EXHIBIT 99.2
[COVER]
SCHLEICHER & Co.
INTERNATIONAL
AKTIENGESELLSCHAFT
THE SHREDDER COMPANY
BUSINESS REPORT
SHORT FISCAL YEAR
APRIL 1, 2002 - DECEMBER 31, 2002
CONSOLIDATED BALANCE SHEET AND BALANCE SHEET
FOR SCHLEICHER & CO. INTERNATIONAL AG AS PER DECEMBER 31, 2002
EURO IN THOUSANDS
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CONSOLIDATED SI AG
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ASSETS Annex December, 31 2002 March 31, 2002 December, 31 2002 March 31, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
FIXED ASSETS (1)
Intangible assets 91 98 77 78
Tangible assets 4.025 4.284 3.572 3.704
Financial assets 248 44 5.122 4.867
- -----------------------------------------------------------------------------------------------------------------------------------
4.364 4.426 8.771 8.649
CURRENT ASSETS
INVENTORIES (2) 10.080 10.297 3.623 3.685
RECEIVABLES AND OTHER ASSETS (3)
Trade receivables 8.651 9.640 2.682 2.967
Other receivables and assets 862 975 2.911 2.046
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9.513 10.615 5.593 5.013
MEANS OF PAYMENT (4) 1.005 356 43 33
DEFERRED TAXES (5) 606 673 -- --
PREPAID EXPENSES (6) 145 178 89 55
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TOTAL ASSETS 25.713 26.545 18.119 17.435
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EQUITY AND LIABILITIES Annex December, 31 2002 March 31, 2002 December, 31 2002 March 31, 2002
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EQUITY (7)
Subscribed capital
Ordinary shares (31 March 2002 = 2.800.000/
31 December 2002 = 2.866.000 voting rights) 7.327 7.158 7.327 7.158
Net accumulated losses - 2.013 - 1.080 - 2.532 - 1.790
Balancing item currency conversion - 10 874 -- --
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5.304 6.952 4.795 5.368
ACCRUALS (8)
Accruals for pensions 856 853 856 853
Other accruals 1.353 1.254 816 760
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2.209 2.106 1.672 1.613
LIABILITIES (9) 18.195 17.483 11.652 10.454
DEFERRED INCOME (10) 5 3 -- --
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TOTAL EQUITY AND LIABILITIES 25.713 26.545 18.119 17.435
1
CONSOLIDATED INCOME STATEMENT AND INCOME STATEMENT FOR SCHLEICHER & CO.
INTERNATIONAL AG FOR THE SHORT FISCAL YEAR FROM APRIL 1, 2002 TO DECEMBER 31,
2002
EURO IN THOUSANDS
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CONSOLIDATED SI AG
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Annex December, 31 2002 March 31, 2002 December, 31 2002 March 31, 2002
- -----------------------------------------------------------------------------------------------------------------------------
SALES (11) 32.265 46.835 17.078 23.716
Inventory increase/decrease 25 - 628 75 - 193
Other operating income (12) 508 1.188 514 397
Cost of materials (13) - 17.692 - 25.511 - 10.006 - 13.663
Personnel expenses (14) - 8.045 - 10.829 - 4.396 - 5.649
Depreciation on intangible
fixed assets and
tangible assets (15) - 492 - 934 - 351 - 576
Other operating expenses (16) - 6.648 - 9.465 - 3.041 - 3.903
Amortization of financial assets -- - 40 -- - 235
Interest (17) - 808 - 1.125 - 603 - 787
- -----------------------------------------------------------------------------------------------------------------------------
RESULTS FROM ORDINARY ACTIVITIES - 887 - 509 - 730 - 893
Taxes on income 52 233 -- --
Other taxes - 98 - 136 - 12 - 16
- -----------------------------------------------------------------------------------------------------------------------------
NET LOSS - 933 - 412 - 742 - 909
APPROPRIATION OF RETAINED PROFITS December, 31 2002 March 31, 2002 December, 31 2002 March 31, 2002
- -------------------------------------------------------------------------------------------------------------------------
NET LOSS - 933 - 412 - 742 - 909
Retained profits brought forward - 1.080 - 798 - 1.790 - 881
Releases from capital reserve -- 130 -- --
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NET ACCUMULATED LOSSES - 2.013 - 1.080 - 2.532 - 1.790
DETERMINATION TO EBITDA
December, 31 2002 March 31, 2002 December, 31 2002 March 31, 2002
- ------------------------------------------------------------------------------------------------------------------------
RESULTS FROM ORDINARY ACTIVITIES - 887 - 509 - 730 - 893
Interest 808 1.125 603 787
Amortization of financial assets -- 40 -- 235
- ------------------------------------------------------------------------------------------------------------------------
EBIT - 79 656 - 127 129
Depreciation on intangible
fixed assets and
tangible assets 492 934 351 576
- ------------------------------------------------------------------------------------------------------------------------
EBITDA 413 1.590 224 705
2
FUNDS STATEMENT AND SEGMENT REPORT
FOR THE SHORT FISCAL YEAR FROM APRIL 1, 2002 TO DECEMBER 31, 2002
FUNDS STATEMENT EURO IN THOUSANDS
