UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 5, 2004
----------------------
LITTELFUSE, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 0-20388 36-3795742
(State or other (Commission File Number) (IRS Employer
jurisdiction of incorporation) Identification Number)
800 EAST NORTHWEST HIGHWAY
DES PLAINES, ILLINOIS 60016
(Address of principal (Zip Code)
executive offices)
(847) 824-1188
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On May 5, 2004, Littelfuse, Inc. ("Littelfuse") entered into a definitive
agreement to acquire an 82% stake in Heinrich Industrie AG ("Heinrich") for euro
39.5 million (approximately $47.7 million) in cash and also estimated
acquisition costs of euro 2.0 million (approximately $2.4 million). Closing of
the transaction took place on May 6, 2004. Littelfuse purchased the controlling
interest in Heinrich from the company's two largest shareholders and initiated a
tender offer for the remaining shares of the publicly held company. Littelfuse
funded the acquisition with $18.1 million in cash and $32.0 million of
borrowings on an existing revolving line of credit. Heinrich is the holding
company for the Wickmann Group of circuit protection products, which has three
business units: electronic, automotive and electrical. Littelfuse intends to
operate Heinrich in such business units subsequent to the acquisition.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
ITEM 7a. FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED.
Below are the financial statements of Heinrich Industrie AG required by Item
7(a) of this Form 8-K.
Report of Independent Auditors
The Board of Directors
Heinrich Industrie AG
PwC Westdeutschland
- 1 -
BESTATIGUNGSVERMERK DES ABSCHLUSSPRUFERS
Wir haben den Jahresabschluss unter Einbeziehung der Buchfuhrung und den
Konzernab-schluss der HEINRICH INDUSTRIE AG, Essen, mit einem zusammengefassten
Anhang sowie den zusammengefassten Bericht uber die Lage der Gesellschaft und
des Konzerns fur das Ge-schaftsjahr vom 1. Januar bis 31. Dezember 2003 gepruft.
Die Buchfuhrung und die Aufstellung dieser Unterlagen nach den deutschen
handelsrechtlichen Vorschriften liegen in der Verantwortung des Vorstands der
Gesellschaft. Unsere Aufgabe ist es, auf der Grundlage der von uns
durchgefuhrten Prufung eine Beurteilung uber den Jahresabschluss unter
Einbeziehung der Buchfuhrung und uber den Konzernabschluss sowie den
zusammengefassten Lagebericht abzugeben.
Wir haben unsere Jahres- und Konzernabschlussprufung nach Section 317 HGB unter
Beachtung der vom Institut der Wirtschaftsprufer (IDW) festgestellten deutschen
Grundsatze ordnungsmabiger Abschlussprufung vorgenommen. Danach ist die Prufung
so zu planen und durchzufuhren, dass Unrichtigkeiten und Verstobe, die sich auf
die Darstellung des durch den Jahres- und Konzernabschluss unter Beachtung der
Grundsatze ordnungsmabiger Buchfuhrung und durch den zusammengefassten
Lagebericht vermittelten Bildes der Vermogens-, Finanz- und Ertragslage
wesentlich auswirken, mit hinreichender Sicherheit erkannt werden. Bei der
Festlegung der Prufungshandlungen werden die Kenntnisse uber die
Geschaftstatigkeit und uber das wirtschaftliche und rechtliche Umfeld der
Gesellschaft und des Konzerns sowie die Erwartungen uber mogliche Fehler
berucksichtigt. Im Rahmen der Prufung werden die Wirksamkeit des
rechnungslegungsbezogenen internen Kontrollsystems sowie Nachweise fur die
Angaben in Buchfuhrung, Jahres- und Konzernabschluss und im zusammengefasstem
Lagebericht uberwiegend auf der Basis von Stichproben beurteilt. Die Prufung
umfasst fur den Jahresabschluss die Beurteilung der angewandten
Bilanzierungsgrundsatze und fur den Konzernabschluss die Beurteilung der
Jahresabschlusse der in den Konzernabschluss einbezogenen Unternehmen, der
Abgrenzung des Konsolidierungskreises und der angewandten Bilanzierungs- und
Konsolidierungsgrundsatze sowie fur beide Rechenwerke die Beurteilung der
wesentlichen Einschatzungen des Vorstands der Gesellschaft und die Wurdigung der
Gesamtdarstellung des Jahres- und des Konzernabschlusses sowie des
zusammengefassten Lageberichts. Wir sind der Auffassung, dass unsere Prufung
eine hinreichend sichere Grundlage fur unsere Beurteilung bildet.
Unsere Prufung hat zu keinen Einwendungen gefuhrt.
PwC Westdeutschland
- 2 -
Nach unserer Uberzeugung vermitteln der Jahresabschluss und der Konzernabschluss
unter Beachtung der Grundsatze ordnungsmabiger Buchfuhrung ein den tatsachlichen
Verhaltnissen entsprechendes Bild der Vermogens-, Finanz- und Ertragslage der
HEINRICH INDUSTRIE AG, Essen, und des Konzerns. Der zusammengefasste Lagebericht
gibt insgesamt eine zutreffende Vorstellung von der Lage der Gesellschaft und
des Konzerns und stellt die Risiken der kunftigen Entwicklung zutreffend dar.
Essen, den 13. Februar 2004
PwC Westdeutschland
Aktiengesellschaft
Wirtschaftsprufungsgesellschaft
/s/ (SCHWARZHOF) /s/ (POPPELMEYER) [SEAL]
----------------------- -----------------------
(Schwarzhof) (Poppelmeyer)
Wirtschaftsprufer Wirtschaftsprufer
Translation
PwC Westdeutschland
- 1 -
AUDITOR'S REPORT
We have audited the annual financial statements, together with the bookkeeping
system, and the consolidated financial statements of HEINRICH INDUSTRIE AG,
Essen, with combined notes, as well as the combined management report of the
Company and the Group for the business year from January 1 to December 31, 2003.
The bookkeeping system and the preparation of these documents in accordance with
German commercial law are the responsibility of the Company's Board of Managing
Directors. Our responsibility is to express an opinion on the annual financial
statements, together with the bookkeeping system, as well as on the consolidated
financial statements and the combined management report of the Company and the
Group based on our audit.
We conducted our audit of the annual and consolidated financial statements in
accordance with Section 317 HGB and German generally accepted standards for the
audit of financial statements promulgated by the Institut der Wirtschaftsprufer
in Deutschland (IDW). Those standards require that we plan and perform the audit
such that misstatements materially affecting the presentation of the net assets,
financial position and results of operations in the annual und consolidated
financial statements in accordance with German principles of proper accounting
and in the combined management report are detected with reasonable assurance.
Knowledge of the business activities and the economic and legal environment of
the Company and the Group and evaluations of possible misstatements are taken
into account in the determination of audit procedures. The effectiveness of the
accounting-related internal control system and the evidence supporting the
disclosures in the books and records, the annual and consolidated financial
statements and the combined management report are examined primarily on a test
basis within the framework of the audit. The audit includes for the annual
financial statements assessing the accounting principles used and for the
consolidated financial statements assessing the annual financial statements of
the companies included in consolidation, the determination of the companies to
be included in consolidation, the accounting and consolidation principles used
as well as for both statements the evaluation of significant estimates made by
the Company's Board of Managing Directors, and evaluating the overall
presentation of the annual and consolidated financial statements and the
combined management report. We believe that our audit provides a reasonable
basis for our opinion.
Our audit has not led to any reservations.
PwC Westdeutschland
- 2 -
In our opinion, the annual financial statements and the consolidated financial
statements give a true and fair view of the net assets, financial position and
results of operations of HEINRICH INDUSTRIE AG, Essen, and the Group,
respectively, in accordance with German principles of proper accounting. On the
whole the combined management report provides a suitable understanding of the
Company's and the Group's position and suitably presents the risks of future
development.
