Kyro Corporation STOCK EXCHANGE RELEASE 7 February 2007 8.30 a.m. KYRO'S YEAR-END STRONGER THAN LAST - ENHANCED PERFORMANCE FROM EFFICIENCY MEASURES 2006 Key Data - Group net sales EUR 268.9 (266.7) million - Comparable operating profit EUR 22.0 (23.0) million - Comparable profit before taxes EUR 22.3 (21.9) million - Profit after taxes EUR 12.1 (22.4) million, earnings per share EUR 0.15 (0.28) - Glastons new machine orders EUR 175.9 (177.8) million - Order book 31 December 2006: Group EUR 127.5 (140.7) million, Glaston EUR 111.2 (108.8) million - Group efficiency programmes generate net savings of EUR 4.5 million in 2007 - Board of Directors proposal for dividend EUR 0.09 per share KYRO GROUP STRUCTURE Kyros business areas are Glaston Technologies and Energy. The main business area, Glaston Technologies, consists of the Glass Machinery Group and Tamglass Glass Processing Ltd. The Glass Machinery Group is the world market leader in glass processing machines. The Glass Machinery Groups products are glass pre-processing machines as well as safety glass machines for the architectural and automotive industries. The group consists of Tamglass, the technology and market leader in safety glass machines; Uniglass, which manufactures flat tempering machines; the leading supplier of glass pre-processing machines Bavelloni, which also produces stone processing machines; and DiaPol, which manufactures tools for glass and stone pre-processing. Tamglass Glass Processing focuses on markets in Finland and neighbouring countries and is the leading comprehensive supplier of glass processing products in Finland. Its safety and insulating glass products sold under the Tamglass brand as well as its balcony systems are supplied to the building, window and door industries, specialty vehicle manufacturers and construction projects. Kyros second business area is Energy, which consists of the electricity and heat generating gas-fired combi power plant of Kyro Power Oy. THE GROUPS EFFICIENCY PROGRAMMES In 2006 the Group initiated efficiency programmes which Kyro now estimates will have a positive impact on profits of EUR 4.5 million in the current year. To support future growth, it was decided to increase Bavellonis maintenance and service personnel at the end of the year, as a result of which the net personnel reductions of Bavellonis efficiency programme are smaller than anticipated. The estimated six million euros in savings, therefore, have been adjusted downward. The costs of the measures, EUR 5.3 million, were recognised in full during 2006. The related provisions were 1.6 EUR million. In September, Bavelloni began a programme to boost the efficiency of its Italian operations, which led, among other things, to the closure of the Bergamo assembly plant. The programme also includes other productivity-raising operational and process changes, with arrangements affecting personnel. The outcome of negotiations relating to these measures was a reduction of 59 jobs, mainly in connection with the factory closure. As part of the programme, the distribution logistics in Europe of Bavellonis tools and spare parts were enhanced. The areas three tool and spare parts warehouses were centralised in Italy, from where they can be delivered to European customers more quickly than before. Measures taken in the Glass Processing Group included the restructuring of Tamglass Finton, the merger of three Glass Processing Group companies into one company, and the personnel reductions, a total of 36 employees, that followed from these. NET SALES AND PROFIT The Kyro Groups net sales were EUR 268.9 (266.7) million in 2006. The Groups comparable operating profit was EUR 22.0 (23.0) million, representing 8.2% (8.6%) of net sales. Comparable operating profit does not include non-recurring items totalling EUR 5.6 million recognised in 2006 for the above-mentioned efficiency programmes. They consist of EUR 1.3 million for the Glass Processing Group restructuring and EUR 4.0 million for the Bavelloni efficiency programme. In addition, a non-recurring item of EUR 0.3 million was recognised for the Energy business areas Partner project. Comparable profit before taxes was EUR 22.3 (21.9) million, representing 8.3% (8.2%) of net sales. Taking into account the recognised non-recurring items, profit before taxes was EUR 16.7 (34.3) million. Profit for the financial