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Energy Exchange Austria

Annual and Sustainability Report 2011

EXAA Energy Exchange Austria

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> Table of Contents

Dear Shareholders, Ladies and Gentlemen, The Management Board of EXAA is pleased to present the Annual Report 2011 and would like to express its appreciation for the interest taken and the trust placed in us.

Preface and Overview


01 02 03 04 05 Key performance ratios Abbreviations and Definitions Preface of the Chairman of the Supervisory Board Preface of the Management Board Highlights of the Year 2011

Sustainability Report
06 07 08 11 13 14 EXAA on sustainable growth path for over ten years More than just gigawatt hours and euro amounts our sustainability strategy Sustainable and on the right course with our employees Sustainable and on the right course for society Sustainable and on the right course for the environment Sustainable and on the right course in business

Management Report
17 18 23 23 23 24 26 26 Economic Environment Spot Market Trading in Electric Power Spot Market Trading in Electric Power in Hungary Spot Market Trading in CO2 Emission Allowances The teem training program Assets, Earnings and Financial Position Development Prospects of the Company Risks Relating to Financial Instruments

Financial Statements pursuant to the Austrian Commercial Code


28 29 30 31 39 41 42 43 44 46 Balance Sheet Assets Balance Sheet Liabilities Profit and Loss Account Notes to the Financial Statements Audit Opinion Supervisory Board Report Proposal for the use of the net profit Shareholders as of 31 December 2011 Supervisory Board and Management Board Editorial Information

Key Performance Ratios


Report 2011

Key performance ratios


in EUR

2011

2010

Sales revenues Operating result Financial result Profit on ordinary business activity Net profit/loss for the year before changes in reserves Total assets Shareholders equity Depreciation/amortisation
Spot market electric power

2,324,493 761,272 26,696 787,968 738,513 3,306,433 2,424,043 - 6,072

2,030,159 544,845 8,180 553,025 518,380 2,262,695 1,685,530 -18,741

In 2011, EXAA continued to grow driven by steadily expanding trading volumes in the German-Austrian electricity market.

Trading volume in GWh Clearing volume in EUR Number of trading members 1


Spot market CO2 allowances

7,558 390,236,567 71

6,410 292,146,570 90

Trading volume in t Trading volume in EUR


In % of Austrian consumption

19,179 269,072

88,401 1,260,481

Market share teem training days Staff Total no. employees Staff Employees in person/year 2 Staff Sick days ratio Staff Fluctuation (EXAA has one freelance staff member) Staff Further eduction in hours Productivity Total no. annual hours per employee Share of women Percentage of employees that travel to work by public transport

13.1 402 22 7.04 1.84% 14.81% 250.3 537.5 50%

10.7 232 23 7.12 2.06% 11.54% 144.9 520.2 52%

Traded electricity volumes 2011


(in MWh)
800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000

73%

70%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

1) 2)

excl. trading members CO2 in 2011 person years are full and part-time employees converted into full-time equivalents

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Report 2011

> Abbreviations
Abbreviations and Definitions

ACER APCS APT APX-ENDEX Base (base load) CISMO CO2 CWE EBlT EPEXSpot EEX EStG EUA EUR EuropEX EXAA greenmarket GoO GRI Index GWh ISO KSV kWh MWh NGO Nordpool Spot NWE-Region OeKB
EXAA 11 Abbreviations and Definitions

Agency for the Cooperation of Energy Regulators APCS Power Clearing and Settlement AG Verbund Trading AG Founded in 1998 as the Amsterdam Power Exchange, remamed to APX b.V. in 2004 Base load; delivery from 0.00 hrs to 24.00 hrs, Monday to Sunday CISMO Clearing Integrated Services and Market Operations GmbH Carbon dioxide Central Western Europe; one of the eight energy regions in Europe agreed upon at the Florence Forum in September 2004 Earnings Before Interest and Taxes Spot Exchange doing business in France, Germany and Austria European Energy Exchange AG, Leipzig Income Tax Act EU Allowances is the EU authorization to emit CO2 Euro Association of European Energy Exchanges EXAA Abwicklungsstelle fr Energieprodukte AG (power exchange) Subsidiary for CO2 trade at the Bayerische Brse AG Guarantees of Origin Global Reporting Initiative Index Gigawatt hour (1 GWh = 1,000 MWh) International Organization for Standardization; ISO 9001:2008 Kreditschutzverband; www.ksv.at Kilowatt hour (1 kWh = 1,000 Wh) Megawatt hour (1 MWh = 1,000 kWh) Non-Governmental Organization Spot Exchange doing business in Scandinavia, in the Baltic Region and in Great Britain with its headquarter in Lysaker North Western Europe; Cooperation of EPEXSpot and Nordpool Spot with the target of a coordinated Price Coupling in France, BENELUX, Germany, Great Britain and Scandinavia Oesterreichische Kontrollbank Aktiengesellschaft Over the counter Peak load; delivery from 8:00 hrs to 20:00 hrs, Monday to Friday, except holidays Profit on ordinary business activity PricewaterhouseCoopers; www.pwc.at Power Exchange Central Europe EU Regulation on Energy Market Integrity and Transparency RWE Transportnetz Strom GmbH renamed Amprion GmbH in August 2009 smart technologies Management-Beratungs- u. Beteiligungsgesellschaft m.b.H. Acronym for Strengths, Weaknesses, Opportunities and Threats ton training for energy and environmental markets Terawatt hour (1 TWh = 1,000 GWh) Austrian Commercial Code Watt hour; unit of energy (power times time unit)

OTC Peak (peak load) POA PwC PXE REMIT RWE-Netz Smarttech SWOT t teem TWh UGB Wh

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Preface
Preface of the Chairman of the Supervisory Board

Dear Shareholders, Ladies and Gentlemen,

I am very pleased and proud to announce that EXAA Abwicklungsstelle fr Energie produkte AG has completed another extremely successful financial year in 2011. Trading volumes continued to increase significantly in 2011 and new trading participants joined the exchange. The excellent development of the past four years has also permitted us to fully recover the start-up losses and achieve a net profit. Apart from the higher electricity trading volumes, the training courses offered by EXAA for the energy market known under the name of teem were also highly successful and contributed to the good results. EXAAs excellent performance was also noticed by the general public and the newspaper Wirtschaftsblatt pronounced EXAA one of Austrias Leading Companies 2011 together with the consulting firm PwC and KSV. This distinction is especially pleasing considering that the founding years were not always smooth sailing. For the first time, this financial report also includes a separate section on sustainability. This section was prepared by the management board together with the staff in the course of the year and presents the achievements but also serves as guidance and defines goals for the coming years. This report presents the success achieved by EXAA in the previous year and is testimony to the commitment of the staff and Management Board of the company. We want to express our appreciation and recognition of the excellent work accomplished. Dear shareholders, dear ladies and gentlemen, we would like to thank you for your trust in our company and assure you that we will continue to make our best efforts to retain this trust.

Hansjrg Tengg

Vienna, May 2012

Hansjrg Tengg

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EXAA 11 Preface of the Chairman of the Supervisory Board

> Preface
Preface of the Management Board

Dear Shareholders, Ladies and Gentlemen, This report is different from our reports up to now. It illustrates how EXAA has been able not only to attain sustainable economic development, but also to pursue a policy of sustainability for our staff, society and the environment. For us, sustainability describes a dynamic process that covers all aspects of a companys development and secures the continued existence of an organization over the long term, and thereby benefits employees and stakeholders.
Rudolf Schneider

Since our foundation in 2001, we have improved transparency, equilibrium and efficiency on the liberalized energy market of Central Europe. We have succeeded in continuously expanding sales revenues and productivity every year up to now. During the same period, the number of our employees has also doubled. We are proud of having been able to retain highly qualified and committed employees for many years and to have jointly achieved the position of service leader in the market. Apart from the steady improvement in trading volumes, we have also positioned our training program teem as a center of competence and education for the energy market, thereby contributing to the creation of know-how and awareness in Austria and Central Europe.
Jrgen Wahl

We have also been constantly developing our ecology division. In June 2005, the start of trading in European CO2 emissions allowances marked the opening of the market segment for environmental products. Due to the very difficult framework conditions in CO2 trading, we have entered into a cooperation agreement with greenmarket exchange, a subsidiary of Bayerische Brse in Munich and have discontinued trading in CO2 allowances on EXAA as of August 2011. In the spring of 2012, we will bring our first green electricity product to the market, which for the first time guarantees simultaneous physical production and trading. We hope to stay on this course of sustainability we have been pursuing for the past ten years and establish ourselves as a benchmark for the industry. Our special thanks go to our employees for their dedication and hard work which have helped to ensure the success of our company. The Management Board would like to thank the shareholders and the members of the Supervisory Board for their trust. We will continue to work hard to meet your expectations. Vienna, May 2012

EXAA 11 Preface of the Management Board

Rudolf Schneider

Jrgen Wahl

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The Year 2011 at a Glance


The Highlights of the Year 2011

1st Quarter
New two-day teem module for gas starts in January. EXAA participates as exhibitor in E-World Fair in Essen, Germany. EXAA goes mobile: The EXAA app for iPhone and Android cellular phones becomes available. Daily record hit on 25 March 2011: 34,803.30 MWh. Trading volume in March 2011 reaches 707,801.30 MWh, making it the best month since market start.