Essen, February 13, 2004
PwC Westdeutschland
Aktiengesellschaft
Wirtschaftsprufungsgesellschaft
(Schwarzhof) (Poppelmeyer)
Wirtschaftsprufer Wirtschaftsprufer
[German Public Auditor] [German Public Auditor]
Consolidated Balance Sheet
12/31/2003 12/31/2002
ASSETS E E KE
------ --------- ----------- ----------
FIXED ASSETS
Intangible assets
Industrial property and similar rights and
assets, and licenses in such rights and assets 3,020,520 1,373
Goodwill 37,339 77
Prepayments 33,282 549
--------- ----------
3,091,141 1,999
--------- ----------
Tangible assets
Land, similar rights and buildings including
buildings on leasehold hand 1,762,953 1,884
Technical equipment and machinery 9,105,241 9,631
Other equipment, factory and office equipment 2,085,690 2,222
Prepayments and constructions in process 688,758 917
---------- ----------
13,642,642 14,654
---------- ----------
Financial assets
Shares in affiliated companies 13,422 13
Participating interests 5,520,854 5,111
Securities 0 0
Other loans 8,110 10
---------- ----------
5,542,386 5,134
---------- ----------
22,276,169 21,787
----------
CURRENT ASSETS
Inventories
Raw materials and supplies 3,718,340 4,830
Work in process 4,899,157 3,984
Finished goods and merchandise 6,030,550 6,648
Prepayments 4,971 1
---------- ----------
14,653,018 15,463
---------- ----------
Receivables and other assets
Trade receivables 9,656,807 9,627
Receivables from affiliated companies 423 0
Receivables from companies in which the company
has a participating interest 73,653 29
Other assets 1,642,151 1,981
---------- ----------
11,373,034 11,637
---------- ----------
Securities
Other securities 632 2
Cash in hand, bank balances 12,449,362 12,511
---------- ----------
38,476,046 39,613
----------
PREPAID EXPENSES AND DEFERRED CHARGES 36,198 37
---------- ----------
60,788,413 61,437
---------- ----------
3
12/31/2003 12/31/2002
EQUITY AND LIABILITIES E E KE
---------------------- ---------- ----------- ----------
SHAREHOLDERS' EQUITY
Subscribed capital 10,400,000 10,400
Capital reserve 10,992,775 10,993
Earning reserves
Other earnings reserves 11,215,948 10,179
Net income shown in balance sheet 1,100,000 1,100
Balancing item for minority interest 330,843 404
---------- ----------
34,039,566 33,076
----------
SPECIAL RESERVES
Special account with reserve characteristics 0 4,705
Other Special account for investment subsidies 0 417
---------- ----------
0 5,122
----------
ACCRUALS
Accruals for pensions and similar obligations 8,033,329 7,954
Accruals for former coal-mining 3,529,684 3,595
Tax accruals 923,544 102
Other accruals 8,912,355 5,338
---------- ----------
21,398,912 16,989
----------
LIABILITIES
Bank loans and overdrafts 1,139,462 733
Customer advances 16,442 1
Trade payables 1,910,285 2,656
Payables to affiliated companies 15,195 15
4
Payable to companies in which the company has
a participating interest 724 56
Other liabilities 2,263,890 2,782
---------- ----------
5,345,998 6,243
----------
DEFERRED INCOME 3,937 7
---------- ----------
60,788,413 61,437
---------- ----------
Consolidated Income statement
2003 2002
E E TE
----------- ----------- -------
Sales 82,839,775 82,362
Increase or decrease in finished goods and -344
work in process 380,679
Other own work capitalized 303,643 279
Other operating income 7,213,781 4,292
Cost of materials:
Cost of raw materials,supplies and merchandise -28,658,241 -26,604
Cost of purchased services -1,137,408 -1,132
----------- -------
-29,795,649 -27,736
Personnel expenses:
Wages and salaries -31,032,054 -29,699
Social security, pensions and other benefits -6,105,379 -6,076
----------- -------
-37,137,433 -35,775
Amortization and depreciation -5,222,134 -6,720
Other operating expenses -16,857,416 -16,261
Income from participating interests 30,002 124
5
Income from other long-term securities and
loans 1,291 2
Other interest and similar income 231,494 286
Interest and similar expenses -51,560 -60
----------- -------
Net operating income 1,936,473 449
Taxes on income -292,504 -114
----------- -------
Net income for the year 1,643,969 335
Minority interests in loss/profit 1,482 -17
----------- -------
1,645,451 318
Unappropriated retained earnings brought forward 0 7
Transfer from other earnings reserves 0 775
Transfer to other earnings reserves -545,451 0
----------- -------
Net income shown in balance sheet 1,100,000 1,100
----------- -------
Statement of fixed assets for the year ended December 31, 2003 for the group
At cost Foreign Changes in
January 1, currency consolidated
2003 translation companies Additions Transfers
E E E E E
---------- ----------- ------------ --------- ---------
INTANGIBLE ASSETS
Industrial property and
similar rights and assets, and
licenses in such rights
and assets 2,357,281 -69,088 1,633,575 549,190
Goodwill 285,766 -28,608
Prepayments 549,190 33,282 -549,190
---------- ----------- ------------ --------- ---------
3,192,237 -97,696 0 1,666,857 0
---------- ----------- ------------ --------- ---------
TANGIBLE ASSETS
Land, similar rights and buildings
including buildings
on leasehold hand 28,133,285 -162,048 114,981
Technical equipment and machinery 38,161,125 -361,676 2,514,167 750,927
Other equipment, factory and office
equipment 14,744,794 -152,097 976,485 52,871
Prepayments and constructions in
process 916,666 575,890 -803,798
---------- ----------- ------------ --------- ---------
81,955,870 -675,821 0 4,181,523 0
---------- ----------- ------------ --------- ---------
FINANCIAL ASSETS
Shares in affiliated companies 13,422
Participating interests 5,110,290 957,194
Securities 0
Other loans 9,940 1,291
---------- ----------- ------------ --------- ---------
5,133,652 0 0 958,485 0
---------- ----------- ------------ --------- ---------
TOTAL 90,281,759 -773,517 0 6,806,865 0
---------- ----------- ------------ --------- ---------
Accumulated Net book value Net book value Depreciation
depreciation December 31, December 31, for the year
Retirements 2003 2003 2002 2003
E E E E E
----------- ------------ -------------- -------------- ------------
INTANGIBLE ASSETS
Consessions, industrial property and
similar rights and assets, and
licenses in such rights
and assets 316,134 1,134,304 3,020,520 1,372,784 498,998
Goodwill 219,819 37,339 77,215 33,072
Prepayments 33,282 549,190 0
----------- ------------ -------------- -------------- ------------
316,134 1,354,123 3,091,141 1,999,189 532,070
----------- ------------ -------------- -------------- ------------
TANGIBLE ASSETS
Land, similar rights and buildings
including buildings
on leasehold hand 26,323,265 1,762,953 1,883,910 107,359
Technical equipment and machinery 1,656,567 30,302,735 9,105,241 9,631,590 3,471,331
Other equipment, factory and office
equipment 888,770 12,647,593 2,085,690 2,221,799 1,111,374
Prepayments and constructions in
process 688,758 916,666 0
----------- ------------ -------------- -------------- ------------
2,545,337 69,273,593 13,642,642 14,653,965 4,690,064
----------- ------------ -------------- -------------- ------------
FINANCIAL ASSETS
Shares in affiliated companies 13,422 13,422 0
Participating interests 546,630 5,520,854 5,110,290 0
Securities 0 0 0
Other loans 3,121 8,110 9,940 0
----------- ------------ -------------- -------------- ------------
549,751 0 5,542,386 5,133,652 0
----------- ------------ -------------- -------------- ------------
TOTAL 3,411,222 70,627,716 22,276,169 21,786,806 5,222,134
----------- ------------ -------------- -------------- ------------
6
Balance Sheet HEINRICH INDUSTRIE AG
ASSETS
------ 12/31/2003 12/31/2002
E E TE
---------- ---------- ----------
FIXED ASSETS
Tangible assets
-
Land, similar rights and buildings including buildings
on leasehold land 156,673 157
Other equipment, factory and office equipment 84,940 58
---------- ----------
241,613 213
---------- ----------
Financial assets
-
Shares in affiliated companies 24,626,521 24,627
Participating interest 0 546
Other loans 8,110 10
---------- ----------
24,634,631 25,183
---------- ----------
24,876,244 25,396
CURRENT ASSETS
Receivables and other assets
-
Receivables from affiliated companies 32,479,623 29,978
Other assets 877,274 985
---------- ----------
33,356,897 30,963
---------- ----------
Securities
Other securities 0 1
Cash in hand, bank balances 9,373,132 10,639
---------- ----------
42,730,029 41,603
----------
-
PREPAID EXPENSES AND DEFFERED CHARGES 4,018 4
---------- ----------
67,610,291 67,003
---------- ----------
7
12/31/2003 12/31/2002
EQUITY AND LIABILITIES E E TE
---------------------- ---------- ---------- ----------
SHAREHOLDERS' EQUITY
-
Subscribed capital 10,400,000 10,400
Capital reserve 10,992,775 10,993
Earning reserves
Other earnings reserves 10,198,558 10,199
Net income shown in balance sheet 1,100,000 1,100
----------- ----------
32,691,333 32,692
----------
SPECIAL RESERVOS 1,829,323 1,931
----------
ACCRUALS
Accruals for pensions and similar obligations 2,437,074 2,406
Accruals for former coal-mining 3,529,684 3,595
Other accruals 1,223,364 761
----------- ----------
7,190,122 6,762
----------
LIABILITIES
