EXHIBIT 99.3
Report of the Group Auditor to the Annual Meeting of Shareholders
of VÖLKL SPORTS HOLDING AG, BAAR
As basis of our audit, we examined the accounting records and the consolidated annual accounts (balance sheet, profit and loss statement, cash flow statement and notes to the financial statements) ofVölkl Sports Holding AG for the financial year ended03/31/2004.
The Board of Directors is responsible for preparing the consolidated annual accounts, while our task is to examine and express and opinion on these. We confirm our fulfilment of the legal requirements regarding professional qualification and independence in this regard.
Our audit was conducted according to the principles of the Swiss accounting profession, by which an audit is to be so planned and carried out that significant false statements in the consolidated annual report can be detected with reasonable certainty. We examined the items and statements contained in the consolidated annual report on the basis of analytical testing methods and collecting of representative samples. Furthermore, we have evaluated the significant accounting principles used, and consolidation and valuation decisions made, as well as the presentation of the entire financial statements as a whole. We believe that our audit provides a sufficient basis for our opinion.
In our opinion, the consolidated financial statements present an accurate picture of the asset, financial and earning situation in accordance with professional accounting standards (Swiss GAAP FER) and Swiss legal requirements.
We recommend the approval of these consolidated annual statements demonstrating agroup profit of EUR 2,849,000.
Naters, June 09, 2004
TREUHAND UND REVISIONS AG
| ||
Accountant in Charge | ||
Albert Bass | Mischa Imboden | |
dipl. Buchhalter | lic. oec. HSG | |
& Controller | dipl. Wirtschaftsprüfer |
Appendix
- Balance Sheet
- Profit and Loss Statement
- Cash Flow Statement
- Notes to the Financial Statements
1
Völkl Sports Holding AG
Consolidated balance sheet as of March 31, 2004
March 31, 2004 | March 31, 2003 | |||||||||||
Notes | T-EUR | T-EUR | T-EUR | T-EUR | ||||||||
Assets | ||||||||||||
A. | Fixed assets | |||||||||||
I | Intangible assets | 3.1 | ||||||||||
Intangible assets | 318 | 270 | ||||||||||
Formation and start-up costs | — | 318 | — | 270 | ||||||||
II | Tangible assets | 3.2 | ||||||||||
Real estate, buildings | 1,092 | 1,092 | ||||||||||
Technical equipment | 2,452 | 2,983 | ||||||||||
Other equipment | 2,500 | 2,203 | ||||||||||
Downpayment & plants under constr. | 186 | 6,230 | 988 | 7,266 | ||||||||
III | Financial assets | |||||||||||
Other lendings | 3.4 | 3,068 | 3,068 | |||||||||
Reinsurance claims | 3.5 | 919 | 3,987 | 1,157 | 4,225 | |||||||
IV | Shareholdings | 3.3 | ||||||||||
DNR Sportsystem AG | — | — | ||||||||||
BIL Grundstücksverw. GmbH+Co. KG | 24 | 24 | ||||||||||
Völkl Sport America Corp. | 1,901 | 1,925 | 2,065 | 2,089 | ||||||||
Total fixed assets | 12,460 | 13,850 | ||||||||||
B. | Current assets | |||||||||||
I | Stocks on hand | 3.6 | 25,198 | 24,969 | ||||||||
II | Receivables | |||||||||||
Goods and services | 3.7 | 18,424 | 17,601 | |||||||||
Affiliated companies | 3.8 | 2,183 | 2,754 | |||||||||
Other assets | 3.9 | 2,250 | 22,857 | 2,058 | 22,413 | |||||||
III | Liquid assets | 153 | 132 | |||||||||
Total current assets | 48,208 | 47,514 | ||||||||||
C. | Deferred items | 3.10 | 2,306 | 1,975 | ||||||||