period was EUR 12.1 (22.4) million. This includes a EUR 1.8 million tax refund from previous years. Return on invested capital was 12.1% (26.1%). Earnings per share were EUR 0.15 (0.28) and equity per share was EUR 1.75 (1.76). Net financial items totalled EUR 0.3 (1.2) million. This includes interest, dividend and other financial income of EUR 2.2 (2,4) million, and interest and other financial expenses of EUR 1.9 (3.7) million. The Groups order book on 31 December 2006 was EUR 127.5 (140.7) million. In 2006 Kyro, commenting on its future prospects, stated that both the previous years net sales and comparable operating profit were expected to grow. After the third quarter, the estimate was adjusted by mentioning that certain significant delivery projects had been postponed to 2007 and that realising the target level would be substantially decided by other orders in the latter part of the year. Kyro increased its net sales, but comparable operating profit fell slightly from the previous year, as the profitability of the above-mentioned other orders at the end of the year proved to be weaker than expected. Business areas net sales, operating profit and order book, EUR million Net sales Operating profit Order book 31.12 2006 2005 2006 2005 2006 2005 Glaston Technologies 234.7 238.9 18.1 22.1 111.2 108.8 Energy 34.1 27.6 6.5 6.4 16.3 31.9 Non-recurring items -5.6 12.5 Parent company, 0.1 0.2 -2.5 -5.5 other operations and eliminations Group, total 268.9 266.7 16.5 35.5 127.5 140.7 FINANCING The Groups financial standing is good. Equity ratio on 31 December 2006 was 62.2% (64.4%). Cash flow from business operations was EUR 0.4 (22.6) million. Cash flow from investments was EUR 8.0 million. The most significant item of cash flow from financing was a total of EUR 13.4 (5.6) million in dividends paid in the spring. Cash flow also includes EUR 7.3 million in taxes for 2005 paid in 2006, including e.g. EUR 2.9 million taxes on capital gains from the sale of hydropower operations in December 2005. The Groups liquid funds on 31 December 2006 totalled EUR 10.5 (26.3) million. Interest-bearing net liabilities amounted to EUR 3.0 (24.7) million (assets greater than interest-bearing liabilities). Gearing stood at 2.2% (17.7%). MANAGEMENT OF BUSINESS RISKS World economy and customer structure Cyclical fluctuations in the world economy have a rather minor impact on the machine sales of Kyros main business area, because the geographical diversification of operations means that economic conditions in Europe, Asia and America even each other out. In addition, cyclical economic conditions for different end-customers, such as the building, automotive and furniture industries, balance each other. Growing building renovation business evens out cyclical variations in the construction sector. Maintenance business of the main business area Glaston is growing and this helps smooth out fluctuations in machine sales. Owing to the above factors, customer structure is strongly diversified and no single customer contributes more than a few per cents to Glastons total annual turnover. Markets situation and competition Glaston is a leading supplier in a sector that is expanding globally. The proportion of safety glass used in construction is continually growing. Tightening official regulations are driving growth in safety glass sales still further. Environmental questions such as the energy efficiency of buildings and the high added value glass products associated with it also represent a development trend that supports growth in Glastons high technology machines. Glastons machine manufacturing units are located in Finland, Italy, the United States, China and Brazil. In terms of Finland, Italy and United States the political risk is low, while China and Brazil are clearly countries where the political risk is higher. At the end of 2006, Kyro was not aware of any political risk that could have a substantial impact on its operations. As the technology and market leader in safety glass machines, the Group is in a strong competitive position in all of its main market areas. Glaston continually develops its operations and products in order to remain competitive also in the more inexpensively priced segment of the machine market. In terms of pre-processing machines, the competitive situation is noticeably more uniform, because the market