annual report 2002/2003 · 2) proposal to be made at the general meeting the kässbohrer...

Annual Report 2002/2003

1) Because the balance sheet date was changed, the equity ratios for fiscal year 2001/2002 and fiscal year 2002/2003 are not comparable to those in earlier years.

2) Proposal to be made at the General Meeting

The Kässbohrer Geländefahrzeug Group in Figures.

(All figures in € millions) October 1 to October 1 to April 1 to

September 30 September 30 March 31

2002/2003 2001/2002 2000/2001

Consolidated Income Statement

Sales 130.2 132.2 136.2

Gross revenue 137.7 127.3 138.4

Cost of materials -80.0 -68.2 -79.8

Personnel expenses -26.6 -25.6 -23.8

Depreciation and amortization expense -2.6 -2.6 -2.5

Other operating expenses/income -19.6 -20.5 -17.6

EBIT 9.0 10.4 14.7

Financial result -1.9 -1.7 -1.2

Earnings before income tax 7.1 8.7 13.5

Taxes on income -2.8 -2.3 -5.2

Consolidated net income after taxes 4.3 6.4 8.3

Consolidated Balance Sheet

Assets

Fixed assets 13.1 11.7 10.8

Current assets/prepaid expenses 86.6 76.7 63.3

Equity and Liabilities

Equity 32.7 30.3 31.6

Provisions 15.8 17.4 19.6

Liabilities/deferred income 51.2 40.7 22.9

Total assets 99.7 88.4 74.1

Additional Key Figures

Average number of employees for the year 430 426 384

Sales per employee (in € thousands) 303 310 355

Return on sales (based on EBIT) in % 6.9 7.9 10.8

DVFA/SG earnings per share in € 0.97 1.32 1.65

DVFA/SG cash flow 7.5 9.9 11.1

Equity ratio 1)in % 32.8 34.3 42.7

Interest-bearing debt capital 32.4 26.6 10.6

Net investments 4.1 3.9 1.3

Cash dividend per share in € 0.15 2) 0.30 0.41

Cash dividend yield in % 1.2 2.5 2.6

4–5 Foreword by the Managing Board.

6–7 Report of the Supervisory Board.

PistenBully.8–9 Intellect and Vision.

10–11 Simply Unstoppable.

12–13 The Light Fantastic.

BeachTech.14–15 Beach. Sand. BeachTech.

Facts and Figures.18–19 Shareholder Information.

20-25 Combined Management Report and Group Management Report.

26-27 Balance Sheet and Consolidated Balance Sheet.

28-29 Income Statement and Consolidated Income Statement.

30-41 Combined Notes to the Single-Entity and Consolidated Financial Statements.

42 Auditors’ Report.

Contents.

4 | 5

As in the past, fiscal year 2002/2003, was dominated by

the crisis in the tourism industry which also affected the

winter sports industry. Uncertainty about skiers’ future

holiday behavior resulted in extremely cautious invest-

ment by our customers, the ski resort companies. As a

result, market volumes contracted for the second year

running. Despite these difficult conditions, we were able

to maintain our market share of over 50%, although we

were hit proportionally by the decline in the market for

new vehicles. Nevertheless, we managed to generate

sales of € 130.2 million (previous year: € 132.2 million),

thanks to strong spare parts business in the late winter

season and a high proportion of high-quality, top-of-the-

range vehicles.

The new winch-equipped vehicle that was launched on

the market in fall 2002 and the new PistenBully 300

Polar – a high-performance, high-horsepower vehicle

that has set new standards with its intelligent

SNOWtronic tiller control and economy of use – were

very successful. We were able to gain market share in

these vehicle classes.

With regard to beach cleaning equipment, the new self-

propelled BeachTech Marina successfully established

itself on the market. Sales of beach cleaning vehicles rose

from € 2.6 million to € 4.4 million, thanks to sales of this

new vehicle and additional sales to clean oil-polluted

beaches in France and Spain. To strengthen our sales and

service organization, we relocated the headquarters of

our French subsidiary to Tours en Savoie near Albertville

in summer 2003. This brings us closer to the majority of

our customers in France, and has already helped strengthen

our market position in the current sales season.

At € 4.3 million, consolidated net income for the year

was clearly down on the previous year (€ 6.4 million). In

addition to lower sales of new vehicles this was due to the

fall in exchange rates, particularly as against the US

dollar, but also against the Swiss franc. In view of this

sustained trend, it is vital that the Company optimizes its

organizational efficiency to be able to remain competitive

on these markets despite the unfavorable exchange rates.

Necessary measures to optimize costs and streamline the

organization were introduced in the spring of 2003.

Last winter showed that winter sports are less affected by

economic factors and geopolitical events than summer

tourism. This enabled ski resort companies to record

excellent results from February through April, thanks to

the excellent snow and weather conditions.

As a result, we are optimistic as to the coming winter

season. PistenBully's incoming orders are currently well

up on those for the previous year. After a good winter last

year and a further increase in customer confidence in our

product performance, we generated strong sales in the

summer and fall of 2003 for the upcoming winter. The

resulting higher advance production and the wider

product range led to a significant rise in inventories and

in the seasonal financing necessary as of September 30,

2003. This means that the equity ratio is slightly lower

Dear shareholders,

Foreword by the Managing Board.

�than that of the previous year despite the level of con-

solidated net income recorded.

Financing for small and medium-sized companies is

increasingly subject to stricter conditions as a result of

Basel II and more restrictive lending by banks. The

Company has to be able to meet these requirements in

order to be able to satisfy its working capital require-

ments during the year at reasonable conditions in the

future. This need for working capital is the result of the

strong seasonal fluctuations in financing the advance

production of vehicle shipments in the months of October

through December. To safeguard the Company’s equity

base, the Managing Board and Supervisory Board are

therefore proposing a lower dividend as against last year

of € 0.15 per no-par value bearer share to the General

Meeting, due to the decline in consolidated net income

for the year.

The main tasks in the coming years are to translate

increasing customer demands with respect to the per-

formance, reliability, and cost-effectiveness of our

vehicles into innovative solutions. Our Company's market

position is an excellent foundation upon which to further

improve our excellent competitive situation. In addition

to our ongoing development projects, the next phase of

the exhaust norms must be implemented by 2006 for our

vehicles’ specialized applications.

Due to strong incoming orders for winter 2003/2004, we

expect to increase consolidated sales again in the current

fiscal year – assuming a normal winter and strong spare

parts sales. As a result, earnings will also improve on

2002/2003 – provided that US dollar and Swiss franc

exchange rates do not fall significantly. Depending on

developments, we can then consider an increased divi-

dend proposal.

The positive outlook for fiscal year 2003/2004 and our

excellent market position are due to the dedication shown

by our employees. We would like to take this opportunity

to thank them warmly for their efforts.

In conclusion, we would also like to thank all our cus-

tomers, partners, and you, our shareholders, for the con-

fidence you have shown in us. We will continue to man-

age the Company in such a way that you can have abso-

lute trust in us in the future, too.

Laupheim, December 2003

The Managing Board

Gebhard Schwarz Rolf Glessing

Chairman

Rolf Glessing Gebhard Schwarz

6 | 7

In fiscal year 2002/2003, the Supervisory Board was briefed

by the Managing Board on the Company’s intended business

policy, fundamental issues of future management, the

Company’s position and development, and significant

business transactions by way of regular written and oral

reports. It also advised the Managing Board on these issues.

The Supervisory Board held twelve meetings in fiscal year

2002/2003. At least two meetings were held per calendar

half-year. The Managing Board briefed the Supervisory

Board in depth about the Company's position. All Super-

visory Board members attended every meeting. The focus of

the Supervisory Board's discussions was on market and

business developments, corporate planning, investments,

cost management, the progress of development projects, the

Company's annual financial statements, the ongoing review

of existing commitments at its branches and subsidiaries,

the Managing Board's risk control system, and affecting the

Managing Board itself.

The Supervisory Board also examined key individual

business transactions and passed resolutions on matters

submitted for its approval.

In between the regular meetings, the Chairman of the

Supervisory Board was in constant contact with the

Company's Managing Board. In addition, the Supervisory

Board was kept up to date about the Company’s financial

performance via monthly reports.

As the Supervisory Board only comprises three members, it

has not formed any committees.

The annual financial statements and the consolidated financial

statements of Kässbohrer Geländefahrzeug AG as well as

the combined management report and group management

report for the fiscal year from October 1, 2002 to September

30, 2003 were audited by Prof. Dr. Binder, Dr. Dr.

Hillebrecht & Partner GmbH Wirtschaftsprüfungsgesell-

schaft-Steuerberatungsgesellschaft, Stuttgart – the auditors

appointed by the General Meeting – and submitted by the

auditors to the Supervisory Board together with the audit

reports in good time before the meeting relating to the

financial statements on December 1, 2003. The auditors

reported on their audit as a whole and on the individual

focuses of the audit at this meeting on the financial

statements, and provided detailed responses to all questions

posed by the Supervisory Board. The audit opinions on the

single-entity annual financial statements and on the

consolidated financial statements were issued without

qualification; the Supervisory Board noted and approved

the results of the audit.

The Supervisory Board examined the single-entity annual

financial statements, the consolidated financial statements,

the combined management report and group management

report, and the proposal by the Managing Board for the

appropriation of net retained profits. It did not raise any

objections on completion of its inspection. The Supervisory

Board approved the annual financial statements of

Kässbohrer Geländefahrzeug AG, which have therefore

been adopted in accordance with section 172 (1) sentence 1

of the AktG (Aktiengesetz – German Public Companies

Act). The Supervisory Board concurs with the Managing

Board's proposal on the appropriation of net retained pro-

fits. The Supervisory Board approves the consolidated

financial statements and the group management report.

The Managing Board presented the voluntary dependent

companies report prepared in accordance with section 312

of the AktG to the Supervisory Board. The audit report pre-

pared by Prof. Dr. Binder, Dr. Dr. Hillebrecht & Partner

GmbH Wirtschaftsprüfungsgesellschaft-Steuerberatungs-

gesellschaft, Stuttgart, in accordance with section 313 of the

AktG was also presented to the Supervisory Board. The

auditor issued the following opinion on the basis of the

unqualified audit: "On completion of our audit in accordance

with professional standards, we confirm that

Report of the Supervisory Board.

1. the factual statements made in the report are correct;

2. the compensation paid by the Company with respect to the

transactions listed in the report was not inappropriately

high;

3. there is no evidence to indicate that conclusions materially

different to those reached by the Managing Board should

have been reached for the measures listed in the report.”

The Supervisory Board reviewed the related parties report

prepared by the Managing Board in accordance with section

314 of the AktG. The Supervisory Board expressed no

reservations about this report, and noted and approved the

audit report prepared by the auditor on the Managing

Board's report. On completion of its inspection, the

Supervisory Board did not raise any objections to the

Managing Board's statement that the Company was not dis-

advantaged by business with affiliated companies and that it

received appropriate compensation for every transaction,

and that it was not disadvantaged by any measures taken or

not taken.

Dr. Otmar Weigele resigned from the Supervisory Board on

the occasion of the regular elections held during the General

Meeting on March 28, 2003. Dr. Susanne Frieß, Adolf

Merckle, and Ludwig Merckle were elected to the

Supervisory Board during this General Meeting. In its

meeting held following the General Meeting on March 28,

2003, the Supervisory Board again elected Ludwig Merckle

as its Chairman.

Dr. Hendrik Grobler resigned from the Managing Board of

Kässbohrer Geländefahrzeug AG on April 30, 2003 by

mutual agreement. The Company was required to pay

Dr. Grobler the amounts due under the residual term of his

agreement until April 30, 2004. In addition, the Supervisory

Board had agreed by a majority vote on March 6, 2001 to

grant Dr. Grobler severance pay in the amount of

DM 500,000 if his existing Managing Board contract was

not extended unchanged after April 30, 2004 for at least

three years. This claim also had to be met. With effect from

May 19, 2003, the Company’s long-term head of services,

Karl Knab, was appointed to the Managing Board. Mr Knab

accepted this position until a long-term replacement could

be found and resigned from the Managaing Board again, as

agreed, on November 30, 2003. The Supervisory Board

thanks Mr Knab for his readiness to take on this responsibi-

lity and for his hard work. During this short time, Mr Knab

was able to introduce significant product improvement

measures. He will now continue his proven management of

the Company’s worldwide service organization.

On December 1, 2003, Gebhard Schwarz joined the

Company as a member of the Managing Board and was

appointed as Chairman of the Managing Board by the

Supervisory Board. Mr Schwarz has all the experience to

successfully manage the Company thanks to his extensive

experience of special-purpose vehicles – and especially of

all-terrain tracked vehicles.