Total assets | 62,974 | 63,339 | ||||||||||
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Völkl Sports Holding AG
Consolidated balance sheet as of March 31, 2004
March 31, 2004 | March 31, 2003 | |||||||||||
Notes | T-EUR | T-EUR | T-EUR | T-EUR | ||||||||
Liabilities | ||||||||||||
A. | Equity | 3.11 | ||||||||||
Group share | 6,229 | 3,765 | ||||||||||
Total Equity | 6,229 | 3,765 | ||||||||||
B. | Silent partnership | 3.12 | 205 | 256 | ||||||||
C. | Special reserves with equity portion | 3.13 | 1,776 | 2,114 | ||||||||
D. | Provisions | |||||||||||
Provisions for pensions | 3.14 | 3,753 | 3,809 | |||||||||
Tax provisions | 3.15 | 4,104 | 3,878 | |||||||||
Other provisions | 3.16 | 4,980 | 5,236 | |||||||||
Total provisions | 12,837 | 12,923 | ||||||||||
E. | Debts | 3.17 | ||||||||||
Banks | 3.18 | 14,674 | 12,726 | |||||||||
Goods and services | 4,398 | 7,438 | ||||||||||
Affiliated companies | 3.19 | 145 | 199 | |||||||||
Other liabilities | 3.20 | 7,589 | 26,806 | 8,176 | 28,539 | |||||||
Shareholder loan | 3.21 | |||||||||||
— without letter of subordination | 7,264 | 7,895 | ||||||||||
— with letter of subordination | 7,857 | 15,121 | 7,847 | 15,742 | ||||||||
Total debts | 41,927 | 44,281 | ||||||||||
Total liabilities | 62,974 | 63,339 | ||||||||||
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Völkl Sports Holding AG
Consolidated profit and loss account 2003/2004
2003/2004 | 2002/2003 | |||||
Notes | T-EUR | T-EUR | ||||
Sales proceeds | 4.1 | 104,965 | 94,435 | |||
Increase/reduction in inventories | ||||||
of finished and unfinished products | 1,428 | 153 | ||||
Total output | 106,393 | 94,588 | ||||
Other activated company-manufactured items | 324 | 365 | ||||
Other operating income | 4.2 | 3,871 | 3,979 | |||
Material expenditure | -51,226 | -46,067 | ||||
Raw materials and supplies | -51,158 | -45,972 | ||||
Expenditure for services received | -68 | -95 | ||||
Material expenditures as %age of total output | -48.1% | -48.7% | ||||
Gross profit | 59,362 | 52,865 | ||||
Gross profit as a %age of total output | 55.8% | 55.9% | ||||
Personnel expenditure | -23,864 | -22,708 | ||||
Payroll | -19,380 | -18,472 | ||||
Social security contributions | -4,484 | -4,236 | ||||
Personnel expenditure as a %age of total output | -22.4% | -24.0% | ||||
Depreciation | 4.3 | -4,390 | -3,803 | |||
On fixed assets | -2,635 | -2,806 | ||||
On current assets | -1,755 | -997 | ||||
Other operating expenditure | 4.4 | -24,437 | -20,940 | |||
Operational result | 6,671 | 5,414 | ||||
Operating results as a %age of total output | 6.3% | 5.7% | ||||
Result of companies not fully consolidated | 251 | 606 | ||||
Other interest and similar income | 58 | 55 | ||||
of which from affiliated companies | 49 | 43 | ||||
Interest and similar expenditure | -2,542 | -2,534 | ||||
of which to affiliated companies | — | -288 | ||||
Profit shares of silent partners | -20 | -24 | ||||
Result of customary business activities | 4,418 | 3,517 | ||||
Extraordinary income | 4.5 | 25 | 684 | |||
Extraordinary expenditure | 4.6 | -321 | -382 | |||
Extraordinary result | -296 | 302 | ||||
Taxes on income and profit | 4.7 | -1,063 | -728 | |||
Other taxes | -210 | -57 | ||||
Surplus/deficit for the year | 2,849 | 3,034 | ||||
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Consolidated cash-flow statement
2003 / 2004 | ||||
Source of funds | Application of funds | |||
in thousands of EURO | ||||
Sales turnover (total output) | 106,393 | |||
