Notes to the 2010 financial report
1. Tangible fixed assets
ARN Auto Recycling B.V. lent drainage installations to 217 (2009: 217) affiliated vehicle dismantling companies. On March 3, 2008, ARN Recycling B.V. purchased the land from the Municipality of Tiel, and started construction of the PST facility. The building and infrastructure were completed in May 2009. Evaluation of the possible process has led to a definitive choice: the vw-SiCon process. Following completion of the building and infrastructure, a start was made on installing and building the processing line. The facility will be fully operational in mid-2011.
2. Financial fixed assets
Auto & Recycling Foundation has delegated management of the investment portfolio to a single asset manager. The funds are invested in both bond and share funds. The asset manager has been given a defensive mandate, characterized by investment in bonds and shares. The risks connected with investment are therefore as limited as possible. As at the balance sheet date, 33,307,657 euro (2009: 29,063,395 euro) was invested in shares and bonds.
Trade goods are valued at acquisition price, namely the purchase price plus additional costs. Any loss in value as at the balance sheet date is taken into account in the valuation of stocks.
The receivables consist mainly of interest to be received and value-added tax that can be reclaimed.
5. Liquid assets
The cash of the Auto & Recycling Foundation, ARN Holding B.V. and ARN Auto Recycling B.V. held at ing Bank comes under the notional pooling arrangement. The cash of ARN Recycling B.V., ARN Recycling Services B.V. and ARN Advisory B.V. is not included in this arrangement.
6. Equity capital
The foundation’s capital has been paid up by the shareholders RAI, BOVAG, FOCWA and STIBA. Each organization contributes a proportional share to 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 affiliated vehicle dismantling companies have deposited a guarantee for the use of logo signs. As at December 31, 2010, 249 (2009: 251) vehicle dismantling companies had an affiliation agreement.
9. Short-term liabilities
The short-term liabilities item covers the income from consumers / dealers who wanted to import their vehicle 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 monies 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 on 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 5 years. The portion of the waste disposal fee that is expected to be released or to be refunded in 2011 is accounted for under shortterm liabilities. The remaining term of the ‘advance and excess payments of the waste disposal fee’ item is 1 year. ARN Holding B.V. forms a fiscal unit for corporation tax with ARN Auto Recycling B.V., ARN Recycling Services B.V., ARN Recycling B.V. and ARN Advisory B.V. 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 the current accounts. Interest is paid on the outstanding balances each year at the 12-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 represents 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 may not yet be claimed for. The liability for material is calculated on the basis of the prevailing rates in 2010.
10. Income from waste disposal fee
In 2010, waste disposal fees were collected for a total 500,238 (2009: 439,629) newly registered vehicles. Furthermore, 73,665 euro (2009: 71,955 euro) was released for non-reclaimed waste disposal fees.
11. Income from investments
The income from investments in 2010 was lower than in 2009 due to poorer market conditions.
12. Realized changes in the value of investments
A loss was made in 2010 due to changes in the investment portfolio.
13. Non-realized changes in the value of investments
The investment portfolio is valued at market value as at December 31, 2010. The difference compared with the purchase price, or the market value on January 1, 2010, is recognized as the non-realized change in the value of investments. In 2010, the non-realized change in the value of investments was positive.
14. Other income
Other income consists mainly of the proceeds from the sale of materials and consultancy for third parties.
15. Interest and similar income
Interest consists mainly of the interest on deposits and savings. The fall in relation to 2009 is due to a reduction in liquid assets in 2010.
16. Cost price of sale
The cost price of sale relates mainly to the cost price of purchase, collection, lease of packaging and storage of materials.
17. Costs of outsourced work
In 2010, there were on average 251 affiliated vehicle dismantling companies which between them dismantled 215,975 end-of-life vehicles (2009: 228,783). The companies are paid premiums for dismantling, collection and processing. The maintenance and service 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. The rdc supplies the data for the collection of the waste disposal fee and for monitoring the vehicles registered in orad.
18. Wages and salaries
ARN’s workforce consists of 42.6 FTES (2009: 32FTES). The employees perform work for the Foundation, its subsidiaries and external parties. ARN Holding B.V. has a Supervisory Board comprising five members.
19. Social insurance contributions
From the moment of entering service, employees participate in the collective pension scheme.
20. Depreciation of tangible fixed assets
This item relates mainly to the depreciation on the drainage installations that ARN Auto Recycling B.V. has lent to the vehicle dismantling companies. The depreciation charges include any book profits or losses on the sale or return of the installations and any other changes in their value.
21. Other business expenses
‘Other business expenses’ account for the accommodation costs (i.e. the rent, service and maintenance) of the offices at Entree 258 in Amsterdam Zuidoost, and the business premises at Grutterij 2 in Amstelveen.
22. Interest and similar costs
Interest is paid on the balance held by the importers at the 12-month Euribor rate.
23. Tax on the result
ARN Holding B.V. and its subsidiaries form a fiscal unit for the purposes of corporation tax.