Lemminkäinen and YIT will complete the merger
- Stock Exchange Releases
- 2/15/2006
LEMMINKÄINEN?S 2005 FINANCIAL STATEMENT BULLETIN: 20% IMPROVEMENT IN THE COMPANY?S RESULT
1 (18) LEMMINKÄINEN CORPORATION STOCK EXCHANGE BULLETIN 15.2.2006, 11.40 LEMMINKÄINENS 2005 FINANCIAL STATEMENT BULLETIN: 20% IMPROVEMENT IN THE COMPANYS RESULT Lemminkäinen Groups net sales rose 11.9 % to EUR 1,601.7 million (1,431.3). The profit before taxes was up 19.6 % at EUR 65.9 million (55.1), the return on investment was 16.5 % (14.8) and earnings per share were EUR 2.57 (2.20). The order book
1 (18)
LEMMINKÄINEN CORPORATION STOCK EXCHANGE BULLETIN
15.2.2006, 11.40
LEMMINKÄINENS 2005 FINANCIAL STATEMENT BULLETIN:
20% IMPROVEMENT IN THE COMPANYS RESULT
Lemminkäinen Groups net sales rose 11.9 % to EUR 1,601.7 million
(1,431.3). The profit before taxes was up 19.6 % at EUR 65.9
million (55.1), the return on investment was 16.5 % (14.8) and
earnings per share were EUR 2.57 (2.20). The order book grew by
29.1 % to EUR 1,011.3 million (783.4). The proposed dividend is
EUR 1.00 per share (0.60).
LEMMINKÄINEN CONTINUES TO DEVELOP FAVOURABLY
Lemminkäinen Group had a good year in 2005. The companys net
sales rose 11.9 % to EUR 1,601.7 million (1,431.3). Most of the
revenue growth came from operations abroad, which generated net
sales of EUR 499.6 million (358.6), representing 31.2 % (25.1) of
the Group total. The profit before taxes improved 19.6 % to EUR
65.9 million (55.1). The operating profit was EUR 72.5 million
(63.9). The return on investment was 16.5 % (14.8), the return on
equity 24.5 % (21.9) and earnings per share EUR 2.57 (2.20). The
equity ratio was 31.0 % (27.5).
The Finnish construction market continued to develop favourably,
and this trend is expected to carry through 2006. The volume of
construction is expected to grow 3-4 % in 2006.
The net sales of Lemminkäinens Paving and Mineral Aggregates
Division rose and its result improved. The total volume of
Lemminkäinens asphalt production rose to 5.6 million tonnes
(4.8), about a half of which was produced abroad.
The Building Material Divisions result fell short of the set
profitability targets. The corporatisation of the roofing and
concrete products units at the beginning of this year is one of
the steps taken to improve the Divisions flagging profitability.
The volume of Lemcons business grew and the companys
profitability trend was good. The market situation for civil
engineering contracting remains favourable in both Finland and
Sweden. The outlook for the Companys international operations
developed well.
The net sales of Palmberg, which specialises in building
contracting on the Finnish market, rose and the result remained at
the previous year´s level. The number of own residential
development apartments completed by the company was 1,068 units
(948). The sustained good level of building construction provides
the company with favourable conditions for the coming year.
Tekmannis result improved considerably. The market for technical
building services is growing.
GOOD OUTLOOK
Lemminkäinen Groups almost 30% increased order book provides a
good starting point for 2006. There are grounds to expect further
net sales growth and an improvement in the result.
TRANSITION TO IFRS FINANCIAL STATEMENTS
The financial statements for the year ending 31 December 2005 are
prepared in accordance with the International Financial Reporting
Standards (IFRS). The IFRS transition date was 1 January 2004. The
principal effects of the IFRS transition on the opening balance
sheet are described in the stock exchange bulletin published on 8
June 2005. The principal effects of the IFRS transition on the
2004 and 2005 interim financial reviews are described in the stock
exchange bulletin published on 7 December 2005.
ANNUAL GENERAL METING 2006 AND DIVIDEND DISTRIBUTION PROPOSAL
The Board of Directors of Lemminkäinen Corporation has decided to
convene the Annual General Meeting on 17 March 2006. A summons to
attend the meeting will be published as a separate stock exchange
bulletin on 15 February 2006.