Trade payables 61,336 109
Payable to affiliated companies 25,739,490 25,448
Other liabilities 98,687 61
----------- ----------
25,899,513 25,618
---------- ----------
67,610,291 67,003
---------- ----------
8
Income statement
HEINRICH INDUSTRIE AG
2003 2002
E E TE
----------- ---------- ----------
Sales 1,399,952 1,452
Other operating income 4,254,875 1,212
Cost of materials:
Cost of purchased services -275,792 -259
Personnel expenses:
Wages and salaries -1,558,847 -1,464
Social security, pensions and other benefits -442,771 -395
----------- ----------
-2,001,618 -1,859
Amortization and depreciation -111,183 -62
Other operating expenses -1,569,011 -2,273
Income from participating interests 0 1,158
Income from affiliated companies 1,643,001 1,761
Losses from affiliated companies -2,495,138 -312
Income/losses of allocated income taxes -355,625 596
----------- ----------
-1,207,762 3,203
Income from other long-term securities and
loans 1,291 2
Other interest and similar income 2,115,727 1,100
Interest and similar expenses -1,461,887 -288
---------- ----------
Net operating income 1,144,592 2,228
9
Tax on income -44,592 -58
---------- ----------
Net income for the year 1,100,000 2,170
Transfer to other earnings reserves 0 -1,070
---------- ----------
Net income shown in balance sheet 1,100,000 1,100
---------- ----------
Statement of fixed assets for the year ended December 31, 2003
HEINRICH INDUSTRIE AG
At cost Accumulated Net book value Net book value Depreciation
January 1, depreciation December 31, December 31, for the year
2003 Additions Retirements 2003 2003 2002 2003
E E E E E E E
---------- --------- ----------- ------------ -------------- -------------- ------------
TANGIBLE ASSETS
Land, similar rights and buildings
including buildings on leasehold
hand 17,020,769 77,924 16,942,020 156,673 156,672 77,923
Other equipment, factory and office
equipment 329,163 62,254 49,975 256,502 84,940 55,946 33,260
---------- --------- ----------- ------------ -------------- -------------- ------------
17,349,932 140,178 49,975 17,198,522 241,613 212,618 111,183
---------- --------- ----------- ------------ -------------- -------------- ------------
FINANCIAL ASSETS
Shares in affiliated companies 25,968,662 1,342,141 24,626,521 24,626,521
Participating interests 546,630 546,630 0 0 546,630
Other loans 9,940 1,291 3,121 0 8,110 9,940
---------- --------- ----------- ------------ -------------- -------------- ------------
26,525,232 1,291 549,751 1,342,141 24,634,631 25,183,091 0
---------- --------- ----------- ------------ -------------- -------------- ------------
TOTAL 43,875,164 141,469 599,726 18,540,663 24,876,244 25,395,709 111,183
---------- --------- ----------- ------------ -------------- -------------- ------------
NOTES TO FINANCIAL STATEMENTS OF HEINRICH INDUSTRIE GROUP AND HEINRICH INDUSTRIE
AG FOR 2003
The annual financial statements of HEINRICH INDUSTRIE AG and the group financial
statements are prepared in accordance with the requirements of the commercial
code relating to capital companies.
1. CONSOLIDATED GROUP
In addition to the financial statements of HEINRICH INDUSTRIE, the group
statements for 2003 contain the individual statements of 6 (previous year 6)
domestic and 7 (previous year 8) foreign companies.
The EFEN-Vertriebs GmbH, Salzburg/Austria, was liquidated in the business year
2003. The deletion from the company register was made on July 4, 2003. The
de-consolidation of the company took place at the start of the year.
The following companies
- Motherson PUDENZ WICKMANN Ltd., New Delhi, India
- Hinnenberg Beteiligungsgesellschaft mbH i.L., Essen
- Switchgear Systems Ltd., Rugby/ Warwickshire, Great Britain
have not been included in the group statement in accordance with Section 296
Para. 2 HGB and Section 311 Para. 2 HGB due to the minor importance of the
companies to the asset, financial and revenue situation of the group.
The companies included in the group statements are listed under Point 7. The
business year of all companies included is the calendar year.
10
2. CONSOLIDATION PRINCIPLES
The balance sheets of HEINRICH INDUSTRIE and the subsidiary companies included
in the statements are summarised in the group statements. The asset and
liability items have been used instead of the shareholding book values, at the
values used in the balance sheets of the individual companies as at December 31,
2003.
The capital consolidation has been carried out using the book value method by
reconciling the purchase price of the participating interests against the
shareholders' equity of these companies liable for consolidation. Any resulting
goodwill is recognized in the earning reserves at the time of initial
consolidation, any liability difference allocated to the earning reserves.
Loans and other receivables, liabilities as well as expenses and revenue between
the companies are reconciled against each other and interim results eliminated.
For consolidation procedures affecting the result, latent taxes have been
deferred.
3. CURRENCY CONVERSION
The balance sheets of the subsidiaries that are compiled in a foreign currency
have been converted and included in the group statements as follows:
- The conversion of the shareholders' equity and the ASSET AND LIABILITY
ITEMS of the balance sheets has been made uniformly at the exchange rate
prevailing on the final day of accounting.
- Items of the INCOME STATEMENT have been converted at the average exchange
rate over the business year.
- The balance of exchange rate differences has been recognized in the
earning reserves of the group balance sheet, not affecting the result.
Currency conversion differences resulting in connection with expenditure and
revenue consolidation are included in the profit and loss account.
4. ACCOUNTING AND VALUATION PRINCIPLES
The annual statements of the individual companies have been compiled in
accordance with legal requirements and the applicable balance sheet and
valuation methods of HEINRICH INDUSTRIE.
The INTANGIBLE ASSETS are shown at purchase price, less planned linear
depreciation and extraordinary depreciation.
The FIXED ASSETS have been valued at purchase price or cost of production, less
planned depreciation according to use and extraordinary depreciation. The
extraordinary depreciation consists of depreciation on the lower partial value
and special tax depreciation.
Planned depreciation has been applied linearly or degressively at the maximum
rates permitted by tax regulations. In the case of movable assets, depreciation
is generally applied degressively at first, with a transition to linear
depreciation as soon as this leads to higher depreciation amounts. The
depreciation is based on a useful life of up to 50 years for buildings, and 3 to
13 years for technical equipment and machinery, other plant, operating and
business equipment. Low-value goods are written off completely in the year of
procurement.
The SHARES IN AFFILIATED COMPANIES of HEINRICH INDUSTRIE have been valued at
purchase price, and where applicable less depreciation in accordance with
Section 3 of the law governing tax measures for the closure of coal mines.
The PARTICIPATING INTERESTS are shown at their purchase price.
Interest-bearing LOANS are shown at the nominal value. Where allowed by tax
regulations, loans granted interest-free up to 1954 have been fully adjusted in
value. Other interest-free loans have been valued at the cash value, taking into
account an interest rate of 5.5% p.a.
In the case of INVENTORIES, raw materials and operating materials and goods have
been valued at their purchase price. Unfinished and finished goods have been
valued at cost of production or the lower partial value. In addition to material
and individual production costs, the manufacturing costs also include general
material and production costs and depreciation. The lowest value principle has
been used. Sufficient devaluation has been applied to account for risks
resulting from the storage time or reduced saleability. In accordance with
applicable tax regulations, the valuation of stocks has generally been made
according to the "LIFO" method.
RECEIVABLES AND OTHER ASSETS have been valued at the nominal value, with
individual adjustments made to take account of discernible risks. The general
credit risk has been taken into account by means of a fixed adjustment.
Receivables in foreign currency are shown at the exchange rate prevailing
11
at the time of the transaction or on the final day of accounting, whichever is
the lower.
The PENSION ACCRUALS have been calculated according to the guideline tables of
Dr. Klaus Heubeck of 1998 on the basis of an interest rate of 6%. The
calculation has been made in accordance with Section 6a EStG.
The ACCRUAL FOR FORMER COAL-MINING have been calculated in accordance with the
agreements made with the financial administration at the cash value of the costs
to be anticipated for the future, or in the case of long-term damage at 20-times
the average annual cost.
The TAX AND OTHER ACCRUALS take into account all discernible risks and uncertain
liabilities.