In April 2003, Kreissparkasse Biberach instituted proceedings

at the Ravensburg Regional Court against the decision by

the Ordinary General Meeting of Kässbohrer Gelände-

fahrzeug AG on March 28, 2003 regarding item 6 on the

agenda (election of the Supervisory Board). The Ravens-

burg Regional Court dismissed Kreissparkasse Biberach’s

case against the Company in its judgment of October

28, 2003. On December 2, 2003, Kreissparkasse Biberach

appealed against this verdict to the Stuttgart Higher

Regional Court.

The Supervisory Board would like to thank the Managing

Board, the management, and all employees in and outside

Germany for their hard work in the period under review.

Laupheim, December 2003

The Supervisory Board

Ludwig Merckle, Chairman

8 | 9

Challenging times like these separate the wheat from

the chaff. 70% of winch-equipped vehicles sold world-

wide today already bear the PistenBully name. Thanks

to the outstanding combination of the vehicle's excel-

lent clearing power and the winch's tractive power, a

PistenBully 300 W Polar or PistenBully 300 W can

move large masses of snow in a single pass. Today’s ski

slope operators are making more and more use of this

advantage in lowland areas and low mountain ranges as

well as steep terrain. Thanks to these features,

PistenBully winch-equipped vehicles enable intelligent

snow management and the cost-effective treatment of

expensive machine-made snow. Much to the delight of

all snowboarders, skiers, and others who can enjoy

their sports for much longer periods each year.

Slope maintenance with a future.

Professional snow management is increasingly becoming

an existential question for customers. The price per

square meter of prepared slope is the decisive factor here.

And this is where PistenBully vehicles set such high stan-

dards. Thanks to their efficiency, low maintenance and

operating costs, and high resale value, PistenBully

vehicles offer the most economical concept on the mar-

ket. Innovative solutions such as the flexible SNOWtronic

tiller control improve slope management and make the

driver's work easier. The rope failure detector (RFD)

offers substantially greater protection against rope dama-

ge while working on slopes by constantly examining the

rope as it is wound back. In addition, ROPS (rollover pro-

tection safety) certification is further proof of the high

safety standard of all PistenBully vehicles.

What makes a global market leader stand out from the crowd? Cutting-

edge vehicle technology, plus perfection right down to the last detail. This

is how vehicles that revolutionize the market are developed.

Intellect and Vision.

3. Slope quality is becoming more and more important for our

customers, especially during winters with low snowfall. In such

cases, gentle treatment of the snow is vital.

4. All-round innovation. The winch machine’s technical

superiority cuts operating costs and makes deployment safer for

the driver.

1. This year's snow park camp in Saas Fee gave our customers'

drivers new insights into working on slopes.

2. Customers from more than 30 countries selected their future

models – both new and used – at the PistenBully parade in

Laupenheim.

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10|11

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There’s a whole string of really good reasons to choose a

PistenBully – starting with the multi-talented PistenBully

100, which prepares ski trails, snowmobile trails, hiking

paths, and chair and surface lift tracks, as well as smaller

slopes. Small, highly maneuverable and equipped with a

special low-emission motor, it is the ideal vehicle for pre-

paring indoor skiing arenas, too.

The 200 series model is an extremely cost-effective solu-

tion for slope maintenance. The top-of-the-range

PistenBully 300 and 300 Polar enable slope preparation

to the highest technical standards. Specialist models like

the ParkBully, with its extremely flexible front- and rear-

end devices, as well as the Antarctic PistenBully model

for polar use round off this extensive vehicle range.

Incidentally, well-maintained PistenBully vehicles of all

types are offered for sale to customers at our annual used

vehicle show. More than 800 people were delighted by

our current offering at the show in late September 2003.

Up close and personal

Practise makes perfect. Which is why the training courses

we offer at our snow park camp, for example, are in strong

demand. These let PistenBully drivers become acquainted

with all the finer points of their vehicles, enabling them to

make even better use of them. This mix of advice, train-

ing, and the ability to discuss experiences has proven

extremely valuable.

A PistenBully is just like real life: you may face an uphill

struggle sometimes but you’ll be on top of the world if

you succeed. To make sure things stay that way, you can

still get spare parts today for PistenBully vehicles that

have been in use for over 15 years. This efficient after-

sales program is complemented by our customer-driven

service offering. With 80 service stations and agencies

worldwide, Kässbohrer Geländefahrzeug AG guarantees

rapid support and spare parts delivery, 24 hours a day.

Why do so many vehicle fleets comprise one PistenBully after another?

Because there is an ideal vehicle for every purpose. Not to mention excel-

lent service and exceptional customer orientation.

Simply Unstoppable.

1. A Love Parade with a difference. Another impressive picture

from our annual worldwide photo contest. Our thanks to everyone

who took part.

2. Fun sports are becoming an increasingly important factor on

the world’s ski slopes. And extremely sophisticated snow park

elements can be modeled using the PipeMagician and ParkBully.

3/4. 40 degrees below zero is not enough to frighten a

PistenBully. The special Antarctic model vehicles reliably steer

international expeditions through wind and storm, ice and snow.

12|13

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A well-designed, reliable vehicle concept like the

PistenBully can be used for more than snow. The

PistenBully's special road holding abilities – its low

surface pressure, enormous climbing power, and ability

to turn on a pin – allows it to make progress where

classic wheeled vehicles would have got stuck long

ago. Advantages that can be optimized further with a

wide range of tracks for every purpose and season. In

a nutshell: the PistenBully will steer you safely through

all kinds of rough terrain.

The PistenBully off-road.

The PistenBully Canyon is the smallest and most maneu-

verable vehicle in the product range. It will get you wher-

ever you need to go quickly and reliably – be it to check

on electricity and telecommunication installations, for

maintenance operations in rough terrain, or for all-year

oil pipeline control work. Equipped with the MultiGrip

track, it will deliver materials, equipment, and people

straight to where they are needed, whatever the weather

or ground conditions.

Up for adventure with a PistenBully? The real challenges are to be found

off the beaten track. As are opportunities to leverage our potential away

from the slopes.

The Light Fantastic.

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A vehicle for (almost) every occasion.

With the PistenBully 100, nothing is impossible. The

PistenBully 100 All Season has a universal interface to

which all types of municipal equipment can be added, from

snow blades or rotary snow plows in winter to mowing

attachments in summer. The PistenBully 100 Flexmobil,

on the other hand, was specially developed for transpor-

tation. It is equipped with a passenger cabin and can carry

up to eight passengers or transport up to 1,000 kg of

material.

The PistenBully 100 and 100 Flexmobil are all-rounders

away from the ski slopes too. Anything is possible, no

matter what the conditions – from transport through

mowing, mulching, and peat mining down to municipal

tasks.

1. The PistenBully Canyon is simply unstoppable. Built as an off-

road vehicle, it stops for (almost) nothing.

2. The PistenBully 100 Flexmobil: getting you wherever you need

to go at up to 40km/h.

3. The PistenBully 100 Flexmobil can also be used as a fire engine.

4. Whether peat beds or reed beds, the PistenBully 100 All Season

is suitable for agricultural use wherever low ground pressure and

the highest possible payload are required.

5./6. The PistenBully 100 All Season with its universal interface

goes that extra mile in all situations, from dam maintenance to

wet forest soil. And especially on steep slopes and angles.

�65

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The trend is unbroken – the majority of people like to

spend their vacation at the seaside. Crystal-clear water

and dreamy beaches make for a perfect vacation.

However, flotsam and holidaymakers leave their mark

every day. This is where BeachTech comes in. After all,

clean beaches are a resort's biggest asset and an invest-

ment in the future.

Small, strong, maneuverable –

and great to use.

The BeachTech Marina was developed primarily for

small beaches and hotel facilities. It is highly flexible,

circling even between rows of loungers. The BeachTech

Marina also has a three-point hitch for multi-functional

use, enabling lawn mowers, roller brooms, rake screens,

or even a snow-clearing blade to be attached. In other

words, there's nothing to prevent municipal use of this

vehicle, which can be licensed for road use, above and

beyond beach cleaning. Quite simply, the BeachTech

Marina is a good idea.

High-performance cleaning for all beaches.

The BeachTech 2000 and BeachTech 3000 vehicles used

in the large-scale clean-up of Spanish and French beaches

polluted by the oil tanker "Prestige" came up trumps:

their patented raking, sifting, and mixing technology

even copes with stubborn pollution like oil clumps.

Depending on the contamination level, the machines can

switch between surface and in-depth cleaning. Since all

BeachTech vehicles use the same cleaning technology,

the decision on which model to use depends solely on the

size of the beach.

1./2. The BeachTech Marina is not just extremely maneuver-

able on sand, its three-point hitch also allows it to perform

other tasks.

3./4. Clean beaches. Clear water. Time to dream. Or time for

BeachTech to create clean conditions.

5. For a clean environment. Especially after catastrophes like

the "Prestige" oil tanker accident

An ideal combination: perfect grooming for pristine beaches, sand, and

more. Because only satisfied guests come back.

Beach. Sand. BeachTech.

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Facts and Figures.

20 |2118|19

Shareholder Information.

Number of ordinary shares (in shares) 5,002,400

Average daily trading volume (in shares) 200

Market capitalization (September 30, 2003) 62 Mio. EUR

2002/2003 high (March 27, 2003) 14.00 EUR

2002/2003 low (January 31, 2003) 9.50 EUR

Closing price (September 30, 2003) 12.40 EUR

DVFA/SG earnings per share 0.97 EUR

Dividend 0.15 EUR

Dividend yield (based on a price of € 12.40) 1.2 %

P/E ratio (based on a price of € 12.40) 13

Kässbohrer Geländefahrzeug AG is the global leader in its ski slopepreparation and beach cleaning business segments – and has special-ized expertise in vehicle technology for extreme conditions. Intensivedevelopment to the current vehicle fleet and attachments and the fur-ther expansion of the product range to high-margin niche marketsguarantee good growth opportunities for the Company in future, too.

The fascination exerted by the PistenBully is the best reason to investin Kässbohrer Geländefahrzeug AG's shares. The Company’s share-holders are convinced by the product and therefore mainly take along-term perspective, hanging on to their shares irrespective of developments on the stock exchange. For this reason, turnover is lowand the shares are largely immune to ups and downs on the stockexchanges. "PistenBully" shareholders are not interested in short-term profits; they invest long term in the Company's technologicalexpertise and excellent market position. In fiscal year 2002/2003,Kässbohrer's share price fluctuated between € 9.50 (January 31, 2003)and € 14 (March 27, 2003), closing the fiscal year (September 30,2003), at € 12.40.

Communication and informationSince the resegmentation of the stock market, Kässbohrer’s shareshave been listed in the General Standard. Deutsche Börse created thissegment primarily for companies that mainly appeal to domestic inve-stors and that want a cost-effective listing. This means thatKässbohrer Geländefahrzeug AG is not planning to apply for admis-sion to the Prime Standard. In addition to the information provided onthe Internet at www.pistenbully.com, regular interim reports and pressreleases ensure that obligatory shareholder communication require-ments are met.

We will be converting to the International Financial ReportingStandards (IFRS) within the statutory period. The declaration of conformity with the German CorporateGovernance Code by the Managing Board and Supervisory Board,and an overview of corporate governance at Kässbohrer Geländefahr-zeug AG, are also available on the Investor Relations section of ourhomepage.

DVFA/SG earningsKässbohrer's DVFA/SG earnings amount to € 4,831 thousand (pre-vious year: € 6,622 thousand), or € 0.97 (previous year: € 1.32) pershare. The adjustment items as against the single-entity financial sta-tements relate to relocation costs in Germany and France, as well astax-related adjustments.

DividendThe Managing and Supervisory Board are proposing a dividend of€ 0.15 per share for fiscal year 2002/2003 to the General Meeting.The total amount to be paid out is € 750 thousand. The figure has beenhalved in comparison to the previous year as a result of the significant

decline in net income from € 6.4 million to € 4.3 million. TheCompany's aim is to permanently increase its equity base to meet itsfuture financing needs as a medium-sized company at acceptable con-ditions, despite banks’ more restrictive lending policies.

Kässbohrer’s shares at a glance

Investor Diary

ResearchKässbohrer Geländefahrzeug AG provides comprehensive information on

the Company's development at its annual analyst conference. In addition, it

is in contact with a number of analysts throughout the year. A number of dif-

ferent institutions tracked and analysed the Company in fiscal year

2002/2003. Independent Research issued a "buy" recommendation in

February and September 2003 – at a share price of € 11.50 and € 11 respec-

tively. Baden-Württembergische Bank covered the shares as part of the

"Shares from Baden-Württemberg" study, giving them a "neutral" recom-

mendation at a share price of € 12.20.