is highly fragmented. Production The Groups production is structured so as to be flexible. Machine manufacturing is based on own product development, assembly and a strong subcontracting network, which can adjust capacity flexibly. In production, materials and components that have several suppliers are used in order to minimise availability risks. A common model has also been introduced through company acquisitions into other units e.g. in Italy. Financing The Groups strong financial position represents a good foundation for the management of financial risks. To ensure the availability of funding, the Group has adequate credit facilities for its business operations, which can be called upon if necessary. Most of the Groups net sales and costs are euro- denominated, so the direct foreign exchange risk is small relative to total net sales. The proportion of net sales and costs in US dollars has fallen significantly in recent years, which in turn has reduced the Groups foreign exchange risk. The Group hedges all operational foreign exchange risks as they arise. In addition, significant foreign currency equity items of subsidiaries are hedged. The main objectives of foreign currency hedging are safeguarding earnings and cash flow as well as ensuring predictability. Indirect foreign exchange risks may arise as the euro strengthens against other currencies, such as the US dollar. Price competition in markets outside the eurozone is growing and might impact negatively on the profitability of products being offered for sale. Some of the risks have been covered through the diversification of production over different foreign exchange areas. In long-term contracts concluded by the Energy business area, deliveries have been hedged by linking them to fuel costs. In electricity hedging, the Groups main principle has been to hedge each open position for a period of 12 months. Risk of loss or damage The Groups parent company is responsible for the insurance cover of Group units. Insurance is used to eliminate potential losses resulting from the realisation of disruption, fire and similar risks. Risks relating to transport and installation have been insured like the other product liabilities of products sold. To minimise risks, the Group has comprehensive insurance cover, which is re-examined annually. CAPITAL EXPENDITURE The Kyro Groups capital expenditure totalled 12.0 (11.4) million in 2006. This includes the construction costs of a factory in China and the extension of the head office in Finland (totalling c. EUR 4.0 million), obligatory product development capitalisations under IFRS (EUR 3.4 million) as well as normal repair and maintenance investments. ORGANISATION AND PERSONNEL In October 2006 Kyro announced that Kyros President and CEO Pentti Yliheljo was to retire. Mika Seitovirta succeeded Yliheljo as President and CEO of Kyro and Tamglass on 1 January 2007. Pentti Yliheljos expertise will be continue to available to the Group until 30 June 2007. The Kyro Group had 1,211 (1,222) employees on 31 December 2006. The number of Group employees working in Finland was 427 (441), while the number working abroad was 784 (781). The average number of employees was 1,264 (1,218), with the growth in personnel being due mainly to recruitment of maintenance and installation staff in the early part of the year. Personnel 31.12.2006 31.12.2005 31.12.2004 Glaston Technologies 1 180 1 191 1 175 Energy 22 24 23 Kyro Corporation 9 7 10 Kyro Group 1 211 1 222 1 208 Salaries and bonuses 44,6 43,3 41,7 SHARES AND SHARE PRICES A total of 6,978,316 (18,054,297) Kyro Corporation (KRO1V) shares were traded in the period January-December, representing 8.8% (22.8%) of the total number of shares. The lowest price paid for a share on the Helsinki Stock Exchange was EUR 3.75 and the highest price EUR 4.84. The average price during the period was EUR 4.33. ACQUISITION AND DISPOSAL OF OWN SHARES The Annual General Meeting on 16 March 2006 authorised the Board of Directors to acquire the companys own shares for the purpose of using them as consideration in possible acquisitions, to finance investments or other industrial arrangements or to be disposed of in other ways or to be invalidated. According to the authorisation the Board of Directors may acquire the companys own shares using assets available for distribution of profits, provided that