Investments of the MVV Energie Group 1
In Euro Mill.	2002/2003		2001/2002		In %
Electric power	17		132		-87
District heating	21		107		-80
Gas	19		96		-80
Water	10		62		-84
Energy from waste plants (MHKW)	19		19		–
Value-added services	39		80		-51
Renewable energy	35		–		–
Other	21		50		-58
	181		546		-67
1 Including investments in financial assets

Cash-Flow Statement

A cash-flow statement shows the flow of payments from operating activities, from investment activities and from financial activities. A detailed cash-flow statement can be found here in this report.

In fiscal year 2002/03, cash flow was mainly marked by the sale of our shares in Gasversorgung Süddeutschland GmbH (GVS). On the one hand, this led to higher cash flow from disposing of financial assets but meant lower income from dividends on the other hand. Last year comparatively high investments in new participations and incorporations led to heavy cash flow from investment activities.

Cash Flow from Operating Activities

Cash flow in accordance with DVFA/SG, which does not contain the profit from the sale of our GVS shares, remained at last year’s level at Euro 161 million despite elimination of the income from GVS as a participation after the sale of our GVS shares. When adjusted for this one-off effect, we had cash flow of Euro 160 million for fiscal year 2002/03 compared to adjusted cash flow for last year of Euro 131 million (+22%). Total cash flow from operating activities increased – when adjusted for the income from GVS as a participation – by 57% from Euro 70 million last year to Euro 110 million in fiscal year 2002/03. The reasons for this increase compared to last year were mainly lower changes in shortterm provisions, higher depreciation as well as higher longterm provisions.

Cash Flow from Investment Activities by Selling Shares

In fiscal year 2002/03, cash flow from investment activities of Euro 31 million primarily came from proceeds from disposing of financial assets, particularly here from the sale of our GVS shares as well as of tangible assets. As a consequence, cash flow of Euro 181 million for investments in fixed assets was overcompensated. Last year the high investments in financial assets led to an unusually high cash outflow of Euro 528 million.

In fiscal year 2002/03, the MVV Energie Group’s investments in tangible assets of nearly Euro 161 million were nearly at the same high level as last year (Euro 168 million). Conversely, the investments in financial assets at Euro 20 million were significantly lower in fiscal year 2002/03 than last year’s amount, which at Euro 378 million in particular contained the acquisition of participations in Ingolstadt and Solingen.

Investments in Tangible Assets

Of total investments in tangible assets in fiscal year 2002/03, MVV Energie AG accounted for approx. 49% or Euro 78 million and its participations for 51% or Euro 83 million. At MVV Energie AG, the focus was concentrated on overhauling and expanding the distribution grids used in supplying energy and water service as well as laying utility connections for customers in new housing areas. An additional focus of investments was placed on our energy from waste segment. Here investments went mainly for construction of a new CHP incinerator to replace two older units as well as for upgrading measures to optimise storage pit operation in Mannheim. The new CHP incinerator was commissioned in September 2003 and will enhance the cost effectiveness of the entire plant owing to its greater efficiency. Other investments were directed towards contracting projects to supply electric power and district heating service as well as towards construction of new biomass powerplants.

Investments in jointly used facilities largely revolved around providing software for our data-processing centre, which is intended to serve as a centralised IT platform for the entire MVV Energie Group. Moreover, we invested in the telecommunications technology of our fibre-optic city ring in Mannheim, parts of which have been leased to our MAnet subsidiary on a long-term basis.

Lower Investments in Operative Participations

The investments in financial assets primarily went for capital increases at our participations and at MVV Innovationsportfolio as well as for higher loans. Investments in financial assets in Poland and the Czech Republic were implemented by our subsidiaries, MVV Polska in Warsaw and MVV Energie CZ in Prague, respectively. We have extensively reported about our participations.

Retiring Corporate Debt

In fiscal year 2002/03, corporate debt from cash pooling was reduced by Euro 116 million. MVV Energie AG is integrated in the cash-pool of MVV GmbH as a holding company. Within the framework of this cash- pool, this holding company ensures liquidity, covers short-term financial needs and processes financial transactions. These activities are settled at market rates via internal company accounts.