The Board of Directors will propose to the Annual General Meeting
that the Company pay a dividend of EUR 1.00 (0.60) per share for
the 2005 accounting period, i.e. a total of EUR 17,021,250.00
(10,212,750.00).
The dividend will be paid to all those included on the list of
shareholders kept by the Finnish Central Securities Depository on
the record date (22 March 2006). The dividend will be paid on 29
March 2006.
2005 ARCHIVE OF STOCK EXCHANGE BULLETINS
The stock exchange bulletins published by Lemminkäinen Corporation
in 2005 can be reviewed on the companys website at
www.lemminkainen.fi
LEMMINKÄINEN CORPORATION
Juhani Sormaala
Managing Director
DISTRIBUTION: Helsinki Exchanges, key media
BOARD OF DIRECTORS REPORT
CONSTRUCTION MARKET
The Finnish construction market continues to develop favourably.
The volume of construction grew 4 % in 2005. Building construction
remained brisk and grew by 4 %. The steady growth of building
construction will continue in 2006. The number of new housing
starts in 2005 was approximately 33,500 units, and the same level
is likely to be achieved this year as well.
Industrial construction increased last year and its growth will
continue in 2006. Commercial construction is also growing, whereas
new office construction still remains quite minimal. Demand for
refurbishment contracting remains good, with the accent on
apartment building repair work.
The volume of civil engineering contracting grew also 5 %.
Investments in transport infrastructure will continue to support
this growth in 2006. Finnish asphalt paving volumes were slightly
higher than in the previous year. The volume of underground
excavations was up thanks to major infrastructure projects.
The value of the Finnish construction industrys international
operations rose to about EUR 2.2 billion (1.7) in 2005. The trend
was positive in all market areas of the construction companies.
NET SALES AND RESULTS
The net sales of Lemminkäinen Group rose 11.9 % to EUR 1,601.7
million (1,431.3), of which operations abroad accounted for EUR
499.6 million (358.6) or 31.2 % (25.1). The operating profit was
EUR 72.5 million (63.9), the profit before taxes EUR 65.9 million
(55.1) and the profit for the accounting period EUR 43.7 million
(37.4). The return on investment was 16.5 % (14.8), the return on
equity 24.5 % (21.9) and earnings per share EUR 2.57 (2.20).
The improvement in the Groups result was largely due to the
significantly improved results of Tekmanni and Lemcon Ltd. The
result of the Paving and Mineral Aggregates Division also improved
slightly, and Palmbergs result remained good. The Building
Materials Divisions result fell well short of the set targets.
RESULTS AND OUTLOOK BY BUSINESS SECTOR
Paving and Mineral Aggregates Division
The net sales of the Paving and Mineral Aggregates Division rose
to EUR 514.7 million (430.4). The Divisions operating profit was
EUR 20.5 million (18.4).
The total volume of asphalt paving contracting was slightly higher
than in the previous year. In Finland the volume of asphalt paving
was 2.8 million tonnes and in other countries altogether it was
approximately 2.7 million tonnes. The exceptionally warm and dry
autumn extended the contracting season and boosted production
volumes to a record level. In Scandinavian countries other than
Finland the price level of asphalt paving contracts has started to
rise. Prices of oil and bitumen products rose significantly, but
the company has been able to hedge against these price rises quite
well. The outlook for Lemminkäinens asphalt paving operations
over the coming season is quite satisfactory thanks to the strong
order book.
Building Materials Division
The net sales of the Building Materials Division were EUR 100.3
million (95.7). The Divisions operating profit was EUR 0.6
million (3.1).
The Building Material Divisions result fell short of the set
targets. There is plenty of supply on the market for precast
concrete staircase units, which has kept the competitive situation
tight and the price level weak. Demand for roofing and urban
environment contracting has remained good. The outlook for exports
of roofing materials is satisfactory, but imports of roofing
materials have risen.
The corporatisation of the roofing and concrete products units at
the beginning of this year is one of the steps taken to improve
the Divisions flagging profitability.
Lemcon Ltd
The net sales of Lemcon Ltd rose to EUR 328.8 million (264.5). The
companys profit before taxes improved 48 % and was EUR 16.7
million (11.3).