the combined nominal value of the acquired shares together with any shares already in the possession of the company corresponds to a maximum of 10 per cent of the companys total share capital at the moment of acquisition. Shares can be acquired or sold in public trading on the Helsinki Stock Exchange at the market value of the shares at the time in question. Authorisations to acquire and dispose of the companys own shares are valid for a period of one year from the decision of the Annual General Meeting on 16 March 2006. On 31 December 2006, Kyro Corporation held a total of 329,904 (329,904) of its own shares, acquired on the basis of earlier authorisations. The company did not exercise the authorisation in 2006. GLASTON TECHNOLOGIES NET SALES, OPERATING PROFIT AND ORDER BOOK Glaston Technologies net sales totalled EUR 234.7 (238.9) million in January- December. Comparable operating profit was EUR 18.1 (22.1) million, representing 7.7% (9.3%) of net sales. Comparable operating profit does not include the non- recurring items totalling EUR 5.3 million recognised in the period under review for the business area. Glaston received new machine orders totalling EUR 175.9 (177.8) million. The order book was EUR 111.2 (108.8) million at the end of the year. The order book for pre-processing machines grew slightly compared to the previous year, and the order book for safety glass machines correspondingly fell slightly. Sales of safety glass machines, as expected, were strongest in the final quarter. However, the volume of safety glass machines delivered was lower than the previous year, which reduced the Glass Machinery Groups net sales and profitability. In safety glass machines, unanticipated costs arising from new products and product series contributed to weakening the profitability of deliveries made. In the final quarter, Tamglass initiated a programme of measures, which continues still, to improve the efficiency of delivery processes and to minimise their cost in future. Tamglass Glass Processings net sales grew slightly from the previous year. Its profitability improved, but remained unsatisfactory. This was due in particular to European-wide delivery difficulties with raw glass at the end of the year. A rise in the price of raw glass and uneven availability caused a rise in Tamglass Glass Processings costs. GLASTON TECHNOLOGIES - GLASS MACHINERY GROUP Market and sales Overall, the general market situation for glass processing machines was positive in 2006. The number of new pre-processing machine orders grew in the EMA, the Asia-Pacific area and in South America. The volume of safety glass machine orders was slightly lower than the previous year in all the main market areas, except for South America. In the fourth quarter, sales in the EMA area and Asia grew strongly. Investment decisions on safety glass machines were postponed, particularly in Europe at the beginning of the year. Although the number of new orders grew towards the end of the year, the total was less than the previous year. The volume of new orders for pre-processing machines grew slightly. The offer book, i.e. demand, for both pre-processing machines and safety glass machines was high throughout the year. Safety glass machine orders in the architectural segment picked up after a lacklustre start to the year. New orders for safety glass machines in the automotive segment grew towards the end of year, but overall their sales fell clearly short of the previous years level. Sales of joint deliveries and combinations of pre-processing and safety glass machines (the One-Stop-Partner concept) exceeded targets by the third quarter as well as the previous years level, and totalled EUR 12 million. The OSP order intake at the end of the year totalled EUR 18.8 million. Most OSP orders were received from the Middle East. The volume of new orders received by Uniglass, which focuses on flat tempering machines, was on the previous years level in 2006. New products The first deliveries of products launched in 2005, such as Bavellonis new pre- processing lines, were scheduled for late 2006. The most significant new products of the year were presented at Düsseldorfs Glasstec Fair in October. Tamglass launched a new Sonic flat tempering machine as well as APC, the industrys first fully automatic process control system for flat tempering machines. Bavelloni