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CONSOLIDATED SI AG
------------------------------------------------
31/12/2002 2001/02 31/12/2002 2001/02
------------------------------------------------
Deficit (-) / Surplus for the year - 933 - 412 - 742 - 909
Depreciation on fixed assets 492 974 351 811
Deduction (-) / addition to reserves 102 - 394 59 117
Other income affecting payment (-) 67 - 560 0 0
Profit (-) / loss from the sale of fixed assets - 4 - 1 - 5 - 3
Deduction / addition (-) to inventories,
trade debtors and other assets 1.352 2.920 - 552 1.372
Addition to trade creditors
and other liabilities 714 -2.080 1.198 -1.108
- -------------------------------------------------------------------------------------------------------------
INFLOW OF FUNDS FROM OPERATING ACTIVITIES 1.790 447 309 280
Inward payments from the sale of
fixed assets 12 3 10 8
Outward payments for investment in
intangible assets and fixed assets - 286 - 394 - 223 - 245
Outward payments for
financial investments - 204 - 18 - 255 - 18
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OUTFLOW OF FUNDS FROM INVESTMENT ACTIVITY - 478 - 409 - 468 - 255
Inward payments from the taking out of loans 169 -- 169 --
Inflows from
assumption of loans 0 0 0 0
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INFLOW OF FUNDS FROM FINANCING ACTIVITY 169 0 169 0
CHANGES TO THE LEVEL OF FUNDS 1.481 38 10 25
Currency-related value changes - 832 82 0 0
Level of funds at the start of the period 356 236 33 8
- -------------------------------------------------------------------------------------------------------------
LEVEL OF FUNDS AT THE END OF THE PERIOD 1.005 356 43 33
SEGMENT REPORT AS PER ART. 297 SECTION 1 POINT 2 HGB
SHREDDERS OTHER OFFICE PRODUCTS TOTAL
DIVISION 31/12/2002 2001/02 31/12/2002 2001/02 31/12/2002 2001/02
- ---------------------------------------------------------------------------------------------------------------------
Sales revenues (external sales) T(euro) 23.430 33.839 8.835 12.996 32.265 46.835
Sales % 72,6 72,3 27,4 27,7 100 100
EBITDA* T(euro) 252 1.444 161 146 413 1.590
Fixed assets T(euro) 4.275 4.316 89 110 4.364 4.426
Investments T(euro) 478 402 12 10 490 412
Depreciation T(euro) 459 896 33 38 492 934
Workforce on average for the year 214 211 35 38 249 249
*EBITDA = Earnings before interest, taxes, depreciation and amortization
3
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AND TO FINANCIAL STATEMENTS OF
SCHLEICHER & CO. INTERNATIONAL AG FOR THE SHORT FISCAL YEAR FROM APRIL 1, 2002
TO DECEMBER 31, 2002
I. PRINCIPLES OF ACCOUNTING
The consolidated annual statements and the consolidated status report as well as
the annual statements and the status report of SCHLEICHER & Co. INTERNATIONAL
AKTIENGESELLSCHAFT (referred to in the following as SI AG) for the truncated
financial year ending December 31, 2002 (April 1, 2002 to December 31, 2002)
were drawn up on the basis of the accounting regulations of the German
Commercial Code and the supplementary stipulations of the Stock Corporation Act.
The consolidated and SI AG income statements were drawn up on the basis of the
total expenditure method.
In the balance sheets and income statements, items have been grouped together.
These are broken down in the Notes.
The consolidated annual statements and the SI AG annual statements are drawn up
in THOUSANDS OF EURO. The indications made in the Notes are also in THOUSANDS OF
EURO, unless otherwise indicated.
II. SCOPE OF CONSOLIDATION
The consolidated annual statement encompasses SI AG and one domestic as well as
five foreign subsidiaries which are under the uniform direction of SI AG. SI AG
disposes directly of all the voting rights of the consolidated companies.
III. CURRENCY TRANSLATION
In the annual statements of SI AG, receivables in foreign currencies are posted
at the middle exchange rate on the balance sheet date. Translation of the annual
statements of the foreign subsidiaries drawn up in local currency into euro
takes place in the balance sheet at the middle exchange rate on the balance
sheet date.
Shareholders' equity is shown at historical values. The clearing accounts for
receivables and payable are posted in euro. The items of the income statement
are posted at the middle exchange rates of the relevant annual average rates.
The results for the year are converted at the middle exchange rates on the
balance sheet date.
4
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AND TO FINANCIAL STATEMENTS OF
SCHLEICHER & CO. INTERNATIONAL AG FOR THE SHORT FISCAL YEAR FROM APRIL 1, 2002
TO DECEMBER 31, 2002
Differences from the translation of balance sheet items are shown in the
position Balancing items currency translation. Differences arising from the
translation of items of the income statement are shown under other operating
expenses and do not impact earnings.