Lemcons business is growing strongly and the companys
profitability trend has been positive. The order book for rock
engineering contracting in Finland is good, and it appears that
the market situation in Sweden will remain favourable. Major
infrastructure projects underway and in the pipeline will keep the
order book at a reasonable level in the coming years. Work on the
E18 motorway project is well underway and proceeding according to
plan.
In Russia demand is brisk, notably for the construction of arenas.
Kazan Hall was completed at the end of the year and work began on
the construction of Magnitogorsk Arena. There was further growth
in inward investment to Russia from Western countries in 2005.
Forest and electronics industry investments in Asia continue to
rise. The outlook for Lemcon in China is good. India is a new
potential market.
The outlook for telecom network construction has remained
favourable, and Lemcon Networks business has grown rapidly. The
company is now operating in 19 countries in Europe, Africa, the
Americas and Asia, and it employs about 600 people.
Oy Alfred A. Palmberg Ab
The net sales of Oy Alfred A. Palmberg Ab, which specialises in
building contracting on the Finnish market, rose 6 % to EUR 517.3
million (486.4). Palmbergs result before taxes was EUR 25.2
million (26.0).
Low interest rates, extended loan maturities and consumer
confidence in household finances sustained the good level of
residential construction. The number of own residential
development apartments completed by the company was 1,068 units
(948). New apartments completed under competitive tender
contracting totalled 929 (859). At the end of the accounting
period a total of 587 (923) such apartments were under
construction.
The volume of building construction rose 4 % last year, and growth
is expected to be sustained at this level in 2006.
Palmberg Groups strong order book provides a good starting point
for 2006. The company is expected to be able to make about 1,500
new housing starts.
Tekmanni Oy
The net sales of Tekmanni Oy were EUR 191.1 million (198.3). The
companys result before taxes improved and was EUR 7.4 million
(2.6).
Tekmannis result improved in all of its business areas. The
business adjustment and restructuring measures implemented last
year have improved the companys competitiveness and
profitability. The brisk building refurbishment market has
increased the demand for technical building services. Especially
plumbing and pipework modernisation work has increased. Industrial
investments and the markets for technical maintenance and
servicing are growing. Thanks to the industrys growth potential,
the outlook for Tekmanni over the coming year is favourable.
FINANCING
According to the source and application of funds statement, the
cash flow from business operations was EUR 59.5 million (57.4),
the cash flow from investments EUR 18.3 million (-22.1) and the
cash flow from financing EUR -39.3 million (-40.0). The cash flow
for the review period includes dividends totalling EUR 11.1
million paid in respect of the 2004 accounting period.
Interest-bearing liabilities were EUR 264.0 million (279.5) and
liquid funds were EUR 42.4 million (39.9). Interest-bearing net
debt was EUR 221.6 million (239.6).
Net financing expenses were EUR 7.7 million (9.2), representing
0.5 % (0.6) of net sales. The equity ratio was 31.0 % (27.5) and
gearing 102.9 % (132.4).
TRANSITION TO IFRS FINANCIAL STATEMENTS
Transition schedule
The financial statements for the year ending 31 December 2005 are
prepared in accordance with the International Financial Reporting
Standards (IFRS). Previously, the Groups financial reporting was
based on the Finnish Accounting Standards (FAS). The Groups IFRS
transition date is 1 January 2004. The IFRS opening balance sheet
is prepared from the transition date. Interim financial reviews
complete with comparative figures will be prepared in accordance
with IFRS, commencing with the first-quarter review in 2006. The
2005 interim financial reviews and the annual financial statements
for 2004 were restated in accordance with IFRS rules and published
in December 2005.
Phased transition
Inventories and finance leasing have been treated according to
IFRS accounting principles since the annual financial statements
for 2003. The value of inventories has been incremented to include
their share of the fixed costs of production, and finance leasing
purchases have been recognised on the consolidated balance sheet.
Principal effects
The transition to IFRS financial statements will not affect the
Companys strategies, business structure, dividend distribution
policy or performance-related pay principles. The principal
effects of the IFRS transition on the opening balance sheet are
described in the stock exchange bulletin published on 8 June 2005.