The LIABILITIES are listed at their repayment amounts. Liabilities in foreign
currency are shown at the exchange rate prevailing at the time of the
transaction or on the final day of accounting, whichever is the higher.
The INCOME STATEMENT has been compiled in graduated form according to the
cost-categories-oriented format.
5. EXPLANATIONS ON THE BALANCE SHEET
FIXED ASSETS
The development of the fixed assets of HEINRICH INDUSTRIE and the group is shown
in the statement of fixed assets.
The INTANGIBLE ASSETS consist of usage rights (EDP software) and in the group,
the customer base obtained from EFEN-Polska on its foundation and from PUDENZ in
connection with the acquisition of OSWALD, and the business value shown on the
balance sheet of EFEN-Hungaria. EFEN includes a customer base with a book value
of E1.0 Mio. due to the acquisition of the business operations of Peterreins
Schalttechnik GmbH, Schwabach.
The depreciation to PROPERTY AND BUILDINGS contains in the reporting year for
the AG KE 78 of transfers of book profits from the sale of plant in accordance
with Section 6b EStG.
The cumulative depreciation shown under property and buildings contains special
depreciation in accordance with Section 6b EStG. The difference between the
normal linear depreciation and this special depreciation as at December 31, 2003
is E10.4 Mio for HEINRICH INDUSTRIE and E15.3 Mio within the group. In the
business year, this produced a reduction in annual depreciation of E0.5 Mio for
HEINRICH INDUSTRIE and E0.6 Mio within the group.
In the business year 2003, extraordinary depreciation to fixed assets in the
amount of KE 195 (previous year KE 776) was applied in accordance with Section
253 Para. 2 P. 3 HGB, which refers mainly to operating plant in Witten.
The cumulative depreciation to shares in affiliated companies in the individual
statements of HEINRICH INDUSTRIE is made up of depreciation applied in previous
years in accordance with Section 3 of the law governing tax measures for the
closure of coal mines.
In the case of the participating interests, the statement of fixed assets of the
AG show a reduction resulting from the sale of the participating interests in
Ruhrgas AG. HEINRICH INDUSTRIE sold its shareholding in Ruhrgas AG by means of
the contract of July 2, 2002. The 158,200 shares were acquired by E.ON AG,
Dusseldorf. The contract could not however be completed in the business year
2002, since the required consent of the general meeting of Ruhrgas AG was not
given until February 17, 2003 due to the ongoing proceedings before the regional
court of Dusseldorf against the ministerial permission for the Ruhrgas
take-over. WICKMANN increased its participating interests in the POLYTRONICS
Technology Corporation Ltd., Hsin-Chu, Taiwan, by the acquisition of 906,000
shares at a purchase price of KE 929. The POLYTRONICS Technology Corporation
Ltd., is a strategic partner of WICKMANN. The participating interests is aimed
at the long-term co-operation in the "Resettables" sector and provides the right
of exclusive marketing of the relevant products in Europe and North America with
ongoing distribution revenue. The long-term value of the participating interests
valuation can be seen in the group statements, despite the weakness of the
Taiwanese Dollar.
The PROPERTY OWNED BY THE GROUP is as follows:
IMPROVED PROPERTY in ha
2003 2002
---- ----
Business property 13.9 13.9
---- ----
Residential property 0.1 0.1
---- ----
Total 14.0 14.0
12
UNIMPROVED PROPERTY in ha
2003 2002
---- ----
Commercial land 2.7 2.7
---- ----
Agriculture and forestry
land 16.5 16.5
---- ----
Total 19.2 19.2
---- ----
Altogether 33.2 33.2
No property was sold or acquired in the business year 2003.
In addition to adjustments for stocking risks, the INVENTORIES also take into
account additional value adjustments amounting to E0.7 Mio, resulting from the
sale of erwilo on February 29, 2004 .
The TRADE RECEIVABLES, RECEIVABLES FROM AFFILIATED COMPANIES, AND RECEIVABLES
FROM COMPANIES IN WHICH THE COMPANY HAS A PARTICIPATING INTEREST have a
remaining term of less than one year.
The OTHER ASSETS consist mainly of tax credits of KE 829. The company and the
group also show receivables with a remaining term of more than one year of KE
153 and KE 398 respectively, which result mainly from outstanding claims from
re-insurance.
The SUBSCRIBED CAPITAL is E10,400,000 and is fully paid in. There are 2,000,000
single bearer stocks. Each single stock grants one vote.
In the group statements, E0.5 Mio has been placed in OTHER EARNINGS RESERVES.
The difference between the earning reserves in the balance sheet of HEINRICH
INDUSTRIE and the group balance sheet of E1.0 Mio is due to the following:
- Reallocation of the special account with a reserve characteristics from
individual balance sheets in the amount of E1.3 Mio in accordance
with the abolition of Section 308 Para. 3 HGB in conjunction with the
transparency and publicity law of July 19, 2002
- Earning reserves of subsidiary companies after initial consolidation
of E0.7 Mio
- Adjustment items from currency conversion shareholders' equity of
consolidated companies of E- 0.5 Mio
- Adjustment items from consolidations affecting the results of E- 0.5
Mio.
The increase in the earning reserves of the group over the previous year by E
1.0 Mio results from the reallocation of special account of E1.3 Mio, an
adjustment to the currency adjustment item of E - 0.8 Mio and a transfer to
group reserves of E0.5 Mio.
The BALANCING ITEM FOR MINORITY INTERESTS comes to E 0.3 Mio. This refers to the
foreign shares in the company capital of EFEN-Hungaria at E 0.2 Mio and
EFEN-Polska at E0.1 Mio.
The SPECIAL ACCOUNT WITH RESERVE CHARACTERISTICS in the amount of E2.2 Mio has
been transferred in the group statements on the final day of accounting into the
profit reserves in the amount of E1.3 Mio in accordance with the abolition of
Section 308 Para. 3 HGB after deduction of the latent taxes of E0.9 Mio.
The previously shown SPECIAL ACCOUNT FOR INVESTMENT SUBSIDIES TO FIXED ASSETS
from WICKMANN has been transferred to other reserves, due to the risk of a
repayment obligation.
The ACCRUALS FOR PENSIONS AND SIMILAR OBLIGATIONS include around KE 525 in
mining commitments (pension and payment in kind commitments).
The ACCRUALS FOR FORMER COAL-MINING have been calculated in accordance with the
agreements made with the financial administration at the cash value of the costs
to be anticipated for the future, or in the case of long-term damage at 20-times
the average annual cost.
The TAX ACCRUALS within the group have been formed largely for deferred taxes
and withholding taxes.
The OTHER ACCRUALS within the group relate principally to commitments in
connection with personnel costs, guarantee obligations, annual financial
statements costs, and outstanding invoices.
The increase of the other accruals within the group over the previous year of
E3.6 Mio is made up of E1.6 Mio from social security and compensation accruals
for restructuring measures, accruals for potential repayment obligation of an
investment subsidy of E1.0 Mio, and loss risks resulting from the sale of
erwilo in the amount of E0.5 Mio. The accruals for general personnel costs have
been increased by E0.3 Mio, and those for outstanding maintenance and process
costs by E0.1 Mio each.
The change in the other accruals of the company results from the above mentioned
loss risks in connection with erwilo.
13
LIABILITIES
GROUP
Dec. 31, 2003 Dec. 31, 2002
KE KE
------------- -------------
Bank loans and overdrafts 1,139 733
Customer advances 17 1
Trade payables 1,910 2,656
Payables to affiliated companies 15 15
Payables to companies in which the
company has a participating interest 1 56
Other liabilities 2,264 2,782
of
which taxes (527) (602)
which social security payables (751) (763)
------------- -------------
5,346 6,243
------------- -------------
HEINRICH INDUSTRIE
Dec. 31, 2003 Dec. 31, 2002
KE KE
------------- -------------
Trade payables 61 109
Payables to affiliated companies 25,739 25,448
Other liabilities 99 61
of
which taxes (66) (31)
which social security payables (23) (20)
------------- -------------
25,899 25,618
------------- -------------
With the exception of the liabilities in favour of banks, the liabilities of the
company and the group all have a remaining period of less than one year.
The liabilities in favour of banks within the group relate to loans by Dongguan
WICKMANN and Dongguan EFEN in order to cover exchange rate risks.
CONTINGENCIES AND OTHER FINANCIAL OBLIGATIONS
LIABILITIES FROM EXTENDED CREDIT ORDERS exist within the company and the group
in the amount of KE 1,510, all of which have been granted to the subsidiaries
of HEINRICH INDUSTRIE. OTHER FINANCIAL OBLIGATIONS exist in the form of EDP
service contracts within the group, amounting to KE 819, of which KE 819 is
due to the company.