Material expenditure | -51,226 | |||
Change in receivables from goods and services | -823 | |||
Change in payables from goods and services | -3,040 | |||
Change in stocks on hand (excl. Depreciation) | -1,984 | |||
Activated company-manufactured items | 324 | |||
Other operating income | 3,871 | |||
Personnel expenditure | -23,864 | |||
Other operating expenditure | -24,437 | |||
Interest income | 58 | |||
Interest expense | -2,542 | |||
Extraordinary result | -296 | |||
Taxes | -1,273 | |||
Changes in deferred charges to expense | -331 | |||
Changes in other assets | -192 | |||
Changes in other liabilities | -587 | |||
110,646 | -110,595 | |||
Cash-flow from operations | 51 | |||
Investment activity | ||||
Investment in fixed assets | -2,951 | |||
Disinvestment | 1,542 | |||
Exch. rate differences in fixed assets | 0 | |||
1,542 | -2,951 | |||
Cash-flow from investment activity | -1,409 | |||
Financing activity | ||||
Change in claims against affiliated companies | 571 | |||
Change in liabilities to affiliated companies | -54 | |||
Change in shareholder's loan | -621 | |||
Silent partner's share of profit | -20 | |||
Result of companies not fully consolidated | 251 | |||
Profit distribution by Völkl Sports Holding AG | -191 | |||
Equity cons. Völkl Sports America | 164 | |||
Exch. rate difference in consolidation of equity | -194 | |||
Change in silent partnership | -51 | |||
Change in special reserve with equity portion | -338 | |||
Reduction of provisions | -86 | |||
986 | -1,555 | |||
Cash-flow out of financial activity | -569 | |||
Total source of funds/application of funds | 113,174 | -115,101 | ||
DIMINUTION OF FINANCIAL ASSETS | -1,927 | |||
Change in financial assets | 2003 / 2004 | 2002 / 2003 | ||
Liquid funds | 153 | 132 | ||
Banks | -14,674 | -12,726 | ||
Book value liquid funds | -14,521 | -12,594 | ||
DIMINUTIONS OF FINANCIAL ASSETS | -1,927 |
5
Völkl Sports Holding AG
Notes to the Consolidated Financial Statements as of March 31, 2004
1. General
Reference can be made to the “Völkl Group Consolidated Financial Statements as of March 31, 2004” for the evaluation of the earning and asset situation of the Völkl Group companies. The presentation of the annual accounts is in accordance with German accounting standards. The classification in ordinary and extraordinary items was adopted from the audited financial statements without any changes needing to have been made. The individual financial statements were issued an unqualified audit opinion, with the exception of the note on the consolidation of BIL KG in accordance with 2.4.
2. Consolidation Principles
2.1 Consolidation Time Period
The time period for consolidation is the financial year commencing on April 1 and ending on March 31 of the subsequent year. The financial statements of all companies are in each case prepared as of March 31, with the following exceptions:
— Völkl Sport America Corp. | Calendar year | |
— Zero Degree Manufacturing AG | Calendar year |
2.2 Accounting and Valuation
The individual financial statements included in consolidation were prepared and evaluated in accordance with uniform accounting standards. The financial statements of Swiss companies prepared in accordance with the laws of Switzerland were adjusted for undisclosed reserves in order that the financial statements included in consolidation would present a picture of the asset, financial and earnings situation corresponding to the actual situation of the companies.