2nd Quarter
On 20 June, EXAA held its annual trader group meeting. June 2011: The new version of the EXAA app becomes available. Publication of version 1.1 for Android, iPhone and Blackberry. Possibility for registered traders to obtain prices and quantities immediately after close of trading.

3rd Quarter
August 2011: greenmarket (subsidiary of Bayerische Brse) and EXAA start cooperation in CO2 emissions allowances trading. EXAA wins the tender for the Twinning Project in Croatia. The bid was done together with Energie-Control Austria.

4th Quarter
Lichtblick AG from Hamburg is 70th trading member to join the electricity market at the end of September. The October date of teem is held for the first time with a GoO module. In total, 402 training days are booked in 2011. October: The newspaper Wirtschaftsblatt pronounces EXAA one of Austrias Leading Companies 2011 together with the consulting firm PwC and KSV EXAA ranks in 6th place in Austria for small businesses in the category of sustainability and creditworthiness. November: EXAA wins the tender for the joint execution of a Twinning Project with EnergieControl Austria in Georgia. The increase of the upper bid limit for block products from 500 MW to 1,000 MW adds liquidity and raises trading volumes. New record-breaking year on EXAA: Trading volume reaches 7,558,106.50 MWh in 2011. This corresponds to a rise of 18% versus the previous year and an average daily volume of 20,707.14 MWh. Furthermore, a new all-time high is attained in December 2011 on EXAA with an average daily trading volume of 23,226.43 MWh and a total of 720,019.40 MWh. On 31 December 2011, 71 members from 14 countries traded electricity on EXAA.

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EXAA 11 The Highlights of the Year 2011

> Sustainability Report


Sustainable growth path for over ten years
1. EXAA on sustainable growth path for over ten years
EXAA (Energy Exchange Austria) is Austrias energy and environmental exchange with its registered office in Vienna. EXAA was founded on 8 June 2001 and started spot market trading in electric power on 21 March 2002. Since its start, EXAA has developed into an important instrument for the efficient exploitation of trading opportunities in the liberalized energy markets of Central Europe. Since January 2009, EXAA has been offering regular training courses under the teem trade mark at which participants can learn everything there is to know about the elec tricity industry. Our training program has become a popular course for newcomers but also for experienced employees and anybody interested in the energy industry. The significance of a market is determined largely by its participants. As of 31 December 2011, there were 71 companies from 14 countries trading on EXAA, of which most were not from Austria. Starting out from the electricity spot market with physical delivery in Austrias control areas, EXAA enlarged the trading zones to include Germany in 2004. Since the end of 2009, EXAA has been able to offer physical delivery in all German control areas. In May 2010, EXAA took over the technical settlement of day-ahead electricity spot market trading for PXE (Power Exchange Central Europe; www.pxe.cz) for the market area Hungary. As Austrias only electricity exchange, we contribute to the heterogeneity of the European exchange industry as well as to securing the attractiveness of the Austrian marketplace. Our core business includes important functions such as ensuring fair and verifiable price discovery through the free play of supply and demand, enabling transparency by disclos ing prices and quantities as well as offering diverse services (training courses, consulting, etc.) that are in demand by our customers and stakeholders.
EXAA 11 Sustainable growth path for over ten years

As an independent trading platform, our duty is to serve all trading participants equally and to guarantee the fair and equal treatment of all actors. As an energy exchange, we play an important role for maintaining a functioning energy market and stand for certain values, namely a liberalized market, a stance we hope finds expression in this report. For several years, EXAA has been working intensely to help build up the markets of Central and Southeast Europe. EXAAs diverse contacts to the electricity industry of the region and the highly sought-after consulting and advisory services it offers jointly with other stakeholders permit EXAA to play an active role in the creation of a coordinated and integrated energy market in the region and for all of Europe. On 28 December 2011, REMIT the EU Regulation on Energy Market Integrity and Transparency entered into force. REMIT has the aim of preventing inside dealings and market manipulation on energy markets. A major element of the Regulation is market supervision by ACER. Therefore, REMIT concerns not only the energy market actors but also energy exchanges.

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Sustainability Report
Our sustainability strategy
EXAA, as a clearing and settlement agent has been regulated and supervised up to now under the Austrian Stock Exchange Act. The supervision of the commodity exchanges is the competence of the Federal Ministry for the Economy, Family and Youth. What is new is that with the entry into force of REMIT, EXAA now has to report suspected inside dealings, market manipulation and irregularities to the national regulatory bodies within the scope of market supervision. ACER has set up a reporting platform for this purpose. Reporting obligations for exchange transactions executed, but also for OTC transactions will enter into force within the next 18 months.

2. More than just gigawatt hours and euro amounts our sustainability strategy
At the end of 2011, the Management Board started a process to develop a mission statement together with all employees in order to define EXAAs profile (our identity), tasks (our mission), goals (our vision) and principles (our values). Our sustainability strategy rests on this foundation EXAA has pursued a corporate strategy of sustainability since its foundation in 2001. This means that the economic success of our company is not achieved at the expense of our employees, society or the environment. On the contrary: Our goal is to create added value in all four areas. Sustainable behavior is viewed as a value driver at EXAA (innovation and new products, higher efficiency, motivation of employees, sustainability as selling point, etc.). We do not want to hide behind the excuse that we are too small. The Management Board has overall responsibility for the sustainability of the companys actions and business activities. All employees are involved in the efforts to achieve this goal. This report has four sections: staff, society, environment and economy. The content of the first three sections was developed in collaboration with external sustainability experts and with the involvement of employees. The fourth section meets the requirements of an annual report and contains all essential information for our shareholders.
EXAA 11 Our sustainability strategy

As a basis for identifying the areas of key importance for us, we conducted an in-depth analysis of our strengths, weaknesses, opportunities and risks and summarized these in a SWOT analysis. EXAA took guidance from the Global Reporting Initiative Level C when preparing its Annual and Sustainability Report, but we would like to point out that we have not carried out a GRI check yet. However, we plan to do so for our next Annual and Sustainability Report 2012.

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> Sustainability Report


Sustainable and on the right course with our employees
3. Sustainable and on the right course with our employees
Management approach and priority goal:
When it comes to our employees, our goal is to retain and further increase our pool of qualified employees, to improve employee satisfaction, to strengthen team spirit, and to ensure an adequate work-life balance.

Key fields of action, projects, objectives and indicators


3.1. Employee health and satisfaction Healthy and satisfied employees are our most important asset. Keeping them healthy and satisfied is the focus of all our activities. With this in mind, we have taken numerous measures to foster corporate culture and team spirit, and offer our employees a high level of flexibility in shaping their day-to-day work arrangements. Goals To keep the personnel turnover rate as low as possible To increase the headcount from currently 11 to 13 person years by 2015 To preserve the high level of employee health and satisfaction Ergonomic workplaces Participation in sports events (Business Run, Vienna City Marathon) including the provision of the gear Organizing and holding joint company events (summer party, golf tournament, Christmas party) Free fruit and drinks Flexible working hours and home office options Measures already implemented

EXAA 11 Sustainable and on the right course with our employees

3.2. Innovation and participation EXAA depends on the power of innovation and the commitment of its employees. We strive for open dialogue on equal terms, encouraging our employees to voice criticism and come up with ideas of their own. We always try to think ahead, and sometimes also out-of-the-box, and also see ourselves in the role of visionaries and pioneers in our industry. Employee diversity and individuality is regarded as an added value, and there is no discrimination based on sex, origin or religion. Goals Identifying and leveraging the potential for innovation Stepping up the number of innovations over time, if possible Measures already implemented Indicators Weekly team meetings Innovation and strategy workshops once or twice a year A corporate culture characterized by openness Fostering diversity Annual appraisal interviews with 360 feedback Number of new products over time (5 new products in 2011)

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Sustainability Report
Sustainable and on the right course with our employees
3.3. Employee development and appreciation We want to offer our employees interesting and challenging tasks as well as continued professional development. As our employees do not report to us directly, but are employed by the CISMOgroup, it is all the more important to us to take measures to honor personal commitment and good performance. Goals Possibility of offering performance-linked pay to all employees Retaining annual continued professional development hours per employee Measures Training and development plan for each employee at an annual already appraisal interview implemented Performance-linked pay with bonuses every employee can get up to two months pay per year as a bonus Indicators Employee further education in hours was 205.3/employee in 2011

3.4. My EXAA Sustainable and on the right course We asked all of our employees within the scope of a mission-defining process which images (see photographs below) they associate with EXAA and in which form. The most expressive images are presented here.