Corporate GovernanceThe Government Commission on the German Corporate GovernanceCode introduced a code of conduct for the Managing and SupervisoryBoards of listed companies. Such Managing and Supervisory Boardsare required to issue a declaration of conformity once a year, statingwhether the Code was, and is being, compiled with or which recom-mendations of the Code are not being observed. Our declaration of con-formity is based on the current version of the Code dated May 21, 2003. At Kässbohrer Geländefahrzeug AG, the Code's recommendationsand suggestions already formed the basis of corporate management inthe past and are partly anchored in the Company's memorandum ofassociation. Kässbohrer Geländefahrzeug AG has complied with therecommendations of the Government Commission on the GermanCorporate Governance Code in the version dated February 26, 2003

Financials press conference, Stuttgart January 8, 2004

Analyst meeting, Laupheim January 15, 2004

Ordinary General Meeting 2004, Laupheim February 4, 2004

Dividend payment February 9, 2004

Interim reports for fiscal year 2003/2004 February 2004

May 2004

August 2004

since it issued its most recent declaration of conformity on November15, 2002, and continues to comply with these recommendations in theversion dated May 21, 2003, with the following exceptions in eachcase (the reason for non-compliance is given in each case). 1. The Company does not appoint a representative to exercise

shareholders’ voting rights in accordance with shareholders’instructions. All shareholders have the opportunity to grant a person they trust, a bank, or an association representing small shareholders power of attorney to exercise their voting rights before or during the General Meeting. This provides optimum assurance that shareholders’ votes are exercised in the way theywant. In addition, the Company expressly welcomes the personalparticipation of its shareholders at the General Meeting.

2. The D&O liability insurance taken out by Kässbohrer Gelände-fahrzeug AG for members of the Managing Board and Supervi-sory Board did not and does not currently include a deductible tobe paid by the insured parties. An identical deductible for the sameduties is inappropriate in view of the members’ different privateincome and asset situations.

3. From May 1 to May 18, 2003, the Managing Board consisted ofonly one person, due to the time needed for the selection processprior to the appointment of a second member. No chairman or spokesperson was appointed for the period from May 1, 2003through November 30, 2003. Rather an ordinary member wasappointed from the existing management team due to the resignationof the Managing Board Chairman.

4. According to the terms and conditions governing the convertiblebonds issued in favor of the Managing Board members of Käss-bohrer Geländefahrzeug AG, the bonds can be converted as a result of either Kässbohrer's share price performance itself or theperformance of the MDAX. They do not contain the reference to"demanding, relevant comparison parameters" that is now requi-red, nor can they be restricted in the case of extraordinary, unfore-seen developments. At the time the convertible bonds were issued,their terms and conditions complied with the requirements withrespect to long-term incentive systems. They received positivefeedback from associations representing small shareholders at theCompany’s General Meetings on a number of occasions. There areno plans at present to introduce a new stock option program.

5. No age limit has been, or is, stipulated for Managing Board andSupervisory Board members. The quality of work by theManaging Board and the Supervisory Board does not depend onthe member's age.

6. As the Company's Supervisory Board was, and is, composed ofonly three members, no committees were or have been formed.The efficient, transparent, and professional work performed bythis body ensures that all Supervisory Board members are keptfully informed.

7. The remuneration of the Supervisory Board members of Käss-bohrer Geländefahrzeug AG did not and does not provide for avariable component that is dependant on the Company's perfor-mance. The Deputy Chairman of the Supervisory Board received

and receives the same remuneration as an ordinary member of theSupervisory Board. The remuneration of members of theSupervisory Board is regulated in the Articles of Association. Inview of the control and supervision function performed, theCompany sees no reason to change the remuneration provisions.

8. The sale and purchase of Kässbohrer Geländefahrzeug AG'sshares by Managing and Supervisory Board members were notdisclosed above and beyond the extent required by section 15 ofthe Wertpapierhandelsgesetz (WpHG – German Securities TradingAct). No details on the shareholdings of Managing andSupervisory Board members are given above and beyond the statutory requirements. All announcements subject to disclosurerequirements under the WpHG received by the Company, as wellas announcements concerning directors' dealings, are published.The Company considers these statutory disclosure requirements tobe sufficient. The Corporate Governance Code no longer providesfor reporting above and beyond this.

9. The consolidated financial statements and interim reports werenot, and are not yet, prepared in accordance with internationallyrecognized accounting principles.

Because the shares of Kässbohrer Geländefahrzeug AG are almostexclusively held by shareholders resident in Germany, the Companywill take advantage of the conversion period stipulated by the legisla-ture. Many of the provisions of the IFRS have not yet been finalized.Financial statements prepared in accordance with the HGB (GermanCommercial Code) are more familiar to shareholders resident inGermany. The consolidated financial statements for fiscal year2001/2002 were not made available to the public within 90 days of theend of the period under review. The consolidated financial statementsfor fiscal year 2002/2003 can still be submitted within the 90-dayperiod.

Remuneration of the Managing BoardThe remuneration of the Managing Board includes fixed and variable remu-

neration components. The variable portion amounts to around 20% of the

total remuneration. Variable compensation is based on the Company's

earnings and goals agreed with the Supervisory Board, including medium-

term effects. The General Meetings on August 21 and September 14, 1998

authorized the Managing Board, with the agreement of the Supervisory

Board, to issue convertible bonds in the period up to August 20, 2003. For

further details, please see the explanations in item nine of the notes to the

single-entity financial statements. Convertible bonds amounting to

DM 60,000 (€ 30,677.51) were issued to a current member of the Managing

Board. To date, 2,400 no-par value bearer shares have been issued under

these bonds. A total of 9,600 no-par value bearer shares may therefore be

converted by the end of 2006 if the performance criteria are met. The aver-

age market price on the last ten trading days before the convertible bonds

were issued amounted to € 10.61, while the figure for the MDAX was 4073

points. The authorization was not extended because the share price perfor-

mance criteria no longer seemed a suitable way of measuring the Company's

long-term performance, due to the low free float and the low trading volume.

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MARKET AND ENVIRONMENT

Kässbohrer Geländefahrzeug AG operates on the leisure and tourismmarket. The development of this industry depends in particular on thestate of the global economy, trends in leisure behavior, and the globalpolitical situation.

Winter tourism, or rather ski tourism, is the Company's corebusiness. Investment behavior by ski resort operators and municipali-ties depends mainly on the previous winter's events, as well as esti-mated guest numbers for the coming season. In summer 2002, therewas significant uncertainty about the holiday behavior that could beexpected for winter 2002/2003, due to economic developments, theglobal political situation, and increased consumer savings. Althoughthe results for the winter 2001/2002 season were above average, thisconstellation led to extremely muted investment. Decisions to purchasenew vehicles were not made until very late, or were postponed to afuture date. As a result, the global market volume for slope mainten-ance vehicles in 2002/2003 declined 10% year-on-year.

In fact, though the downturn in the tourism industry had a dispropor-tionately small impact on the winter 2002/2003 season. Winter holi-days were booked despite cautious consumer behavior. For wintersports enthusiasts, going skiing is a high priority. High temperaturesuntil mid-January and only very little snow led to substantially lowerbookings in many Alpine ski resorts early on in the season. However,the good levels of snow and extremely good weather that continuedwell into April enabled a large majority of European ski resorts torecord extremely strong results for the season overall. For example,Austrian cable car operators recorded an increase of 3%. Austria isone of Kässbohrer Geländefahrzeug AG’s key sales markets inEurope.

In North America too, ski resort operators had a satisfactory winter2002/2003 season – despite the war in Iraq, economic scandals, andincreasing problems in the domestic economy. The season was one ofthe most successful ever for ski resort operators.

As a result, prospects for new vehicles business in winter 2003/2004in the Company’s core markets look very promising – a view that isconfirmed by incoming orders to date.

Winter sports also offer good growth opportunities in new markets.Eastern Europe, Central Asia, and China will represent a significantvolume in the medium to long term. While the winter sports industryin Eastern Europe increasingly stabilized, China’s dynamic develop-ment eased off in summer 2003 because of the SARS epidemic.Kässbohrer Geländefahrzeug AG has already done the groundworknecessary for success in these key future markets, and is representedin all of them by established partners.

The Company’s increasingly broad product range is also having apositive impact on the market for slope maintenance vehicles. In addi-

tion to traditional Alpine skiing, new ski materials, sports equipment,and new technologies have led to a revival in the sport in the last fewyears. New segments within ski tourism are emerging more and moreclearly: these include older skiers, young snow park users, or peopletaking up skiing again after many years. All these new customer seg-ments are making substantial demands on slope preparation.

As a trendsetter on the market, Kässbohrer Geländefahrzeug AG hasoptimally positioned itself as the market and technology leader withnew models and updates to the PistenBully. For example, the newPistenBully 300 Polar and the new winch-equipped vehicle both es-tablished themselves on the market as absolute top-of-the-range pro-ducts in their first season. Performance, reliability, and cost-effectiveness are the key requirements that ski resort operators haveof slope maintenance vehicles. Skiers expect perfectly prepared slo-pes that allow maximum fun on the one hand, and easy, safe skiing onthe other. The snow parks and adventure playgrounds designed byPistenBully and Kässbohrer attachments, plus perfectly prepared slo-pes, are the answer to ski resort operators’ ever-increasing demandsfor innovative and cost-effective slope handling.

The newly developed PistenBully Canyon and PistenBully 100 AllSeason are opening up new markets above and beyond winter sports.In addition to winter service usage, these vehicles can be used forcost-effective, reliable transport by utility, pipeline, and telecomm-unications companies on rough terrain, as well as for mowing andmulching.

A decline in summer tourism became apparent in many traditionalvacation countries, with the tourism industry bracing itself for shrin-king sales last season. The uncertain global political situation led tostrong shifts in tourist movements and a drop in travel. In Europe –the key market for Kässbohrer Geländefahrzeug AG's BeachTechvehicles – summer tourism in 2003 was also spoilt by the extremeheat, environmental catastrophes such as oil tanker accidents, andheavy storms. The resulting lower bookings and the financial diffi-culties being experienced by municipalities had a sustained impact oninvestment volumes in the industry. Consequently, beach operatorsand municipalities tended to invest less in beach cleaning machinerythan in the past.

According to the Company's own market research, the market volumefor professional beach cleaning equipment remains very small al-though it has increased by around 60% over the past five years.Kässbohrer Geländefahrzeug AG is also the global leader in this mar-ket, with a share of approximately 35%. The BeachTech Marina wasdeveloped to facilitate professional cleaning of smaller beach sec-tions, such as those belonging to hotels and resorts, and has openedup new, promising markets.

The entire tourism industry is currently in a slump, although medium-term development trends are still positive. Thanks to the strong desire forskiing holidays, however, winter sports were hit comparatively lightly by

Kässbohrer Geländefahrzeug AG, Laupheim.

Combined Management Report and GroupManagement Report for Fiscal Year 2002/2003.

the industry crisis. A recovery in the economy and a more settled geo-political situation are crucial for a sustained positive trend in the tou-rism industry.

As the global market and innovation leader with a broad productrange, Kässbohrer Geländefahrzeug AG has a strong position in itsmarkets. A steady stream of new and further developments to the pro-duct range and a highly efficient service organization enabled theCompany to maintain its overall market position in fiscal year2002/2003. The product development initiative that was started inspring/summer 2003 and the measures to improve organizational effi-ciency allow the Company to be optimistic about the future in anincreasingly difficult market environment, despite the long-termweakness of the dollar. This is a sound basis on which to benefit frommedium- and long-term growth opportunities in both winter and sum-mer tourism.

BUSINESS DEVELOPMENT IN FISCAL YEAR 2002/2003

CONSOLIDATED SALESKässbohrer Geländefahrzeug AG generated consolidated sales of € 130.2 million in fiscal year 2002/2003 (previous year: € 132.2 mil-lion). This corresponds to a year-on-year drop of 1.5%. Consequently,the Company did not meet its sales targets due to the more difficultmarket environment.

PISTENBULLYNew Vehicles: Sales of new PistenBully vehicles totaled € 81.6 mil-lion in fiscal year 2002/2003 (previous year: € 87.1 million). This isthe most important business unit of the Company, accounting formore than 60% of consolidated sales. The drop in sales is mainly dueto the renewed contraction in market volumes of almost 10%. Despiteintense price competition, the Company maintained its market positionand defended its global market share of over 50%. The contraction inmarket volumes is mainly due to muted investment by ski resort ope-rators who postponed planned capital expenditure projects in view ofthe situation they were facing. The recently launched PistenBully 300Polar and the new winch-equipped vehicle contributed to the fact thatthe decline in sales was proportionally lower than the drop in the num-ber of vehicles sold in a difficult last season. The new PistenBully Canyon did not generate the hoped-for level ofsales, although the Company did manage to penetrate the relevantmarkets, especially in North America.