The principal effects of the IFRS transition on the 2004 and 2005
interim financial reviews are described in the stock exchange
bulletin published on 7 December 2005.
INVESTMENTS
Investments made in the accounting period totalled EUR 37.4
million (40.8). These investments were primarily purchases of
paving, crushing and excavation equipment, production plant for
building materials, and building construction equipment.
PERSONNEL
The average number of personnel in the Group during the accounting
period was 7,912 (7,479), of whom 2,750 (2,367) were salaried
staff and 5,162 (5,112) hourly paid employees. The number of
employees at the end of the year was 7,112 (6,783). The average
number of employees working abroad during the accounting period
was 1,965(1,623), i.e. 24.8 % (21.7) of the Groups personnel.
RESEARCH AND DEVELOPMENT
The Groups R&D expenses represented 0.4 % of net sales. R&D
focused on technical development, operational efficiency gains,
and environmental and safety issues.
GROUP STRUCTURE
At the beginning of 2006 the Building Materials Divisions roofing
and concrete products operations were transferred to two newly
established subsidiaries: Lemminkäinen Katto Oy and Lemminkäinen
Betonituote Oy. The new companies together with Omni-Sica Oy will
still make up the Building Materials Division.
Lemminkäinen Corporation increased its stake in Tekmanni Oy by
making a tender offer to the minority interests and thereafter by
exercising its right of redemption under the provisions of the
Companies Act. As a result, Tekmanni is now a wholly owned
subsidiary of Lemminkäinen Corporation. The arbitration
proceedings instituted to confirm the redemption price are
pending.
ORDER BOOK
The Groups uninvoiced order book grew 29.1 % to EUR 1,011.3
million (783.4), of which foreign orders accounted for EUR 343.4
million (244.6).
Order book by business sector
EUR mill. 2005 2004 Change, %
Paving and Mineral
Aggregates Division 130.2 124.7 4.4
Building Materials Division 13.3 12.5 6.4
Lemcon Ltd 439.5 239.1 83.8
Oy Alfred A. Palmberg Ab 366.9 334.3 9.8
Tekmanni Oy 61.5 72.7 -15.4
Total 1,011.3 783.4 29.1
One of the most significant project management contracts started
during the accounting period is Botnias new pulp mill in Uruguay.
The total cost of the mill investment is about EUR 830 million.
In Russia work started on the construction of Metsä-Botnias
sawmill in Podporozhj. A multipurpose arena worth about EUR 32
million is being built at Magnitogorsk in the southern Urals. In
St. Petersburg work began on the construction of a shopping centre
for IKEA. The value of the projects design and construction works
is about EUR 92 million. A skyscraper project worth approximately
EUR 45 million was started in downtown Tallinn. The building will
house a shopping centre, hotel and 180 apartments.
The most notable construction project started in Finland during
the accounting period is the Muurla-Lohja E18 motorway contract,
which began in the summer. Lemminkäinen Corporation is a partner
in the road company established for the project, and Lemcon is
responsible for construction works as a consortium member. The
value of the construction works is EUR 299 million, of which
Lemcon Ltds share is approx. EUR 135 million.
Tunnelling and civil engineering works began on the rail track
section between Oslo and Gothenburg in Western Sweden. The
contract is worth about EUR 55 million.
New telecom network construction projects have been started in
Europe, Asia, Africa and the Americas.
SHARES
Lemminkäinen Corporations share capital is EUR 34,042,500. The
nominal value of the Companys share is EUR 2.00 and the number of
issued shares 17,021,250. The Company has one share class.
The average listed price of Lemminkäinen Corporations share
during the accounting period was EUR 21.74 (15.98). The year-end
price of the Companys share was EUR 30.50 (15.74) and the market
capitalisation EUR 519.1 million (267.9). At the end of the year
the Company had 3,116 (3,589) shareholders. The trading volume was
4,610,443 shares (5,004,790).
Lemminkäinen Corporations shares were traded in lots of 200
shares up until 25 August 2005. Earlier in that month Lemminkäinen
Corporation had applied to Helsinki Exchanges for a reduction in
the size of its shares trading lot to 50 shares, and the change
came into effect on the above-mentioned date. The purpose of the
change was to improve the liquidity of Lemminkäinens share and
boost its trading volume.