My EXAA Sustainable and on the right course


My EXAA is like a rowing team: Teamwork is excellent, we can talk openly about everything, we have the strength needed to cope with future tasks, and we continually mobilize ourselves and others to face new challenges.
EXAA 11 Sustainable and on the right course with our employees

My EXAA is like a compass: We are always on the lookout for new areas of development and show the world the right way, offering guidance and inspiring confidence.

My EXAA has a lot in common with this chart: While the trend is upwards, success is not linear and is not at all a matter of course.

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> Sustainability Report


Sustainable and on the right course with our employees

My EXAA is like a band of pirates: We are creative, innovative, confident, proud, committed and courageous and decidedly not on the side of the French garde nationale.

My EXAA is like this eagle: As a neutral exchange, we stand for independence, with trading volumes soaring high these past few years.

My EXAA is like a team of astronauts: We know the big picture without losing sight of what is truly important, we play well together and stick to our mission; and the members know they can rely on each another.

EXAA 11 Sustainable and on the right course with our employees

My EXAA has members from 14 European countries: Our goal for the future is to have participants from all over Europe.

My EXAA is like a sailboat: We work as a dynamic team in a dynamic environment, we are flexible and innovative, and in the spirit of true sportsmanship we always play by the rules.

My EXAA is like a treasure hunt: A treasure hunt is exciting. Where will our treasure be hidden in the future?

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Sustainability Report
Sustainable and on the right course for society
4. Sustainable and on the right course for society
Management approach and priority goal:
Our goal is to assume social responsibility for our professional and private activities, to raise awareness for responsible energy management in Austria and to promote knowhow transfer also outside of Austria.

Key fields of action, projects, goals and indicators


4.1. Competence and training center We define ourselves as a competence and training center for the energy market that helps to raise awareness and sensitivity to energy issues. We combine technological expertise and business acumen; we bring the different stakeholders together (NGOs, utility companies, government bodies, parliament) and play a role as an independent and neutral knowledge broker. Goals Raise awareness and sensitivity to energy issues Increase the number of participants in training events and the number of training days booked Boost sales of training and consulting services Measures already implemented Implementation of the teem training program Inclusion of green electricity and natural gas as new topics Invitation of various independent experts as speakers

4.2. Capacity-building and know-how transfer Our activities in the energy sector are not limited to Austria. With our training modules and by promoting development projects, we also contribute to capacity-building and knowhow transfer in the emerging energy markets in other European countries, in particular, in Central and Eastern Europe. One of our aims in this context is to support international cooperation efforts in Central and Southeast Europe and to strengthen collaboration with our neighboring countries.

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EXAA 11 Sustainable and on the right course for society

Indicators Number of training days booked per financial year (402 training days booked in 2011) Training and consulting sales per business year (EUR 181,258.50 in 2011)

> Sustainability Report


Sustainable and on the right course for society

Goals

To provide assistance for the expansion and development of energy markets in Central and Eastern Europe To support one development project per year by means of specific donations. The project should be energy-related, benefit the bottom of the pyramid and provide significant leverage (benefit for society) for the capital invested

Measures Donation to Life Earth support for a photovoltaic system already for a medical clinic in Tanzania, in cooperation with implemented CISMOgroup companies Indicators Expenditure for the above mentioned development project Life Earth of EUR 1,635 in 2011

4.3. Responsible dialogue with society Beyond our training programs and consulting projects, we are also involved in initiatives on regulatory themes and social policy issues, and are therefore, in constant dialogue with society and policymakers. However, we also have to safeguard our independence and integrity as a marketplace at all times. List of 1) Clients: trading members, utilities, financial service providers in stakeholders physical trading in electricity 2) Owners and suppliers: Wiener Brse AG as licensor, OeKB as clearing partner, smart technologies as software supplier 3) Public institutions: European institutions such as the European Commission, the EU Agency for the Cooperation of Energy Regulators ACER, the Association of European Energy Exchanges EuropEX, the Austrian and German Ministries of Economics, the Austrian and German energy regulators, the Austrian Ministry of the Environment, NGOs active in the fields of energy and environment such as Greenpeace und Global 2000 as well as associations like the Austrian Energy Agency or Austrias energy and green electricity associations
4) German and Austrian transmission network operators

EXAA 11 Sustainable and on the right course for society

5) Other suppliers such as Cismo GmbH for infrastructure, tax advisors, management consultants, lawyers, etc. Measures Ongoing participation in EuropEX Working Groups and already in the development and amendment of laws and standards implemented in Austria and Europe

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Sustainability Report
Sustainable and on the right course for the environment
5. Sustainable and on the right course for the environment
Management approach and priority goal:
Our goal is to reduce our companys ecological footprint. As a service business, we do not manufacture any products ourselves, and therefore, do not have any major energy or resource consumption. Moreover, we can still make a significant contribution by taking measures in the area of procurement and employee mobility. However, the most important leverage we can achieve is in developing ecologically benign products.

Key fields of action, projects, goals and indicators


5.1. Sustainable procurement As a service company, we procure mainly office supplies, technical hardware and food for our employees. Goals Integrating ecological criteria into all procurement decisions

Measures Organic food (if seasonally available): already fruit, fair-trade coffee, preferably regional products implemented

Goals

To reduce the carbon footprint of employee mobility

Measures Carbon compensation for air travel, if possible planned Introduction of a special allowance for the use of public transport, if possible Indicators Percentage of employees using public transport, walking or cycling to travel to work (in 2011, 73% of employees came to work by public transport)

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EXAA 11 Sustainable and on the right course for the environment

5.2. Ecologically benign mobility Even though two thirds of our employees travel to work by public transport or on foot, we still believe there is need for action in the area of employee mobility. Given our interna tional activities, our employees travel frequently throughout Europe. However, to keep the ecological footprint of these travel activities as low as possible, we have planned several measures in this respect.

> Sustainability Report


Sustainable and on the right course in business
5.3. Ecologically benign products Protecting the environment is very often a driver for new fields of business for our company. To continue our ecological activities, we plan to market our first green electricity product in early 2012. Goals Improving transparency of ecological electricity products on energy markets Better integration of ecologically generated electricity into energy trading in Austria and internationally Measures Introduction of a green electricity product for spot trading introduced on EXAA Indicators Percentage of green electricity trading volume as compared to grey electricity trading (for the year 2012, the percentage of green electricity in total trading volume is projected at 6.25%)

6. Sustainable and on the right course in business


Management approach and priority goal:
The companys principal goal is to further strengthen EXAAs financial base. To do so, we plan to continue our efforts to attract new trading members and raise trading volumes on the spot market for electricity, and by developing new products and services.

Key fields of action, projects, goals and indicators


EXAA 11 Sustainable and on the right course in business

6.1. Sustainable growth The net profit we achieved for the first time in 2011 has helped put EXAA on a healthy economic footing. Being a profit and performance-driven company, we also need longer-term financial backing for our activities. For this reason, we will stay on course for sustainable growth, strengthening our core business while also opening up new fields. We work hard to achieve sustainable success, because reaching our present position was not an easy task and retaining it in the future will not be so either.

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Sustainability Report
Sustainable and on the right course in business

Goals Secure the role of EXAA as Austrias energy exchange at the national and European level for the long term Measures already implemented Indicators See report of the Management Board

Trading volumes in GWh (7,558 GWh in the year 2011) Clearing volumes in euro (EUR 390,236,567 in the year 2011) Operating output (EUR 2,324,492.95 in the year 2011) EBIT (EUR 761,271.92 in the year 2011) Profit after taxes (EUR 738,513.25 in the year 2011)

6.2. Security and transparency Our core business is to ensure fair and verifiable price discovery based on the free interplay of supply and demand, to ensure transparency by publishing price and volume data as well as to provide the diverse services demanded by our customers and stakeholders (training, consulting, etc.). Our risk management system has proven its efficiency, especially since the beginning of the banking crisis in 2008. As an independent exchange, we are equally committed to all market participants, guaranteeing non-discriminatory access to energy trading. Goals Maximum transaction security for us and our clients

Indicators Amount of collateral deposited (in 2011, the amount of the collateral deposited was EUR 49,830,639.06)

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EXAA 11 Sustainable and on the right course in business

Measures Continuous improvement of our risk management system and already our clearing and settlement rules as well as ongoing adjustments implemented to increasing trade volumes Continuous improvement of our internal audit and quality management systems. Having undergone ISO 9001:2008 certification in 2010, EXAA successfully carried out a surveillance audit in August 2011 VAT fraud in energy trading: Proactive cooperation with stake holders and competent public bodies including information activities in Austria, Germany and at the EU level to prevent any risks to which EXAA may be exposed

> Sustainability Report


Sustainable and on the right course in business
6.3. Service focus, simplicity and efficiency As the cost and service leader in the market, we are an attractive alternative to the large energy exchanges. We are pioneers in a niche segment and offer our clients simple and user-friendly solutions paired with top-level flexibility at low prices. Offering personal client services is our top priority. Trust and integrity are the pillars of our client relationships. Goals Measures already implemented Preserve and improve our excellent customer satisfaction ratings Strengthening our position as cost and service leader Creation of long-term personal client relationships Events for clients Lean organization and short decision-making paths Flexible work processes No red tape, but pragmatic common-sense solutions

Indicators Results of regular client satisfaction surveys (in response to the question Would you recommend EXAA? 54 out of 56 trading participants interviewed answered yes in 2011. One trading participant gave an answer with qualifications and one trading participant refrained from answering the question)
This report refers to the financial year 2011 and covers only EXAA AG seated in Vienna. The CISMOgroup is not covered in this report. EXAA does not have any subsidiaries or affiliated companies.

