cash flow hedge accounting was 1,342 k EUR (deferred taxes of 394 k EUR), of which 2,121 k EUR was recorded
as other operating income and – 779 k EUR as other operating expense.
Outstanding receivables of Senvion as well as an assignment of finished goods, work in progress and raw materials and
supplies were pledged as collateral as of 31 December 2015 for the new syndicated loan (refer also to Note 5.5 Longterm loans).
During the financial year 2014/2015, the amount transferred from other comprehensive income to profit or loss as
part of cash flow hedge accounting was 458 k EUR (deferred taxes of 135 k EUR), of which 787 k EUR was recorded
as other operating income and – 329 k EUR as other operating expense.
As of 31 December 2015, as in the previous year, no other financial assets were pledged as collateral.
During the short financial year 2014, the amount transferred from other comprehensive income to profit or loss as
part of cash flow hedge accounting was 530 k EUR (deferred taxes of 156 k EUR), of which 530 k EUR was recorded
as other operating income.
59
60
During the short financial year 2015, the financial year 2014/15 and the comparative period ended 31 December 2014
the amount transferred from other comprehensive income to profit or loss due to the discontinuation of underlying
transactions was 0 k EUR.
Liquid funds, gross amount due from customers for contract work as an asset, trade accounts receivable, receivables
from related parties and other financial assets generally have a term of 12 months or less, meaning that their carrying
amounts on the respective reporting dates correspond closely to their fair values.
As of 31 December 2015, 31 March 2015 and 31 December 2014, there were no ineffective portions of the change in
the fair value of hedging instruments used in cash flow hedging.
The fair values of non-current receivables correspond to the present value of the payments associated with these
assets, taking into account the current parameters reflecting changes in conditions and expectations due to marketand counterparty-related developments.
The following table shows when the book values of the derivatives used for cash flow hedging are expected to be
recognized in profit or loss:
Occurence and recognition
in profit and loss
2015/12/31
Assets
Liabilities
2015/03/31
Liabilities
Currency swaps
Liabilities
Carrying amount
k EUR
up to 1 year
k EUR
8,749
67
between
1 and 5 years
k EUR
8,749
67
0
0
1,153
50
Financial liabilities are shown in the following table:
more than
5 years
k EUR
0
0
1,153
50
0
0
0
0
8.3
Information on the significance of financial instruments for the consolidated financial statements
Based on the relevant consolidated statement of financial position items, the relationships between the classification of
financial instruments in accordance with IFRS 7 and the carrying amounts of the financial instruments including Liquid
funds not allocated to any IAS 39 category are shown in the following tables:
Category*
Liquid funds
Gross amount due from customers
for contract work as an asset
Loans granted
Other financial assets – miscellaneous
Other financial assets – loans
Other financial investments
Receivables from related parties
Total L+R
Other financial assets – financial
derivatives held for trading
Other financial assets – financial
derivatives classified as hedge instruments
* L+R: loans and receivables
HfT: held for trading
Afs: available-for-sale
n. a.
2015/12/31
Carrying
amount
Fair value
k EUR
k EUR
417,732
417,732
2015/03/31
Carrying
amount
Fair value
k EUR
k EUR
301,375
301,375
L+R
L+R
L+R
L+R
L+R
Afs
L+R
L+R
49,372
230,751
1,028
296
2,125
4,004
199,504
904,812
49,372
230,751
1,109
296
2,125
4,004
199,504
–
58,753
178,008
2,752
567
1,667
66
32,009
575,197
58,753
178,008
2,905
567
1,667
66
32,009
–
HfT
387
387
0
0
n. a.
8,749
8,749
0
0
Category*
Long-term loans
of long-term loans
Other non-current financial liabilities
Other current financial liabilities
Total OL
Other financial liabilities – financial
derivatives held for trading
Other financial liabilities – financial
derivatives classified as hedge instruments
OL
OL
OL
2015/12/31
Carrying
amount
Fair Value
k EUR
k EUR
379,748
379,748
12,501
12,501
10,503
10,503
2015/03/31
Carrying
amount
Fair Value
k EUR
k EUR
337,189
337,189
10,851
10,851
14,346
14,346
OL
OL
OL
OL
5,982
0
21,467
430,201
5,982
0
21,467
–
7,568
1,000
21,186
392,140
7,568
1,003
21,186
–
HFT
733
733
122
122
n.a.