Lemminkäinen Corporation and Nordea Bank Finland Plc have a
liquidity providing (LP) agreement. According to the agreement
Nordea Bank Finland Plc must quote both bid and offer prices for
Lemminkäinen Corporations share so that the prices do not deviate
from each other by more than 4 %, calculated on the bid price. The
bid and offer prices quoted by the liquidity provider must be for
at least 200 shares (800 shares prior to 25 August 2005). Nordea
Bank Finland Plc is obliged to quote bid and offer prices for
Lemminkäinen Corporations share in Helsinki Stock Exchanges
trading system every day for at least 85 per cent of the
Continuous Trading I period and also in the daily opening and
closing procedures applicable to securities.
The Company is not aware of any agreements between shareholders
which might markedly influence voting behaviour at meetings of
shareholders.
The Board of Directors is not currently authorised to make a share
issue; neither is it authorised to decide on convertible
promissory notes or bonds with equity warrants.
The Board of Directors is not currently authorised to buy back the
Companys own shares.
As of 31 December 2005, the members of the Board of Directors and
the Managing Director held a total of 7,505,512 shares,
representing 44.1% of the Companys shares and their conferred
voting rights.
DECISIONS OF THE ANNUAL GENERAL MEETING
The Annual General Meeting of Lemminkäinen Corporation was held on
18 March 2005. The AGM adopted the Companys financial statements
for the 2004 accounting period and granted the Managing Director
and members of the Board of Directors freedom from responsibility.
In accordance with the Board of Directors proposal, the AGM
decided to pay a dividend of EUR 0.60 per share, i.e. a total
dividend pay-out of EUR 10,212,750.00.
Messrs. Berndt Brunow, Heikki Pentti, Erkki J. Pentti, Teppo
Taberman and Sakari Tamminen were elected to serve as members of
the Board of Directors. The Board of Directors elected Heikki
Pentti to serve as the Chairman. PricewaterhouseCoopers Oy, a firm
of Authorised Public Accountants, was elected to serve as the
Companys Auditor.
The Managing Director of Lemminkäinen Corporation is Mr. Juhani
Sormaala.
INVESTIGATIONS OF THE COMPETITION AUTHORITIES
The Finnish Competition Authority (FCA) has proposed to the Market
Court that a fine of EUR 68 million should be imposed on
Lemminkäinen in connection with its allegations of a cartel in the
asphalt paving industry. In the rejoinder submitted to the Market
Court Lemminkäinen has refuted the FCAs allegations as being
unfounded in all respects and has called for the Market Court to
dismiss the FCAs sanction proposal in its entirety. The case is
still pending in the Market Court.
OUTLOOK
The Finnish construction market continues to develop favourably.
The volume of construction is expected to grow 3-4% in 2006. The
positive trend will be supported by brisk building construction,
which is expected to grow 4% in 2006. Civil engineering and
refurbishment contracting will also continue to grow.
The outlook for Lemminkäinen Group is good. The Groups housing
production will continue at a good level, and major infrastructure
project will keep the company occupied in the coming years.
International operations in both current and new market areas will
develop favourably. The outlook for technical building services
and for asphalt paving and mineral aggregate operations is
favourable. The Groups almost 30% increased order book provides a
good starting point for 2006. There are grounds to expect further
net sales growth and an improvement in the result.
BOARD OF DIRECTORS PROPOSAL FOR THE APPROPRIATION OF RETAINED
EARNINGS
The distributable shareholders equity shown on the consolidated
balance sheet at 31 December 2005 amounts to EUR 143,539,499.98.
The distributable shareholders equity shown on the balance sheet
of the parent company, Lemminkäinen Corporation, at 31 December
2005 amounts to EUR 79,005,031.80, consisting of EUR 77,055,685.20
in retained earnings from previous years and EUR 1,949,346.60 in
profit for the accounting period.
The Board of Directors will propose to the Annual General Meeting
that the Company pay a dividend of EUR 1.00 per share for the 2005
accounting period, i.e. a total of EUR 17,021,250.00, after which
retained earnings would stand at EUR 61,983,781.80.