IV. PRINCIPLES OF CONSOLDIATION
In the capital consolidation, the acquisition costs of shares in subsidiaries
are offset against the book value of the equity share allocated to these shares
in accordance with Article 301 Section 1 point 1 German Commercial Code at the
time of their acquisition or at the time of initial consolidation. In accordance
with Article 309 section 1 point 3 German Commercial Code differences have been
offset against reserves. Receivables and payables between the Group companies
have been offset.
During the course of intercompany elimination, internal sales are offset against
the corresponding expenses or recategorized as changes to inventory changes.
Other income from services between consolidated companies are offset against the
relevant expenditure of the consolidated companies. In the consolidated income
statement expenditure and income of the subsidiaries replace the investment
earnings.
V. PRINCIPLES OF ACCOUNTING AND VALUATION
The annual financial statements of Group companies included in the consolidation
have been audited by independent auditors and received an unqualified audit
opinion. The account allocation and accounting regulations binding upon all the
subsidiaries secures a uniform method of valuation throughout the Group.
Valuation takes place in accordance with the following principles.
Intangible assets are capitalized at their acquisition cost. Depreciation takes
place on a straight-line basis.
Fixed assets are carried at acquisition cost, less scheduled straight-line
depreciation determined according to the anticipated useful life. Additions to
moveable fixed assets during the first six
5
months of the year are subject to full depreciation, additions in the second
half of the year to half the annual rate of depreciation. Low-value items are
fully written off in the year of acquisition.
Non-scheduled depreciation generally takes place when the value of the item
determined according to the above principles exceeds the value attributable to
it on the closing date on a sustained basis. In the 2002 financial year, there
were no cases of non-scheduled depreciation. Shares in Group companies and
participations are shown at the lower of acquisition cost or market. Loans are
carried at the nominal amount.
Raw materials and supplies, consumables and advance payments are shown at the
lower of acquisition cost or current value. Work in progress and finished goods
are valued at manufacturing cost. This includes production material, material
overheads, production labor costs, production overheads and administrative
overheads, where these may be capitalized in accordance with commercial law.
Appropriate consideration is given to inventory risks in the consolidated
balance sheet with relevant deductions.
Inventories resulting from deliveries between Group companies are carried in the
consolidated balance sheet at Group manufacturing costs, with inter-group
profits being eliminated. Group manufacturing costs are calculated in line with
the valuation principles at SI AG. Receivables and other assets are valued
taking into account all recognizable risks. Sufficient value adjustments have
been made to cover general risks on receivables.
Due to the loss situation, the consolidated annual financial statements for the
year ending December 31, 2002 do not contain accruals and deferrals from the
interim results for future tax relief.
Provisions for pensions are assessed in accordance on the basis of the 1998
mortality tables using an interest rate of 6%.
All identifiable risks have been taken into account in assessing other
provisions which have been established at a level deemed necessary according to
reasonable business judgment.
Liabilities are valued at nominal value.
VI. NOTES ON THE BALANCE SHEET AND INCOME STATEMENT
(1) FIXED ASSETS
The items grouped in the consolidated and the SI AG balance sheets are broken
down in detail in the following.
6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AND TO FINANCIAL STATEMENTS OF
SCHLEICHER & CO. INTERNATIONAL AG FOR THE SHORT FISCAL YEAR FROM APRIL 1, 2002
TO DECEMBER 31, 2002
DEVELOPMENT OF CONSOLIDATED FIXED ASSETS
Procure- Exchange Book Book Depre-
ment/ rate Additions A Deductions D Accumu- value value ciation
Manufacturing diff- Book- Book- lated 31/12/ 31/03/ financial
costs erence transfer T transfer T depreciation 2002 2002 year
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INTANGIBLE ASSETS
Patents and trademarks 1.197 -- -- 44 D 1.153 -- -- --
Software and similar rights 1.258 - 21 37 A 4 D 1.201 69 89 56
Payments on account 9 -- 13 A -- -- 22 9 --
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2.464 - 21 50 A 48 D 2.354 91 98 56
TANGIBLE ASSETS
Land and leasehold rights
and buildings, including
buildings on third-
party land 5.231 - 40 10 A -- 1.923 3.278 3.376 96
Technical plant
and machinery 117 -- -- -- 115 2 2 --
Other fixtures, 8.606 - 218 226 A 172 D 7.719 745 884 340
tools and equipment 22 T
Payments on account and tangible
assets in course of construction 22 -- -- 22 D -- -- 22 --
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13.976 - 258 236 A 172 D 9.757 4.025 4.284 436
22 T 22 T
FINANCIAL ASSETS