2.3 Currency Conversion
For the Swiss companies, currency translation was performed for items contained in the balance sheets using the rates prevailing at the closing dates of March 31, 2004 and 2003, and for items contained in the profit and loss accounts using the average of the annual rates for internal accounting purposes (recorded rate of exchange). Differences arising from the use of different conversion rates for balance and profit and loss accounts were credited or offset against the balance contained in profit reserves. Since financial year 2000/01, the annual statements of German companies as well as the group have been prepared using EURO. The rates of exchange used for the conversion of Swiss financial statements are:
100 SFr. = EUR | Balance Statement Rate | Profit and Loss Account Rate | ||
Annual Accounts 2002/03 | 68.02 | 68.52 | ||
Annual Accounts 2003/04 | 63.81 | 68.01 |
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2.4 Consolidated entities
The following companies were included in the group’s consolidated annual financial statements:
Proportion of Group’s Equity Participation | ||||
3/31/2004 | 3/31/2003 | |||
Full consolidation | ||||
Völkl Sports Holding AG | 100% | 100% | ||
(until 4/1/1999 Benviro AG) | ||||
Zero Degree Manufacturing AG | 100% | 100% | ||
Rad Air Snowboards AG | 100% | 100% | ||
Völkl Groupp | ||||
— Völkl Sports GmbH & Co. KG, Straubing | 100% | 100% | ||
(until 1/20/2000 Franz Völkl GmbH & Co. Ski and Tennis Sportartikelfabrik KG (sporting goods manufacturer) | ||||
— Völkl GmbH, Straubing | 100% | 100% | ||
(until 1/20/2000 Franz Völkl GmbH) | ||||
— Völkl Snowboard Verwaltungs-GmbH, Straubing | 100% | 100% | ||
— Völkl-Vertriebs GmbH, Straubing | 100% | 100% | ||
— Völkl (International) AG, Baar | 100% | 100% | ||
— Marker Völkl Austria GmbH, Andorf | 100% | 100% | ||
Proportional Consolidation | ||||
Völkl Tennis GmbH, Baar | 50 % | 50 % | ||
Inclusion of the financial statement has been made on a proportional basis at 50%. | ||||
Equity Accounting | ||||
Völkl Sport America Corp. USA | 40 % | 40 % | ||
The difference between equity and purchase values is considered goodwill and reflected under participating interests. | ||||
Participating interests accounted by the purchase value | ||||
BIL Grundstückverwaltungs-GmbH & Co WEDA KG | 95 % | 95 % |
Immobiliengesellschaft BIL Grundstücksverwaltungs-GmbH & Co WEDA KG (referred to nore succinctly as BIL KG), in which Völkl KG holds 95% of investments, was not included in consolidation, since Völkl KG does not hold a voting majority in this company.The auditors, Fasselt & Partner, inserted a qualification in their report on the consolidated group financial statement of Völkl KG regarding this decision.
Völkl of America Ltd., which is held by Völkl KG, was not included in the financial statements as a consequence of its inactivity. This company is not to be confused with the company, Sport America Corp., actively engaged in commercial operations.
2.5 Affiliated Companies
Affiliated companies are those companies which are included in the consolidated group accounting of Völkl Sports Holding AG.
2.6 Capital Consolidation
Participating interests within the consolidated companies were eliminated according to 2.4.
7
2.7 Consolidation Adjustments
Internal turnover, expenses and income as well as trade debtors among the consolidated companies as well as interim profits arising due to transacting internally in goods and services were eliminated.
3. Notes to the Balance Sheet as of 3/31/2004
3.1 Intangible Assets
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
Supersport brand name trademark | 0.1 | 0,1 | ||
Software | 0.2 | 0,2 | ||
Total | 0.3 | 0,3 |
In financial year 2002 / 03, Völkl International AG purchased the “Supersport” brand name trademark, an acquisition valued at an amount of EUR 50,000.00. This brand name will be written off over a period of 5 years.
3.2 Tangible Assets
Tangible assets are principally valued according to purchase value, i.e. at the expense of purchase or production less any necessary depreciation.
The changes are shown in the Asset Movement Table contained in the Appendix.
3.3 Participating Interests
This item contains the following not fully consolidated participating interests:
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
BIL Grundstückverwaltungs-GmbH & Co WEDA KG (TEUR 24) | 0.0 | 0.0 | ||
Völkl Sport America Corp, USA — Proportional capital and reserves for 40 % | 1.9 | 2.1 | ||
Total | 1.9 | 2.1 |
3.4 Other Lendings
These items, as in the prior year, contain a non-interest bearing loan in the amount of EUR 3,067,751.29 granted by Völkl KG to BIL KG This loan was granted in connection with the realisation of the new Straubing-Sand building.
Interest payments were dispensed with based on the agreed lower rent payments offered.