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EXAA 11 Sustainable and on the right course in business

Report of the Management Board


The Economic Environment
1. Report on the Development of Business and Economic Situation
1.1. Economic Environment
Energy exchanges have become an inseparable part of the liberalized energy markets in Europe. These exchanges serve as an important complement to OTC trading, which is direct trading between two partners, and also play an important role as independent price barometers. The developments of the past few years in Europe show that electricity markets are characterized by concentration tendencies and coupling initiatives. Integration in the NWE area (France, BENELUX, Germany, Great Britain and Scandinavia) to create joint price coupling is progressing fast and should be completed by the end of 2012. The Czech Republic, Slovakia and Hungary started a price coupling initiative in 2011 scheduled to start in mid 2012, and other countries and regions (Iberian Peninsula, Baltic States, Poland, Romania, Slovenia, Italy, Switzerland) are working to join, above all, the NWE project to achieve the goal defined by the EU Commission of coupling the entire European market by 2014. In 2011, the two exchanges EPEXSpot (for the CWE area) and Nordpool Spot (for Scandinavia, Baltic countries and UK) agreed to collaborate more closely in the area of trading systems with the aim of ultimately also joining market operation. The Czech-Slovak-Hungarian coupling partners agreed to implement the EPEXSpot system for the function of harmonizing national trading results also covering cross-border electricity delivery. With this move, the NWE countries and especially their power exchanges have positioned themselves at the vanguard of European power market integration; a situation which will have to be taken into consideration in the future strategy of EXAA. Another important development of the past few years is the fast pace of change but also the prevailing insecurity with respect to the legal, regulatory and political framework for the energy market. The roles played have been recast with the third EU legislative package for the energy market and the details on the implementation are still being worked on. The challenge for energy exchanges is to actively take part in the implementation process and to work to ensure that the market model ultimately does not contain any barriers to exchange trading. Germanys exit from nuclear power decided in 2011, the ongoing debate over nuclear power throughout Europe and the growing share of renewable energy in production are all factors that are fundamentally changing the environment for electricity trading. Some short term interventions in electricity trading are possible in order to secure electricity

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EXAA 11 The Economic Environment

> Report of the Management Board


Spot market trading in electricity
supply. Apart from the enlargement of the grid, it is becoming increasingly important to adapt the rules to ensure that renewable energy sources are integrated into the market in such a manner so as to help guarantee the power supply. In addition to the active participation of EXAA in national and international efforts to define the framework for energy trading and the tireless internationalization efforts, the inclusion of renewable energy in liberalized electricity trading will be one of the areas on which EXAA will concentrate in 2012, thereby strengthening EXAAs market position and business success.

1.2. Spot market trading in electricity in Austria and Germany


In 2011, the uptrend on EXAAs Austrian and German electricity market was unbroken and trading volumes increased significantly.

Volumes in single hours 2009 to 2011 (in MW)


2009
40% 35% 30% 25% 20% 15% 10% 5% 0%
0 200 200400 400600 600800 8001,000 1,000+

2010

2011

EXAA 11 Spot market trading in electricity

The chart above reveals that the trend of higher hourly traded volumes continued in 2011. There were no hours with trading volumes lower than 200 MW. The traded volume was below 400 MW only in less than 2% of the hours and the share of hours with more than 1,000 MW reached nearly 27%. In total, 7,558 GWh were traded on EXAA in 2011. This is an increase of around 18% over the previous year. This volume corresponds to around 13.1% of domestic electricity consumption. The average daily traded volume was 20,707 MWh. The month of December

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Report of the Management Board


Trading Procedures on EXAA
Volume trends on EXAA 2011 (in MWh)
800,000 700,000 707,801.30 668,238.80 638,223.30 600,000 500,000 400,000 300,000 200,000 100,000 0 Jan 11 Feb 11 Apr 11 Aug 11 Sep 11 Mar 11 Jun 11 Jul 11 May 11 Dec 11 Oct 11 Nov 11 500,986.20 560,843.90 648,313.70 660,988.90 663,467.30

626,511.00

603,305.20

2011 recorded the highest trading volume at 720,019.40 MWh. At year-end, there were 71 market participants from 14 different countries on EXAAs electricity market.

Trading procedures on EXAA On EXAA, electricity is traded for each of the 24 hours and for 14 blocks that consist of several hours for all days of the year. Trading takes place on workdays from Monday through Friday from 8:00 to 10:12 hrs. During this period, trading participants may enter their quotes into the system. When this phase ends, an auction is held with a view to matching as many orders as possible. After the auction, market participants may buy or sell surplus quantities from the auction procedure during the post-trading phase at the market clearing prices determined. At the latest by 10:30 hrs, the participants are informed of trading results.
EXAA 11 Trading Procedures on EXAA

Price stiffness at EXAA Due to the timing of the auction at EXAA with the first auction results for the day traders take guidance from current OTC market prices. This means that even in the case of low trading volumes, larger volumes are only just above or below the market clearing price. A simulation with real-time data with the additional entry of fictitious market orders of 50, 100 and 200 MW for every individual hour showed that the price situation remained very stable. Even in the case of large market orders, the clearing price usually changed only by a few percentage points (see chart below).

559,407.50

720,019.40

19

> Report of the Management Board


Price Trends on the EXAA Spot Market
Price change in base using simulation market orders Jan.Dec. 2011
(in EUR) 200 MW
4 3 2 1 0 -1 -2 -3 -4 Jan 11 Feb 11 Aug 11 Mar 11 Apr 11 Jun 11 Jul 11 Sep 11 May 11 Dec 11 Oct 11 Nov 11

-200 MW

100 MW

-100 MW

50 MW

- 50 MW

Correlation of prices on EXAA with prices on the OTC market Precise observers are surprised time and again at how similar the prices determined at EXAA auctions are to those of bilateral spot trades during the same periods. This even results in EXAA being informally referred to as the OTC exchange at expert talks. In the scant two hours after the EXAA auction (10:15 hrs) in the same, German-Austrian market of EPEXSpot (12:00 hrs), this is not seen as often (see chart below). What is the reason? When a trader has an interest in also executing buy or sell quantities still open for the next day during the later, and therefore, last auction of the delivery day of EPEX (traders must often enter quotes as market orders) to avoid the risk of otherwise unfavorable balancing energy payments, they have the possibility at 10:15 hrs to enter price limits that match their own expectations without taking this risk. In fact, the share of quotes entered in EXAA without price limits is around 80 percent. The consequence is that the so-called market clearing price determined based on supply and demand of all participants really is representative for current market consensus. Moreover, at EPEX there is also a high share of comparably hard-to-predict electricity feeds of, according to the German market model, electricity quantities being entered that are not contingent on prices from wind farms and photovoltaic plants and this creates frequent upward and downward price fluctuations.

20

EXAA 11 Price Trends on the EXAA Spot Market

Report of the Management Board


Price Trends on the EXAA Spot Market
Comparison of GPI prices (DowJones German Power Index) with EXAA and EPEXSpot prices
EPEX_Base_Diff
30.00

EXAA_Base_Diff

Difference to GPI in Base in euro from 01.01.200931.08.2011

20.00

10.00
Source: DowJones German Power Index Apr 09 May 09 Jan 09 Jul 09 Dec 09 Feb 09 Oct 09 Mar 10 May 10 Oct 10 Dec 10 Jan 11 Jul 10 Mar 11 May 11 Jun 11 Sep 09

0.00

-10.00

-20.00

-30.00
Aug 10 Aug 11 Feb 10

EXAA traders, most of which have market access to EPEXSpot, appreciate not only the solid price basis in this environment for portfolio optimization, but also use EXAA price signals as valuable guidance for OTC trades concluded after 10:15 hrs.

Prices were slightly higher in 2011 versus the previous year within a range seen already at the end of 2010. The average base price was around 16% higher than in the previous year, and the peak price was up by almost 12% in 2011. The higher prices were driven by the sustained recovery of the economy and resulted in a gradual increase in demand in the market. Market prices on other power exchanges showed similar trends during the same period.