Shares in affiliated
undertakings 1.877 -- -- -- 1.877 -- -- --
Investments 78 -- 204 A -- 34 248 44 --
Other loans 7 -- -- -- 7 -- -- --
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1.962 -- 204 A -- 1.918 248 44 --
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TOTAL 18.402 - 279 490 A 220 D 14.029 4.364 4.426 492
22 T 22 T
7
DEVELOPMENT OF SI AG FIXED ASSETS
Procurement Book Book Depreci-
manufac- Additions A Deductions D Accumu- value value ation
turing Book- Book- lated 31/03/ 31/03/ financial
costs transfer T transfer T depreciation 2002 2001 year
- ---------------------------------------------------------------------------------------------------------------------------------
INTANGIBLE ASSETS
Patents and trademarks 1.197 -- 44 D 1.153 -- -- --
Software and similar rights 1.114 37 A 4 D 1.091 56 69 50
Payments on account 9 12 A -- -- 21 9 --
- ---------------------------------------------------------------------------------------------------------------------------------
2.320 49 A 48 D 2.244 77 78 50
TANGIBLE ASSETS
Land and leasehold rights
and buildings, including
buildings on third-
party land 4.877 -- -- 1.711 3.166 3.254 88
Technical plant
and machinery 117 -- -- 115 2 2 --
Other fixtures, 6.474 152 A 137 D 6.107 404 426 213
tools and equipment 22 T
Payments on account and tangible
assets in course of construction 22 -- 22 T -- -- 22 --
- ---------------------------------------------------------------------------------------------------------------------------------
11.490 152 A 137 D 7.933 3.572 3.704 301
22 T 22 T
FINANCIAL ASSETS
Shares in affiliated
undertakings 6.902 51 A -- 2.079 4.874 4.823 --
Investments 78 204 A -- 34 248 44 --
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6.980 255 A -- 2.113 5.122 4.867 --
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TOTAL 20.790 456 A 185 D 12.290 8.771 8.649 351
22 T 22 T
8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AND TO FINANCIAL STATEMENTS OF
SCHLEICHER & CO. INTERNATIONAL AG FOR THE SHORT FISCAL YEAR FROM APRIL 1, 2002
TO DECEMBER 31, 2002
BREAKDOWN OF INVESTMENT HOLDINGS
SI AG
holding Equity Net profit
% capital(2) for the year(2)
- --------------------------------------------------------------------------------------------------------------
SHARES IN AFFILIATED UNDERTAKINGS
SCHLEICHER & Co. of AMERICA, Inc.,
Sanford / USA (1) (consolidated)
holding 100% of shares in OLYMPIA BUSINESS
SYSTEMS INC., Sanford / USA, (1) 100 4.023 38
SCHLEICHER & Co. INTERNATIONAL Ltd.,
Crawley / Great Britain (1) 100 405 - 295
SCHLEICHER & Co. Ges.m.b.H.,
Vienna / Austria (1) 100 - 37 0
SCHLEICHER INTERNATIONAL S.A.R.L.,
Champs-sur-Marne / France (1) 100 1.313 10
TAROS Trading GmbH,
Markdorf / Germany (1) 100 8 2
HOLDINGS
OSL Office Systems Ltd.,
Hong Kong 5 465(3) 72(3)
SCHLEICHER INDIA Ltd.,
Neu Delhi / India 48(5) 193(4) 16(4)
EKVITA spol. s r.o.,
Trutnov / Czech Republic 22 818 55
Gerd DAHLE Office Systems GmbH,
Breitengu(beta)bach / Germany 40 --(6) --(6)
(1) These companies were consolidated with SI AG in the consolidated financial
statements
(2) Conversion into thousand euro was done at the rate on December 31, 2002.
(3) For the financial year ending December 31, 2000.
(4) For the financial year ending December 31, 2002.
(5) After final approval by the Indian government.
(6) Annual financial statements to December 31, 2002 were not available when the
audit was completed.
(2) INVENTORIES
CONSOLIDATED SI AG
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31/12/02 31/03/02 31/12/02 31/03/02
- -----------------------------------------------------------------------------------------------------------
Raw materials and supplies 2.521 2.801 1.682 1.733
Work in progress 523 575 306 299
Finished products and goods for resale 6.212 6.469 1.416 1.480
Payments on account 824 452 219 173
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TOTAL 10.080 10.297 3.623 3.685
9
(3) ACCCOUNTS RECEIVEABLE AND OTHER ASSETS
CONSOLIDATED SI AG
- --------------------------------------------------------------------------------------------------------
31/12/02 31/03/02 31/12/02 31/03/02
- --------------------------------------------------------------------------------------------------------
Trade
debtors 8.651 9.640 2.682 2.967
Due from affiliated
companies -- -- 2.475 1.658
Due to undertakings
with which the company is linked
by virtue of participation 124 65 124 65
Other assets 738 910 312 323
- --------------------------------------------------------------------------------------------------------
TOTAL 9.513 10.615 5.593 5.013
Amounts due from Group companies and amounts due from participating interests
include trade receivables of 1,712 (previous year 958). The main items in other
current assets are tax rebates, creditor positions and receivables from
employees from travel advances. Other Group current assets include 56 positions
with a remaining term of more than one year (previous year 37); other current
assets in SI AG include 17 positions with a remaining term of more than one year
(previous year 0).
(4) CASH
Cash includes cash in hand, deposits with the Deutsche Bundesbank, postal giro
balances and deposits with commercial banks.