Used Vehicles: Used PistenBully vehicles generated sales of € 8.3million in the past season (previous year: € 10.2 million), an unsatis-factory result. Sales in the previous year had been extremely good,with a lot of business being concluded in summer 2002. This had animpact on sales in the early part of winter 2002/2003.

Spare Parts and Service: The spare parts and services unit wasextremely successful in 2002/2003, generating almost 30% of conso-

lidated sales. Sales increased by 11.5% to € 36.0 million (previousyear € 32.3 million). Despite the extremely late onset of winter inEurope, the excellent snow conditions from February to Apriltogether with the extremely good weather meant that ski resorts stillrecorded the number of skiing days they had hoped for. As a result,sales in the wearing parts and services business performed extremelywell, despite lower new investments.

BEACHTECHKässbohrer Geländefahrzeug AG's second business unit BeachTech– increased sales by almost 70% to € 4.4 million as against the disap-pointing figure of € 2.6 million recorded the previous year.

The global market for beach cleaning machinery increased in2002/2003, particularly because of the need to clean oil-pollutedbeaches on the French and Spanish Atlantic coasts after the "Prestige"tanker accident. After adjustment for the resulting one-time sales, thesales generated by this business unit remain disappointing.

However, the BeachTech Marina launched last year proved to be asuccess, and has successfully established itself. It differs from theother BeachTech products in that it does not require a towing vehicle,but is rather an independent, extremely flexible vehicle that can alsobe used to clean small sections of beach efficiently.

Spain, France, and Italy are the key markets for the Company’sBeachTech business. In addition, the focus in the past year was on theUS and Australian markets, supported by the BeachTech Marina.Despite long decision cycles in some cases, initial sales have alreadybeen made.

EARNINGS DEVELOPMENTUnless otherwise stated, the following information relates to both thesingle-entity and the consolidated financial statements.

The Group's gross profit amounted to € 57.8 million (previous year:€ 59.1 million). The gross profit recorded in the single-entity finan-cial statements amounted to 45.5 million (previous year: € 46.6 mil-lion). The change in the gross profit margin was mainly due to thesubstantial variation in changes in inventories (last year inventoriesdecreased due to lower sales expectations, while in 2003 advance pro-duction was high due to the strong level of incoming orders). Afteradjustment for this effect, the gross profit margin in the Group – mea-sured in relation to sales – fell from 45.3% to 43.5%. This reflectschanges in the US dollar and Swiss franc exchange rates as well asgreater competition.

Personnel expenses in the Group totaled € 26.6 million as against € 25.6 million in 2001/2002. The € 1.0 million rise in personal ex-penses in the Group was mainly due to wage increases under collectiveagreements, increased statutory social security payments, and expen-ses connected with restructuring measures.

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The average number of Group employees rose from 426 in the pre-vious year to 430 in fiscal year 2002/2003. In the single-entity finan-cial statements, the number remained unchanged at 348 employees.At the end of the fiscal year, the Group employed 420 people (pre-vious year: 428), while Kässbohrer Geländefahrzeug AG employed344 (previous year: 348).

Depreciation and amortization charges amounted to € 2.6 million inthe Group and € 2.2 million in the single-entity financial statements.This included amortization on goodwill of € 0.9 million in the Groupand of € 0.7 million in the single-entity financial statements. The pre-vious year's figures were € 2.6 million (goodwill: € 0.8 million) and€ 2.3 million (goodwill: € .7 million), respectively.

At € 20.5 million in the consolidated and € 7.2 million in the single-entity financial statements, other operating expenses were lowerthan the previous year (Group: € 21.7 million; AG: € 17.9 million).This item includes US dollar currency translation expenses in theamount of € 1.2 million (previous year: € 0.3 million). In the previousyear, expenses of € 0.7 million in connection with the Company’s relo-cation within Germany and higher warranty costs were reported.

In addition, the cost-cutting measures introduced in April 2003 andrelocation effects had already started to have a positive impact.

Group EBIT amounted to € 9.0 million, resulting in a sales marginof 6.9% (previous year: 7.9%). This means that the Company is stilloutperforming many leading German car manufacturers and automo-tive suppliers, and is also doing better than the average for theengineering sector.

In the past fiscal year, net financial expenses totaled € 1.9 million,up from € 1.7 million in the previous year. For the first time this fig-ure included the interest portion of the leasing payments for theCompany’s new facility in Laupheim for the full year. Drawdowns ofworking capital lines increased year-on-year towards the end of thefiscal year due to the excellent level of incoming orders; however, thefigure last winter was low due to the smaller number of new vehicles.The renewed slight downturn in interest rates also had a positiveeffect compared to the previous year.

At € 7.3 million, the consolidated result from ordinary activities wasdown on the previous year (€ 9.3 million). The figure for the AG was€ 4.5 million, down from € 6.7 million the previous year.

The consolidated tax expenses item amounted to € 2.9 million (pre-vious year: € 2.9 million). In the previous year, this item in both theconsolidated and the single-entity financial statements included risksfrom external tax audits in Germany and abroad in the amount of € 0.6 million (thereof € 0.4 million under other taxes). In the yearunder report, the figure includes a further € 0.3 million for taxes onincome. The increase in the income tax rate as against the previous

year is due to the tax loss carryforwards at the Group's foreign subsi-diaries utilized in the previous year.

BALANCE SHEET STRUCTURETotal assets amounted to € 99.7 million as of September 30, 2003 inthe Kässbohrer Geländefahrzeug Group (previous year: € 88.4 mil-lion) and to € 92.9 million in the single-entity financial statements(previous year: € 83.4 million). It should be noted that, due to theextremely seasonal nature of the Company’s winter business, totalassets are often at almost their highest point for the year at the end ofSeptember. By the end of September, advance production of vehiclesis already well underway, although the vehicles concerned are notusually shipped to customers before November or December.

Consolidated fixed assets rose by around 12% from € 11.7 millionto € 13.1 million. The rise was mainly due to the acquisition of thenew land and building belonging to our subsidiary in France, which relocated its headquarters from Le Fayet to Tours near Albertville,which has an excellent transport infrastructure.

Consolidated current assets totaled € 84.4 million as of September30, 2003, up significantly on the previous year's figure of € 73.3 mil-lion. This was due in particular to the € 7.0 million increase in inven-tories as against from the previous year. In addition, trade receivablesrose by € 3.2 million. Inventories rose as a result of increases inadvance production in line with higher vehicle sales forecasts. Inaddition, larger numbers of used vehicles are being traded in as aresult of strong incoming order levels, and this has also increasedinventory. The receivables rose for closing date reasons. Payments ondeliveries made in summer, which were booked in September of theprevious year, were not received until October this year.

The current assets reported in the single-entity financial statementsof Kässbohrer Geländefahrzeug AG amounted to € 78.4 million (pre-vious year: € 68.8 million).

As of September 30, 2003, consolidated equity amounted to € 32.7million (previous year: € 30.3 million); the corresponding figure inthe single-entity financial statements was € 32.3 million (previousyear: € 31.2 million). Despite the significantly higher level of totalassets, the equity ratio for the Group was still 33%, after 34% in theprevious year. Because of the seasonal nature of KässbohrerGeländefahrzeug AG's business, the equity ratio at the balance sheetdate was at its lowest level of the year.

Consolidated liabilities rose as of September 30, 2003 from € 39.9million to € 50.3 million. The AG reported liabilities of € 45.8 milli-on (previous year: € 36.3 million). This rise was due to an increase inliabilities to banks of € 5.9 million, as well as a rise in trade payablesand other liabilities from € 9.1 million to € 14.3 million. This was theresult of increases in the advance production of new vehicles for the2003/2004 season, as well as lower incoming payments at the end ofthe fiscal year.

BRANCH OFFICES/SUBSIDIARIESThe Company’s subsidiaries in the USA and France and its branchoffices in Austria, Switzerland, and Italy are pure sales and servicecompanies that exclusively sell and service Kässbohrer Geländefahr-zeug AG’s products.

Despite lower new vehicle sales, all branch offices and subsidiariesmade a positive contribution to consolidated earnings.

In most cases, the branch offices and subsidiaries experienced a slightdrop in sales. Lower new vehicles sales were partly offset by higherspare parts sales. In Italy and France, sales rose slightly thanks to theincrease in beach cleaning sales and strong sales of the Company’stop-of-the-range PistenBully 300 Polar.

In the past fiscal year, the headquarters of the Company’s French sub-sidiary were relocated from Le Fayet to Tours, near Albertville. Thenew location, which is conveniently situated near the major subsidi-ary's French ski resorts, is helping improve the quality of service andefficiency. The subsidiary’s name was also changed at the same time.Formerly known as Socedam S.A., it now trades under the name"Kässbohrer E.S.E. S.A."

Kässbohrer’s subsidiary in the USA introduced extensive restructuringmeasures at the end of the fiscal year with the support of the parentcompany. This will ensure its ability to compete on the North Americanmarket, despite the substantial deterioration in exchange rates.

DVFA/SG CASH FLOWDVFA/SG cash flow amounted to € 7.5 million (previous year: € 9.9million). The decline was mainly due to the drop in the Company's ear-nings. All investments, including the French subsidiary's new building,were financed from cash flow. In addition, the Company’s cash reservesimproved.

INVESTMENTSGroup investments totaled € 4.1 million in the year under review (previous

year: € 4.1 million). This figure includes investments in the French subsidi-

ary's new location of € 2.1 million, which relates in particular to the land

and the building.

DIVIDENDThe Managing Board and Supervisory Board are proposing a dividendof € 0.15 per share for fiscal year 2002/2003 to the General Meeting.The total amount to be paid out is € 750 thousand. As a result of thesubstantial decrease in net income from € 6.4 million to € 4.3 million,the dividend has been halved as against the previous year. TheCompany aims to permanently increase its equity base so as to be ableto meet its future financing needs as a medium-sized company on rea-sonable terms, despite the banks’ more restrictive and more expensivelending policies.

EMPLOYEESKässbohrer Geländefahrzeug AG is an attractive employer in the Ulmand Laupheim region. The Company’s employees are highly moti-vated and identify with it and its products As a result, Kässbohrer canrely on the flexibility necessary in this highly seasonal business. The Company grows its own talent by providing commercial andindustrial training – including at Berufsakademien (universities ofcooperative education). Kässbohrer Geländefahrzeug AG systemati-cally invests in employee training, with staff playing an active role inthe training courses regularly sponsored by the Company. TheCompany's success ultimately depends on its committed, satisfied,and motivated employees.

MATERIALS MANAGEMENT AND LOGISTICSWe continued our close cooperation with our suppliers in all areas inthe period under review. Due to the low level of vertical integration,one of the procurement department's main roles is to continually opti-mize supplier efficiency and supplier structures. The department’sexpertise is integrated into our development process at an early stageso as to be able to guarantee Kässbohrer's high quality standards. Thisis a key factor in maintaining the Company’s competitive position.

In fiscal year 2002/2003, procurement prices were pegged at the samelevel as the previous year.

RESEARCH AND DEVELOPMENTDevelopment activities mainly focused on continuing the new devel-opments initiated the previous year, as well as further developmentsto existing vehicles and attachments such as tracks and tillers.Kässbohrer Geländefahrzeug AG incorporates requirements emer-ging from the day-to-day use of its products into the design process inclose cooperation with longstanding customers. This procedure en-sures that customer needs and market requirements can be translatedinto vehicles and attachments. Kässbohrer Geländefahrzeug AG is theglobal technology leader.

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At € 5.1 million, research and development expenses were slightly upon the previous year (€ 5.0 million). Testing and development facilitieshad already been expanded in fiscal year 2001/2002 due to the largenumber of new developments being prepared for the market.Research and development expenses accounted for 3.9% of consoli-dated sales. Given the Company's limited vertical integration, devel-opment services provided by suppliers and partners also have to betaken into account.

The PistenBully 300 was overhauled technically and optically.Existing components were optimized and performance was improvedonce again: the vehicle’s higher clearing power enables even largermasses of snow to be moved. An optimized tiller equipped with aboost function allows excellent preparation, even under the toughestslope conditions.

The PistenBully Canyon – the all-terrain tracked vehicle for all typesof work, transportation, and service deployment in remote terrain –was overhauled and equipped with a tiller for cross-country trails.Because the PistenBully Canyon is used outside snow-covered areas,especially in North America, it now meets US Standard ROPS NormSAE J 1040 (ROPS = Roll Over Protection System), as well as itsEuropean equivalent.