21

EXAA 11 Price Trends on the EXAA Spot Market

EXAA market prices In the year 2011, the average EXAA base price was EUR 51.80 / MWh and the EXAA peak price was EUR 57.94 / MWh. Prices developed remarkably stable over the course of the year despite the exit from nuclear power in Germany and apart from weather and seasonal fluctuations.

> Report of the Management Board


Risk management on the EXAA spot market
Price trend (base and peak) on EXAA in 2011 (in EUR/MWh)
Peak
90 80 70 60 50 40 30 20 10 0
Jan 11 Apr 11 Jul 11 Sep 11 Oct 11 May 11 Aug 11 Nov 11 Mar 11 Jun 11 Dec 11 Feb 11

Base

Base (Average)

Peak (Average)

1.2.2. Risk management on the EXAA spot market for electric power
EXAA guarantees the financial fulfillment of exchange trades in its function as a central counterparty. The settlement of trades is governed by special clearing and settlement rules that are binding on all exchange members. As a clearing agent, EXAA organizes and supervises the timely fulfillment of all trades and the proper depositing of collateral by the trading participants.
EXAA 11 Risk management on the EXAA spot market

The daily valuation of all open positions ensures that the collateral deposited by the trad ing participants is always maintained at sufficient levels. In this manner, EXAA ensures the financial settlement of trades in all cases. EXAA accepts cash deposits, certain securities and bank guarantees as collateral for trades. Oesterreichische Kontrollbank (OeKB) is responsible for the banking procedures relating to clearing. The daily calculation of collateral levels is based on the average net buy amount of five open trading days and the statistically assessed fluctuation of amounts over 30 trading days. At the same time, the open positions of participants are checked on every trading day to ensure that they do not exceed the defined limit. This risk management system has been working efficiently since the start of the banking crisis in September 2008, and even during this difficult phase, the settlement of trades worked securely and without problems. The amount of collateral deposited was EUR 49,830,639.06 as of 31 December 2011.

22

Report of the Management Board


teem training program
REMIT
The provisions of the REMIT Regulation of the EU that entered into force on 28 December 2011 regarding the monitoring of inside dealing and market manipulation were implemented.

1.3. Spot market trading in electric power in Hungary


On 17 May 2010, EXAA took over the technical settlement for day-ahead spot trading for Hungary on behalf of PXE (Power Exchange Central Europe; www.pxe.cz). Unfortunately, in 2011 this market segment failed to achieve the success hoped for and there was no trading in Hungary.

1.4. Spot market trading in CO2 emission allowances


EXAA has been offering trading in emission allowances (EUAs) in auctions held once a week as of June 2005. In summer 2011, a cooperation agreement for allowances trading was entered into with greenmarket, an independent market segment of Bayerische Brse AG. This agreement stipulates that EXAA is to cease its own auctions in emissions allowances, and therefore, CO2 trading on EXAA discontinued these auctions on 16 August 2011. In 2011, the total traded volume was 19,179 tons. The price differences to other exchanges and OTC trading were not significant.

1.5. The teem training program


Since January 2009, EXAA has been organizing training courses under the trade mark teem (training for energy and environmental markets) for the energy sector and all public and private institutions working in this field. The excellent bookings and demand in the market for additional training modules motivated us to add three new themes to the program in 2011. Since 2011, EXAA has been offering two modules for the gas market (market model and third package, gas trading and price discovery) as well as one module on the theme of proof of origin, labeling and green electricity, in addition to the five standard modules (compact knowledge energy industry, market model and balance groups, trading and capacities, EXAA exchange trader diploma, eco-power). In the year 2011, four modules were held as in-house events for two renowned Austrian companies.

23

EXAA 11 teem training program

> Report of the Management Board


Assets, Earnings, and Financial Position
In 2011, EXAA nearly doubled revenues versus 2010 with 402 booked training days that were attended by some 150 persons. Since the start of the project, 785 modules were booked and over 300 persons took advantage of the teem training program for further education. This shows that EXAA is a widely recognized organizer of training courses and source of know-how for the Austrian energy industry. The staff of Cismogroup also takes advantage of the teem training courses as an excellent opportunity for further education. It is standard procedure for new employees of CISMOgroup companies to attend the training modules, but also long-year employees take advantage of the opportunities to learn about the other business areas of the Group. No new training themes are currently planned for 2012, as exchange trading will continue to be the principal business of EXAA. However, based on the requests of many participants, the training program will also be offered in English in March 2012.

2. Assets, Earnings and Financial Position


2.1. Earnings situation
Sales revenues in the reporting year were EUR 2,324,493 and therefore, around 15 % higher than in the previous year. This was achieved mainly on back of the very high trading volumes in the electricity market and the success achieved in the acquisition of new trading members as well as the higher income earned from the training courses of the teem project. Operating expenses were 6% higher than in the preceding year at EUR 1,557,149. This can be attributed mainly to the turnover-linked system costs as well as to the higher overall costs due to the growth strategy of the company and the cautious management of business activities in accordance with projections. The result on ordinary business activity was EUR 787,968 and 42% better than in the previous year. Profit after taxes was EUR 738,513 and therefore, a very satisfactory 42% higher than in the preceding year.

EXAA 11 Assets, Earnings, and Financial Position

2.2. Assets, earnings and financial position


Fixed assets as of 31 December 2011 amounted to EUR 1,566. These comprised almost exclusively office equipment and data processing programmes. Current assets were EUR 3,288,552 and included trade accounts receivable of EUR 268,325 which consisted largely of short-term receivables from variable business fees due from trading members on the electricity market and other receivables of EUR 298,690. Bank deposits exclusive of collateral on deposit amounted to EUR 2,187,249 as of 31 December 2011. Share holders equity was EUR 2,424,043 on 31 December 2011 and resulted from the share capital of EUR 1,612,000, capital reserves of EUR 806,000, and the net profit of EUR 6,043.

24

Report of the Management Board


Events of material significance after the close of the financial year
Available liquid funds in 2011 (in EUR)
3,000,000.00

2,500,000.00

2,000,000.00

1,500,000.00

1,000,000.00

500,000.00

0.00 Jan 11 Feb 11 Jun 11 Apr 11 Jul 11 Aug 11 Sep 11 Mar 11 Dec 11 May 11 Nov 11 Jan 12 Oct 11

2.3. Liquidity situation


The table shows that EXAA had a stable cash flow in 2011. However, due to the divergent treatment of foreign trading members as regards value added tax (reverse charge mechanism) in the case of international trades, cash flows are subject to significant volatility. For this reason, the respective value dates at the start of the month have been selected as cut-off days in the chart below, because the differences in value added tax treatment have already been accounted for at this time. Compared to the preceding year, the monthly cash on hand increased from an average of EUR 1,500,000 to at least EUR 2,100,000.

2.4. Events of material significance after the close of the financial year
As CO2 trading failed to develop satisfactorily in the last financial year due to the adverse overall conditions, EXAA entered into a cooperation agreement with greenmarket, a subsidiary of Bayerische Brse in August 2011. The CO2 spot market on EXAA was discontinued. The cooperation entered into with the Czech electricity exchange PXE in May 2010 will also be discontinued in the course of the financial year 2012 due to lacking liquidity and restructuring at our business partner. There was no spending on research and development. EXAA does not operate any branches. Furthermore, there were no open cases of litigation at the end of the financial year. In 2011, the tasks of EXAA were taken over by the employees of CISMO GmbH. Their labor and expert knowledge is purchased by EXAA under a service contract or contracted from freelance staff.

25

EXAA 11 Events of material significance after the close of the financial year

> Report of the Management Board


Development prospects of the company
3. Development prospects of the company
The companys principal objective for the future is to continue to strengthen its financial base. This will be attained by making intense efforts to acquire new trading members and raise trading volumes on the spot market for electricity, and by developing new products and services. It is of enormous importance to promote international cooperation with the neighboring countries of Central and Southeast Europe and to advance the coupling of the markets, thereby raising liquidity in cross-border trading. The target is to increase sales revenues in 2012 by a total of up to 10% at more or less unchanged total expenses, and as a result improve annual results in 2012 versus 2011.