(5) DEFERRED POSITION FOR FUTURE TAX RELIEF
Group deferred taxes on the asset side have been taken from the consolidated
balance sheets of the USA and UK subsidiaries. This position also includes
deferred taxes on the loss carryforward.
(6) PREPAID EXPENSES
Prepaid expenses include payments made prior to the balance sheet date, where
these represent expenses incurred for a certain period following the balance
sheet date.
10
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AND TO FINANCIAL STATEMENTS OF
SCHLEICHER & CO. INTERNATIONAL AG FOR THE SHORT FISCAL YEAR FROM APRIL 1, 2002
TO DECEMBER 31, 2002
(7) SHAREHOLDERS' EQUITY
The subscribed capital contains the share capital of EUR 7,327,046.34.
The share capital is divided into 2,866,000 no-par ordinary bearer shares. Each
share represents a portion of the subscribed capital of approx. EUR 2.56.
The following changes have taken place in the consolidated equity in thousand
EURO:
Consolidation Change in
Deficit for goodwill currency
Status the year Austria conversion Status
31/12/02 2002 2002 2002 31/03/02
- ----------------------------------------------------------------------------------------------------
Share capital 7.327 -- 169 -- 7.158
Capital reserve -- -- -- -- --
Balance sheet loss -2.013 - 933 -- -- -1.080
Balencing items
Currency conversion - 10 -- -- - 884 874
- ----------------------------------------------------------------------------------------------------
TOTAL 5.304 - 933 169 - 884 6.952
As of December 31, 2002 there is valid, authorized capital totaling EURO
3,256,695.61.
(8) PROVISIONS
There are pension obligations totaling 856 (previous year 853).
Other provisions relate largely to vacation salaries, vacation allowances,
Christmas bonuses, flexitime, special remuneration/bonus payments, employer
liability premiums, commission payments, warranty claims, costs for the annual
financial statements and outstanding invoices for services already performed.
11
(9) LIABILITIES
CONSOLIDATED SI AG
- ----------------------------------------------------------------------------------------------------------------
Remaining Remaining
term term
up to 1 year 31/12/02 31/03/02 up to 1 year 31/12/02 31/03/02
- ----------------------------------------------------------------------------------------------------------------
Amounts due to 10.786 10.899 10.828 8.571 8.582 8.458
banks (10.646) (8.458)
Trade 4.969 4.969 4.163 2.279 2.279 1.206
creditors (4.163) (1.206)
Amounts due to -- -- -- 345 345 490
affiliated companies (--) (490)
Amounts due 146 146 -- 146 146 --
to group companies (--) (--)
Amounts due 432 432 570 62 62 59
from taxes (570) (59)
Liabilities within the 420 420 460 128 128 157
framework of social security (460) (157)
Other liabilities 1.329 1.329 1.462 110 110 84
(1.462) (84)
- ----------------------------------------------------------------------------------------------------------------
TOTAL 18.082 18.195 17.483 11.641 11.652 10.454
(17.301) (10.454)
Of the amounts due to banks and notes payable for SI AG and in the Group a total
of 6,136 (previous year 6,136) are secured by liens on real estate, and for the
Group 4,171 (previous year 4,358) and for SI AG 2,447 (previous year 2,322) are
secured by the assignment of claims, the assignment of goods by way of security
and the transfer of brands.
SI AG has credit lines at Deutsche Bank, Hypo-Vereinsbank and Dresdner Bank
totaling EUR 10.4 million, of which SI AG is able to transfer certain sums to
the subsidiary in the UK. As of December 31, 2002, EUR 10.1 million of these
credit lines were utilized.
In addition, Deutsche Bank granted a credit line of EUR 0.5 million to TAROS
Trading GmbH, of which EUR 0.4 million was utilized as of December 31, 2002.
Trade payable at SI AG includes 2 to Group companies (previous year 12).
(10) DEFERRED INCOME
The deferred income items include revenues received prior to the balance sheet
date where these represent income applicable to a certain period after this
date.