launched a series of modular cutting lines, a high-capacity CNC centre called NRG, and the super-fast PowerSeam edge grinding machine. All products were very well received, and the EUR 27.8 million sales at the fair were a Glaston record. Maintenance and service business, and tools In 2006 the following areas of Glaston Technologies maintenance and service business grew: maintenance agreements, modernisations and accessories, and spare parts. Sales of used machines were low and, when these are included, the overall growth in maintenance and service business was less than one per cent. Excluding sales of used machines, however, overall growth was eight per cent. The maintenance contract book for safety glass machines grew by 16%. Growth in maintenance and service business for pre-processing machines was over 19%. During the Glasstec fair, Bavelloni introduced its first maintenance agreement model, which means that Glaston now offers maintenance agreements for both pre- processing and safety glass machines. Easy Life, a maintenance and service concept offered by Tamglass and Bavelloni, is the only one of its kind in the business and thus a significant competitive advantage. Bavellonis sales of spare parts and other maintenance products grew during the year. Glastons tool sales grew slightly. Glastons market share grew, and it launched a number of new tool products during the year. Manufacturing in Brazil began in line with targets. Manufacturing will also begin in China in 2007. Measures will be taken to improve local service levels and cost-effectiveness. GLASTON TECHNOLOGIES - TAMGLASS GLASS PROCESSING LTD Market and sales Tamglass Glass Processings market situation was positive throughout the year mainly due to an active construction sector in Finland. Volumes remained good and grew towards the end of the year. Project sale references in the final quarter included the Prisma shopping centre in Lohja, the apartment block company Villa Aquarius in Tampere and the real-estate company Airport in Vantaa. Restructuring and development projects Tamglass Fintons balcony systems sales and installation business was transferred to partners, after which Tamglass Safety Glass Ltd, Tamglass Insulating Glass Ltd and Tamglass Finton Oy were merged into a single, legally distinct company at the turn of the year. At the same time the Glass Processing Group changed its name to Tamglass Glass Processing Ltd. The companys new business areas are Architectural Glass, Window and Furniture Glass, and Special Automotive Glass. Tamglass Glass Processing will continue developing its operations, for example, by refining its production processes and supplementing its machine stock during 2007. The measures will boost the groups efficiency and improve its reference value as a Glass Machinery Group customer. ENERGY Net sales, operating profit and order book The net sales of the Energy business area totalled EUR 34.1 (27.6) million in 2006. Comparable operating profit was EUR 6.5 (6.4) million, representing 18.9% (23.2%) of net sales. Both net sales and operating profit were again boosted mainly by a rise in energy prices. Kyro Powers order book was EUR 16.3 (31.9) million on 31 December 2006. The halving of the order book is explained by the expiry in summer 2007 of significant delivery agreements that are included in the order book. Development of the energy market The year under review was, due to weather conditions a dry summer and a warm rainy autumn and winter very volatile in the energy market. Prices of electricity and emissions rights fluctuated from record highs to very low levels. Energy production Kyro Powers gas-fired combi power plant operated without interruption throughout the entire year. Development of operations At the end of September, Kyro signed with M-real Corporation an agreement by which Kyro has the right to sell and M-real the right to buy Kyro Powers gas- fired combi power plant and associated business operations in summer 2007 when the current deliver contract ends. If the deal is implemented, it will not, despite a positive non-recurring cash flow, have any direct financial impact. EVENTS AFTER THE REVIEW PERIOD Bavellonis Managing Director Paolo Sandri resigned for personal reasons in January. Sandris duties will be handled for the time being by Kaj Appelberg, who is Glastons President of Sales. Kyro