3.5 Reinsurance claims
The item relates to the capitalised value of an insurance policy covering the company’s pensions scheme costs purchased from the Berlinische Lebensversicherung AG to cover the pension commitments to employees of Völkl Sports GmbH & Co. KG and Völkl Vertriebs GmbH.
3.6 Stocks on hand
Inventories are valued at either the average purchase or production cost or the lower of cost or market taking into account market prices and inventory risks.
8
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
Raw materials and consumable | 3.8 | 3.8 | ||
Work in progress | 2.3 | 2.3 | ||
Finished goods and goods for resale | 19.1 | 18.9 | ||
Total | 25.2 | 25.0 |
Unrealised interim profits on inventories are eliminated.
Völkl KG, Völkl Vertriebs GmbH and Völkl International AG have surrendered their entire warehouse as collateral for accounts payable to banks in accordance with the collateral pooling agreement entered into with the banking consortium consisting of Deutsche Bank AG, Bayerische Hypo- und Vereinsbank AG and Commerzbank AG.
3.7 Trade Debtors
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
Trade debtors | ||||
— gross | 19.4 | 18.5 | ||
— adjustments | -1.0 | -0.9 | ||
Total | 18.4 | 17.6 |
��
The amounts owed are recorded at nominal values less all necessary adjustments in value.
In accordance with the foregoing collateral pooling agreement, Völkl KG and Völkl Vertriebs GmbH have surrendered all present and future amounts owed to them from trade debtors to the heretofore mentioned German banking consortium.
3.8 Amounts owed by affiliated companies
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
Amounts owed: | ||||
— Völkl Tennis GmbH (50%) | 0.7 | 0.8 | ||
— Völkl Sport of America | 1.5 | 2.0 | ||
Total | 2.2 | 2.8 |
3.9 Other Assets
The other assets item contains prepaid taxes, VAT credits, short term personnel loans, travel expense advances, cash security deposits, etc.
3.10 Prepayments and Accrued Income
The largest portion of this item is represented by capitalised advertising and development costs for the financial year 2004/05 incurred by Voelkl international and Voelkl Tennis with a total amount of TEUR 1,775 (TEUR 1,456).
9
3.11 Capital and Reserves
The consolidated capital and reserves were composed as follows during the financial year:
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
Capital and Reserves per 04/01 | 3.765 | 0.917 | ||
Distribution of profits Völkl Sports Holding AG | -0.191 | -0.102 | ||
Exchange rate difference on consolidation of capital and reserves | -0.194 | -0.084 | ||
Profit for the year | 2.849 | 3.034 | ||
Capital and reserves per 03/31 | 6.229 | 3.765 |
3.12 Silent partnership
Völkl KG possesses a silent partnership in the Kapitalbeteiligungsgesellschaft für mittelständige Wirtschaft Bayerns mbH, Munich, which was reduced as planned from TEUR 51 to TEUR 205 during the financial year.
3.13 Special Reserves with equity portion
Classified as special reserves is the income contribution provided in connection with the sale of the Straubing, Steinweg 62 property. The repayment is to be performed over a period of ten years. In accordance with the findings of the tax audit, the income contribution qualifies as taxable income. The special reserves as well as the amount of annual repayment have been adjusted to reflect this.
3.14 Pension Reserves
The reserves for pensions and other obligations encompass pension entitlements as well as current pensions in accordance with commitments made in the framework of employment agreements as well as on the basis of individual commitments. These are determined by the entry age normal method in accordance with § 6a EStG through actuarial calculations on the basis of an interest rate of 6%.
3.15 Tax Reserves
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
Reserves for: | ||||
— Taxes | 3.0 | 3.0 | ||
— Deferred taxes | 1.1 | 0.9 | ||
Total | 4.1 | 3.9 |
3.16 Other Reserves
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
Guarantee obligations | 1.0 | 1.2 | ||
Vacation claims / overtime | 1.5 | 1.2 | ||
Outstanding invoices | 0.2 | 0.4 | ||
Fixed sum & premiums racing | 0.5 | 0.8 | ||
Currency reserve | 0.6 | 0.0 | ||
Litigation | 0.0 | 0.1 | ||
Interest shareholder loan | 0.0 | 0.4 | ||
Sundry | 1.2 | 1.1 | ||
Total | 5.0 | 5.2 |
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The reserves for guarantee obligations of Völkl KG amount to 0.667 Mio. EUR for still undetermined guarantee obligations, which are valued at 1.2% of average net turnover of the last two financial years, as well as 0.340 Mio. EUR for undetermined warranties.