Helsinki, 15 February 2006
LEMMINKÄINEN CORPORATION
Board of Directors
LEMMINKÄINEN CORPORATION
CONSOLIDATED INCOME STATEMENT
EUR mill. 2005 2004 Change Change, %
Net sales 1 601.7 1 431.3 170.4 11.9
Operating income
and expenses -1 495.3 -1 335.4 -159.9 -12.0
Depreciation and
impairment -34.0 -32.0 -2.0 -6.3
Operating profit 72.5 63.9 8.6 13.5
Financial expenses -11.5 -12.5 1.0 8.0
Financial income 3.8 3.3 0.5 15.2
Share of the result
of affiliated
undertakings 1.1 0.4 0.7 over 100
Profit before taxes 65.9 55.1 10.8 19.6
Income taxes -17.4 -14.6 -2.8 -19.2
Result for the
accounting period 48.5 40.4 8.1 20.0
Distribution of the
result for the
accounting period
To shareholders of
the parent company 43.7 37.4 6.3 16.8
To minority
interests 4.7 3.1 1.6 51.6
Earnings per share calculated
from profits belonging to
parent company shareholders
EPS, EUR 2.57 2.20
EPS, EUR, diluted 2.57 2.20
NET SALES BY BUSINESS SECTOR
EUR mill. 2005 2004 Change Change, %
Lemminkäinen
Corporation
Paving and Mineral
Aggregates Division 514.7 430.4 84.3 19.6
Building Materials
Division 100.3 95.7 4.6 4.8
Lemcon Ltd 328.8 264.5 64.3 24.3
Oy Alfred A.
Palmberg Ab 517.3 486.4 30.9 6.4
Tekmanni Oy 191.1 198.3 -7.2 -3.6
Others -50.4 -44.1 -6.3 -14.3
Group total 1 601.7 1 431.3 170.4 11.9
OPERATING PROFIT BY BUSINESS
SECTOR
EUR mill. 2005 2004 Change Change, %
Lemminkäinen
Corporation
Paving and Mineral
Aggregates Division 20.5 18.4 2.1 11.4
Building Materials
Division 0.6 3.1 -2.5 -80.6
Lemcon Ltd 15.3 11.1 4.2 37.8
Oy Alfred A.
Palmberg Ab 28.3 29.2 -0.9 -3.1
Tekmanni Oy 6.8 2.2 4.6 over 100
Others 1.0 -0.1 1.1
Group total 72.5 63.9 8.6 13.5
CONSOLIDATED BALANCE SHEET
EUR mill. 2005 2004
Non-current assets
Tangible assets 164.4 165.4
Goodwill on
consolidation 63.5 63.4
Other intangible
assets 2.5 3.1
Investments 10.9 9.3
Deferred tax asset 4.0 4.7
Other non-current
receivables 0.7 0.1
Total 245.9 246.1
Current assets
Inventories 223.7 212.9
Trade and other
receivables 263.4 219.2
Cash in hand
and at bank 42.4 39.9
Total 529.5 472.0
Assets, total 775.4 718.1
Shareholders
equity and
liabilities
Share capital 34.0 34.0
Share premium
account 5.8 5.8
Revaluation reserve 1.5
Translation
differences 0.4 -0.2
Retained earnings 115.5 88.9
Result for the
period 43.7 37.4
Shareholders
equity before
minority interest 200.9 165.8
Minority interest 14.6 15.2
Shareholders
equity, total 215.5 181.0
Non-current
liabilities
Deferred tax
liability 19.4 16.3
Pension provisions 0.5 0.7
Provisions 4.9 4.7
Interest-bearing
liabilities 103.5 111.0
Other liabilities 2.5 1.1
Total 132.3 134.6
Current liabilities
Accounts payable
and other
liabilities 267.1 234.0
Provisions 1.5 0.9
Interest-bearing
liabilities 160.5 168.5
Total 427.6 402.5
Shareholders
equity and
liabilities, total 775.4 718.1
STATEMENT OF CHANGES
IN EQUITY
EUR mill. Share Share Transla- Reva- Retain- Minori- Share-
capi- pre- tion lua- ed ear- ty inte- hol-
tal mium differ- tion nings rest ders´
ac- ence reser equity,
count ve total
Share capital
31.12.2004 34.0 5.8 -0.2 126.2 15.2 181.0
Effect of adop-
ting IAS 32 and
39, 1.1.2005 1.4 -0.6 0.8
Translation
difference 0.8 0.8
Hedging of net
investment in
foreign