The development activities at Kässbohrer Geländefahrzeug AG do notjust focus on expanding and optimizing the product range. TheCompany also aims to offer customers new solutions for improvedslope maintenance, as well as further increasing the efficiency and cost-effectiveness of its proven vehicles. In this respect, Kässbohrer is aninnovative partner for ski resort operators when it comes to preparingslopes and cross-country trails. PistenBully and BeachTech offer a lowcost per prepared surface and an optimum ratio of operating hours tomaintenance periods. These, along with the vehicle reliability, are themain reasons why our customers choose Kässbohrer products.

RISK REPORTKässbohrer Geländefahrzeug AG's activities are focused on its winterbusiness in the niche market of slope maintenance. The Company isexposed to opportunities and risks as a result of its global activities inthis market. Entrepreneurial success means weighing entrepreneurialrisks – which are associated with any entrepreneurial activity –against the associated opportunities. Kässbohrer GeländefahrzeugAG only takes such entrepreneurial risks after weighing them againstthe associated opportunities, to the extent that the decision benefits,or may benefit, the Company's development.

Kässbohrer Geländefahrzeug AG already installed a risk managementsystem in the Group several years ago, in line with statutory regulati-ons. This tried and tested system enables the Company’s managementto identify, analyze, and assess the development of material risks andnew sources of risk early on and then to introduce the appropriatecountermeasures.

The Company's communications culture is based on short, directinformation channels. This ensures that management is informedearly on and regularly about the development of risks that couldthreaten the Company's continued existence or have a material adverseeffect on its net assets, financial position, and results of operations.

Tools forming part of the risk management system include, in additionto the management information system, annual risk workshops, regu-lar Group-wide management meetings, intensive global market moni-toring, and the Company’s detailed, specific market knowledge,which is based on long-term relationships with customers, suppliers,and other market players.

Developments in the competitive and market situation depending onthe competitive situation and global economic and political circum-stances are the most important fundamental risks in KässbohrerGeländefahrzeug AG's risk portfolio. In addition, the Company's corePistenBully business depends on developments in winter tourism andski sports. In turn, winter sports are dependent on external factorssuch as the amount and timing of snowfall.

By expanding its product range to include newly-developed vehiclesdesigned to penetrate new markets, the Company is, of course, takingon new risks. On the other hand, this puts the Company’s businessactivities on a broader basis, thus reducing the risks that arise fromKässbohrer's dependence on the winter sports business.

In the very close-knit market environment of slope maintenance,customer satisfaction is a critical success factor. For this reason, salesand service employees survey customers regularly, asking them forsuggestions which then become an integral part of the Company’s dis-cussions of product and service development.

Another risk to which the Company is exposed is its technologicaldependency on systems suppliers. This can lead to limited availabili-ty in the case of individual vehicle components. This risk is minimi-zed in most cases by ensuring access to alternative suppliers andsystematic supplier selection and monitoring procedures.

Another key entrepreneurial risk is the development of exchangerates, particularly with regard to the US dollar. Exchange rate devel-opments are monitored and assessed by the Managing Board. Salesgenerated in US dollars are partially hedged in line with the rate hedg-ing policy agreed with the Supervisory Board.

On the whole, the management is of the opinion that there are no dis-cernible developments in either the parent company or the Group thatcould have a long-term effect on the net assets, financial position, andresults of operations of the Group or that could endanger the continu-ed existence of the parent company and the Group, with the excepti-on of the difficult overall economic conditions.

DEPENDENT COMPANY REPORTThe Managing Board of Kässbohrer Geländefahrzeug AG voluntarilyprepared a report on relationships with affiliated companies inaccordance with section 312 of the AktG which concludes with thefollowing declaration: "In the case of the legal transactions and measures listed in the report on relationships with affiliated com-panies, Kässbohrer Geländefahrzeug AG received appropriate com-pensation for every legal transaction, and has not been placed at a dis-advantage due to measures that were implemented or not implemen-ted, according to the circumstances known to us at the time the legaltransactions were concluded or the measures were implemented ornot implemented."

CURRENT BUSINESS DEVELOPMENT AND OUTLOOKKässbohrer Geländefahrzeug AG is active in the leisure and tourismindustry in what is considered to be a medium- to long-term growthmarket, despite the current setbacks. The industry’s offering is increa-singly focused on certain tourist groups such as older people or youngsnowboarders and its products and services are thus becoming moredifferentiated. As a result, the demands on the supply industry arebecoming more specific. Long-term success depends on offeringinnovative solutions that guarantee the performance of ski resort ope-rators within longer-term partnerships.

At the end of October, incoming orders for PistenBully vehicles forthe upcoming winter season were significantly higher than in the pre-vious year. This was achieved despite price-intensive competition dueto the high performance and reliability of the Company’s products, aswell as the quality of its service organization. The 10% increase inmarket volume forecast for this winter also contributed to the rise.

At the end of fiscal year 2002/2003, the outlook for the BeachTecharea is also positive. Activities are clearly picking up, even in coun-tries whose markets were more or less dead after the events ofSeptember 11, such as the United Arab Emirates. This shows thatmarket growth is continuing, albeit at a low level. The BeachTechMarina will help Kässbohrer Geländefahrzeug AG strengthen itsposition as the market leader in beach cleaning.

Overall, the management of Kässbohrer Geländefahrzeug AG isexpecting to see an improvement in sales and earnings for the currentfiscal year, despite the sustained weakness of the US dollar. This fore-cast can be realized if the winter progresses normally and if theCompany can then meet the targets for its spare parts business. Thecost-cutting measures introduced in April 2003 will also play a majorrole in stabilizing earnings development. They ensure that theCompany will be able to compete in the future, too, despite difficultmarket conditions. Given the positive outlook for the upcoming sea-son, the Company is expecting that an increase in the dividend can beconsidered again in the next fiscal year if earnings develop as expec-ted.

Laupheim, November 2003

Kässbohrer Geländefahrzeug AG

The Managing Board

Rolf Glessing Karl Knab

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Balance Sheet as of September 30, 2003.

Assets Notes Sept. 30, 2003 Sept. 30, 2002

€ thousand € thousand

Fixed assets

Intangible assets (1) 4,851 5,446

Tangible assets (2) 5,126 4,879

Financial assets (3) 4,168 3,543

14,145 13,868

Current assets

Inventories (4) 40,419 35,060

Receivables and other assets (5) 36,906 32,661

Cash-in-hand, bank balances 1,099 1,094

78,424 68,815

Prepaid expenses (6) 319 726

92,888 83,409

Equity and liabilities Notes Sept. 30, 2003 Sept. 30, 2002


Equity (7)

Subscribed capital 13,006 13,006

Capital reserves 7,471 7,471

Revenue reserves

Other revenue reserves 9,492 4,692

Net retained profits 2,309 6,009

32,278 31,178

Provisions

Provisions for pensions and similar obligations 2,340 2,129

Other provisions (8) 12,250 13,645

14,590 15,774

Liabilities (9)

Bonds 221 285

Liabilities to banks 32,210 26,339

Trade payables 11,232 7,472

Other liabilities 2,117 2,207

45,780 36,303

Deferred income 240 154

92,888 83,409


Consolidated Balance Sheet as of September 30, 2003

Equity and liabilities Notes Sept. 30, 2003 Sept. 30, 2002


Equity (7)

Subscribed capital 13,006 13,006

Capital reserves 7,471 7,471

Revenue reserves

Legal reserves 65 39

Other revenue reserves 9,492 4,692


Adjustment for minority interests 14 13

Adjustment for currency translation -382 1

32,740 30,302

Provisions

Provisions for pensions and similar obligations 2,340 2,129

Other provisions (8) 13,503 15,279

15,843 17,408

Liabilities (9)

Bonds 221 285

Liabilities to banks 32,210 26,339

Trade payables 14,261 9,151

Liabilities on bills accepted

and drawn 69 46

Other liabilities 3,522 4,031

50,283 39,852

Deferred income 870 805

99,736 88,367

Assets Notes Sept. 30, 2003 Sept. 30, 2002


Fixed assets

Intangible assets (1) 5,168 5,981

Tangible assets (2) 7,657 5,453

Financial assets (3) 247 247

13,072 11,681

Current assets

Inventories (4) 60,575 53,552

Receivables and other assets (5) 20,559 16,648

Cash-in-hand, bank balances 3,300 3,140

84,434 73,340

Prepaid expenses (6) 2,230 3,346

99,736 88,367

28|29


Income Statement for the Fiscal Year from October 1, 2002 to September 30, 2003.

Notes Sept. 30, 2003 Sept. 30, 2002


Sales (10) 115,729 112,994

Increase (previous year: decrease) in

finished goods and work in progress 5,709 -2,937

Gross revenue 121,438 110,057

Other operating income (11) 2,445 3,155

Cost of materials (12) -75,940 -63,421

Personnel expenses (13) -22,132 -21,217

Amortization of intangible assets

and depreciation of tangible assets -2,239 -2,346

Other operating expenses (14) -17,249 -17,861

Financial result (15) -1,852 -1,701

Result from ordinary activities 4,471 6,666

Taxes on income (16) -1,851 -1,716

Other taxes (17) -19 -474

Net income for the year 2,601 4,476

Retained profits brought forward 1,008 3,771

Allocation to other revenue reserves -1,300 -2,238



Consolidated Income Statement for the Fiscal Yearfrom October 1, 2002 to September 30 2003.

Notes Sept. 30, 2003 Sept. 30, 2002


Sales (10) 130,225 132,180

Increase (previous year: decrease) in

finished goods and work in progress 7,518 -4,871

Gross revenue 137,743 127,309

Other operating income (11) 1,088 1,746

Cost of materials (12) -79,970 -68,186

Personnel expenses (13) -26,556 -25,584

Amortization of intangible assets and

depreciation of tangible assets -2,598 -2,639

Other operating expenses (14) -20,543 -21,677

Financial result (15) -1,909 -1,661

Result from ordinary activities 7,255 9,308

Taxes on income (16) -2,782 -2,305

Other taxes (17) -139 -591

Consolidated net income for the year before minority interests 4,334 6,412

Minority interests -1 -3

Consolidated net income for the year 4,333 6,409

Retained profits brought forward 41 896

Allocation to other revenue reserves -1,300 -2,238


30|31

The notes to the single-entity and consolidated financial statementsare presented in combined form below. Unless otherwise stated, theexplanations apply to both sets of financial statements.

Various items of the balance sheet and income statement have beencombined to enhance the clarity of presentation in the single-entityand consolidated financial statements. Such items are disclosed separately in the combined notes to the single-entity and consolidatedfinancial statements.

Unless stated otherwise, all figures are given in thousands of euros.

EQUITY INTERESTS/COMPANIES INCLUDED IN CONSOLIDATIONIn addition to Kässbohrer Geländefahrzeug AG, Laupheim (herein-after also referred to as KGF AG), the parent company, and its threeforeign branch offices, the Company holds equity interests in twosubsidiaries.

In the past fiscal year, the Company’s French subsidiary relocated itsheadquarters from Le Fayet to Tours en Savoie. It also changed itsname at the time of the relocation from Socedam S.A. to KässbohrerE.S.E. S.A. In the period under review, a nominal capital increase of€ 625 thousand was performed at the company, which was subscribedfor entirely by the parent company.

ACCOUNTING AND VALUATION POLICIESThe annual financial statements of Kässbohrer Geländefahrzeug AG,Laupheim, and the annual financial statements of the subsidiaries areprepared using uniform accounting policies.

Intangible assets are carried at their cost of acquisition, less straight-line amortization based on a standard useful life of three to fifteenyears.

The goodwill capitalized in the single-entity financial statements ofthe Group companies is amortized over the amortization periods per-mitted by tax law of five to fifteen years. Capitalized trademark andpatent rights are amortized over four and five years

Tangible assets are measured at their cost of acquisition or manufac-ture, less depreciation. Depreciation is calculated in accordance withthe rates permitted by tax law; both the straight-line and the de-clining-balance methods of depreciation were used. The switch ismade from using the declining-balance to using the straight-linemethod when the straight-line method results in higher depreciationamounts. Depreciation is calculated on the basis of the maximumdepreciation rates permitted by tax law, with useful lives of betweenfive and 18.5 years.