67
67
1,203
1,203
* OL: other liabilities
Due to the short-term of trade accounts payable, liabilities to related parties and other financial liabilities, it is assumed
that their carrying amounts and fair values are identical.
61
62
The following table provides a breakdown of the fair value hierarchy of financial assets and financial liabilities carried
at fair value at the respective reporting date. This implies a differentiation between instruments which fair values are
directly observable on active markets (level 1), which fair values are based on observable material input data (level 2)
and which fair values are based non-observable material input data (level 3):
2015/12/31
Assets carried at fair value
Held for Trading (HfT)
Available-for-Sale (Afs)*
classified as hedge instruments
Total assets
Liabilities
Total liabilities
Carrying amount
k EUR
387
4,004
8,749
13,140
Level 1
k EUR
Level 2
k EUR
Level 3
k EUR
0
0
387
0
0
4,004
0
0
8,749
9,136
0
4,004
733
0
733
0
67
800
0
0
67
800
0
0
The Group enters into derivative financial instruments with various counterparties, principally financial institutions
with investment grade credit ratings. Derivatives valued using valuation techniques with market observable inputs are
mainly foreign exchange forward contracts. The most frequently applied valuation techniques include forward pricing
and swap models, using present value calculations. The models incorporate various inputs including the credit quality of
counterparties and foreign exchange spot and forward rates. The marked-to-market value of derivative asset positions
is net of a credit valuation adjustment attributable to derivative counterparty default risk.
Fair values of the Group’s borrowings and loans and other financial liabilities are determined by using DCF method
using a discount rate that reflects the issuer’s borrowing rate as of the end of the reporting period (Level 3 measure
ment). The own non-performance risk as of 31 December 2015 and 31 March 2015 was assessed to be insignificant.
Net gains and losses on loans and receivables consist primarily of results from bad debt allowances and reversals
thereof. With regard to bad debt allowances, please refer to the Notes on trade accounts receivable (5.1.3) and other
current assets (5.1.6). The net results of bad debt allowances and reversals thereof are primarily reported in other
operating expenses.
The following table shows the net gains and losses for each valuation category:
* Refer to Note 5.3 “Non-current assets held for sale and discontinued operations” on how fair value was determined
2015/03/31
Assets carried at fair value
Total assets
Liabilities
Total liabilities
Carrying amount
k EUR
0
0
0
Level 1
k EUR
Level 2
k EUR
Level 3
k EUR
0
0
0
0
0
0
0
0
0
122
0
122
0
1,203
1,325
0
0
1,203
1,325
0
0
There have been no transfers between any levels during the short financial year 2015 and the financial year 2014/2015.
The following methods and assumptions were used to estimate the fair values of instruments for which the fair value is
disclosed and those which are recognized at fair value:
Long-term receivables are evaluated by the Group based on parameters such as interest rates, specific country risk
factors, individual creditworthiness of the customer and the risk characteristics of the financed project (Level 3 meas
urement). Based on this evaluation, allowances are taken into account for the expected losses of these receivables. The
fair values of such receivables, net of allowances, were not materially different from their carrying values.
Loans and Receivables (L+R)
Financial instruments Held for Trading (HfT)
Total
Net gain/loss
2015/04/01
2014/04/01
– 2015/12/31
– 2015/03/31
k EUR
k EUR
15,676
– 17,745
– 224
615
15,452
– 17,130
Senvion has received collateral amounting to 2,845.25 m EUR (previous year: 2,700.69 m EUR) as of 31 December 2015;
this represents the fair value of the collateral, which primarily relates to standard industry guarantees from third parties
for obligations of customers and suppliers for which Senvion has carried out preliminary work or made advance pay
ments. For further information please refer to Note 5.1.3 Trade accounts receivable.
63
64
9
Capital management
10
The aim of the Group’s capital management is to ensure that it maintains a good equity ratio and a high credit rating
in order to support its business activities and maximize shareholder value. This is especially significant in the context
of growth targets.
Related parties disclosures
For Senvion Group, related parties as defined by IAS 24 are, in particular, shareholders, which exercise (joint) control or
significant influence, subsidiaries, joint ventures and associates.
Senvion has a balanced capital structure. Shareholders’ equity covers non-current assets by more than 100 %.