12
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AND TO FINANCIAL STATEMENTS OF
SCHLEICHER & CO. INTERNATIONAL AG FOR THE SHORT FISCAL YEAR FROM APRIL 1, 2002
TO DECEMBER 31, 2002
(11) SALES REVENUES (Section 285 Art. 4 HGB)
CONSOLIDATED SI AG
- ----------------------------------------------------------------------------------------------------------------------
31/12/2002 % 2001/02 % 31/12/2002 % 2001/02 %
- ----------------------------------------------------------------------------------------------------------------------
ACCORDING TO TYPES OF REVENUE
Data shredders, parts,
accessories and after-sales 23.430 73 33.839 72 17.078 100 23.716 100
Other office and
communication products,
accessories and after-sales 8.835 27 12.996 28 -- --
- ----------------------------------------------------------------------------------------------------------------------
TOTAL 32.265 100 46.835 100 17.078 100 23.716 100
ACCORDING TO REGIONS
FEDERAL REPUBLIC OF GERMANY 3.332 10 4.488 10 3.332 20 4.488 19
Europe 16.520 51 24.437 52 7.639 45 11.439 48
North America 9.405 29 13.268 28 3.098 18 3.147 13
Other countries 3.008 10 4.642 10 3.009 17 4.642 20
- ----------------------------------------------------------------------------------------------------------------------
TOTAL EXPORT REVENUES 28.933 90 42.347 90 13.746 80 19.228 81
- ----------------------------------------------------------------------------------------------------------------------
TOTAL 32.265 100 46.835 100 17.078 100 23.716 100
(12) OTHER OPERATING INCOME
CONSOLIDATED SI AG
- -------------------------------------------------------------------------------------------
31/12/2002 2001/02 31/12/2002 2001/02
- -------------------------------------------------------------------------------------------
Income from sale of
fixed assets 12 7 9 7
Income from the retransfer of
provisions and discount on
accounts receivable 207 144 151 38
Licence revenue, affiliated companies -- -- 131 164
Licence revenue, other 8 2 8 2
Consolidation Austria 51 155 -- --
Accruals and deferrals Olympia USA -- 623 -- --
- -------------------------------------------------------------------------------------------
SUBTOTAL 278 931 299 211
Others 230 257 215 186
- -------------------------------------------------------------------------------------------
TOTAL 508 1.188 514 397
Other operating income includes in particular income from currency translation,
damages, vehicle utilization, canteen sales to employees and rents.
13
(13) COST OF MATERIALS
The cost of materials includes all purchases of raw materials, consumables and
supplies, purchased materials and other changes to the finished goods and work
in progress, cash discounts, bonuses, as well as energy costs and expenses for
the external processing of materials.
(14) PERSONNEL EXPENSES
CONSOLIDATED SI AG
- -------------------------------------------------------------------------------------------
31/12/2002 2001/02 31/12/2002 2001/02
- -------------------------------------------------------------------------------------------
Wages and salaries 6.603 8.682 3.671 4.683
Social security and other
related costs 1.309 1.942 647 837
Expenses for old-age
pensions 133 205 78 129
of which unrelated to accounting period: (--) (32) (--) (32)
- -------------------------------------------------------------------------------------------
TOTAL 8.045 10.829 4.396 5.649
NUMBER OF EMPLOYEES AS AN ANNUAL AVERAGE (Art. 285 Section 7 HGB)
CONSOLIDATED SI AG
- -------------------------------------------------------------------------------------------
31/12/2002 2001/02 31/12/2002 2001/02
- -------------------------------------------------------------------------------------------
Production 42 43 28 28
Logistics 20 21 16 16
Sales 100 98 44 41
Research & Development 11 10 9 8
Technical service 17 18 8 9
Administration 46 48 17 20
Trainees 13 11 13 11
- -------------------------------------------------------------------------------------------
TOTAL 249 249 135 133
(15) DEPRECIATION ON TANGIBLE AND INTANGIBLE ASSETS
Schedule depreciation on tangible and intangible assets totals 492 for the Group
and 351 for SI AG.
14
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AND TO FINANCIAL STATEMENTS OF
SCHLEICHER & CO. INTERNATIONAL AG FOR THE SHORT FISCAL YEAR FROM APRIL 1, 2002
TO DECEMBER 31, 2002
(16) OTHER OPERATING EXPENSES
The other operating expenses predominantly include rents, leasing, maintenance,
expenses for office and communication, freight charges, travel, advertising,
consultancy and vehicle fleet costs.
(17) INCOME FROM INTEREST
CONSOLIDATED SI AG
- -------------------------------------------------------------------------------------------
31/12/2002 2001/02 31/12/2002 2001/02
- -------------------------------------------------------------------------------------------
Other interest and similar income 5 12 23 38
of which from affiliated companies -- -- 22 29
Interest and similar expenses - 813 - 1.137 - 626 - 825
of which to affiliated companies -- -- - 16 - 28
- -------------------------------------------------------------------------------------------
TOTAL - 808 - 1.125 - 603 - 787
VII. CONTINGENCIES
CONSOLIDATED SI AG
- -----------------------------------------------------------------------------------------
31/12/02 31/03/02 31/12/02 31/03/02
- -----------------------------------------------------------------------------------------
Notes payable 1.380 706 -- --
Guarantees 8 8 8 8
Warranty
of which against affiliated -- -- 1.724 1.979
companies -- -- 1.724 1.979
VIII. OTHER INFORMATION
1. TOTAL OTHER FINANCIAL OBLIGATIONS
Other financial obligations for the 2003 financial year total 102 for SI AG
(previous year 118) and 735 in the Group (previous year 759) from leasing
contracts.
15
2. EXECUTIVE BOARD, SUPERVISORY BOARD AND THEIR REMUNERATION
EXECUTIVE BOARD
Dr. E. Leopold Dieck (Sole member of Board)
Chairman of the Supervisory Board
- Brodogradiliste (Shipyard) Punat AG,
Punat/Croatia
- Sun Lit Waterproof Insulation
Engineering Co. Ltd.,
Beijing/Peoples Republic of China
- Pfister International AG, Konstanz
Members of the Supervisory Board
- Marina Punat AG, Punat/Croatia
- Aktiv Bau AG, Geldern
- Sputz AG, Dusseldorf, till June 28, 2002
There is no information on the total remuneration of the Management Board in
line with article 285 No. 9a German Commercial Code in line with Article 286
para. 4 German Commercial Code.