Combined Notes to the Single-Entity and ConsolidatedFinancial Statements for Fiscal Year 2002/2003

Branch offices/ subsidiaries Interest held Equity as of Sept. 30, 2003 Net income in fiscal year 2002/2003

in % Currency Amount Currency Amount

Branch offices

Kässbohrer Geländefahrzeug AG,

Austrian branch office, Kuchl

(hereinafter also referred to as KGF AG-Kuchl) – € thou. – € thou. 1,044


Swiss branch office, Möriken

(hereinafter also referred to as KGF AG-Möriken) – SFR thou. – SFR thou. 801


Italian branch office, Bolzano

(hereinafter also referred to as KGF AG-Bolzano) – € thou. – € thou. 441

Subsidiaries

Kässbohrer E.S.E. S.A., Tours en Savoie,

France (hereinafter also referred to as Kässbohrer E.S.E.;

formerly Socedam S.A., Le Fayet, France) 99.6 € thou. 3,082 € thou. 336

Kässbohrer All Terrain Vehicles Inc.,

Reno (Nevada), USA

(hereinafter also referred to as KATV) 100 $ thou. 2,860 $ thou. 384

Depreciation is charged for the full year for movable assets acquiredin the first six months of the year and for half of the full year's amount for assets acquired in the second six months.

Low-value assets are written down in full in the year of acquisitionand reported under additions and disposals in the statement of chan-ges in fixed assets in the year of acquisition.

Financial assets are carried at their cost of acquisition or the lowervalue to be applied at the balance sheet date in the case of permanentimpairment.

Raw materials, consumables, and supplies are valued at acquisitioncost, plus incidental costs of acquisition, on a strict lower-of-cost-or-market basis. The acquisition cost is determined using the movingaverage cost method. In certain insignificant cases, fixed amounts areused. Adequate write-downs have been applied for discernible risksdue to prolonged storage, overstocking, or reduced technical market-ability.

Work in progress and finished goods are carried at the cost ofmanufacture, which includes adequate material and productionoverheads in addition to direct material and production costs, inaccordance with tax valuation rules. Adequate write-downs have beenapplied for discernible risks due to prolonged storage, overstocking,or reduced technical marketability.

Merchandise and used vehicles are carried at the cost of acquisition,or at the probable lower selling proceeds after adjustment for anycosts still to be incurred.

Receivables and other assets are carried at their principal amount.Default risks are covered by specific write-downs, and a global write-down has been charged for the general credit risk.

Provisions for pensions in Germany are calculated in accordancewith actuarial principles as per section 6a of the Einkommensteuer-gesetz (EStG – German Income Tax Act) and based on an assumedrate of interest of 6% per year. The 1998 Heubeck mortality tableswere used to calculate the amount of the provisions.

Provisions for taxes and other provisions are set up on the basis ofprudent commercial practice and cover all risks and uncertain obliga-tions discernible at the balance sheet date as well as up to the time thatthe balance sheet was drawn up.

Liabilities are carried at their redemption amount.

Payments received were netted against inventories in the consoli-dated and single-entity financial statements for the first time. Theprevious year's figures were adjusted accordingly.

CONSOLIDATION PRINCIPLESCapital consolidation was performed using the book value method inaccordance with section 301(1) of the HGB (German CommercialCode) by eliminating acquisition costs against the proportional equi-ty of the subsidiaries at the time the interests were acquired.

In the case of the initial inclusion of Kässbohrer E.S.E. in previousyears, this produced an excess of the purchase price over net assetsacquired in the amount of € 256 thousand, which was recognized asgoodwill and amortized in full in previous years.

Intercompany profits in inventories resulting from intragroup deliver-ies of goods and services are eliminated in the income statement.

Receivables and liabilities between consolidated companies are elim-inated, with any differences from the consolidation of intercompanybalances being recognized in income.

Revenues from intercompany sales and intragroup income are elimi-nated against the corresponding expenses.

Deferred taxes are set up on consolidation measures at a tax rate of40% (previous year: 40%). The choice was made not to capitalizedeferred taxes in the single-entity financial statements.

CURRENCY TRANSLATIONIn the single-entity financial statements of the Group companies, for-eign currency receivables are translated at the offer rate and foreign cur-rency liabilities at the bid rate prevailing at the time they arose. Lossesdue to exchange rate changes incurred up to the balance sheet date arerecognized. Foreign currency bank balances and cash are translated atthe bid rate at the balance sheet date, and liabilities to banks at the offerrate.

In the single-entity and consolidated financial statements, the balancesheet items of the foreign branches and subsidiaries are translated at themiddle rate on the balance sheet date. The equity of the foreign sub-sidiaries is translated at historical rates. The resulting differences arenot recognized in income and are disclosed separately under equity ascurrency translation adjustments.

The items of the income statements of foreign subsidiaries and branchoffices are translated at the average rates for the fiscal year. Results forthe year are translated at the closing rates. Any resulting differences aredisclosed under "other operating expenses" or "other operating income."

32|33

NOTES TO THE BALANCE SHEETChanges in the fixed assets of KGF AG and of the Group in fiscalyear 2002/2003 are disclosed in detail in the statement of changes infixed assets.

(1) Intangible assetsThese relate in particular to goodwill resulting from the acquisition ofthe all-terrain vehicles division of Evo Bus GmbH, Ulm (formerly:Karl Kässbohrer Fahrzeugwerke GmbH).

(2) Tangible assetsThese relate principally to the technical equipment and machinery, aswell as other equipment, and operating and office equipment at KGFAG's headquarters in Laupheim. The increase in tangible assets resulted primarily from the investments made during the relocation ofthe French subsidiary and mainly concerns the land and the building.Capital expenditure in connection with the relocation totaled€ 2.1 million.

(3) Financial assetsLoans to affiliates disclosed in the single-entity financial statementsconsist of a loan to the French subsidiary.

STATEMENT OF CHANGES IN FIXED ASSETS OF KÄSSBOHRER GELÄNDEFAHRZEUG AG FOR FISCAL YEAR 2002/2003

The currency translation difference is € 104 thousand for acquisition and manufacturing costs, and € 97 thousand in the case of depreciation,amortization, and write-downs. The total currency translation effect on the net book values therefore amounts to € 7 thousand.

Acquisition or manufacturing cost Depreciation and amortization expense Net book values

Oct. 1, Additions Disposals Transfers Sept. 30, Oct.1, Additions Disposals Sept. 30, Sept. 30, Sept. 30

2002 2003 2002 2003 2003 2002

€ thou. € thou. € thou. € thou. € thou. € thou. € thou. € thou. € thou. € thou. € thou.

Intangible assets

Concessions, industrial and

similar rights and assets, and licenses

in such rights and assets 18,810 340 -21 0 19,129 18,534 182 -21 18,695 434 277

Goodwill 12,806 0 0 0 12,806 7,636 753 0 8,389 4,417 5,169

31,616 340 -21 0 31,935 26,170 935 -21 27,084 4,851 5,446

Tangible assets

Land, land rights,

and buildings including

buildings on third-party land 826 102 -20 0 908 593 24 -20 597 311 232

Technical equipment and machinery 4,883 733 -56 155 5,715 3,104 558 -57 3,605 2,110 1,782

Other equipment, operating

and office equipment 7,158 758 -1,083 23 6,856 4,476 722 -1,047 4,151 2,705 2,687

Payments on account and assets

under construction 178 0 0 -178 0 0 0 0 0 0 178

13,045 1,593 -1,159 0 13,479 8,173 1,304 -1,124 8,353 5,126 4,879

Financial assets

Shares in affiliates 3,067 625 0 0 3,692 0 0 0 0 3,692 3,067

Loans

to affiliates 229 0 0 0 229 0 0 0 0 229 229

Long-term investments 287 0 0 0 287 40 0 0 40 247 247

3,583 625 0 0 4,208 40 0 0 40 4,168 3,543

48,244 2,558 -1,180 0 49,622 34,383 2,239 -1,145 35,477 14,145 13,868

(4) InventoriesPayments received were netted against inventories for the first time.The previous year's figures were adjusted accordingly.

(5) Receivables and other assets

STATEMENT OF CHANGES IN FIXED ASSETS OF THE GROUP FOR FISCAL YEAR 2002/2003

The currency translation difference is € 421 thousand for acquisition and manufacturing costs, and € 336 thousand in the case of depreciation,amortization, and write-downs. The total currency translation effect on the net book values therefore amounts to € 85 thousand.

AG Group

Sept. 30, 2003 Sept. 30, 2002 Sept. 30, 2003 Sept. 30, 2002

€ thou. € thou. € thou. € thou.

Raw materials,

consumables, and supplies 15,274 14,222 19,250 17,689

Work

in progress 4,402 2,575 4,433 2,609

Finished goods

and merchandise 23,782 18,799 40,583 34,281

43,458 35,596 64,266 54,579

Payments received -3,039 -536 -3,691 -1,027

40,419 35,060 60,575 53,552

AG Group

Sept. 30, 2003 Sept. 30, 2002 Sept. 30, 2003 Sept. 30, 2002


Trade

receivables 12,876 9,779 17,331 14,121

– thereof due after

more than one year 381 144 381 144

Receivables

from affiliates 21,624 21,087 0 0


more than

one year 0 0 0 0

Other

assets 2,406 1,795 3,228 2,527


more than one year 205 203 515 681

36,906 32,661 20,559 16,648

Acquisition or manufacturing cost Depreciation and amortization expense Net book values

Oct 1, Additions Disposals Transfers Sept. 30, Oct.1, Additions Disposals Transfers Sept. 30, Sept. 30, Sept. 30,

2002 2003 2002 2003 2003 2002

€ thou. € thou. € thou. € thou. € thou. € thou. € thou. € thou. € thou. € thou. € thou. € thou.

Intangible

assets

Concessions, industrial

and similar rights

and assets, and licenses

in such rights

and assets 19,036 340 -21 -226 19,129 18,534 313 -21 -131 18,695 434 502

Goodwill 13,371 0 0 226 13,597 7,938 794 0 131 8,863 4,734 5,479

32,407 340 -21 0 32,726 26,472 1,107 -21 0 27,558 5,168 5,981

Tangible assets

Land, land rights, and

buildings including

buildings on

third-party land 1,278 2,111 -288 31 3,132 951 69 -288 0 732 2,400 343

Technical equipment

and machinery 5,198 800 -111 154 6,041 3,252 596 -111 0 3,737 2,304 1,977

Other equipment, operating

and office equipment 8,149 858 -1,220 23 7,810 5,216 826 -1,185 0 4,857 2,953 2,925

Payments on account and

assets under construction 208 0 0 -208 0 0 0 0 0 0 0 208

14,833 3,769 -1,619 0 16,983 9,419 1,491 -1,584 0 9,326 7,657 5,453

Financial assets

Long-term

investments 287 0 0 0 287 40 0 0 0 40 247 247

47,527 4,109 -1,640 0 49,996 35,931 2,598 -1,605 0 36,924 13,072 11,681

34|35

(6) Prepaid expenses and deferred incomeConsolidated prepaid expenses and deferred income relate primarilyto deferred leasing fees at Kässbohrer E.S.E. As of September 30,2003, consolidated prepaid expenses and deferred income alsoincluded deferred tax assets resulting from consolidation measuresamounting to € 917 thousand (previous year: € 1,630 thousand).

(7) EquityThe share capital as of the balance sheet date remained the same asthe previous year, at € 13,006 thousand. It is composed of 5,002,400no-par value bearer shares with a nominal value of € 2.60 each. Eachshare entitles the bearer to one vote.

The capital reserves amount to € 7,471 thousand as of the balancesheet date and are the result of earlier contributions from shareholders.

In the Extraordinary General Meeting on August 21, 1998, KGF AG'sManaging Board was authorized, with the approval of the SupervisoryBoard, to increase the share capital by up to € 5,113 thousand untilAugust 20, 2003 by issuing new no-par value bearer shares againstcash contributions on one or several occasions ("Authorized CapitalI") and, in addition, to increase the share capital, with the approval ofthe Supervisory Board, by up to € 1,278 thousand until August 20,2003 by issuing new no-par value bearer shares against cash and/ornon-cash contributions on one or several occasions ("AuthorizedCapital II"). However, the Managing Board did not make use of theseauthorizations. No further authorization had been granted as of thereporting date.

In addition, the Managing Board was authorized to implement con-tingent capital increases. The contingent capital amounted to € 1,034thousand at the balance sheet date for the previous year. € 52 thousandof this was used to grant subscription rights to the employees of KGF

AG and Kässbohrer E.S.E. Since the employees were unable to exer-cise their stock options and the exercise period has expired, theGeneral Meeting on March 28, 2003 cancelled this contingent capi-tal. The remaining contingent capital of € 982 thousand will be usedto issue convertible bonds.

The other revenue reserves developed as follows:

(8) Other provisions

Other provisions primarily comprise provisions for warranty commit-

ments, outstanding vacation and overtime, outstanding invoices, partial

retirement obligations, potential losses, and expenses associated with anni-

versary payments.

