Appendice 1
Financial report 2009
Consolidated balance sheet as of 31 December
Consolidated profit and loss account
The consolidated balance sheet and the consolidated profit and loss account include the figures for the Auto & Recycling Foundation, Auto & Recycling Holding B.V., Auto Recycling Nederland B.V., Post Shredder Technology (PST) B.V., Recycling Services B.V. and ARN Advisory B.V. The figures are taken from the annual financial statements of the various entities, which were audited by KPMG Accountants N.V.
Notes to the Financial Report 2009
1 Tangible fixed assets
In 2009, the Auto & Recycling Foundation lent drainage installations to 217 (2008: 218) affiliated vehicle dismantling companies. The systems were removed from three vehicle dismantling companies following termination of the contracts. Where possible, the systems will be reinstalled at other companies in 2010. The construction of the pst facility started in 2008. The building and the infrastructure were completed in May 2009. The facility is expected to be fully operational in the fourth quarter of 2010.
2 Financial fixed assets
The foundation has delegated management of the investment portfolio to the asset managers Kempen Capital Management. The asset manager has been given a defensive mandate, one that is characterized by investment in bonds and shares. The risks connected with investment are therefore as limited as possible. A further decrease in the portfolio took place in 2009 to deposits. On the balance sheet date, 29,063,395 euros (2008: 60,043,654 euros) was invested in shares and bonds.
3 Stocks
Trade goods are valued at acquisition price, namely the purchase price plus the additional costs. Any loss in value as at the balance date is taken into account in the valuation of the stocks.
4 Receivables
The receivables consist mainly of interest to be received and value added tax that can be reclaimed.
5 Liquid resources
The cash of the Auto & Recycling Foundation, Auto Recycling Holding B.V. and Auto Recycling Nederland B.V held at ING Bank comes under the notional pooling arrangement. The cash of Post Shredder Technology (pst) B.V., Recycling Services B.V. and ARN Advisory B.V. is not included in this.
6 Group equity
The foundation’s capital has been paid up by the shareholders RAI, BOVAG, FOCWA and STIBA. Each organization contributed a proportional share of the capital.
7 Waste disposal fee fund
The waste disposal fees received are deposited in the fund. The fund is used as a reserve for both anticipated and unforeseen future expenditure.
8 Long-term liabilities
The ‘long-term liabilities’ item covers the income from consumers / dealers who wanted to import their vehicles via the rdw testing stations. The foundation had to receive the waste disposal fee before the RDW could issue the registration number. Since 1 January 2007, these vehicles have been exempt from paying the waste disposal fee. Advance payments and moneys received before 31 December 2006 will not lead to payment of a waste disposal fee. There is a procedure that consumers can use to claim a refund of the payment. In addition, the procedure automatically covers duplicate payments and excessive payments. Income that is not reclaimed or cannot be repaid because there is insufficient information, is released in favour of the result after five years. The portion of the waste disposal fee that is expected to be released or to be refunded in 2010 is accounted for under short-term liabilities. The remaining term of the ‘advance and excess payments of the waste disposal fee’ item is two years.
9 Short-term liabilities
Auto Recycling Holding B.V. forms a fiscal unit with Auto Recycling Nederland B.V., Recycling Service B.V., Post Shredder Technology (PST) B.V. and ARN Advisory B.V. for the purposes of corporation tax. This fiscal unit has a consolidated off-settable loss. Current-account agreements have been concluded with importers. The waste disposal fee owed is charged each month to their current accounts. Interest is paid on the outstanding balances at the 1-month Euribor rate. The ‘liability to vehicle dismantling companies for materials’ item shows the premiums still to be paid to the vehicle dismantling companies for dismantling, collection and processing. The liability is linked to the outstanding materials balances of each company. Outstanding materials balances represent the materials that are still in the end-of-life vehicles that have been registered for dismantling, are in the existing packaging or have already been disposed of but not yet claimed for. The liability for materials is calculated on the basis of the prevailing rates in 2009.
10 Income from waste disposal fee
In 2009, waste disposal fees were collected for a total 439,629 (2008: 568,823) newly registered vehicles. Furthermore, €71,955 was released for non-reclaimed waste disposal fees (2008: €83,191).
11 Income from investments
The income from investments in 2009 was higher than in 2008 thanks to improved market conditions. The size of the investment portfolio was reduced further in favour of a cash position.
12 Realized changes in the value of investments
A loss was made on the reduction of the investment portfolio in 2008.
13 Non-realized changes in the value of investments
The investment portfolio is valued at market value as of 31 December 2009. The difference compared with the purchase price, or the market value on 1 January 2009, is recognized as the non-realized change in the value of investments. In 2009, the non-realized change in the value of investments benefited from higher share prices.
14 Other income
‘Other income’ consists mainly of the proceeds from the sale of batteries and consultancy for third parties.
15 Interest and similar income
The interest relates mainly to the interest on deposits. The increase in relation to 2008 is due to the reduction of the investment portfolio in favour of a cash position in 2009.
16 Cost price of sales
The cost price of sales relates mainly to the cost price of the purchase, collection, lease of packaging for and storage of batteries.
17 Costs of outsourced work
In 2009, there were on average 251 affiliated vehicle dismantling companies, which between them dismantled 228,783 end-of-life vehicles (2008: 178,450). These companies are paid premiums for dismantling, collection and processing. The maintenance and servicing of the drainage installations is subcontracted to the companies that installed the systems. Some of the packaging is leased from the collection companies; the rest is the property of the foundation. This item includes the leasing costs and the costs of maintaining the foundation’s own packaging. In 2009, studies were carried out into the composition of shredder residue and potential markets for it. The RDC supplies the data for the collection of the waste disposal fee and for monitoring the vehicles registered in ORAD. Advertisements are regularly placed in the Yellow Pages to inform consumers of the location of vehicle dismantling companies affiliated to ARN. The magazine Auto Recycling Nieuws is published for the automotive industry. It reports on the latest developments relating to the environment and recycling. ARN organizes meetings for its contract partners to keep them briefed about the latest developments. In 2009 €20 million is contributed to the National scrapping scheme.
18 Wages and salaries
ARN’s workforce consists of 28.9 FTEs (2008: 22.5 FTEs). The employees perform work for the foundation, its subsidiaries and external parties. Auto Recycling Holding B.V. has a supervisory board comprising five members.
19 Social insurance contributions
Employees can participate in the pension scheme from the age of 21.
20 Depreciation of tangible fixed assets
This item relates mainly to the depreciation on the drainage installations that the foundation has lent to the vehicle dismantling companies. The depreciation charge includes any book profits or losses on the sale or return of the installations and any other changes in their value.
21 Other operating expenses
‘Other business expenses’ account for the accommodation costs (i.e. the rent, service and maintenance) of the offices at Entree 258 in Amsterdam Southeast and the business premises at Grutterij 2 in Amstelveen. The item also includes the costs of legal advice, tax advice, asset management and other advice, as well as the accountant’s fees and insurance premiums.
22 Interest and similar expenses
Interest is paid on the balances held by the importers at the 1-month Euribor rate.
23 Tax on the result
Auto Recycling Holding B.V. and its subsidiaries form a fiscal unit for the purposes of corporation tax.