4. Risks relating to financial instruments


The principal business risks of EXAA such as default, currency and interest rate risks and their possible effects on the assets, earnings and financial position for the year 2011 may be assessed as very low. The business fees are collected at the beginning of the year from the respective accounts of the trading participants by automatic bank debit order. Furthermore, trading participants must deposit sufficient collateral as a requirement for taking part in trading and the collateral must be increased immediately if it drops below the defined margin. There was no foreign currency risk, because trading and investments were conducted in euro. As regards interest rate risks, it is pointed out that EXAA does not have any loans or credit lines with banks. Due to the high price volatility, an overdraft facility was set up with a fixed interest rate on the business account with the companys principal bank; therefore, interest rate risk may be excluded here as well.
EXAA 11 Development prospects of the company

In the case of open trade receivables in the amount of EUR 268,325 these refer mostly to the variable business fees of the trading participants on the electricity market that were collected in full at the beginning of January 2012. The other receivables of EUR 298,690 are value added tax claims with domestic tax authorities. The total of bank deposits amounted EUR 2,711,862 at banks with top credit ratings (of which EUR 524,613 was collateral received) at the end of 2011. Vienna, on March 30, 2012

Management Board

26

Rudolf Schneider

Jrgen Wahl

Financial Statements 2011

11
27

> Financial Statements 2011


Balance Sheet Assets
< Notes

Assets
1 2
in EUR

2011

2010

4 5 6

A. Fixed Assets I. Intangible assets 1. Industrial property rights and similar rights and inducements II. Property, plant and equipment 1. Fixtures, furniture and office equipment B. Current Assets I. Accounts receivable and other assets 1. Accounts receivable trade 2. Amounts owed by companies to which it is related by participating interests 3. Other receivables and assets II. Cash and balances with central banks and giro banks C. Prepaid expenses and deferred charges

0,36 0,36

0,39 0,39

1.566,01 1.566,01 1.566,37

6.673,15 6.673,15 6.673,54

268.325,00 9.675,00 298.689,52 576.689,52 2.711.862,35 3.288.551,87 16.315,14 3.306.433,38

598.462,62 11.724,00 10.410,10 620.596,72 1.615.077,96 2.235.674,68 20.346,90 2.262.695,12

EXAA 10 Balance Sheet Assets

Please note that the figures use the German notation, i.e., comas are periods and vice versa.

28

Financial Statements 2011


Balance Sheet Liabilities Liabilities

in EUR

Notes >

2011

2010

A. Shareholders equity I. Nominal capital 1. Share capital II. Capital reserves 1. appropriated reserves III. Net profit/Net loss Thereof profit/loss carryforward B. Provisions 1. Provisions for corporation tax 2. Other provisions C. Liabilities 1. Amounts owed to credit institutions 2. Accounts payable trade 3. Other liabilities Thereof taxes

1.612.000,00 1.612.000,00

1.612.000,00 1.612.000,00

9 806.000,00 806.000,00 6.042,84 -732.470,41 2.424.042,84 806.000,00 806.000,00 -732.470,41 -1.250.849,94 1.685.529,59 10

13.440,00 90.150,00 103.590,00

31.093,12 237.170,64 268.263,76

11 12

13 769.068,15 9.732,39 9.732,39 778.800,54 3.306.433,38 719,18 22.556,23 285.626,36 285.626,36 308.901,77 2.262.695,12

14

Contingent liabilities

30.000,00

30.000,00

15

Please note that the figures use the German notation, i.e., comas are periods and vice versa.

29

EXAA 11 Balance Sheet Liabilities

> Financial Statements 2011


Profit and Loss Account for the Financial Year 2011
< Notes
16 in EUR 1. Sales revenues a. Revenues from power/allowances billed to third parties Expenses from power/allowances billed to third parties

2011

2010

390.505.389,62 -390.505.389,62 0,00

292.146.570,29 -292.146.570,29 0,00

17

b. Revenues from exchange activities Membership fees Business fees Transaction Fees Training fees Data vending Settlement compensation c. Revenues teem 2. Other operating income a. Income from the reversal of provisions b. Other operating income 3. Personnel expenses 4. Depreciation/amortisation a. Depreciation of intangible assets and tangible assets 5. Other operating expenses a. Taxes except for income tax b. Other expenses 6. Operating income (subtotal of line 1 to 5) 7. Other interest and similar income 8. Interest and similar expenses 9. Financial result (subtotal of line 7 to 8) 10. Profit on ordinary business activity (POA)

90.000,00 869.025,00 1.091.480,59 36.895,46 8.062,50 19.800,00 2.115.263,55 181.258,50 2.296.522,05 8.837,32 19.133,58 2.324.492,95

92.000,00 817.125,00 942.820,47 43.379,12 8.010,00 15.214,75 1.918.549,34 98.012,15 2.016.561,49 13.597,31 2.030.158,80

18

-6.071,87 -6.071,87 -166,90 -1.556.982,26 -1.557.149,16 761.271,92 26.696,14 -0,39 26.695,75 787.967,67 -49.454,42 738.513,25 -732.470,41 6.042,84

-18.741,19 -18.741,19 -522,40 -1.466.050,00 -1.466.572,40 544.845,21 9.427,92 -1.247,77 8.180,15 553.025,36 -34.645,83 518.379,53 -1.250.849,94 -732.470,41

EXAA 11 Profit and Loss Account for the Financial Year 2011

19

20

11. Taxes on income 12. Net profit/loss for the year 13. Loss carried forward from previous year

21

14. Net profit/loss

Please note that the figures use the German notation, i.e., comas are periods and vice versa.

30

Financial Statements 2011


Notes to the Financial Statements

I. Accounting and Valuation Policies


The financial statements have been prepared in accordance with the principles of proper bookkeeping and accounting and the general objective of presenting a fair and true view of the assets, earnings and financial position of the company (Sec. 222 par. 2 Commercial Code). The financial statements have been prepared in accordance with the principle of completeness and proper accounting, and an ongoing concern has been assumed for the valuation. The principle of separate valuation without offsetting has been applied to the assets and liabilities. In accordance with the principle of conservatism, only gains realized on the balance sheet cutoff date have been reported. All recognizable risks and potential losses arising in the business year 2011 or in earlier business years have been taken into account.

1. Fixed Assets
1.1. Intangible assets
Intangible assets acquired have been recognized at cost of acquisition, less scheduled depreciation on the basis of their usable life. A usable life of 1 to 7 years has been assumed. Software extensions purchased during the business year were immediately depreciated in full. There were no unscheduled write-offs.

1.2. Tangible fixed assets


EXAA 11 Notes to the Financial Statements

Tangible assets have been valued at cost of acquisition and cost of production, less cumu lative scheduled depreciation continued in the reporting year 2011. Depreciation rates have generally been calculated according to the linear depreciation method. The usable life of the individual groups of fixed assets is as follows: Fixtures, furniture and office equipment one to four years Low-value assets in the meaning of Sec. 13 Income Tax Act 1988 of the financial year have been fully written off in the year of acquisition and reported in the table of changes in fixed assets under additions and disposals. There was no extraordinary depreciation/amortization. Fixed unchanging values pursuant to Sec. 209 par. 1 have not been recognized.

31

> Financial Statements 2011


Notes to the Financial Statements
2. Current Assets
2.1. Accounts receivable and other assets
Receivables and other assets have been recognized at nominal value. No recognizable risks exist for outstanding receivables.

3. Provisions
3.1. Tax provisions
Provisions for taxes refer to provisions for corporation tax not yet assessed for collection.

3.2. Other provisions


Provisions have been made to cover projected claims in accordance with the principle of conservatism. Provisions from previous years have been released and recognized as operating income unless they have been used and the reasons for the formation of provisions have ceased to exist.

4. Liabilities
Liabilities have been valued at their repayment amounts in accordance with the principle of conservatism.

5. Currency translation
The foreign exchange rate on the due dates has been applied for the conversion of receivables and liabilities, taking into account foreign exchange losses due to changes in exchange rates as compared to the balance sheet cut-off date.

EXAA 11 Notes to the Financial Statements

6. Changes to valuation policies


There have not been any changes to valuation policies.

7. Changes to the presentation layout versus the previous year


There have not been any changes to the layout versus the previous year.

32

Financial Statements 2011


Notes to the Financial Statements

II. Notes to the balance sheet Assets


1. Fixed Assets
Changes in fixed asset items and the breakdown of annual depreciation by individual item (Sec. 226 par. 1 Commercial Code) are given in the table of changes to fixed assets:

I. Intangible assets 1. Industrial property rights and similar rights and inducements II. Property, plant and equipment 1. Fixtures, furniture and office equipment Sums 51,186.17 27,280.82 1,006,008.11 922,102.76 964.83 0.00 24,870.18 0.00 44,513.02 25,714.81 6,673.15 1,566.01 6,071.87 0.00 Cost of Depr./Amort. acquisition Cumulated Book value 2011/01/01 Additions Disposals 2011/01/01 2011/01/01 Depr./amort 2011/12/31 Transfer Transfer 2011/12/31 2011/12/31 appreciation EUR EUR EUR EUR EUR EUR

> 1

954,821.94 894,821.94

0.00 0.00

60,000.00 0.00

954,821.55 894,821.58

0.39 0.36

0.00 0.00

964.83 84,870.18 999,334.57 0.00 0.00 920,536.39

6,673.54 6,071.87 1,566.37 0.00

1.1. Intangible assets


Intangible assets consist of licenses, software and the costs of the new design of the website. Items under tangible assets have been written off according to regular depreciation in an amount of EUR 0.00 (previous year: EUR 12,061.27).

