Erlangen/Nuremberg, 18 June 2010 Solar Millennium AG (ISIN DE0007218406) has received the results from the extraordinary appraisal performed by the auditing and consulting firm Deloitte. The subject matter of the appraisal commissioned by the Supervisory Board at the Executive Board's request was the consolidation practices pertaining to the corporate IFRS financial statements for the last five fiscal years.
The circumstances assessed by Deloitte primarily pertain to the inclusion of the project and equity holding companies Solar Millennium Verwaltungs GmbH, Solar Millennium Beteiligungen GmbH and Ibersol Kraftwerks GmbH in the respective corporate financial statements in accordance with the International Financial Reporting Standards (IFRS) and the correct application of the relevant international accounting standards. Deloitte confirmed that the recognition of the circumstances in the annual financial statements was consistent with IFRS with one exception. The sale of 50 percent of stakes in the project company of Andasol 3 in the context of the deconsolidation of Solar Millennium Beteiligungen GmbH should not have been allocated to the 2005/2006 consolidated financial statements but instead should have been recognized in the 2008/2009 consolidated financial statements. The resulting adjustment to the 2008/2009 consolidated financial statements will be performed in the scope of the 2009/2010 interim reporting. As such, the preliminary result announced by the Executive Board at the Annual General Meeting is confirmed.
Thomas Mayer, spokesman of Solar Millennium AG's Executive Board, stated: "Thanks to the findings of the extraordinary appraisal, the doubts and repeatedly asked questions concerning accounting and consolidation practices of the earlier fiscal years have finally been dispelled. Independent of the result of the extraordinary appraisal, it is important to note that all of the relevant projects have been completed successfully. Sales and project results were realized, and the majority of payments has already been received within the expected schedules."
On 20 May 2010, Deloitte has been furthermore commissioned to appraise fund concepts with profit participation rights with regard to accounting and consolidation methods. Funds of this kind are an essential part of financing future solar projects. The appraisal is still ongoing. Moreover, Deloitte was commissioned to audit Solar Millennium AG's corporate financial statements for the current fiscal year by the ordinary Annual General Meeting on 6 May 2010. Contrary to the extraordinary appraisal, this audit will refer to the entire consolidated financial statements.
About Solar Millennium AG:
Solar Millennium AG, Erlangen, is an international company in the renewable energy sector, with its main focus on solar-thermal power plants. Together with its subsidiaries and associates, the Company specializes in parabolic trough power plants and has managed to take a globally leading position in this field. Solar Millennium strives to further extend its expertise in the area of solar-thermal power plants with the aim of achieving and securing sustainable technology leadership. As such, the Company covers all important business sectors along the value chain for solar-thermal power plants: from project development and financing to the technology and the turnkey construction and operation of power plants. In Spain, Solar Millennium developed Europe's first parabolic trough power plants and realized these together with partners. Additional projects are planned around the world with an overall capacity of more than 2,000 megawatts: here the current regional focus is on Spain, the US, India, China, the Middle East and North Africa.
About solar-thermal power plant technology:
Solar-thermal power plants generate electricity by converting solar radiation into heat energy. In a parabolic trough power plant, trough-shaped mirrors concentrate the incidental radiation onto a pipe in the focal line of the collector. Its absorption heats a fluid heat medium in the pipe, generating steam in the power block through a heat exchanger. As in conventional power plants, the steam powers a turbine to generate electricity. By integrating thermal storage, electricity can be supplied on demand, even after sunset.
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