The reserve for overtime and vacation entitlements increased due to the clear increase in output and expansion in production in financial year 2003 / 04 in comparison with the prior year.
3.17 Creditors—Durations
The remaining terms to maturity amount as of 3/31/2004 to:
Mio. EUR | Total | Up to 1 year | Over 1 year | |||
Banks loans and overdrafts | 14.7 | 14.4 | 0.3 | |||
Trade creditors | 4.4 | 4.4 | 0.0 | |||
Amounts owed to group undertakings | 0.1 | 0.1 | 0.0 | |||
Other creditors | 7.6 | 7.6 | 0.0 | |||
Subtotal | 26.8 | 26.5 | 0.3 | |||
Shareholder loan: | ||||||
— without subordination | 7.3 | 1.4 | 5.9 | |||
— with subordination | 7.8 | 3.3 | 4.5 | |||
Overall total | 41.9 | 31.2 | 10.7 |
3.18 Bank Loans and Overdrafts
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
Bank loans and overdrafts of: | ||||
— Marker Völkl Austria | 2.2 | 2.2 | ||
— Völkl International | 2.3 | 3.0 | ||
— Völkl Tennis GmbH | 0.2 | 0.1 | ||
— Völkl KG | 10.0 | 7.4 | ||
Total | 14.7 | 12.7 |
The provision of funds by banks was made on the basis of collateral pooling agreements of 09/24, 10/28, 10/30, 11/22, 12/23/2002 against transfer of ownership of the following items:
- All trade debtors of Völkl KG and Völkl Vertriebs GmbH
- Entire warehouse of Völkl KG, Völkl Vertriebs GmbH and Völkl International AG.
3.19 Amounts Owed to affiliated companies
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
Völkl Tennis GmbH 50% (TEUR 145) | 0.1 | 0.2 | ||
Total (TEUR 145) | 0.1 | 0.2 |
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3.20 Other Creditors
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
Value added taxes | 0.5 | 1.6 | ||
Personnel, social security costs | 1.3 | 1.1 | ||
Berlinische Leben | 0.2 | 0.3 | ||
Bills of exchange Völkl KG | 4.4 | 4.6 | ||
Sundry | 1.2 | 0.6 | ||
Total | 7.6 | 8.2 |
3.21 Shareholder Loan
Mio. EUR | 03/31/2004 | 03/31/2003 | ||
Loans from Mr. Hans-Dieter Cleven to: | ||||
— Völkl KG, Straubing | 4.7 | 4.7 | ||
— Völkl Sports Holding AG | 6.2 | 6.6 | ||
— Völkl Tennis GmbH 50% | 0.4 | 0.4 | ||
— Völkl International AG, Baar | 3.8 | 4.1 | ||
Total | 15.1 | 15.8 | ||
Hereof subordinated loans | 7.9 | 7.8 |
A loan for 3.323 Mio. EUR was provided by Mr. Hans-Dieter Cleven to Völkl KG by agreement of April 01, 1997. The loan term was lengthend to March 31, 2005.
In connection with the sale of the property, Straubing, Steinweg 62, an additional loan in the amount of 1.4 Mio. EUR was granted by Mr. Hans-Dieter Cleven to Völkl KG.
Mr. Cleven’s loans amounting to 7.9 Mio. EUR (3.3 Mio. EUR to Völkl KG, 3.8 Mio. EUR to International AG, 0.3 Mio. EUR to Völkl Tennis GmbH and 0.5 Mio. EUR to Völkl Sports Holding) are subordinate to the existing and future credit sums granted by banks at which the companies respectively hold accounts.