6. EXPLANATIONS ON THE PROFIT AND LOSS ACCOUNT
14
The SALES of E1.4 Mio for HEINRICH INDUSTRIE, as in previous years,
relates solely to income from the rental and leasing of property.
The group turnover by region is made up as follows:
Rest of Other
SALES in Mio E Germany EU-territory Europe Asia countries Total
2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
WICKMANN
Group 28.3 28.3 13.8 13.8 9.1 8.3 14.8 17.2 6.6 5.0 72.6 72.6
In % of total 39 39 19 19 13 11 20 24 9 7 100 100
erwilo 9.2 8.9 0.5 0.5 0.1 0 0 0 0 0 9.8 9.4
In % of total 94 94 5 6 1 0 0 0 0 0 100 100
HEINRICH
INDUSTRIE 1) 0.4 0.4 0 0 0 0 0 0 0 0 0.4 0.4
In % of total 100 100 0 0 0 0 0 0 0 0 100 100
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Group 37.9 37.6 14.3 14.3 9.2 8.3 14.8 17.2 6.6 5.0 82.8 82.4
In % of total 46 46 17 17 11 10 18 21 8 6 100 100
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
1) including H.I. BETEILIGUNGEN, H.I. IMMOBILIEN and consolidation
GROUP HEINRICH INDUSTRIE
2003 2002 2003 2002
OTHER OPERATING INCOME KE KE KE KE
---------------------- ----- ----- ----- -----
Income from the retirement of
fixed assets 3,491 1,555 3,363 23
Income from release of special account
with reserve characteristics in accordance with
german tax law (Section 6b EStG) 2,499 586 102 27
Income from release of other account for
Investment subsidies 0 283 0 0
Rest of other operating income 1,224 1,868 790 1,162
----- ----- ----- -----
Sum 7,214 4,292 4,255 1,212
----- ----- ----- -----
The income from the sale of fixed assets of E3.5 Mio results principally from
the sale of the participating interests in Ruhrgas AG.
The other operating income for HEINRICH INDUSTRIE includes administration costs
charged to group companies.
In the business year 2003, KE 284 amounted of the SOCIAL SECURITY CONTRIBUTIONS
AND COSTS FOR RETIREMENT PROVISION AND SUPPORT RETIREMENT PROVISION to (previous
year KE 260) for HEINRICH INDUSTRIE and KE 765 (previous year KE 726) for the
group.
15
GROUP HEINRICH INDUSTRIE
2003 2002 2003 2002
OTHER OPERATING EXPENSES KE KE KE KE
------------------------ ------ ------ ----- -----
Expenses from additions to special accounts
with reserve characteristics in accordance
with Section 6b EStG 0 14 0 14
Losses from disposal of fixed assets 90 38 0 0
Mining damages 40 1,430 40 1,430
Other taxes 152 276 33 33
Rest of other operating expenses 16,575 14,503 1,496 796
------ ------ ----- -----
Sum 16,857 16,261 1,569 2,273
------ ------ ----- -----
In addition to trade tax credits, the other operating costs for HEINRICH
INDUSTRIE include in particular administration costs and allocation to accruals,
and in the group statements also sales and maintenance costs.
The INCOME AND EXPENSES FROM CORPORATION TAX TRANSFER for HEINRICH INDUSTRIE
include tax transfers in connection with profit transfer contracts and costs of
assuming losses.
The TAXES ON INCOME of the company include current tax liabilities of KE 31 and
liabilities from previous years of KE 14. The current tax liabilities appear
relatively low in comparison to the result from normal business activities; this
is mainly due to the tax-exempt sale of the participating interests in Ruhrgas
AG and the receipt of dividends from foreign subsidiaries.
In the group income statement, the taxes on income have been increased by the
latent taxes due for the reporting year in the amount of KE 29 (previous year:
reduction of KE 16).
16
The following income and expenses of items of the income statement result from
affiliated companies:
GROUP HEINRICH INDUSTRIE
2003 2002 2003 2002
KE KE KE KE
---- ---- ----- -----
Income from participating interests 0 0 0 1,034
Other interest and similar income 0 0 1,903 830
Interest and similar expenses 1 1 1,461 288
17
7. OTHER INFORMATION
CONSOLIDATED AFFILIATED COMPANIES
Shareholding Profit and
Subscribed Translation Dec.31, 2003 loss transfer
capital in E % in company agreement
--- ----------- ----------- --- ------------ -------------
1 HEINRICH INDUSTRIE AG, Essen,
Germany E 10,400,000
2 H.I. BETEILIGUNGEN GmbH,
Essen, Germany E 26,000 100 1. 1.
3 WICKMANN-Werke GmbH, Witten,
Germany E 15,000,000 100 2. 2.
4 WICKMANN Components (UK) Ltd.,
Redditch/Worcestershire,
Great Britain GBP 30,000 42,475 100 3.
5. WICKMANN USA, Inc.,
Atlanta/Georgia, USA USD 1,000,000 793,210 100 3.
6. WICKMANN Asia Ltd.,
Hong Kong, China HKD 2,500,000 255,389 100 1.;3.
7 Dongguan WICKMANN
Electrical Products Co., Ltd.,
Chang Ping, China HKD 16,800,000 1,748,628 100 3.
8 EFEN GmbH, Eltville, Germany E 4,000,000 100 2. 2.
9. EFEN Kaposvar Hungaria Kft.,
Kaposvar, Hungaria HUF 150,000,000 572,268 80 8.
10. EFEN Polska Sp. z o.o.,
Siemianowice Slaskie, Poland PLN 2,200,000 465,559 75 8.
11. Dongguan EFEN Electrical Products
Co., Ltd., Chang Ping, China USD 489,600 377,302 100 8.
12. Wilhelm PUDENZ GmbH, Dunsen,
Germany E 5,300,100 100 2. 2.
13. H.I. IMMOBILIEN MANAGEMENT
GMBH, Essen, Germany DM 800,000 409,033 100 1. 1.
14. erwilo Sonnenschutz GmbH,
Bochum, Germany DM 7,700,000 3,936,947 100 1. 1.
18
NON-CONSOLIDATED AFFILIATED COMPANIES
Shareholding
Subscribed Translation in Dec.31, 2003
capital E % in company
--- ----------- -------------- ----- ------------
15. Motherson PUDENZ WICKMANN Ltd.,
New Delhi, India RPS 25,000,000 508,000 43.87 3.;12.
16. Hinnenberg Beteiligungsgesellschaft
mbH i.L., Essen, Germany DM 52,000 26,587 100 14.
PARTICIPATING INTERESTS
Shareholding
Subscribed Translation in Dec.31, 2003
capital E % in company
--- ----------- -------------- ----- ------------
17. POLYTRONICS Technology Corporation
Ltd., Hsin-Chu, Taiwan TWD 401,542,000 9,419,942 8.94 3.
18. Switchgear Systems Ltd., Rugby/
Warwickshire, Great Britain GBP 27,027 38,266 26 8.
The complete listing of the share ownership of HEINRICH INDUSTRIE and the group
is deposited with the Companies Register of the District Court of Essen under
HRB 1297.
As companies incorporated in the group financial statements of HEINRICH
INDUSTRIE, and in accordance with the elective right of Section 264 Para. 3 HGB,
the companies H.I. BETEILIGUNGEN GmbH, WICKMANN-Werke GmbH, EFEN GmbH, Wilhelm
PUDENZ GmbH, H.I. IMMOBILIEN MANAGEMENT GMBH and erwilo Sonnenschutz GmbH have
foregone the disclosure of their annual financial statements and management
reports.