The Company is not subject to any statutory capital requirements. It is however subject to loan convenants.
In addition, members of the Executive Board and Supervisory Board of Senvions’s direct parent, Senivon Holding GmbH,
are related parties as defined by IAS 24, as are people who hold a key position in the management of a parent
company of the Senvion Group. Close family members of these related parties are also considered as related parties.
The Group monitors its capital on the basis of the equity ratio, this being the ratio of the shareholders’ equity reported
in the consolidated financial statements to total assets.
Upon the acquisition of Senvion Group by Centerbridge Partners L. P., New York, USA (29 April 2015) related parties
have changed and no longer include Suzlon Energy Ltd. and its subsidiaries for the period after 29 April 2015.
Shareholders’ equity
Total assets
Equity Ratio in %
2015/12/31
k EUR
606,593
1,773,645
34.2
2015/03/31
k EUR
531,963
1,629,419
32.6
Senvion’s original aim is to consistently achieve an equity ratio of at least 30 %. When events are identified which could
result in the equity being lower than the target of 30 % appropriate measures are taken to avoid the equity ratio to fall
below the target ratio.
Another figure used in capital management is net working capital or the net working capital ratio. Net working capital
is calculated as follows: total current assets (adjusted for liquid funds and assets of disposal Group classified as held
for sale) minus total current liabilities (adjusted for provisions, liabilities of disposal Group classified as held for sale
and short-term loans and current portion of long-term loans). To calculate the net working capital ratio, this net figure
is compared with the total operating performance for the last 12 months.
Current assets
Adjustments to current assets
Adjustments to current liabilities
Net working capital
Total operating performance
Net working capital ratio in %
2015/12/31
k EUR
1,413,949
– 417,732
– 1,126,646
222,960
92,531
1,650,235
5.6
2015/03/31
k EUR
1,269,696
– 317,836
– 1,038,796
246,557
159,621
1,964,980
8.1
The Group uses the net working capital to measure the short-term liquidity of the business and to utilize assets in an
efficient manner. Consequently the Group always attempts to optimize its net working capital on a sustainable basis.
The composition and remuneration of the Executive Board and Supervisory Board are described in Notes 12 “Information
on the corporate bodies of Senvion GmbH” and Note 13 “Remuneration for the Supervisory Board and the Executive
Board of Senvion GmbH” respectively.
In addition to members of the Supervisory board and board of directors the following related parties were identified:
Senvion Holding GmbH, Hamburg (direct parent)
Senvion Midco GmbH, Hamburg (indirect parent)
Senvion Topco GmbH, Hamburg (indirect parent)
Senvion S.à. r.l., Luxembourg (indirect parent)
CCP II Acquisition Senvion S.à r.l., Luxembourg (ultimate shareholder)
CCP III Acquisition Senvion S.à r.l., Luxembourg (ultimate shareholder)
Rapid Management L. P., Cayman Islands (ultimate shareholder)
Rapid Partners L. P., Cayman Islands (ultimate shareholder)
Arpwood capital Private Limited, Mumbai
Centerbridge Partners Europe LLP, London
Arpwood Capital Private limited and Centerbridge Partners Europe LLP are considered related parties as individuals who
are members of the Advisory Board of Senvion S.à r.l. also hold key management positions in these entities.
In addition to business relationships with the subsidiaries eliminated in the consolidated financial statements by means
of full consolidation, there were the following business relationships with related parties.