AG Group

Sept 30, 2003 Sept 30, 2002 Sept 30, 2003 Sept 30, 2002


Provisions for taxes 1,150 2,559 1,150 2,585

Other provisions 11,100 11,086 12,353 12,694

12,250 13,645 13,503 15,279

(9) Liabilities

AG Thereof due in AG Thereof due in

Sept. 30, 2003 up to more than Sept. 30, 2003 up to

Total one year five years Total one year

€ thou. € thou. € thou. € thou. € thou.

Bonds 1) 221 0 0 285 0

- thereof convertible 221 0 0 285 0

Liabilities to banks 2) 32,210 20,210 5,500 26,339 11,739

Trade payables 11,232 11,232 0 7,472 7,472

Other liabilities 2,117 2,117 0 2,207 2,207

- thereof taxes 642 642 0 607 607

- thereof social security 511 511 0 471 471

45,780 33,559 5,500 36,303 21,418

AG Group

2002/2003 2001/2002 2002/2003 2001/2002


As of October 1 4,692 2,454 4,692 2,454

Allocation to other

revenue reserves

– resolution by the

General Meeting on

March, 28 2003 3,500 0 3,500 0

– Managing Board and

Supervisory Board in

accordance with section

58 (2) AktG 1,300 2,238 1,300 2,238

As of September 30 9,492 4,692 9,492 4,692

Group Thereof due in Group Thereof due in

Sept. 30, 2003 up to more than Sept. 30, 2002 up to

Total one year five years Total one year

€ thou. € thou. € thou. € thou. € thou.

Bonds 1) 221 0 0 285 0

- thereof convertible 221 0 0 285 0

Liabilities to banks 2) 32,210 20,210 5,500 26,339 11,739

Trade payables 14,261 14,261 0 9,151 9,151

Liabilities on bills

accepted and drawn 69 0 0 46 46

Other liabilities 3,522 3,522 0 4,031 4,031

- thereof taxes 936 936 0 835 835

- thereof social security 897 897 0 750 750

50,283 37,993 5,500 39,852 24,967

1) In two Extraordinary General Meetings on August 21, 1998 andSeptember 14, 1998, the Managing Board was authorized, with theapproval of the Supervisory Board, to issue interest-bearing conver-tible bearer bonds with a maturity of up to seven years on one orseveral occasions until August 20, 2003, and to grant the bearers ofthe convertible bonds conversion rights on up to 380,000 no-par valueshares. After the conversion of the share capital from DM to euros asresolved in the General Meeting on August 11, 2000, convertiblebonds with an aggregate principle amount of € 988 thousand could beissued.

In this context, a convertible bond with an aggregate principle amount of € 358 thousand was issued by KässbohrerGeländefahrzeug AG, Laupheim, on September 7, 1998. Since then,a total of € 6 thousand has been converted, € 213 thousand redeemed,and € 82 thousand newly issued. Subscription rights to 2,400 no-parvalue shares were exercised in relation to the conversion of € 6 thou-sand of the convertible bond.

Under the terms of the bond issue, bondholders are entitled to converttheir convertible bonds into Kässbohrer Geländefahrzeug AG sharesin full or in part. The bearer is entitled to convert each convertiblebond with a face value of € 51.13 into 20 no-par value bearer sharesof Kässbohrer Geländefahrzeug AG. Up to 20% of the conversionrights may be exercised no earlier than two years following the issue;up to 40% no earlier than three years following the issue; up to 60%no earlier than four years following the issue, up to 80% no earlierthan five years following the issue and up to 100% no earlier than sixyears following the issue.

In addition, the conversion rights may only be exercised if the closingprice of the Company's ordinary shares on the Frankfurt StockExchange on the last trading day before the conversion date, adjustedfor any corporate actions performed by the Company in the meanti-me, amounts to

· at least 130% of the placement price for which the shares were of-fered to investors during the IPO in the case of convertible bonds is-sued before the 1998 IPO, or

· at least 130% of the average market price of the Company's shareson the last ten trading days preceding the issue of the convertiblebonds in the case of convertible bonds issued at a later date.

Irrespective of these conditions, the conversion rights may also beexercised if the Company's share price outperforms the DAX mid-capindex (MDAX) by at least 10% in the period between

· the time the shares were first listed in the case of convertible bondsissued prior to the 1998 IPO, or

· the day on which the convertible bonds were issued in the case ofconvertible bonds issued at a later date – as the average rate during thelast ten trading days prior before the issue – and the last trading daybefore the conversion date.

2) The Company took advantage of an innovation promotion programby Kreditanstalt für Wiederaufbau (Germany's development bank) toperform various development projects. Tangible assets have beenassigned and the patents produced in the development projects havebeen ceded to the lender as collateral for the loan of € 5,500 thousand.

A corporate finance facility in the amount of € 4,000 thousand wasraised from Ausfuhrkreditanstalt (the German export finance bank) inthe previous year as a lower-interest alternative to the Company's pre-vious medium-term financing. The collateral for the loan consists ofthe assignment of the parent company's receivables from its subsidi-ary in the USA.

NOTES TO THE INCOME STATEMENT

(10) SalesPlease refer to our statements on segment reporting contained inAnnex 3 to the notes.

(11) Other operating incomeOther operating income in the single-entity financial statements con-sists primarily of license fee income from subsidiaries, supplierrefunds, currency gains, and oncharged management fees.

License fee income and management fees were eliminated at Grouplevel as part of the consolidation of expenses and income.

(12) Cost of materials

(13) Personnel expenses

(14) Other operating expensesOther operating expenses in the single-entity and consolidated finan-cial statements primarily relate to distribution and freight expenses,general administration, warranty expenses, rental costs, leasing fees,sales commissions, and exchange rate losses.

(15) Financial result

Interest expenses include the interest portion of the lease financingfor the factory in Laupheim in the amount of € 929 thousand (pre-vious year: € 463 thousand). € 80 thousand for expected interestexpenses from external tax audits in Germany are also included.

(16) Taxes on income

Effective taxes in the single-entity and consolidated financial state-ments include additional taxes relating to the external tax audit in Ger-many in the amount of € 322 thousand (previous year: € 150 thousand).

(17) Other taxesOther taxes in the single-entity and consolidated financial statementsinclude additional taxes due to the external tax audit totaling € 13 thousand (previous year: € 468 thousand).

CONTINGENT LIABILITIES

1) This relates to bills discounted under the Italian law on sales financing.

36|37

AG Group

2002/2003 2001/2002 2002/2003 2001/2002


Cost of raw materials,

consumables and

supplies, and of

purchased merchandise 74,378 62,520 75,266 64,474

Cost of purchased services 1,562 901 4,704 3,712

75,940 63,421 79,970 68,186

AG Group

2002/2003 2001/2002 2002/2003 2001/2002


Wages

and salaries 18,280 17,582 21,483 20,717

Social security

and other

pension costs 3,852 3,635 5,073 4,867

- thereof old age

pensions (263) (223) (271) (231)

22,132 21,217 26,556 25,584

AG Group

2002/2003 2001/2002 2002/2003 2001/2002


Income from other

investments and

long-term loans 5 12 5 12

Other interest and

similar income 278 411 228 462

- thereof from

affiliated companies (139) (71) (0) (0)

Amortization of

financial assets

and investments classified

as current assets 0 - 4 0 - 4

Interest and

similar expenses -2,135 -2,120 -2,142 -2,131

-1,852 -1,701 -1,909 -1,661

AG Group

2002/2003 2001/2002 2002/2003 2001/2002


Effective taxes 1,851 1,716 2,069 1,758

Deferred taxes 0 0 713 547

1,851 1,716 2,782 2,305

AG Group

2002/2003 2001/2002 2002/2003 2001/2002


Liabilities from the

issue and transfer

of bills 1) 3,325 3,643 3,325 3,643

Liabilities from

guarantees and

warranty agreements 360 404 360 404

3,685 4,047 3,685 4,047

OTHER FINANCIAL OBLIGATIONSOther financial obligations are due as follows:

Other financial obligations include leasing expenses in the amount of€ 1,419 thousand p.a. for the building at the Laupheim site. The termof the leasing agreement runs until August 31, 2020.

Average number of employees during the year

Disclosures in accordance with section 160 (1) clause 8 of the AktG Kreissparkasse Biberach, Biberach, informed us in accordance withsection 21 (1) of the Wertpapierhandelsgesetz (WpHG – GermanSecurities Trading Act) that its voting rights in KässbohrerGeländefahrzeug AG fell below the 75% threshold on October 31, 2001and now amount to exactly 20%. The requirement in accordance withsection 22 (1) clause 3 of the WpHG to notify the Company when thevoting rights to which it is entitled falls below or exceeds certain thresh-olds has therefore been met. Sexta GmbH, Ulm, informed us in accordance with section 21 (1) sen-tence 1 of the WpHG that its voting rights in KässbohrerGeländefahrzeug AG exceeded the 5% threshold effective March 27,2002 and that it now holds 10.77% of the voting rights in KässbohrerGeländefahrzeug AG. Sexta GmbH holds 10.77 % of the voting rightsin accordance with section 22 (1) clause 1 of the WpHG via its sub-sidiary, Filius GmbH, Ulm. UBH Unternehmens- und Beteiligungsholding mbH, Frankfurt, noti-fied us in accordance with section 41 (2) sentence 1 of the WpHG thatits voting rights in Kässbohrer Geländefahrzeug AG amounted to24.98% as of April 1, 2002.Adolf Merckle, Blaubeuren, notified us in accordance with section 41(2) sentence 1 of the WpHG that he holds 24.98% of the voting rightsin Kässbohrer Geländefahrzeug AG in accordance with section 22 (1)clause 1 of the WpHG as of April 1, 2002 via his subsidiary, UBHUnternehmens- und Beteiligungsholding mbH, Frankfurt. SüdKA SüdKapitalanlagegesellschaft mbH, Frankfurt, notified us inaccordance with section 41 (1) of the WpHG that its voting rights inKässbohrer Geländefahrzeug AG held via its special securities fundmanaged as an investment company exceeded the 5% threshold beforeJanuary 1, 2002 and remained unchanged at 9.57% at the reporting dateof April 1, 2002.

Deka Investment GmbH, Frankfurt, notified us in accordance withsection 41 (2) sentence 1 of the WpHG that its funds hold 9.44% of thevoting rights in Kässbohrer Geländefahrzeug AG as of April 1, 2002.Kreissparkasse Biberach, Biberach, notified us in accordance with sec-tion 41 (2) sentence 1 of the WpHG that its voting rights in KässbohrerGeländefahrzeug AG amounted to 39.01% as of April 1, 2002.

Declaration of conformity in accordance with section 161 of the AktG The declaration of conformity with the German Corporate Govern-ance Code in accordance with section 161 of the AktG was submittedby the Managing Board and Supervisory Board and made available toshareholders.

Filing of accountsThe consolidated financial statements of KGF AG are filed withBiberach Local Court.

Proposal on the appropriation of profitsThe Managing Board and the Supervisory Board propose to appro-priate the net retained profits of Kässbohrer Geländefahrzeug AG,Laupheim, as follows:

Executive bodies of Kässbohrer Geländefahrzeug AGThe Managing Board of Kässbohrer Geländefahrzeug AG comprisedthe following members during the fiscal year:

Rolf Glessing Responsible for finance and financial con-trol, materials management and logistics,human resources, data processing andorganization

Karl Knab Member of the Managing Board since May 19, 2003

Dr. Hendrik Grobler Chairman until April 30, 2003 Responsible for technology, research anddevelopment, sales and service

The Company is represented by the Managing Board members actingjointly or by a member of the Managing Board together with an au-thorized signatory. The Company has a Supervisory Board as definedin Article 9 of the Articles of Association, which comprises threemembers.

AG Group

2002/2003 2001/2002 2002/2003 2001/2002

Hourly-paid workers 146 162 191 206

Salaried employees 202 186 239 220

348 348 430 426

AG Group

€ thou. € thou.

Within the next 12 months 2,969 6,067

Between 13 and 60 months 7,157 15,239

After more than 60 months 18,540 18,541

28,666 39,847

€ thou.