19
STATEMENT OF CHANGES IN EQUITY
HEINRICH INDUSTRIE
Accumulated other gains
Subscribed Capital and losses recognised
Capital Contribu- Own directly in equity
------------------ tion not Equity shares ------------------------
Prefer- yet earned held for Translation/
Ordinary ence called Capital by the redemp- exchange Other
shares shares up reserves group tion differences items
E E E E E E E E
---------- ------- --------- ---------- ---------- -------- ------------ ----------
Balance at Dec. 31, 2002 10,400,000 0 0 10,992,775 11,030,436 0 248,653 0
---------- ------- --------- ---------- ---------- -------- ------------ ----------
Proceeds from issue of shares
Acquisitions/redemption of own shares
Dividends paid -1,100,000
Changes in reporting entity
Other changes -47,896 -797,176 1,336,480 1)
---------- ------- --------- ---------- ---------- -------- ------------ ----------
Group net profit or loss for the year 1,645,451
Other gains and losses recognised
directly in equity
---------- ------- --------- ---------- ---------- ------------ ----------
Total recognised results for the group 1,645,451
---------- ------- --------- ---------- ---------- -------- ------------ ----------
Balance at Dec. 31, 2003 10,400,000 0 0 10,992,775 11,527,991 0 -548,523 1,336,480
---------- ------- --------- ---------- ---------- -------- ------------ ----------
HEINRICH INDUSTRIE SHARES OF OTHER MINORITY SHAREHOLDERS
Minority Accumulated other
Equity as interest gains and losses
disclosed in Own in capital recognised directly
consolidation shares not and in equity
------------------- TOTAL
balance held for earned Translations Other GROUP
sheet redemption EQUITY results differences items EQUITY EQUITY
E E E E E E E E
------------- ---------- ---------- ---------- ------------ ----- ------- ----------
Balance at Dec. 31, 2002 32,671,864 0 32,671,864 403,649 0 0 403,649 33,075,513
------------- ---------- ---------- ---------- ------------ ----- ------- ----------
Proceeds from issue of shares 0 0 0
Acquisitions/redemption of own shares 0 0 0
Dividends paid -1,100,000 -1,100,000 -9,888 -9,888 -1,109,888
Changes in reporting entity
Other changes 491,408 491,408 -61,436 -61,436 429,972
------------- ---------- ---------- ---------- ------------ ----- ------- ----------
Group net profit or loss for the year 1,645,451 1,645,451 -1,482 -1,482 1,643,969
Other gains and losses recognised
directly in equity 0 0 0
------------- ---------- ---------- ---------- ------------ ----- ------- ----------
Total recognised results for the group 1,645,451 1,645,451 -1,482 -1,482 1,643,969
------------- ---------- ---------- ---------- ------------ ----- ------- ----------
Balance at Dec. 31, 2003 33,708,723 0 33,708,723 330,843 0 0 330,843 34,039,566
------------- ---------- ---------- ---------- ------------ ----- ------- ----------
1) due to derecognition of special account with reserve characteristics as a
result of the lapse of Section 308 (3) HGB
20
SEGMENT INFORMATION
Result from
Orders received Sales ordinary operations
2003 2002 2003 2002 2003 2002
KE KE KE KE KE KE
-------- -------- -------- -------- -------- --------
WICKMANN Group 73,809 70,413 72,624 72,576 -49 1) 1,892
erwilo 9,853 9,317 9,843 9,418 -2,155 -520
HEINRICH INDUSTRIE,
H.I BETEILIGUNGEN,
H.I. IMMOBILIEN and
consolidation 373 368 373 368 4,141 -923
-------- -------- -------- -------- -------- --------
Group 84,035 80,098 82,840 82,362 1,937 449
-------- -------- -------- -------- -------- --------
1) including interest and similar income relating to organizational structure
project in 2002
Capital Investment 2) Depreciation
2003 2002 2003 2002 Employees
KE KE KE KE 2003 2002
-------- -------- -------- -------- -------- --------
WICKMANN Group 6,494 4,629 5,058 6,509 909 880
erwilo 160 55 120 149 69 79
HEINRICH INDUSTRIE,
H.I BETEILIGUNGEN,
H.I. IMMOBILIEN and
consolidation 153 68 44 62 17 3) 16 3)
-------- -------- -------- -------- -------- --------
Group 6,807 4,752 5,222 6,720 995 4) 975 4)
-------- -------- -------- -------- -------- --------
2) inclusive of financial assets
3) exclusive white-collar worker of HEINRICH INDUSTRIE
4) blue-collar worker 633 (previous year 607), white collar worker 362
(previous year 368), domestic 715 (previous year 735), foreign countries 280
(previous year 240)
Interest income Interest expenses Gross assets 5) Gross debts 6)
2003 2002 2003 2002 2003 2002 2003 2002
KE KE KE KE KE KE KE KE
-------- -------- -------- -------- -------- -------- -------- --------
WICKMANN Group 1,303 1) 20 816 888 60,463 57,678 22,768 19,321
erwilo 26 97 0 1 5,855 5,566 1,918 1,629
HEINRICH INDUSTRIE,
H.I BETEILIGUNGEN,
H.I. IMMOBILIEN and
consolidation -1,096 169 -764 -829 -5,530 -1,807 2,063 4,851
-------- -------- -------- -------- -------- -------- -------- --------
Group 233 286 52 60 60,788 61,437 26,749 25,801
-------- -------- -------- -------- -------- -------- -------- --------
21
5) Balance sheet total
6) Balance sheet total less Shareholder's Equity and 50% Special reserves
22
ASSESSMENT OF HEINRICH INDUSTRIE AG ON THE GERMAN CORPORATE GOVERNANCE CODEX
The conformity declarations with restrictions in accordance with Section 161
AktG have been made by the Executive Board and Supervisory Board of HEINRICH
INDUSTRIE, published on the Internet homepage www.heinrich-industrie.com on
December 19, 2003, and made available to the shareholders. The assessment is
contained in the management report.
CASH FLOW STATEMENT FOR THE GROUP
2003 2002
KE KE
---------- -------
Net income for the year 1,644 335
Write downs on non-current
assets 5,222 6,720
Change of non-current provisions -2 858
Change of special account with
reserve characteristics -2,499 -854
Deferred taxes expenses/-income 29 -16
Other cash income 1,200 -89
---------- -------
CASH-FLOWS 5,594 6,954
Adjusted cash income from
special effects -3,356 -1,471
CASH-FLOWS TO DVFA/SG 2,238 5,483
Change of current accruals 2,597 -331
Profit on disposals of property, plant and equipment -44 -46
Increase of inventories, trade receiveables, an other assets 376 822
Decrease of accounts payable and other equity and liabilities -1,307 -298
---------- -------
CASH-FLOWS FROM OPERATING ACTIVITIES 3,860 5,630
Proceeds from disposals of property,
plant, and equipment 171 1,668
Purchase of property, plant, and equipment -4,182 -4,306
Purchase of intangible assets -1,667 -445
Proceeds on disposals of non-current financial assets 3,953 37
Acquisition of non-current financial assets -958 -1
---------- -------
CASH-FLOWS FROM INVESTING ACTIVITIES -2,683 -3,047
Cash payments to shareholders -1,100 -1,500
Cash payments to minority shareholder -10 -45
Cash proceeds from issuing loans 535 0
---------- -------
CASH-FLOWS FROM FINANCING ACTIVITIES -575 -1,545
Change in cash funds from cash relevant transactions 602 1,038
23
Change in cash funds from exchange rate movements, changes in group
structure, and in valuation procedures for cash funds -664 -641
Cash funds at the beginning of period 12,511 12,114
---------- -------
CASH FUNDS AT THE END OF PERIOD 12,449 12,511
========== =======
PARTICIPATING INTERESTS IN HEINRICH INDUSTRIE AG
Wilh. Werhahn KG, Neuss, has a 50.827% participating interests in the subscribed
capital of our company via the Markische Bau-Union GmbH, Potsdam. The firm of
RWE Aktiengesellschaft, Essen, has a 31.553% participating interests via the
Harpen Aktiengesellschaft, Dortmund, the latter via the firm of VEW Umwelt GmbH,
Dortmund.
The group financial statements of HEINRICH INDUSTRIE are incorporated in the
group statements of Wilh. Werhahn KG, Neuss. Our group financial statements are
deposited with the District Court of Essen under HRB 1297.
ORGANS OF THE COMPANY
The members of the Supervisory Board and the Executive Board of HEINRICH
INDUSTRIE are listed on Page 3 of the business report. They carry out the
following tasks of the Supervisory Board and other responsibilities:
SUPERVISORY BOARD
a) Membership of legally required supervisory boards
b) Membership of comparable domestic and foreign control committees
In the event of subsequent stipulations within the reporting period, the
relevant mandate is also listed both for the predecessor and successor.