has decided to establish in China two joint ventures with a local company, NST, to manufacture glass pre-processing machine tools. Kyro appointed Ari Himma as its Vice President, Human Resources. All events after the review period have been communicated in January. FUTURE PROSPECTS The industrys most extensive customer service network, widest product range and the One-StopPartner concept create for Glaston Technologies good opportunities to fulfil customers needs better than before. Glaston Technologies is the world technology and market leader in a growing sector. At the beginning of 2007, the level of Glastons order book is good. Based on positive market prospects and savings generated by the previous years efficiency measures, Kyro is again aiming to increase the net sales and comparable operating profit of Glaston, its main business area. Helsinki, 7 February 2007 Kyro Corporation Board of Directors Additional information about the financial statement can be obtained from Kyro Groups President and CEO Mika Seitovirta or Chief Financial Officer Vesa Hopia, tel. +358 3 382 3111. Investor relations: Kyro Corporation, IR and Communications Manager Emmi Watkins, tel. +358 400 903 260 / emmi.watkins@kyro.fi, IR pages at the Internet address www.kyro.fi. Distribution Helsinki Exchanges, key media KYRO GROUP 1-12/2006, INCOME STATEMENT AND BALANCE SHEET Compa- Comparable rable 10-12 10-12 10-12 10-12 1-12 1-12 /2006 /2006 /2005 /2006 /2006 /2005 Consolidated Income Statement, EUR million Net sales 81.7 81.7 82.5 268.9 268.9 266.7 Other operating 2.0 2.0 13.1 7.0 7.0 14.9 income Operating expenses 73.9 77.5 74.8 246.5 252.1 237.4 Depreciation 1.5 1.5 2.4 7.3 7.3 8.7 Operating profit 8.3 4.7 18.4 22.0 16.5 35.5 % of net sales 10.1 5.8 22.3 8.2 6.1 13.3 Financial income -0.2 -0.2 -0.3 0.3 0.3 -1.3 and expenses Profit before taxes 8.1 4.5 18.2 22.3 16.7 34.2 Income tax -2.4 -6.4 -4.6 -11.9 Profit for the 2.1 11.8 12.1 22.4 financial period Distribution of profit for financial period To parent company 2.1 11.8 12.1 22.4 shareholders To minority 0.0 0.0 0.0 0.0 Profit for the 2.1 11.8 12.1 22.4 financial period Earnings per share, 0.02 0.15 0.15 0,28 EUR Consolidated 31.12.2006 31.12.2005 Balance Sheet, EUR million Assets Non-current assets 123.2 121,3 Inventories 54.7 59,6 Trade and other 57.1 49,3 receivables Assets recognised at fair value through profit and loss 0.1 0,1 Cash and cash 10.5 26,3 equivalents Assets, total 245.6 256,5 Shareholders equity and liabilities Shareholders equity 138.0 139.0 attributable to parent company shareholders Minority interest 0.0 0,0 Shareholders 138.0 139,0 equity, total Employee benefit obligations 6.4 6.6 Provisions 7.5 3,2 Non-current interest-bearing 0.9 1.2 liabilities Non-current non- 7.4 7,8 interest bearing liabilities Current interest-bearing 7.2 1.7 liabilities Current non-interest- 78.3 97.0 bearing liabilities Shareholders equity 245.6 256.5 and liabilities, total Consolidated cash flow statement, EUR million 31.12.2006 31.12.2005 Cash flow from business operations Profit for the financial period 12.1 22.4 Adjustments 1.7 17.6 Cash flow before change in working 13.8 40.0 capital Change in working capital -6.8 -15.8 Cash flow from operations before 6,9 24.2 financial items and taxes Interest received 0.8 1.2 Dividends received 0.0 0.4 Interest paid -1.0 -1.3 Taxes paid -7.2 -2.0 Cash flow from business operations -0.4 22.6 Cash flow from investments Investments in tangible and -11.0 -10.3 intangible assets Proceeds from the sale of tangible 2.8 25.7 and intangible assets Proceeds from the sale of other 3.2 investments Taxes in 2005 on proceeds from sale -2.9 of energy operations Cash flow from investments -8.0 15.4 Cash flow from financing Change in long-term loan receivables 1.1 Drawings of short-term loans 5.6 Repayments of short-term loans -16.8 Repayments of long-term loans -0.6 -1.0 Dividends paid -13.4 -5.7 Other financing items 5.5 Cash flow from financing -7.3 -17.9 Change in cash and cash equiv. -15.7 20.1 Cash and cash equiv. at beginning of 26.3 6.2 period Cash and cash equiv. at end of 10.6 26.3 financial period -15.7 20.1 Key figures Return on invested capital, % 12.1 26.1 Return on equity, % 8.7 17.1 Equity ratio, % 62.2 64.4 Gearing, % -2.2 -17.7 Investments, EUR million 12.0 11.4 Personnel at end of year 1,211 1,222 Personnel (average) 1,264 1,218 