65
66
10.2
Transactions with related parties in financial year 2014/2015
The following transactions were concluded with the shareholder Suzlon Energy Ltd., the former ultimate parent of
Senvion GmbH until 29 April 2015:
10.1
Transactions with related parties in financial year 2015
Due to the change of the shareholder most of the transactions contain granted loans which are presented in these
consolidated financial statements:
Transactions between Senvion GmbH
and
Senvion Holding, Hamburg
Senvion S.à r.l.,Luxembourg
Rapid Management L.P., Cayman Islands
Transactions between subsidiaries of
Senvion GmbH and
Senvion Holding, Hamburg
Expenses from
services/Interest
2015/04/01 – 2015/12/31
k EUR
3,050
0
0
Income from
services/Interest
2015/04/01 –
2015/12/31
k EUR
6,318
8
0
Expenses from
services/Interest
2015/04/01 –
2015/12/31
k EUR
Income from
services/Interest
2015/04/01 –
2015/12/31
k EUR
0
0
Receivables
Liabilities
2015/12/31
k EUR
198,824
674
60
2015/12/31
k EUR
12,501
0
0
Receivables
Liabilities
2015/12/31
k EUR
679
Transactions between Senvion GmbH
and
Suzlon Energy Ltd./SE Blades Ltd., India
SE Blades Ltd., India
SE Electricals Ltd., India
SE Electricals Ltd., India
Suzlon Wind International Ltd., India
Suzlon Global Service, Hadapsar, India
Services/Goods
obtained
2014/15
k EUR
–
2,000
–
2,315
1,141
14
Services/Goods
delivered
2014/15
k EUR
–
–
–
–
–
–
Receivables
2015/03/31
k EUR
1,390*
–
99*
574
–
–
Liabilities
2015/03/31
k EUR
131
–
–
448
657
14
Services/Goods
obtained
2014/15
k EUR
Services/Goods
delivered
2014/15
k EUR
Receivables
2015/03/31
k EUR
Liabilities
2015/03/31
k EUR
1,349
361
–
86
37
11,681
–
–
–
–
* Prepayments
2015/12/31
k EUR
0
Following the acquisition of Senvion by Centerbridge Partners L.P., New York, USA, on 29 April 2015, certain managers
and board members of the Group (“Managers”) were given the opportunity to invest in an investment vehicle, Rapid
Management L. P., which indirectly owns interests in Senvion Group. The subscription price for the partnership interests
subscribed by the Managers in Rapid Management L.P. corresponded to their fair value at grant date. A total of approx
imately 2 % of the Partnerhship’s interest were subscribed by the Managers. Rapid Management L. P. in turn acquired
a total of 1,000 Class C Shares in Senvion TopCo GmbH (4 % of the voting rights) and subscribed for 3,125 Preference
Shares in Senvion S.à r.l. (4 % of the voting rights). The acquisition by the Managers of interests in the partnership qualifies
as an equity-settled share-based payment arrangement in the consolidated financial statements of Senvion Group.
The share-based payment arrangement vests over a period of 3 years. The participation rights in form of partnership
interest were acquired from an entity outside the Group and the Group has no obligation to make any payments on
the partnership interests to the Managers. As the partnership interests were acquired at fair value, no expense will be
recognized as a result of this transaction.
Transactions between subsidiaries
of Senvion GmbH and
Suzlon Energy Australia Pty Ltd,
Australia (SEA)
Suzlon Wind Energy Corporation, USA
Suzlon Rotor Corp., India
Suzlon Energy Ltd., India
Suzlon Wind International Ltd., India
31,806*
–
–
–
–
7,872
740
656
207
62
* The reported receivables due from SEA have been already reduced by 6,156 k AUD (4,263 k EUR) out of the share purchase agreement relating to Yorke Peninsula Wind
Farm Project Pty Ltd . Furthermore for technical reasons the received payments by SEA’s customers have increased the value of the amount shown as liabilities rather than
reduced the amount shown as receivables.
In the period from 1 April 2015 to 29 April 2015 no material transactions with the former shareholder Suzlon Energy Ltd.
and its subsidiaries were executed. Outstanding balances were mainly settled as part of the acquisition.
The above transactions executed with related parties mainly comprise purchasing of raw materials and components
(generators, blades) for wind turbine generators as well as health-safety-environmental and other services. Services
rendered by Senvion Australia Pty. Ltd. to Suzlon Energy Australia Pty Ltd. mainly consisted of operations and mainte
nance services performed on behalf of Suzlon under a Facility and Service Agreement.
The terms and conditions of the transactions were made on terms and conditions which prevail in an arm’s length
transaction. There were no material securities given or received as part of the transactions. In the respective period,
the Group has not recorded expenses for allowances or provisions on outstanding balances.
The terms and conditions of the transactions were made on terms and conditions which prevail in an arm’s length
transaction. There were no material securities given or received as part of the transactions. In the respective period,
the Group has not recorded expenses for allowances or provisions on outstanding balances.
67
68
11
Information on the corporate bodies of Senvion GmbH
The Supervisory Board from Senvion GmbH was transferred to Senvion Holding GmbH on 20 November 2015.