Dividend of € 0.15 per share, for 5,002,400 shares 750

Allocation to other revenue reserves 1,480

Account carried forward 79

Net retained profits 2,309

38|39

The Supervisory Board comprised the following members during thefiscal year:

Ludwig Merckle ChairmanPractised profession: Managing Director of Merckle GmbH Chairman of the Supervisory Board of: · Württembergische Leinenindustrie AG Also a member of the following Supervisory Board: · HeidelbergCement AG

Dr. Susanne Frieß Deputy Chair since March 28, 2003 Practised profession: Managing Director of VEM Vermögensverwaltung GmbH, Lawyer Chairman of the Supervisory Board of: · Bastfaserkontor AG Also member of the following Supervisory Board: · Pommersche Provinzial Zuckersiederei AG

Adolf Merckle Member of the Supervisory Board since March 28, 2003 Practised profession:Lawyer Chairman of the Supervisory Board of: · Hanfwerke Oberachern AG · Phoenix AG · Pommersche Provinzial Zuckersiederei AG· F. Reichelt AG

Dr. Otmar Weigele Deputy Chairman until March 28, 2003 Practised profession: Chairman of the Managing Board of Kreissparkasse Biberach Also a member of the following Supervisory Boards: · Öchsle Bahn AG· SV Sparkassen-Versicherung AG,· Genossenschaft für Wohnungsbau Oberland eG· Grundstücks- und Baugesellschaft AG

· Alternate member of the Advisory Board of the kommunaler Versorgungsverband (civil servicebenefits association) Baden-Württemberg

Remuneration of the Managing BoardThe remuneration of the Managing Board members of KässbohrerGeländefahrzeug AG totaled € 386 thousand in fiscal year 2002/2003.€ 359 thousand of this represents fixed remuneration and € 27 thou-sand variable, performance-based remuneration. In addition, theManaging Board members were granted convertible bonds; after a

lock-up period of two years, these bonds can be successively con-verted to shares over a period of an additional four years. Provisionsfor the pensions of former Managing Board members have been setup in the amount of € 525 thousand. The former Managing Boardmembers received remuneration of € 713 thousand in fiscal year2002/2003.

The remuneration of the active members of the Managing Board in

fiscal year 2002/2003 amounted to:1): For the period spent as a member of the Managing Board fromMay to September 2003.2): Fixed remuneration for the period spent as a member of theManaging Board from September 2002 to April 2003. Other remu-neration relates to payments guaranteed in his contract of service inconnection with the termination of this contract. It also includes theproportional variable remuneration components paid in this context ascompensation for the period spent as a member of the ManagingBoard.

Report of the Supervisory BoardThe remuneration of the Supervisory Board for its activities duringfiscal year 2002/2003 amounted to € 27 thousand in total. TheSupervisory Board members elected at the General Meeting onMarch 28, 2003 waived their right to 50% of their remuneration inaccordance with the Articles of Association in view of the Company’searnings and the dividend paid.

The Supervisory Board remuneration can be broken down as follows:

Laupheim, November 2003Kässbohrer Geländefahrzeug AG

The Managing Board

Rolf Glessing Karl Knab

€ thou.

Ludwig Merckle (Chairman) 12

Dr. Susanne Frieß 6

Adolf Merckle (since March 28, 2003) 3

Dr. Otmar Weigele (until March 28, 2003) 6

Fixed re- Variable re- Total re-

muneration muneration Other muneration


Rolf Glessing 175 20 0 195

Karl Knab 1) 52 7 0 59

Dr. Hendrik Grobler 2) 132 0 613 745

359 27 613 999

ANNEX 1 TO THE NOTESCONSOLIDATED CASH FLOW STATEMENT

2002/2003 2001/2002

€ thou. € thou.

Consolidated net income for the year after

minority interests 4,333 6,409

Depreciation and amortization expense 1,673 1,842

Step-up depreciation/amortization 925 801

Increase in provisions for pensions 211 175

Increase/decrease in other long-term provisions -382 151

Decrease in the special tax-allowable reserve 0 -15

Deferred tax expenses 713 547

DVFA/SG cash flow 7,473 9,910

Increase/decrease in inventories -7,023 4,173

Increase in trade receivables

and other current assets -3,508 -1,780

Increase/decrease in short-term provisions -1,394 17

Increase/decrease in trade payables

and other liabilities 4,625 -783

Net cash provided by operating activities 173 11,537

Disposal

of fixed assets 0 277

Investments

in intangible assets -340 -141

Investments in tangible assets -3,769 -4,066

Investments in financial assets 0 -12

Net cash used in investing activities -4,109 -3,942

Contributions from loans raised 5,871 0

Capital increase 0 25

Dividend -1,500 -1,300

Payments for loan redemption 0 -5,522

Net cash provided by/used in financing activities 4,371 -6,797

Change in net funds 435 798

Change in minority interests/ currency translation effects -275 -47

Funds at the beginning of the fiscal year 3,140 2,389

Funds at the end of the fiscal year 3,300 3,140

40|41

ANNEX 2 TO THE NOTES CHANGES IN CONSOLIDATED EQUITY

Subscribed

capital

Capital reserves Consolidated

equity raised

Adjustment for

currency

translation(1)

Equity Minority

capital

Consolidated

equity

Thereof total

consolidated

earnings

According to the single-entity financial statements of KässbohrerGeländefahrzeug AG, net retained profits of € 2,309 thousand areavailable for distribution from the consolidated equity raised.

1) The cumulative other consolidated net income consists solely ofthe adjustment for currency translation.

According to the single-entity financial statements of KässbohrerGeländefahrzeug AG, net retained profits of € 6,009 thousand areavailable for distribution from the consolidated equity raised.

1) The cumulative other consolidated net income consists solely ofthe adjustment for currency translation.

b) Previous year Parent company

€ thou. € thou. € thou. € thou. € thou. € thou. € thou. € thou.

As of October 1, 2001 13,000 7,452 4,648 200 25,300 9 25,309 0

Issue of shares 6 19 0 0 25 0 25 0

Dividend payment 0 0 -1,300 0 -1,300 0 -1,300 0

Other changes 0 0 41 -186 -145 1 -144 -186

Consolidated net income

for the year 0 0 6,409 0 6,409 3 6,412 6,409

As of September 30, 2002 13,006 7,471 9,798 14 30,289 13 30,302 6,223

a) Year under review Parent company

€ thou. € thou. € thou. € thou. € thou. € thou. € thou. € thou.

As of October 1, 2002 13,006 7,471 9,798 14 30,289 13 30,302 0

Dividend payment 0 0 -1,500 0 -1,500 0 -1,500 0

Other changes 0 0 0 -396 -396 0 -396 -396

Consolidated net income

for the year 0 0 4,333 0 4,333 1 4,334 4,333

As of September 30, 2003 13,006 7,471 12,631 -382 32,726 14 32,740 3,937

Subscribed

capital

Capital

reserves

Consolidated

equity raised

Adjustment for

currency

translation (1)

Equity Minority

capital

Consolidated

equity

Thereof total

consolidated

earnings

ANNEX 3 TO THE NOTESSEGMENT REPORTING

Kässbohrer Geländefahrzeug AG Group has two business units:vehicles for maintaining ski slopes and trails (PistenBully) and forbeach cleaning (BeachTech). These form the two product-orientedsegments of the Company’s operating activities and reflect its oppor-tunities and risk structure. There are similarities within the two seg-ments, in particular in respect of products and services, customergroups, sales channels, and the way in which services are provided.The transfer prices for intragroup sales are determined in line withmarket conditions.

Since the assets are principally used by both segments together andliabilities are allocated jointly to the two segments, they were alloca-ted in proportion to sales (with the exception of inventories andreceivables). Interest expense and income were also allocated in pro-portion to sales.

The result from ordinary activities is disclosed as the segment result. The information on the geographical regions relates to Europe, NorthAmerica, and the rest of the world. These regions reflect the riskstructure of the Company's business activities. None of the regions inthe rest of the world generate more than 10% of consolidated sales.

North North Rest of Rest of

Europe Europe America America World World

2002/2003 2001/2002 2002/2003 2001/2002 2002/2003 2001/2002

€ thou. € thou. € thou. € thou. € thou. € thou.

Sales 95,910 94,941 18,874 22,340 15,441 14,899

Assets 78,896 67,541 20,840 20,826 0 0

Investments in long-term assets 4,056 4,132 53 87 0 0

Pisten Pisten Beach Beach Group Group

Bully Bully Tech Tech total total

2002/2003 2001/2002 2002/2003 2001/2002 2002/2003 2001/2002

Details regarding the segments € thou. € thou. € thou. € thou. € thou. € thou.

Sales to third parties 125,855 129,579 4,370 2,601 130,225 132,180

Segment result (result from ordinary activities) 7,503 9,756 -248 -448 7,255 9,308

thereof:

Depreciation and amortization expenses 2,511 2,591 87 52 2,598 2,643

Interest income 220 453 8 9 228 462

Interest expenses 2,070 2,089 72 42 2,142 2,131

Assets 96,984 85,652 2,752 2,715 99,736 88,367

Investments 3,971 4,135 138 84 4,109 4,219

Liabilities 64,748 56,902 2,248 1,163 66,996 58,065

The following information relates to the product-oriented segments of the Kässbohrer Geländefahrzeug Group:

Sales are classified by geographical region as follows:

We have audited the annual financial statements, including theaccounting of Kässbohrer Geländefahrzeug AG, as well as its consolidated financial statements and the combined managementreport and Group management report for the fiscal year from October 1, 2002 through September 30, 2003. The preparation ofthese documents in accordance with German commercial law is the responsibility of the legal representatives of the Company. Our responsibility is to express an opinion, based on our audit, on theannual financial statements, including the accounting, the consolidatedfinancial statements, and the combined management report andGroup management report.

We conducted our audit of the annual and consolidated financial statements in accordance with section 317 of the HGB (GermanCommercial Code) and the German generally accepted standards forthe audit of financial statements promulgated by the Institut derWirtschaftsprüfer (IDW). Those standards require that we plan andperform the audit such that misstatements materially affecting thepresentation of the financial position and result of operations in theannual and consolidated financial statements in accordance with principles of proper accounting and in the combined managementreport and Group management report are detected with reasonableassurance. Knowledge of the business activities and the economic andlegal environment of the Company and the Group, and evaluations ofpossible misstatements, are taken into account in the determination ofthe audit procedures. The effectiveness of the internal accountingcontrol system and the evidence supporting the disclosures in thebooks, the annual financial statements and consolidated financial statements, and in the combined management report and Groupmanagement report are examined primarily on a test basis within theframework of the audit. The audit includes assessing the accountingprinciples applied and significant estimates made by management, aswell as evaluating the overall presentation of the annual and consolidated financial statements and the combined managementreport and Group management report. We believe that our audit provides a reasonable basis for our opinion.

Our audit has not led to any reservations.

In our opinion, the annual and consolidated financial statements ofKässbohrer Geländefahrzeug AG, Laupheim, give a true and fair viewof the net assets, financial position and results of operations of theCompany and the Group in accordance with the principles of properaccounting. On the whole, the combined management report andGroup management report gives a true and fair view of the Companyand of the Group and accurately presents the risks of future development.

Stuttgart, November 18, 2003

Prof. Dr. Binder, Dr. Dr. Hillebrecht & Partner GmbHWirtschaftsprüfungsgesellschaft, SteuerberatungsgesellschaftWirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

Bacher Beuttler

Wirtschaftsprüfer (auditor) Wirtschaftsprüfer (auditor)


Auditors’ Report.

42|43

The Company.

Kässbohrer Geländefahrzeug AG

Kässbohrerstr. 11

88471 Laupheim

Germany

Tel.: +49 (0) 73 92 /900-0, Fax: +49 (0) 73 92 / 900-504

[email protected] · www.pistenbully.com

Austrian branch office

Gewerbestraße 173, 5431 Kuchl

Austria

Tel.: +43 (0) 62 44/4 00 10

Fax: +43 (0) 62 44/40 01 11

[email protected]

www.pistenbully.at

US subsidiary

Kässbohrer All Terrain Vehicles Inc.

750 A South Rock Boulevard, Reno

Nevada 89502

USA

Tel.: +1 (0) 7 75/8 57-50 00

Fax: +1 (0) 7 75/8 57-50 10

[email protected]

www.katvpb.com

Swiss branch office

Bruneggerstraße 45, 5103 Möriken

Switzerland

Tel.: +41 (0) 62/8 87 70 50

Fax: +41 (0) 62/8 87 70 51

[email protected]

www.pistenbully.ch

Italian branch office

Via Galileo Galilei, 32, 39100 Bozen

Italy

Tel.: +39 0 4 71/93 30 27

Fax: +39 0 4 71/93 29 75

[email protected]

www.pistenbully.it

French subsidiary

Kässbohrer E.S.E.

Portes de Tarentaise

73790 Tours en Savoie

France

Tel.: +33 (0) 4 79/10 46 10

Fax: +33 (0) 4 79/10 46 40

[email protected]

www.pistenbully.fr

Kässbohrer Geländefahrzeug AG · Kässbohrerstraße 11 · 88471 Laupheim · Germany · Tel.: +49 (0) 73 92/900-0 · Fax: +49 (0) 73 92/900-504

www.pistenbully.com · [email protected]

annual report 2002/2003 · 2) proposal to be made at the general meeting the kässbohrer...

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