Order book, EUR million 127.5 140.7 Share-related key figures Earnings per share, EUR 0.15 0.28 Equity per share, EUR 1.75 1.76 Number of shares, 1000 79,350 79,350 - of which outstanding 79,020 79,020 Number of shares, average 79,020 79,020 Share price development, EUR Average price 4.33 4.25 Lowest 3.75 3.79 Highest 4.84 4.60 Share price at end of year 4.15 4.06 Market value of shares at end of year, EUR million 329.3 322.2 Share turnover, no. of shares 6,978,316 18,054,297 Share turnover, % of total no. 8.8 22.8 Share turnover, EUR million 30.2 79.0 Dividend per share, EUR 0.09 0.08 Supplementary dividend per share, 0.09 EUR Dividend/result, % 60.0 60.7 Effective dividend yield, % 2.2 4.2 P/E ratio 27.7 14.5 Guarantees and contingent liabilities, EUR million 31.12.2006 31.12.2005 Company mortgages 0.2 0.2 Other own liabilities 5.6 7.1 Derivatives contracts Value of underlying assets Forward currency contracts 17.3 14.1 Electricity contracts 3.0 9.6 Fair value Forward currency contracts Positive fair value 0.3 0.0 Negative fair value -0.1 -0.3 Electricity contracts Positive fair value 0.0 0.0 Negative fair value -0.2 -2.1 Business areas net sales, operating profit and order book, EUR million Net sales 1-3/05 4-6/05 7-9/05 10-12/05 Glaston Technologies 50.7 60.6 52.8 74.8 Energy 8.0 5.1 6.8 7.7 Parent company, other operations 0.1 0.1 0.1 0.0 and eliminations Group, total 58.7 65.8 59.6 82.5 Operating profit 1-3/05 4-6/05 7-9/05 10-12/05 Glaston Technologies 4.5 6.2 5.8 5.5 Operating profit % 9.0 10.3 11.1 7.4 Energy 2.0 1.1 1.5 14.3 Operating profit % 25.1 20.5 22.4 185.9 Parent company, other operations -1.4 -1.6 -1.1 -1.4 and eliminations Group, total 5.1 5.7 6.3 18.4 Operating profit % 8.7 8.7 10.5 22.3 Order book 03/05 6/05 9/05 12/05 Glaston Technologies 114.5 122.1 119.4 108.8 Energy 24.6 23.2 23.0 31.9 Group, total 139.1 145.3 142.4 140.7 Business areas net sales, operating profit and order book, EUR million Compa- Compa- Compa- rable rable rable Net sales 1-3 1-3 4-6 7-9 7-9 10-12 10-12 /06 06 /06 /06 /06 /06 /06 Glaston 54.8 54.8 55.3 51.3 51.3 73.2 73.2 Technologies Energy 8.9 8.9 7.6 9.0 9.0 8.5 8.5 Parent 0.1 0.1 0.1 0.1 0.1 0.0 0.0 company, other operations and eliminations Group, total 63.8 63.8 63.0 60.4 60.4 81.7 81.7 Operating 1-3 1-3 4-6 7-9 7-9 10-12 10-12 profit /06 /06 /06 /06 /06 /06 /06 Glaston 3.2 3.8 4.5 1.8 2.8 3.4 7.0 Technologies Operating 5.7 7.0 8.1 3.5 5.5 4.6 9.5 profit % Energy 1.6 1.6 1.1 1.9 1.9 1.8 1.8 Operating 18.1 18.1 14.8 21.5 21.5 20.7 21.5 profit % Parent -0.7 -0.7 -1.2 -0.5 -0.1 -0.4 -0.5 company, other operations and eliminations Group, total 4.0 4.7 4.5 3.2 4.6 4.7 8.3 Operating 6.3 7.4 7.1 5.4 7.7 5.8 10.1 profit % Order book 03 03 06 09 09 12 12 /06 /06 /06 /06 /06 /06 /06 Glaston 100.0 100.0 98.2 111.8 111.8 111.2 111.2 Technologies Energy 31.9 31.9 31.9 24.0 24.0 16.3 16.3 Group, total 131.9 131.9 130.1 135.8 135.8 127.5 127.5 Statement of changes in consolidated shareholders equity Shareholders equity attributable to parent company shareholders EUR Share Share Fair Trans- Own Retai- Mino- Sha- million capi- Premi- value latio Sha- ned rity rehol- tal um fund n dif- res assets Total inte- ders fund fer- rest equity ences total Shareholde 12.7 25.3 -0.1 -1.0 84.7 121.6 0.5 122.2 rs equity 31.12.2004 Impact of 0.5 0.5 0.9 -0.5 0.4 introducti on of IAS 32 and 39 Adjusted 12.7 25.3 0.5 -0.1 -1.0 85.2 122.6 0.0 122.6 shareholde rs equity 1.1.2005 Cash flow hedgings, less taxes: Profits or -2.0 -2.0 -2.0 losses recognised in shareholde rs equity Translatio 1.6 1.6 1.6 n difference s Profit for 22.4 22.4 0.0 22.4 the financial period Income and -2.0 1.6 22.4 22.0 22.0 expenses recognised in the period, total Dividend -5.5 -5.5 -5.5 distributi on Shareholde 12.7 25.3 -1.6 1.5 -1.0 102.0 139.0 0.0 139.0 rs equity 31.12.2005 Cash flow hedgings, less taxes: Profits or 1.4 1.4 1.4 losses recognised in shareholders' equity Translation -1.4 -1.4 0.0 -1.4 differences Profits or 0.3 0.3 0.3 losses from hedging of net investments in foreign units, less taxes Net income 0.0 0.0 recognised directly in shareholde rs equity Profit for 12.1 12.1 0.0 12.1 the financial period Income and 1.4 -1.1 12.1 12.4 0.0 12.4 expenses recognised in the period, total Dividend -13.4 -13.4 -13.4 distributi on Shareholde rs equity 31.12.2006 12.7 25.3 -0.2 0.4 -1.0 100.7 138.0 0.0 138.0