Non-current assets

Intangible assets are licenses, industrial property rights, electricity-purchase rights, water rights, software, user rights for plants owned by third parties and licenses derived therefrom.

Additions to plant, property and equipment (€ 74.6 million) include the automation of the power plants of VERBUND-Austrian Hydro Power AG (€ 10.9 million), the renovation of the power descent of the power plant Kaprun of VERBUND-Austrian Hydro Power AG (€ 10.4 million), the construction of the 380 kV line Kainachtal-Southern Burgenland of VERBUND-Austrian Power Grid AG (€ 8.4 million), he transformer exchange program of VERBUND-Austrian Power Grid AG (€ 4.9 million), the construction of the Leoben power plant of VERBUND-Austrian Hydro Power AG (€ 3.9 million) as well as the additional retrofitting of the substations of VERBUND-Austrian Power Grid AG for remote controlling (€ 2.1 million).

In the wake of the restructuring transactions carried out in the previous year, the power plant Triebenbach was taken over on the basis of a financial-leasing arrangement. It was included, as of 31 December 2003, under plant, property and equipment with a residual book value of € 22.7 million (previous year: € 23.7 million).

The corresponding liability will be repaid, within a year, to the amount of € 0.7 million, in the following four years to the amount of € 3.3 million and then to the amount of € 18.9 million. The total of nondiscounted leasing installments amounts to € 34.7 million, including the payment of the residual value (previous year: € 35.7 million). The leasing arrangement will end on 30 April 2015.

The amortization of goodwill entirely relates to VERBUND-Austrian Hydro Power AG in the amount of € 0.3 million.

AMORTIZATION OF INTANGIBLE ASSETS AND DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT		Million €
	2003	2002
Scheduled depreciation and amortization	181.4	190.7
Unscheduled depreciation and amortization	3.4	2.5
Amortization of goodwill	0.3	0.3
Amortization of intangible assets and depreciation of property, plant and equipment	185.1	193.5

The additions to interests in non-consolidated affiliated companies include, essentially, the granting of shareholders' contributions to VERBUND-BeteiligungsgmbH (€ 2.0 million) and, in other participating interests, the addition to master-talk Austria Telekom Service GmbH & Co KG (€ 1.2 million).

Disposals include, primarily, the sale of shares in EVN AG (€ 240.5 million), in EDASZ (€ 4.9 million), in MyElectric Energievertriebs- und -dienstleistungs GmbH (€ 1.7 million) as well as in Unsere Wasserkraft GmbH & Co KG (€ 0.7 million).

The value losses refer, above all, to VERBUND-BeteiligungsgmbH (€ 5.6 million), with this value loss being offset by the appropriate use of provisions in the same amount of the previous year, and to master-talk Austria Telekom Service GmbH & Co KG (€ 5.4 million).

Changes in the stated value of at equity consolidated companies are shown under additions/disposals.

LONG-TERM INVESTMENTS - CROSS BORDER LEASING		Million €
	Securities (loan stock rights) cross border leasing	Other loans cross border leasing	Total
Amortized cost as of 31.12.2002	468.1	569.5	1,037.6
Value increases	29.3	45.8	75.1
Disposals	-3.6	-36.4	-40.0
Valuation IAS 39 as of 31.12.2003	-83.5	-98.7	-182.2
Amortized cost as of 31.12.2003	410.3	480.2	890.5

Notes to cross border leasing transactions can be found under "Accounting and Valuation Methods".

Securities are held until bullet maturity. They consist of American zero bonds (US Treasuries) with an amount at maturity of USD 1,512.5 million (previous year: USD 1,512.5 million) as well as mediumterm notes with a nominal value of USD 58.0 million (previous year: USD 57.3 million).

Of the securities, an amount of € 430.4 million is pledged (previous year: € 405.3 million) and of loans, an amount of € 349.2 million (previous year: € 345.1 million).

The reposting of the acquisition costs of the long-term securities refers to reclassification from or to current assets (€ 7.7 million and € 5.2 million respectively). The related accumulated value adjustments were reclassified, on balance, at € 0.1 million.

Loans to companies in which participating interests are held include an electricity prepayment to Österreichisch-Bayerische Kraftwerke Aktiengesellschaft (€ 37.3 million), which was reduced, as scheduled and on balance, by € 2.3 million in 2003.

Long-term securities (€ 121.3 million) primarily comprise shares in investment funds. These are used, essentially, as cover for the provisions for pensions in compliance with §§ 14 and 116 EstG (Income Tax Law).

Other loans of € 121.2 million consist, essentially, of long-term receivables vis-à-vis the Republic of Austria from the pre-financing of building-cost contributions on account of the Republic of Austria. The building-cost contributions were used to finance facilities of the Danube power plants used by the shipping industry. As for the loans, € 31.7 million (previous year: € 31.5 million) will come due within a year.

Other long-term receivables are set off against prepayments received and include € 26.9 million (previous year: € 34.2 million) as the present value of future leasing installments for plants leased out by Verbund to a large customer (financial leasing under IAS 17). The lease agreements will terminate on 31 March 2006 and 30 September 2010. The total of non-discounted leasing installments amounts to € 28.7 million (previous year: € 37.6 million). Lease payments due within a year amount to € 8.6 million; lease payments due between 2005 and 2008 to € 16.7 million and € 1.6 million thereafter.

Other long-term receivables include receivables from the Republic of Austria in the amount of € 13.2 million (previous year: € 17.1 million).