The following are or were appointed as members of the Supervisory Board:
Tulsi R. Tanti, Director Suzlon Energy Ltd., Pune, India (Chairman) (until 2015/04/28)
Frans H. J. Visscher, Employee Suzlon Energy Ltd., Bergen, Netherlands (Deputy Chairman) (until 2015/04/28)
Thomas Rex, Team leader production electrics, Breydin, Germany
Bernhard Band, Technical writer, Tellingstedt, Germany
Ravi Uppal, CEO Indal Steel & Power, Neu Delhi, India (until 2015/04/28)
Vinod R. Tanti, Employee Suzlon Energy Ltd., Pune, India (since 2014/10/20 and until 2015/04/28)
Stefan Kowski (Chairman), (since 2015/05/04)
Steven M. Silver, (since 2015/05/04)
Todd Morgan, (since 2015/05/04)
Prof. Dr. Martin Skiba, (since 2015/05/04)
The following are or were appointed to the Executive Board of Senvion GmbH:
Dr. Jürgen M. Geißinger, Hamburg (Chairman) (since 2015/12/17)
Manav Kumar Sharma, Hamburg, Germany (since 2015/06/30)
Dr. Christoph Seyfarth, Hamburg, Germany (since 2016/02/01)
Andreas Nauen, Hamburg (Chairman) (until 2015/12/17)
Lars Rytter, Hamburg, Germany (until 2015/06/22)
Russell Burton Stoddart, Hamburg, Germany (until 2015/06/30)
12Remuneration for the Supervisory Board and the Executive Board of Senvion GmbH
For the financial year 2015, remuneration of 22 k EUR (previous year: 360 k EUR, 9-months comparative period 2014:
180 k EUR) was paid to the Supervisory Board until it was transferred to Senvion Holding GmbH on 20 November 2015.
The remuneration for current and former members of the Executive Board is as follows:
Current salaries
Retirement benefits
Termination benefits
Other benefits
2015/04/01
– 2015/12/31
k EUR
766
0
2,213
323
3,302
2014/04/01
– 2015/03/31
k EUR
1,694
0
934
628
3,256
2014/04/01
– 2014/12/31
k EUR
1,337
0
934
593
2,864
69
70
13
Information on the remuneration paid to the auditor
14
The following table contains expenses from services rendered by the group auditor, Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft, Germany:
Events after the reporting date
No material events after the reporting period occurred.
Hamburg, 11 February 2016
Audit fees (consolidated financial statements
and annual financial statements)
Additional audit fees for prior year audit
Fees for other assurance services
Fees for tax advisory services
Fees for other services
2015/04/01
– 2015/12/31
k EUR
2014/04/01
– 2015/03/31
k EUR
2014/04/01
– 2014/12/31
k EUR
1,236
0
550
1,305
1,844
4,935
455
43
529
386
3,148
4,561
410
0
529
486
764
2,189
Dr. Jürgen M. Geißinger
(CEO)
Dr. Christoph Seyfarth
(COO)
Kumar Manav Sharma
(CFO)
71
72
Independent Auditor’s Report
To Senvion GmbH
We have audited the accompanying consolidated financial statements of Senvion GmbH, Hamburg, and its subsidiaries,
which comprise the consolidated statement of financial position as at 31 December 2015 and the consolidated income
statement, consolidated statement of comprehensive income, consolidated statement of cash flows, consolidated
statement of changes in shareholders’ equity for the short financial year then ended, and the notes to the consolidated
financial statements.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in
accordance with International Financial Reporting Standards as adopted by the EU, and for such internal control as
management determines is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consoli–
dated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making
hose risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation
of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of
the company and its subsidiaries as at 31 December 2015 and of their financial performance and cash flows for the
short financial year then ended in accordance with International Financial Reporting Standards as adopted by the EU.
Hamburg, 11 February 2016
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
Publication details
Published by
Senvion GmbH
Design
Verinion GbR
Print/Processing
Müller Ditzen AG
www.senvion.com
2015
Senvion GmbH
Überseering 10
22297 Hamburg
Germany
Legal reference
T + 49 40 5555 090-0
F + 49 40 5555 090-3999
[email protected]
www.senvion.com
uncertainty and influences, the actual results, financial situation or development may deviate from
the assumptions presented in this document. We shall not assume any obligation to

Our turbines deliver reliable output.

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