subsidiary -0.2 -0.2
Transfer from
revaluation
reserve -0.2 -0.2
Change in fair
value 0.2 0.2
Reversal of
dividend
liability 0.0 0.0
Dividends paid -10.2 -10.2
Profit for the
period 43.7 43.7
Change in
minority
interest -0.6 -0.6
Shareholders
equity
31.12.2005 34.0 5.8 0.4 1.5 159.2 14.6 215.5
CONSOLIDATED STATEMENT OF SOURCE
AND APPLICATION OF FUNDS
EUR mill. 2005 2004
Result before
extraordinary items 65.9 55.1
Depreciation according
to plan 34.0 32.0
Other adjustments 4.3 6.0
Cash flow before change
in working capital 104.2 93.1
Change in working capital -17.6 -12.1
Financial items -7.0 -8.9
Direct taxes paid -20.1 -14.7
Cash flow from business
operations 59.5 57.4
Cash flow from
investments -18.3 -22.1
Change in loans -28.1 4.9
Dividends paid -11.1 -44.9
Cash flow from financing -39.3 -40.0
Change in cash funds 1.9 -4.8
Cash funds at beginning
of accounting period 39.9 44.5
Translation difference of
cash funds 0.6 0.2
Cash funds at end of
accounting period 42.4 39.9
ECONOMIC TRENDS AND 2005 2004
FINANCIAL INDICATORS
Net sales, EUR mill. 1 601.7 1 431.3
- of which exports and
operations abroad,
EUR mill. 499.6 358.6
% of net sales 31.2 25.1
Operating margin, % 4.5 4.5
Return on equity, % 24.5 21.9
Return on investment, % 16.5 14.8
Equity ratio, % 31.0 27.5
Gearing, % 102.9 132.4
Interest-bearing net debt 221.6 239.6
Gross investments, EUR
mill.(incl. leasing
purchases) 37.4 40.8
Order book, EUR mill. 1 011.3 783.4
- of which exports and
operations abroad,
EUR mill. 343.4 244.6
Average number of
employees 7 912 7 479
Employees at end of
period 7 112 6 783
SHARE-PERFORMANCE 2005 2004
INDICATORS
Earnings per share, EUR 2.57 2.20
Equity per share, EUR 11.80 9.74
Dividend per share, EUR1) 1.00 0.60
Dividend-to-earnings
ratio, % 38,9 27.3
Share price at end of
period, EUR 30.50 15.74
Market capitalisation,
EUR mill. 519.1 267.9
Share trading volume,
1 000 4 610 5 005
Number of shares in
issue, 1 000 17 021 17 021
1) Board of Directors proposal to the AGM
GUARANTEES AND CONTINGENT LIABILITIES
EUR million 2005 2004
Securities for own
commitments
Property mortgages 3.3 4.6
Business mortgages 99.2 101.9
Bonds pledged as security 0.7 4.4
Total 103.3 110.9
Guarantees
On behalf of affiliated
companies 0.4 0.3
On behalf of others 5.3 0.0
Minimum lease payments of
irrevocable lease
agreements
One year or less 7.8 6.1
Over one year but no more
than five years 16.7 14.8
Over five years 27.7 25.1
Derivative contracts
Forward foreign exchange
contracts
Nominal value 18.1 11.5
Current value -0.2 0.0
Currency options, calls
purchased
Nominal value 1.7 0.0
Current value 0.0 0.0
Currency options, puts
written
Nominal value 1.7 0.0
Current value -0.2 0.0
Interest rate options,
calls purchased
Nominal value 36.4 8.4
Current value 0.0 0.0
Interest rate options,
puts written
Nominal value 6.9 8.4
Current value -0.4 -0.7
Interest rate swap
contracts
Nominal value 12.1 16.7
Current value -0.1 -0.1
The current value of a derivative contract is the profit or loss
arising from closure of the contract calculated on the basis of
market price prevailing on the accounting date.
The Auditors have not yet submitted their report on the financial
statements.