> 2

1.2. Property, plant and equipment


Items under plant and equipment have been written off in an amount of EUR 5,830.37 (previous year: EUR 6,626.60) due to depletion. Low-value goods were purchased in the reporting year for EUR 241.50 and immediately written off (prev. year: EUR 53.32).

> 3

2. Current Assets
2.1. Accounts receivable and other assets
The table below presents the remaining time to maturity of the receivables reported in the balance sheet:
With a remaining Time to Total maturity of up to 1 year EUR EUR Accounts receivable trade Previous year
Amounts owed by companies to which it is related by participating interests Previous year

> 4

278,000.00 610,186.62
9,675.00 11,724.00

278,000.00 610,186.62
9,675.00 11,724.00

Other receivables and assets Previous year Total receivables Previous year

298,689.52 10,410.10 576,689.52 620,596.72

298,689.52 10,410.10 576,689.52 620,596.72

33

EXAA 11 Notes to the Financial Statements

> Financial Statements 2011


Notes to the Financial Statements
> 5
2.1.1. Amounts owed by companies to which it is related by participating interests The item amounts owed by companies with which the company is related by participating interests consists fully of trade receivables from Wiener Brse AG. 2.1.2. Other receivables and assets The item other receivables refer mainly to value added tax credits not yet claimed and input taxes not yet refunded. Of the total amount of other receivables, EUR 4,339.72 (prev. year EUR 0.00) results from deferred interest income on term money deposits. These receivables are due for payment next year.
Other loans and advances Input tax Germany (DE) Input tax Great Britain (GB) Input tax Netherlands (NL) Input tax Spain (ES) Input tax Poland Input tax Czech Republic Input tax France Tax office VAT due Total other receivables and assets 31 Dec. 2011 31 Dec. 2010 EUR EUR 4,339.72 5,835.51 533.53 0.00 0.00 1,067.00 690.00 587.60 285,636.16 298,689.52 0.00 7,413.20 1,021.88 493.62 414.40 1,067.00 0.00 0.00 0.00 10,410.10

> 6

> 7

3. Prepaid expenses and deferred charges


3.1. Prepaid expenses
Prepaid expenses have been reported in an amount of EUR 16,315.14 (prev. year: EUR 20,346.90) and comprise all expenses recognized on an accrual basis under expenditures in the following year.

EXAA 11 Notes to the Financial Statements

LIABILITIES
4. Shareholders equity
> 8

4.1. Share capital


The share capital of the company of EUR 1,612,000.00 is divided into 1,612 registered shares with a nominal value of EUR 1,000.00 each.

> 9

4.2. Capital reserves


4.2.1. Appropriated reserves Appropriated capital reserves refer to the premium from the issue of par-value shares over the issue price.

34

Financial Statements 2011


Notes to the Financial Statements
4.3. Net profit
The net profit for the year 2011 is EUR 6,042.84. This amount accounts for the loss carried forward from the year 2010 of EUR -732,470.41.

> 10

5. Provisions
5.1. Provisions for taxes
Tax provisions concern projected payments due for past corporation taxes for the year 2011 based on the results for the year.

> 11

5.2. Provisions not reported separately in the balance sheet


The following provisions have been made in substantial amounts but have not been reported separately in the balance sheet.
As of 1.1.2011 EUR Prov. for legal counsel/consulting Other provisions Total other provisions 14,895.00 222,275.64 237,170.64 Use EUR 14,792.55 213,540.77 228,333.32 Release EUR 102.45 8,734.87 8,837.32 Allocation EUR 46,800.00 43,350.00 90,150.00 As of 31.12.2011 EUR 46,800.00 43,350.00 90,150.00

> 12

6. Liabilities
The table below shows the maturities of the liabilities reported in the balance sheet:
With a remaining time to Total maturity ofup to one year EUR EUR Accounts payable banks Previous year Accounts payable trade Previous year Other liabilities Previous year
Thereof for taxes Previous year

> 13

0.00 719.18 769,068.15 22,556.23 9,732.39 285,626.36


9,732.39 285,626.36

0.00 719.18 769,068.15 22,556.23 9,732.39 285,626.36


9,732.39 285,626.36

Total liabilities Previous year

778,800.54 308,901.77

778,800.54 308,901.77

6.1. Other liabilities


The item other liabilities does not contain any expenses that fall due after the balance sheet cutoff date.

> 14

35

EXAA 11 Notes to the Financial Statements

> Financial Statements 2011


Notes to the Financial Statements
7. Further information on the balance sheet
> 15

7.1. Liabilities
The following liabilities were reported off the balance sheet pursuant to Sec. 199 Commercial Code: 1. Bank guarantee from Die Erste Bank der oesterreichischen Sparkassen AG for EUR 30,000.00 in favor of the RWE control area.

7.2. Other financial liabilities


As of the cut-off data, there were no other financial obligations from rental or leasing agreements.

III. NOTES TO THE PROFIT AND LOSS ACCOUNT


The profit and loss account was prepared in accordance with the total cost format pursuant to Sec. 231 par. 2 Commercial Code. > 16

1. Sales revenues
Although trading volumes are attributable to the respective trading members in commercial terms, sales revenues from trading activities (buying and selling) are reported under sales revenues, and amounts for power billed to third parties are reported under revenues and expenses. Revenues (sell) Expenses (buy) 2011 2011 EUR 390,505,389.62 EUR 390,505,389.62 2010 2010 EUR 292,146,570.29 EUR 292,146,570.29

EXAA 11 Notes to the Financial Statements

The sales revenues contain those amounts that EXAA collects as set out in the pub lished Schedule of Fees of Wiener Brse AG from exchange members for operating and making the exchange trading system available. The membership fees are collected only once at the time exchange membership is granted. The business fees are due annually. The transaction fees depend on the respective members trading volume and are invoiced to the buyer and the seller on every trading day. The proceeds from transaction fees in electricity spot trading for Germany / Austria of EUR 1,090,897.48 (prev. year EUR 940,857.58) result from the electricity trading volume of 1 January 2011 to 31 December 2011 of 7,558,106.5 MWh (prev. year: 6,410,043.2 MWh) with a traded value of EUR 390,236,567 (prev. year: EUR 290,886,089 ). The transaction fees from CO2 emission allowances trading amounted to EUR 583.11 (prev. year EUR 1,962.89) and result from the trading volumes of 1 January 2011 to 31 December 2011 of 19,179 t (prev. year: 88.401 t) with a traded volume of EUR 269,071.89 (prev. year: EUR 1,260,481.04).

36

Financial Statements 2011


Notes to the Financial Statements
The deviation from the previous year is due mainly to the discontinued operation of CO2 trading on EXAA as of 16 August 2011. Apart from the fees collected for exchange trading of EUR 2,050,505.59 (prev. year EUR 1,851,945.47) sales revenues also include the proceeds from training courses of EUR 218,153.96 (prev. year: EUR 141,391.27) and from data vending of EUR 8,062.50 (prev. year: EUR 8,010.00) as well as revenues from settlement compensation of EUR 19,800.00 (prev. year: 15,214.75).

2. Other operating income


Other operating income includes amounts from the release of unused expense provi sions of EUR 8,837.32 (prev. year EUR 0.00), income from the discontinued operation of CO2 trading of EUR 10,000 (prev. year EUR 0.00) and other income, mainly cost re imbursements of a total of EUR 9,133.58 (prev. year EUR 13,596.48).

> 17

3. Personnel expenses
No personnel were employed in the financial year. The work usually performed by employees is purchased from external suppliers and reported under the item other operating expenses.

> 18

4. Other operating expenses


4.1. Further other operating expenses
The item further other expenses include mainly expenses for the ongoing costs of the system of EUR 330,552.20 (prev. year: EUR 300,055.66), expenses for diverse external services of EUR 917,615.53 (prev. year: EUR 932,185.02) and other expenses of EUR 308,981.43 (prev. year: EUR 234,331.72).

> 19

The corporation tax changed versus the previous year by EUR 14,808.59 and was EUR 49,454.42 in the financial year 2011.

6. Net profit
The net profit for the financial year 2011 was EUR 738,513.25 and changed versus the pre vious year by EUR 220,133.72 (prev. year: EUR 518,379.53). The release of the loss carried forward from financial year 2010 in an amount of EUR -732,470.41 results in a net profit of EUR 6,042.84.