Collateral for the loans by shareholders was granted in the form of:
- | Right of lien to the”Völkl” trademark by International AG, Baar |
- | Right of lien to the participating interests in Völkl Sports Holding AG |
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4. Notes to the Consolidated Profit and Loss Account 2003/04
4.1 Sales
The turnover amounts to 105.0 Mio. EUR and lies, thereby, around 11.15 % over the previous year’s turnover. The gross turnover is attributable as follows to the individual companies:
Mio. EUR | 2003/2004 | 2002/2003 | ||
Turnover Völkl KG | 62.8 | 51.1 | ||
Turnover Vertrieb | 25.1 | 26.6 | ||
Turnover Völkl International | 83.4 | 71.1 | ||
Turnover Marker Völkl Austria | 9.5 | 7.3 | ||
Turnover Völkl Tennis | 3.4 | 3.6 | ||
Turnover Rad Air | 0.0 | 1.3 | ||
Subtotal | 184.2 | 161.0 | ||
Elimination of intercompany turnover | -79.2 | -66.6 | ||
Turnover | 105.0 | 94.4 |
4.2 Other Operating income
Mio. EUR | 2003/2004 | 2002/2003 | ||
Disbursement from expired pension insurance | 0.3 | 0.5 | ||
Revenues from trade in goods and services | 0.6 | 0.6 | ||
Expense centre allocation/Licensing revenues | 1.2 | 0.4 | ||
Partial reversal of special reserves | 0.3 | 0.3 | ||
Reversal of reserves | 0.1 | 1.2 | ||
Other | 1.4 | 1.0 | ||
Total | 3.9 | 4.0 |
4.3 Depreciation
Mio. EUR | 2003/2004 | 2002/2003 | ||
Depreciation: | ||||
— Tangible assets | 2.8 | 3.0 | ||
— Reduction based on investment grants | -0.2 | -0.2 | ||
— Subtotal tangible assets | 2.6 | 2.8 | ||
— Inventories, if exceeding normal depreciation | 1.8 | 1.0 | ||
Total | 4.4 | 3.8 |
4.4 Other Operating Expenditure
Mio. EUR | 2003/2004 | 2002/2003 | ||
Operating expenses | 7.3 | 7.1 | ||
Administrative expenses | 3.6 | 3.8 | ||
Sales expenses | 9.2 | 7.3 | ||
Losses on debts | 0.1 | 0.1 | ||
Sundry | 4.2 | 2.6 | ||
Total | 24.4 | 20.9 |
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4.5 Extraordinary income
Mio. EUR | 2003/2004 | 2002/2003 | ||
Changes in del credere Völkl International AG | 0.0 | 0.6 | ||
Revenues relating to a period other than that which is covered by this financial statement / Sundry (TEUR 25) | 0.0 | 0.1 | ||
Total | 0.0 | 0.7 |
4.6 Extraordinary expenditure
Mio. EUR | 2003/2004 | 2002/2003 | ||
Extraordinary consulting expenses | 0.0 | 0.2 | ||
Liquidation expense Rad Air Snowboards | 0.1 | 0.0 | ||
Shareholder interest prior year / Covered capital and reserves | 0.0 | 0.1 | ||
Expenses relating to a period other than that which is covered by this financial statement | 0.1 | 0.1 | ||
Sundry | 0.1 | 0.0 | ||
Total | 0.3 | 0.4 |
4.7 Taxes
Tax expenses encompass asset income and property taxes for the current financial year, prior year tax adjustments and changes in deferred taxes. We make reference to 3.15 concerning the formation of tax reserves.
5. Other Information
5.1 Contingent Liabilities
According to the collateral pooling agreement of 09/24, 10/28, 10/30, 11/22, 12/23/2002 Völkl KG, Völkl Vertriebs GmbH and Völkl International AG are jointly and severally liable for bank and bill of exchange Liabilities (Balances per 03/31/2003):
Völkl Sports GmbH & Co. KG | Accounts Payable to Banks Bill of Exchange Liabilities | TEUR TEUR | 10,024 4,429 | |||
Völkl Vertriebs GmbH | Accounts Payable to Banks | TEUR | 0 | |||
Völkl International AG | Accounts Payable to Banks | TEUR | 2,323 |
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