Provision for vested pension rights of former Management Board members is 856
(previous year 853). They cover the entire obligation.
Retirement pensions paid to this group of persons amount to 48 (previous year
48).
MEMBERS OF THE SUPERVISORY BOARD
Dietrich Walther (Chairman)
Chairman of the Supervisory Board
- Gold Zack AG, Mettmann, till April 23, 2002
- ce Consumer Electronic AG, Munich,
till June 03, 2002
Member of the Supervisory Board
- Porta Systems AG, Porta Westfalica,
till July 16, 2002
Dipl.-lng. Albert Goldhammer, till October 24, 2002
(Vice Chairman)
Chairman of Board of Directors
- SCHLEICHER & Co. of AMERICA, Inc., USA
Charles William Reed, since October 24, 2002
(Vice Chairman)
Member of Board of Directors
- ESCALADE, Inc., Evansville/Indiana, USA
Hans Wrieden
Chairman of the Administrative Board
- Wilkhahn GmbH & Co., Bad Munder
- EBS cash.com GmbH, Buchenbeuren
Member of the Supervisory Board
- Pako Immobilien AG, Mettmann
- IFES AG, Potsdam
- Gold Zack AG, Mettmann
Dr. Klaus Kessler
Member of the Supervisory Board
- Kolbenschmidt Pierburg AG, Neckarsulm,
till June 05, 2002
Marko Dietenberger (Employees' Representative)
Wilhelm Schwenninger (Employees' Representative)
Remuneration for the Supervisory Boards amounted for the short financial year
2002 in total to 17 (previous year 23) by SI AG and 4 (previous year 7) by the
subsidiaries.
16
PROPOSAL FOR THE APPROPRIATION OF EARNINGS
3. INFORMATION IN LINE WITH ARTICLE 285ff NO. 16, 314 PARA.1 NO. 8 GERMAN
COMMERCIAL CODE
Schleicher largely fulfills the recommendations of the Government Commission.
Positions in which we deviate from the recommendations do not relate to our
Group and to SI AG or cannot be implemented at appropriate expense for a company
of our size. The wording of the Declaration of Conformity can be accessed at
www.schleicher.de.
PROPOSAL FOR THE APPROPRIATION OF EARNINGS
There is no proposal for the appropriation of earnings.
Markdorf, April 11, 2003
SCHLEICHER & CO. INTERNATIONAL AKTIENGESELLSCHAFT
THE EXECUTIVE BOARD
/s/ DR. E. LEOPOLD DIECK
DR. E. LEOPOLD DIECK
17
AUDIT CERTIFICATE
AUDIT CERTIFICATE BY THE AUDITING OFFICER
We audited the annual financial statements and the accounts prepared by
SCHLEICHER & Co. INTERNATIONAL AKTIENGESELLSCHAFT and the consolidated financial
statements drawn up by the company, as well as the company and consolidated
status report for the truncated financial year from April 1, 2002 to December
31, 2002.
The preparation of these documents in accordance with the regulations of German
commercial law and the supplementary regulations of the articles of association
is the responsibility of the company's Board of Management.
Our responsibility is, based on our audit, to express an opinion of the annual
financial statements and consolidated annual financial statement drawn up by the
company and of the company and Group status report.
We conducted our audit of the annual and consolidated financial statement in
accordance with Article 317 of the German Commercial Code, in accordance with
the generally accepted standards of the Institute of Sworn Public Auditors in
Germany (IDW). These principles require that the audit is planned and performed
to obtain reasonable assurance about whether the accounts and annual financial
statements of the company and the consolidated financial statement drawn up by
the company are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the information provided in the accounts and in
the company and consolidated annual financial statements and the company and
Group status report. The audit also includes evaluating the annual financial
statements of the companies included in the consolidated financial statements,
reviewing the definition of the group of consolidated companies, assessing the
accounting and consolidating principles used and material assessments and
estimates made by the General Management, as well as an appraisal of the overall
presentation of the annual and consolidated financial statements and of the
company and Group status report. It is our opinion that our audit provides a
reasonable basis for our opinion.
Our audit did not result in any objections or exceptions.
It is our opinion that the annual and consolidated financial statements, with
due regard to accounting principles, present a true and fair view of the net
asset, financial and earnings position of the company and the Group taking into
consideration. The Group and company status report provides an overall pertinent
presentation of the situation of the company and the Group, and provides a fair
description pf any risks related to future development.
Meersburg, April 11, 2003
BODENSEE TREUHAND GMBH
CHARTERED AUDITORS
/s/ Michael Altmann
Dipl.-Vw. Dr. rer. pol. Michael Altmann
Auditor
/s/ Wendelin J. Bottinger
Dipl.-Kfm. Wendelin J. Bottinger
Auditor
18
SCHLEICHER GROUP
SCHLEICHER & CO. INTERNATIONAL AG
Development, production and distribution of products and systems of office
equipment.