> 21

37

EXAA 11 Notes to the Financial Statements

5. Taxes on income and earnings

> 20

> Financial Statements 2011


Notes to the Financial Statements

IV. Other information


1. The average number of employees was: The company has not had any employees since 11 July 2006. 2. The following persons were on the Management Board: Management Board: from 1 January 2011 to 31 December 2011 Rudolf Schneider and Jrgen Wahl 3. The following persons are on the Supervisory Board: Hansjrg Tengg Chairman of the Supervisory Board Herbert Seidlmann 1st Vice-Chairman Heinrich Schaller 2nd Vice-Chairman Wolfgang Aubrunner, Member Hermann Egger, Member Robert Hager, Member Franz Keuschnig, Member Helmut Mennel, Member Ludwig Nieen, Member Peter Riedler, Member until 1 Oct. 2011 Gabriela Riha, Member

4. The exception rule according to Sec. 241 para. 4 Austrian Commercial Code has been applied. 5. Other explanations required on the grounds of materiality: Since May 2010, there has been a cooperation agreement with Power Exchange Central Europe, a.s., Rybn 14/682, CZ-110 05 Prague. On 16 August 2011, trading in emissions allowances on EXAA was discontinued and a cooperation agreement for allowances trading was entered into with greenmarket, an independent market segment of Bayerische Brse AG.
EXAA 11 Notes to the Financial Statements

Vienna, on March 30, 2012

Rudolf Schneider

Jrgen Wahl

38

Audit Opinion
Audit Opinion
Report on the Financial Statements We have audited the accompanying financial statements, including the accounting, of

EXAA Abwicklungsstelle fr Energieprodukte AG


Alserbachstrae 1416, A-1090 Vienna
for the fiscal year from January 1, 2011 to December 31, 2011. These financial statements comprise the balance sheet as of December 31, 2011, the income statement for the fiscal year ended December 31, 2011, and the notes. Managements Responsibility for the Financial Statements and for the Accounting System The Companys management is responsible for the accounting and for the preparation and fair presentation of these financial statements in accordance with Austrian Generally Accepted Accounting Principles. This responsibility includes: Designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making accounting estimates that are reasonable in the circumstances. Auditors Responsibility and Description of Type and Scope of the Statutory Audit Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with laws and regulations applicable in Austria and Austrian Standards on Auditing. Those standards require that we comply with professional guidelines and that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Companys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our audit opinion.

039 39

EXAA 11 Audit Opinion

> Audit Opinion


Opinion Our audit did not give rise to any objections. In our opinion, which is based on the results of our audit, the financial statements comply with legal requirements and give a true and fair view of the financial position of the Company as of December 31, 2011 and of its financial performance for the fiscal year from January 1, 2011 to December 31, 2011 in accordance with Austrian Generally Accepted Accounting Principles. Comments on the Management Report Pursuant to statutory provisions, the management report is to be audited as to whether it is consistent with the financial statements and as to whether the other disclosures are not misleading with respect to the Companys position. The auditors report also has to contain a statement as to whether the management report is consistent with the financial statements. In our opinion, the management report is consistent with the financial statements.

Vienna, March 30, 2012

IB Interbilanz Hbner Wirtschaftsprfung GmbH

Mag. Andreas RTHLIN Certified Public Accountant

MMag. Roland TEUFEL Tax Consultant

40

EXAA 11 Audit Opinion

This report is a translation of the original report in German, which is solely valid. Puplication of the financial statements together with our auditors opinion may only be made if the financial statements and the management report are identifical with the audited version attached to this report. Section 281 paragraph 2 UGB (Austrian Commercial Code) applies.

Report
Report of the Supervisory Board

Report of the Supervisory Board


In 2011, the Supervisory Board monitored and approved the management activities of the Management Board within the scope of regular meetings and on the basis of detailed written reports submitted as well as by frequently communicating in person with the members of the Management Board. The Management Board reported regularly on the course of business and the situation of the company. The audit of these financial statements for 2011 and of the management report was carried out by IB Interbilanz Hbner & Hbner Wirtschaftsprfung GmbH, Vienna, and the financial statements were confirmed to be in compliance with legal provisions without any restrictions. The financial statements and management report were awarded an unqualified audit opinion. The Committee established by the Supervisory Board pursuant to Sec. 92 (4a) Austrian Stock Corporation Act for the purpose of auditing and preparing the adoption of the financial statements complied with its obligations and met on 22 March 2012. Two meet ings of the Audit Committee took place in the financial year 2011. At the second meeting of 2011, the Audit Committee dealt in detail with the accounting system and the internal audit system. Additionally, the focus of the audit of the financial statements for 2011 was defined. In its report to the Supervisory Board, the Audit Committee agreed with the results of the audit of the financial statements and reached the conclusion that there were no reasons for raising objections after conducting an audit of the financial statements and of the management report as well as of the proposal for the use of the profit/loss. The Supervisory Board examined the financial statements and the management report pursuant to Sec. 96 of the Stock Corporation Act as well as the proposal presented by the management board for the use of the profit/loss reported in the financial statements for the year ended on 31 December 2011. The examination did not result in any reasons for objections. The Supervisory Board approved the financial statements for 2011 at its meeting of 30 May 2011, which hereby stands adopted, and declared its consent to the proposals of the Management Board regarding the use of the profit for the year 2011. The Supervisory Board proposes the appointment of IB Interbilanz Hbner & Hbner Wirtschaftsprfung GmbH, Vienna, as auditor for the financial year 2012. The Supervisory Board would like to express its appreciation and recognition of the excellent work performed by the Management Board and all employees of EXAA Abwicklungsstelle fr Energieprodukte AG. Vienna, May 2012 Supervisory Board

41

EXAA 11 Report of the Supervisory Board

> Use of the Results


Proposal for the use of the reported net profit

Proposal for the use of the reported net profit


The Management Board of EXAA Abwicklungsstelle fr Energieprodukte AG proposes to carry the net profit reported in the financial statements for the year ended 31 December 2011 of EUR 6,042.84 (euro six thousand forty two and eighty four cents) forward to the next year. Vienna, May 2012 Management Board

42

EXAA 11 Proposal for the use of the reported net profit

EXAA
Shareholders as of 31 December 2011
Ownership structure as of 31 December 2011
Shareholders APCS Power Clearing and Settlement AG Wiener Brse AG Share % 34.56 25.12

smart technologies Management-Beratungs- u. Beteiligungsgesellschaft m.b.H. 8.06 Oesterreichische Kontrollbank Aktiengesellschaft VERBUND Trading AG e&t Energie Handelsgesellschaft m.b.H. KELAG-Krntner Elektrizitts-Aktiengesellschaft STEWEAG-STEG GmbH TIWAG Tiroler Wasserkraft Aktiengesellschaft Vorarlberger Kraftwerke Aktiengesellschaft Energie Graz GmbH & Co KG OMV Power International GmbH 8.06 3.04 3.04 3.04 3.04 3.04 3.04 2.98 2.98 100.00

OeKB 8.06%

smart 8.06% VERBUND Trading AG 3.04% e&t 3.04%

Wiener Brse 25.12%

Others 24.20%

STEWEAG-STEG 3.04% TIWAG 3.04% VKW 3.04% OMV 2.98% Energie Graz 2.98%

APCS 34.56%

43

EXAA 11 Shareholders as of 31 December 2011

KELAG 3.04%

> Members
Supervisory Board and Management Board
Supervisory Board
Hansjrg Tengg Herbert Seidlmann Heinrich Schaller Chairman Vice-Chairman Vice-Chairman

Wolfgang Aubrunner Hermann Egger Robert Hager Franz Keuschnig Helmut Mennel Ludwig Nieen Peter Riedler Gabriela Riha

Member Member Member Member Member Member Member Member until 1 Oct. 2011

Management Board
EXAA 11 Supervisory Board and Management Board

Rudolf Schneider Jrgen Wahl

44

Members
Supervisory Board Committees
Supervisory Board Committees
(as of 31 December 2011) Audit Committee Hansjrg Tengg Herbert Seidlmann Heinrich Schaller Wolfgang Aubrunner Robert Hager

Appointment Committee Hansjrg Tengg Herbert Seidlmann Heinrich Schaller Wolfgang Aubrunner

Strategy Committee Hansjrg Tengg Herbert Seidlmann Heinrich Schaller Wolfgang Aubrunner Robert Hager Franz Keuschnig

45

EXAA 11 Supervisory Board Committees

> Editorial Information

Media owner: EXAA Abwicklungsstelle fr Energieprodukte AG FN 210730y, Commercial Court of Vienna Type: Martina Gaigg Printed: PrePress & Print Advice Service Druckberatung GmbH Place: A-1230 Wien, Liesinger-Flur Gasse 8 Translation: CAMELS Capital Markets English Language Services Logo: Created by MCB Mothwurf Photography credits: Cover: kindly supported by Daniel Kovac Page 03: smart technologies Management-Beratungs- und Beteiligungsgesellschaft mbH. Page 04: Foto Wilke, CISMO Clearing Integrated Services and Market Operations GmbH Page 910: finnegan fotolia; Luftbildfotograf fotolia; The Image Bank/Candela Foto Art/Kreuziger/Getty Images; m_reinhardt fotolia; Flickr/Roberto Muoz/Getty Images; matttilda fotolia; linous fotolia; Balthazar fotolia

46

Contact
EXAA Abwicklungsstelle fr Energieprodukte AG A-1090 Vienna, Alserbachstrae 1416 Phone: +43 1 253 72 72-0 Fax: +43 1 253 72 72-96 E-Mail: office@exaa.at, www.exaa.at