WILHELM WERHAHN, Neuss
to February 28, 2003
Chairman to February 28, 2003
Member of the Board of Wilh. Werhahn KG, Neuss, to January 31, 2003
a) - Gesellschaft fur Buchdruckerei AG,
Neuss, Chairman
- RWE-DEA Aktiengesellschaft fur Mi-
neraloel and Chemie, Hamburg
- Zwilling J. A. Henckels AG, Solingen,
Vice-chairman to January 31, 2003
- RWE Power AG, Essen,
to February 21, 2003
b) - Administrative Council of Wilh. Werhahn
KG, Neuss
- Neusser Zeitungsverlag GmbH,
Neuss, Chairman
- ISR Internationale Schule am Rhein
in Neuss GmbH, Neuss
24
DR. NORBERT WIEMERS, Dusseldorf
Chairman from March 21, 2003
Board spokesman of Wilh. Werhahn KG, Neuss
a) - RWE Power AG, Essen,
from February 21, 2003
- Basalt-Actien-Gesellschaft, Linz
- Zwilling J. A. Henckels AG,
Solingen, from February 1, 2003
b) - D. A. Stuart Company, Warrenville,
Illinois/USA, Chairman of the Board
PROF. DR.-ING. ROLF WINDMOLLER,
Ennepetal
Vice-chairman
Member of the Board of RWE Net AG, Dortmund, to September 30, 2003
a) - AVU Aktiengesellschaft fur Versor-
gungsunternehmen, Gevelsberg
- E.ON Engineering GmbH, Gelsen- kirchen
- OSRAM GmbH, Munchen
- SAG Netz- and Energietechnik
GmbH, Langen
- LEW Lechwerke AG, Augsburg,
to September 30, 2003
- Pfalzwerke AG, Ludwigshafen,
to September 30, 2003
- DEW Dortmunder Energie- und
Wasserversorgung GmbH,
Dortmund, to September 30, 2003
DR. HEINZ BLUMMERS, Essen
to May 6, 2003
Board of the Anita-Thyssen-Stiftung,
Managing Director of Thyssen Vermogensverwaltung GmbH, Dusseldorf,
former Chairman of the Board of HEINRICH INDUSTRIE AG, Essen
a) - Wanderer-Werke AG, Augsburg,
to July 9, 2003
JURGEN PEDDINGHAUS, Hamburg
from May 6, 2003
company consultant
a) - Faber-Castell AG, Stein,
Chairman
- Jungheinrich AG, Hamburg
- Kuhlhaus Zentrum AG,
Hamburg, Chairman
- Schwarz Pharma AG, Monheim
- Zwilling J. A. Henckels AG, Solingen
b) - MAY Holding GmbH & Co. KG,
25
Erftstadt, Chairman
- Severin Elektrogerate GmbH,
Sundern, Council Member
- Norddeutsche Private Equity,
Hamburg, Council Member
DR. MICHAEL WERHAHN, Neuss
from May 6, 2003
Member of the Board of Wilh. Werhahn KG, Neuss
a) - Ontos Lebensversicherung AG, Neuss
- Ontos Versicherung AG, Neuss
- Rheinland Holding AG, Neuss, Vice-
chairman
- Rheinland Versicherungs AG, Neuss,
Vice-chairman
- Rheinland Lebensversicherung AG,
Neuss, Vice-chairman
b) - ABC-Leasing GmbH, Koln
- Stadtwerke Neuss GmbH, Neuss
- Stadtwerke Neuss Energie und
Wasser GmbH, Neuss
- D. A. Stuart Company, Warrenvillle,
Illinois/USA, Chairman to
November 4, 2003
- Dresdner Bank AG, Dusseldorf,
Council Member
- Gothaer Ruckversicherung AG, Koln,
Council Member
- MBU Vermogens- and Beteiligungs-
verwaltung GmbH & Co. KG,
Chairman of the Council
- MBU Vermogens- and Beteiligungs-
verwaltung II GmbH & Co. KG,
Chairman of the Council
- WW Vermogens- and Beteiligungs-
verwaltung GmbH & Co. KG,
Chairman of the Council
- Verbindungsstelle Landwirtschaft-
Industrie e.V., Essen, Council
Member
- Biesterfeld, Scheibler, Linssen GmbH
& Co., Hamburg, Member of
the Shareholders Committee
- Markische Bau-Union GmbH,
Potsdam, to November 14, 2003
Chairman of the Council
FRANZ SCHMIDT, Geisenheim 1)
Clerk
EFEN GmbH, Eltville
no further mandates
26
\
ELKE MEIER, Witten 1)
to May 6, 2003
Operator
WICKMANN-Werke GmbH, Witten
no further mandates
CLAUDIA HOLTERMANN, Witten 1)
from May 6, 2003
Operator
WICKMANN-Werke GmbH, Witten
no further mandates
1) Employee members of the Supervisory Board
EXECUTIVE BOARD
DR. ULRICH BLANK, Essen
Chairman
no further mandates
DR. HORST HUBNER, Witten
b) - POLYTRONICS Technology
Corporation Ltd., Hsin-Chu/Taiwan,
Member of the Board
REMUNERATION OF THE EXECUTIVE BOARD AND SUPERVISORY BOARD
The total remuneration of the Executive Board in the reporting year came to E
605.725 (previous year E601.555). A total of E179.042 (previous year E 177.142)
was paid out in retirement and dependent benefits for former members of the
Board. E1,517,236 (previous year E1,548,310) is contained in the reserves for
pensions and similar commitments for the above group of people. The remuneration
of the Supervisory Board amounted to E53,944 (previous year E59,725).
27
PROPOSAL ON THE APPROPRIATION OF THE NET PROFIT OF HEINRICH INDUSTRIE AG
The Executive Board and Supervisory Board propose that the net income shown in
the balance sheet of the business year 2003 in the amount of E1,100,000 be used
to pay a dividend of E0.55 per share in the company capital of E10,400,000,
divided into 2,000,000 individual shares.
Essen, February 12, 2004
HEINRICH INDUSTRIE AG
The Executive Board
Dr. Ulrich Blank Dr. Horst Hubner
ITEM 7b. PRO FORMA FINANCIAL INFORMATION.
Below is the pro forma financial information required by Item 7(b) of this
Form 8-K relating to the acquisition of Heinrich described above.
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL DATA
Littelfuse historical consolidated financial data for the year ended
January 3, 2004, and as of and for the three months ended April 3, 2004, are
derived from its consolidated financial statements. The historical balance sheet
and income statement data as of and for the three months ended April 3, 2004,
have been derived from its unaudited consolidated financial statements and
include all adjustments, consisting of normal recurring accruals, that
management considered necessary for a fair presentation of our consolidated
financial position and results of operations for such periods.
On May 5, 2004, Littelfuse entered into a definitive agreement to acquire
an 82% stake in Heinrich Industrie AG. The Heinrich historical financial data
for the year ended December 31, 2003, and as of and for the three months ended
March 31, 2004, are derived from Heinrich's financial statements as adjusted
into US GAAP. The year ended December 31, 2003, Heinrich financial statements
are included in Item 7a and are presented in German GAAP. Littelfuse funded the
acquisition with $18.1 million in cash and $32.0 million in borrowings on an
existing revolving line of credit.
28
The pro forma adjustments for the Heinrich acquisition reflect the pro
forma adjustments under the purchase method of accounting and adjustments to
record additional borrowings by Littelfuse to complete the purchase.
The pro forma data assumes that the acquisition of Heinrich occurred on
December 29, 2002, in the case of the Unaudited Pro Forma Consolidated Income
Statements for the year ended January 3, 2004, and for the three months ended
April 3, 2004. In the case of the Unaudited Pro Forma Consolidated Balance
Sheet, the pro forma data assumes that the acquisition of Heinrich occurred as
of April 3, 2004.
The pro forma financial information should be read in conjunction with the
Littelfuse historical financial statements as of and for the year ended January
3, 2004, and the unaudited consolidated historical financial statements as of
and for the three months ended April 3, 2004. The audited historical financial
statements of Heinrich as of and for the year ended December 31, 2003, under
German GAAP are included in Item 7a and should be read in conjunction with these
historical financial statements. The pro forma information is not necessarily
indicative of future earnings or earnings that would have been reported for the
periods presented had these transactions been completed at the beginning of the
earliest period presented.