Capital: 7.327.046,34(euro)
Bergheimer Stra(beta)e 6-12
D-88677 Markdorf / Germany
Tel. +49 (0) 75 44 / 60-0
Fax +49 (0) 75 44 / 60-108
zentrale@schleicher.de
www.schleicher.de
- - TAROS TRADING GmbH
Merchandise procurement and marketing
Share: 100 %, Capital: 1,278,229.70(euro)
Bergheimer Str. 6-12
88677 Markdorf / Germany
Tel. +49(0)75 44 / 60-0
Fax +49(0)75 44 / 60-265
trading@schleicher.de
- - SCHLEICHER & CO. Ges.m.b.H.
Distribution
Share: 100 %, Capital: 36,336.42(euro)
Lembockgasse 49/1/B4-2
1230 Wien / Austria
Tel. +43(0)1 / 8 92 36 50
Fax +43(0)1 / 8 92 36 36
intimus@netway.at
- - SCHLEICHER INTERNATIONAL S.A.R.L.
Development, production and distribution
Share: 100 %, Capital: 1.270.783,30 (euro)
17, rue Albert Einstein
77420 Champs-sur-Marne / France
Tel. +33(0)1 / 70 00 69 00
Fax +33(0)1 / 70 00 69 24
contact@schleicher-intimus.com
- - SCHLEICHER & CO. INTERNATIONAL LTD.
Distribution
Share: 100 %, Capital:L 300,000
Unit C2 Fleming Centre, Fleming Way
Crawley, West Sussex RH10 2NX / Great Britain
Tel. +44(0)1 / 293 / 44 19 00
Fax +44(0)1 / 293 / 61 11 55
enquiries@intimus.co.uk
- - SCHLEICHER INDIA LTD.
Distribution
Share: 48 %, Capital: Rupie INR 3,600,000
108 Deepshikha Building, Rajindra Place
110008 New Delhi / India
Tel. +91(0)11 / 5 76 50 57
Fax +91(0)11 / 5 76 50 56
schleicher@vsnl.net
- - SCHLEICHER & CO. OF AMERICA, INC.
Development, production and distribution
Share: 100 %, Capital: US $ 100,000
5715 Clyde Rhyne Drive
Sanford, North Carolina 27330 / USA
Tel. +1(1)919 / 7 75 73 18
Fax +1(1)919 / 7 74 87 31
soa@interpath.com
www.intimus.com
- - OLYMPIA BUSINESS SYSTEMS, INC.
Distribution
Share: 100 %, Capital: US $ 100,000
SCHLEICHER & Co. of AMERICA, Inc.
5715 Clyde Rhyne Drive
Sanford, North Carolina 27330 / USA
Tel. +1(1)919 / 7 75 73 18
Fax +1(1)919 / 7 74 87 31
soa@interpath.com
- - SCHLEICHER & CO. INTERNATIONAL AG BEIJING REPRESENTATIVE OFFICE
Distribution representation
D6C, Tower D, Fuhua Mansion, East District
100027 Beijing / Peoples Republic of China
Tel. +86(0)10 / 65 54 40 37
Fax +86(0)10 / 65 54 40 41
shilehe@public.bta.net.cn
19
- - SCHLEICHER & CO. INTERNATIONAL AG
SHANGHAI REPRESENTATIVE OFFICE
Distribution representation
Golden Bridge Mansion, 2077 Yanan Xi Lu
200336 Shanghai / Peoples Republic of China
Tel. and Fax +86(0)21 / 62 19 29 11
shilehe@sh163.net
- - EKVITA spol. s r.o.
Distribution
Share: 22 %, Capital: CZK 27.851.000
Nachodska 6
54103 Trutnov / Czech Republic
Tel. +42 0499 841133-5
Fax +42 0499 841136
info@ekvitatu.cz
- - GERD DAHLE OFFICE SYSTEMS GmbH
Distribution
Share: 40 %, Capital: 87.500,00(euro)
Tannenweg 6
96149 Breitengu(beta)bach / Germany
Tel. +49(0)95 44 / 92 20-26
Fax +49(0)95 44 / 92 20-34
info@gerddahle.de
www.gerddahle.de
[SCHLEICHER MARKEN LOGO]
[INTIMUS(R) LOGO]
[TAROS LOGO]
[PAPER MONSTER LOGO]
[VACUSHRED LOGO]
[SCHLEICHER LOGO]
[SCHLEICHER KOOPERATIONEN LOGO]
[MARTIN YALE LOGO]
[PREMIER(R) LOGO]
[OLYMPIA(R) LOGO]
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[D.O.S. LOGO]
20
[BACK COVER]
[SCHLEICHER & CO. INTERNATIONAL AG LOGO]
THE SHREDDER COMPANY
[CERTIFICATION LOGO]
P.O. Box 1420
88672 Markdorf / Germany
Tel. +49 (0) 75 44/60-0
Fax +49 (0) 75 44/60-108
zentrale@schleicher.de
www.schleicher.de