29
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENTS
(IN THOUSANDS, EXCEPT FOR SHARE DATA)
Twelve Months Ended January 3, 2004
-----------------------------------------------------------------------
Pro Forma
Littelfuse Heinrich Adjustments for As Adjusted
Historical Historical Heinrich Acquisition Pro Forma
----------- ------------ -------------------- ------------
Net sales $ 339,410 $ 93,832 $ 433,242
Cost of sales 234,984 67,112 1,443 (a) 303,539
----------- ------------ ----------- ------------
Gross profit (loss) 104,426 26,720 (1,443) 129,703
Selling, general and administrative expenses 68,579 23,467 92,046
Research and development expenses 8,694 5,688 14,382
Amortization of intangibles 1,072 37 497 (b) 1,606
----------- ------------ ----------- ------------
Operating income (loss) 26,081 (2,472) (1,940) 21,669
Interest expense 2,045 58 694 (c) 2,797
Other (income) expense 68 (4,360) (4,292)
----------- ------------ ----------- ------------
Income (loss) before minority interest and income taxes 23,968 1,830 (2,634) 23,164
Minority interest - - 456 (d) 456
Income tax expense (benefit) 8,629 (757) 303 (e) 8,175
----------- ------------ ----------- ------------
Net income $ 15,339 $ 2,587 $ (3,393) $ 14,533
=========== ============ =========== ============
Net income (loss) per share:
Basic $ 0.70 $ 0.12 $ (0.16) $ 0.66
=========== ============ =========== ============
Diluted $ 0.70 $ 0.11 $ (0.15) $ 0.66
=========== ============ =========== ============
Weighted average shares and equivalent
shares outstanding:
Basic 21,881
===========
Diluted 22,044
===========
See accompanying notes.
30
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENTS
(IN THOUSANDS, EXCEPT FOR SHARE DATA)
Three Months Ended April 3, 2004
------------------------------------------------------------
Pro Forma
Littelfuse Heinrich Adjustments for As Adjusted
Historical Historical Heinrich Acquisition Pro Forma
---------- ---------- -------------------- -----------
Net sales $ 111,418 $ 24,845 $ 136,263
Cost of sales 71,613 16,520 354 (a) 88,487
--------- ---------- ---------- ----------
Gross profit (loss) 39,805 8,325 (354) 47,776
Selling, general and administrative expenses 20,543 6,366 26,909
Research and development expenses 3,181 1,449 4,630
Amortization of intangibles 339 8 122 (b) 469
--------- ---------- ---------- ----------
Operating income (loss) 15,742 502 (476) 15,768
Interest expense 426 76 179 (c) 681
Other (income) expense 307 (142) 165
--------- ---------- ---------- ----------
Income (loss) before minority interest and income taxes 15,009 568 (655) 14,922
Minority interest - - 66 (d) 66
Income tax expense (benefit) 5,403 193 (248)(e) 5,348
--------- ---------- ---------- ----------
Net income (loss) $ 9,606 $ 375 $ (473) $ 9,508
========= ========== ========== ==========
Net income (loss) per share:
Basic $ 0.44 $ 0.01 $ (0.02) $ 0.43
========= ========== ========== ==========
Diluted $ 0.43 $ 0.01 $ (0.02) $ 0.42
========= ========== ========== ==========
Weighted average shares and equivalent
shares outstanding:
Basic 22,032
=========
Diluted 22,388
=========
See accompanying notes.
31
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
April 3, 2004
------------------------------------------------------------
Pro Forma
Littelfuse Heinrich Adjustments for As Adjusted
Historical Historical Heinrich Acquisition Pro Forma
---------- ---------- -------------------- -----------
ASSETS:
Cash and cash equivalents $ 23,895 $ 13,970 $ (18,163)(f) $ 19,702
Receivables 60,282 17,572 77,854
Inventories 54,430 19,385 377 (g) 74,192
Other current assets 25,166 - 25,166
---------- ---------- ---------- ----------
Total current assets 163,773 50,927 (17,786) 196,914
Property, plant, and equipment, net 94,140 16,506 18,377 (h) 129,023
Intangible assets, net 11,604 3,578 961 (i) 16,143
Goodwill 48,643 38 9,345 (j) 58,026
Investments - 5,854 5,854
Other assets 2,945 9 2,954
---------- ---------- ---------- ----------
Total assets $ 321,105 $ 76,912 $ 10,897 $ 408,914
========== ========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities excluding current portion
of long-term debt 62,372 22,356 10,505 (k) 95,233
Current portion of long-term debt 18,685 - 18,685
---------- ---------- ---------- ----------
Total current liabilities 81,057 22,356 10,505 113,918
Long-term debt 10,155 1,445 32,000 (f) 43,600
Accrued post-retirement benefits 5,301 11,670 16,971
Other long-term liabilities 1,233 1,378 1,076 (l) 3,687
Minority interest in consolidated subsidiaries - 388 6,991 (m) 7,379
Shareholders' equity 223,359 39,675 (39,675)(n) 223,359
---------- ---------- ---------- ----------
Total liabilities and shareholders' equity $ 321,105 $ 76,912 $ 10,897 $ 408,914
========== ========== ========== ==========
See accompanying notes.
32
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS)
The following table sets forth the purchase price allocation for the
acquisition of Heinrich as of April 3, 2004, in accordance with the
purchase method of accounting with adjustments to record the acquired
assets and liabilities of Heinrich at their estimated fair market or net
realizable values.
Purchase price $ 47,748
Plus: acquisition costs 2,415
--------
Total purchase price $ 50,163
Purchase price allocation
Current assets $ 51,304
Property, plant and equipment 34,883
Intangible assets 4,539
Goodwill 8,995
Investments and other assets 5,863
Current liabilities (22,356)
Purchase accounting liabilities (10,505)
Long term debt (1,445)
Other long-term liabilities (14,124)
Minority interest (6,991)
--------
$ 50,163
The final purchase price allocation is subject to revision based upon
receipt of the independent appraisal of the property, equipment and
intangible assets acquired.
Purchase accounting liabilities are estimated to be $10,505 and are
primarily for redundancy costs related to manufacturing operations and
selling, general and administrative functions.
(a) Represents depreciation expense related to the estimated $18,377 write-up
to record fixed assets at fair value at April 3, 2004 as per the following
table:
Depreciation Expense
Year Ended Three Months
Remaining Useful January 3, Ended April 3,
Life of Assets 2004 2004
---------------- ---------- --------------
Machinery, equipment and
buildings 12.3 years $1,443 $354
(b) Represents amortization related to the estimated $4,539 of intangible
assets recorded at April 3, 2004 as per the following table:
33
Amortization Expense
Year Ended Three Months
Weighted Average January 3, Ended April 3,
Useful Life 2004 2004
---------------- ---------- --------------
Intangible assets 8.3 years $497 $122
(c) In April, 2004, Littelfuse borrowed $32,000 under its line of credit to
fund the acquisition. Pro forma adjustments to interest expense are as
follows:
Twelve Months Three Months
Ended January 3, Ended April 3,
2004 2004
---------------- ---------------
Interest on revolving line of credit $694 $179
Pro forma interest expense under the revolving line of credit assumes a
rate of 2.1% and 2.2% for the year ended January 3, 2004 and the three
months ended April 3, 2004, respectively.
(d) Represents minority interest for the period.
(e) Represents an adjustment to reflect tax expense at the Littelfuse
effective tax rate of 36%.
(f) Following are the estimated sources and uses of funds to acquire
Heinrich as if it were acquired by Littelfuse as of April 3, 2004.
Sources of funds:
Cash $ 18,163
Proceeds from revolving line of credit 32,000
------------
Total sources of funds $ 50,163
Uses of funds:
Purchase of Heinrich $ (47,748)
Acquisition costs (2,415)
------------
Total uses of funds $ (50,163)
(g) Represents an adjustment to record inventory at fair value.
(h) For purposes of preliminary purchase price allocation, an estimated
write-up in fixed assets in the amount of $18,377 has been reflected to
record fixed assets at fair market value. The final fixed asset fair
market value is subject to revision based upon appraisal.
(i) For purposes of preliminary purchase price allocation, an adjustment of
$961 to record an estimated valuation of intangible assets in the amount
of $4,539 has been reflected to record intangible assets at fair market
value. The final intangible asset value is subject to revision based upon
appraisal.
(j) For purposes of preliminary purchase price allocation, an adjustment of
$9,345 to record an estimated valuation of goodwill in the amount of
$9,383 has been reflected. The final goodwill amount is subject to
revision based upon appraisal.
(k) Represents adjustments to record liabilities amounting to $10,505 for
estimated severance costs and other liabilities resulting from the
integration of Heinrich into Littelfuse. This estimated purchase
accounting liability is subject to revision based upon final completion of
the purchase price allocation.
34
(l) Represents an adjustment to deferred taxes.
(m) Represents minority interest related to Heinrich shares not purchased by
Littelfuse.
(n) Eliminates shareholders' equity of Heinrich.
Item 7c EXHIBITS
Number Description of Exhibit
------ ----------------------
23 Consent of PwC Westdeutschland
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
LITTELFUSE, INC.,
a Delaware corporation
Date: July 20, 2004 By: /s/ Philip G. Franklin
------------------------------------------
Name: Philip G. Franklin
Title: Vice President, Operations Support
and Chief Financial Officer (As duly
authorized officer and as the principal
financial and accounting officer)
35