Vacon Plc Stock Exchange Release
8 February 2007 at 10.00 am
VACON PLC FINANCIAL BULLETIN 1 JANUARY 31 DECEMBER 2006
Vacons orders increased strongly in final quarter of 2006
October-December summary:
· Order intake totalled MEUR 56.1 million, growth of 29.9 %
from the corresponding period in the previous year (MEUR
43.2).
· Revenues totalled MEUR 51.0, increase of 13.3 % (MEUR
45.0).
· Operating profit was MEUR 6.0, growth of 3.4 % (MEUR
5.8).
· Earnings per share was EUR 0.26 (EUR 0.24), growth from
the previous year of 8.3 %.
· Cash flow from operations was MEUR 1.8 (MEUR 5.8).
January-December summary:
· Order intake totalled MEUR 197.4, growth of 26.0 % from
the corresponding period in the previous year (MEUR 156.7).
· Revenues totalled MEUR 186.4, growth of 24.3 % (MEUR
149.9).
· Operating profit was MEUR 23.1, growth of 27.6 % (MEUR
18.1).
· Earnings per share was EUR 1.04 (EUR 0.79), growth from
the previous year of 31.6 %.
· Cash flow from operations was MEUR 15.1 (MEUR 9.7).
According to Vacons estimations, the AC drive market grew by
7-9 % in 2006. The high price of energy and increasing
automation boosted the total market. Demand for AC drives is
very strong at the moment and prospects for 2007 are positive.
During 2006 Vacon continued its profitable growth in the AC
drive market. The company strengthened its market position,
increased its revenues and improved its profit. The earnings
per share for the year was EUR 1.04, an increase of 31.6 % on
the previous year.
Fourth quarter revenues were 13.3 per cent higher than a year
before. Revenues in Europe increased by EUR 4.0 million (12.7
%) from the corresponding period in the previous year. The 32
% increase in revenues in Asia was in line with expectations.
OEM manufacturers were the distribution channel showing strong
growth.
The fourth quarter operating profit improved 3.4 % from the
corresponding period in the previous year. The operating
profit as a percentage of revenues was 11.8 % (12.9 %). The
weakening of the dollar and the investment demanded by future
growth, for example in new sales companies, weakened the
operating profit percentage in the fourth quarter. Changes in
the allocation of sales between the different sales channels
also had a weakening effect on the operating profit
percentage. During the final quarter, compared to the
corresponding period in the previous year, the proportion of
revenues accounted for by direct sales declined and
correspondingly the proportion accounted for by OEM sales
increased. On the other hand, the allocation of sales among
the different sales channels in the fourth quarter was
virtually the same as the average for the first three quarters
of 2006.
The cash flow from operations was EUR 1.8 million positive.
Result for 2006 and equity structure
Revenues in 2006 totalled EUR 186.4 million and the operating
profit was EUR 23.1 million. The companys profitability was
better than in the previous year.
Result:
MEUR 10- 10- 1- 1- Change
12/ 12/ 12/ 12/ Muutos
2006 2005 2006 2005 %
Revenues 51.0 45.0 186.4 149.9 24.3
EBITDA 7.1 6.8 27.3 21.9 24.7
Depreciation -1.1 -1.0 -4.2 -3.8 10.5
Operating profit 6.0 5.8 23.1 18.1 27.6
Profit before tax 5.8 5.5 22.7 17.7 28.2
Profit for period 4.0 3.6 16.1 12.2 32.0
The balance sheet total was EUR 86.9 (76.0) million. The
equity ratio was 61.7 %. The Groups cash flow from operations
for January-December was EUR 15.1 (9.7) million.
The Groups equity structure and liquidity remained strong.
Interest-bearing net debt at the end of the period totalled
EUR -8.8 (-7.9) million and gearing was 16.6 % (-18.3 %). The
return on equity was 33.7 % (30.5 %) and the return on
investment 45.1 % (40.8 %).
The Groups order book stood at EUR 29.7 (18.8) million.
Market position
Vacon Group revenues by market area were as follows:
MEUR 10- % 10- % 1- % 1- %
12/ 12/ 12/ 12/
2006 2005 2006 2005
Europe 35.4 69.4 31.4 69.8 129.7 69.6 106.6 71.1
North 10.6 20.8 9.5 21.1 37.9 20.3 29.1 19.4
America
Asia and 4.1 8.0 3.1 6.9 15.8 8.5 11.7 7.8
Australia
Other 0.9 1.8 1.0 2.2 3.0 1.6 2.6 1.7
countries
Total 51.0 100.0 45.0 100.0 186.4 100.0 149.9 100.0
Vacons sales in Asia and Australia were 35 % higher in 2006
than in the previous year. China was a particular factor in
this growth. Revenues grew 30 % in North America and 22 % in
Europe.
Vacon Groups revenues by distribution channel were as
follows:
MEUR 10- % 10- % 1- % 1- %
12/ 12/ 12/ 12/
2006 2005 2006 2005
Direct sales 20.8 40.8 19.6 43.6 76.4 41.0 61.6 41.1
Distributors 6.8 13.3 5.9 13.1 24.8 13.3 22.5 15.0
OEM 11.9 23.3 9.0 20.1 43.9 23.6 33.5 22.4
Brand Label 11.5 22.6 10.4 23.2 41.4 22.2 32.3 21.5
Total 51.0 100.0 45.0 100.0 186.4 100.0 149.9 100.0
The Groups revenues by distribution channel increased during
the year as follows: direct sales 24 %, distributors 10 %, OEM
31 % and brand label customers 28 %. The reason for the
changes was the growth in Vacons major customer accounts,
which was particularly strong for OEM in the final quarter.
Multinational system supplier Converteam and AC drive
manufacturer Vacon signed a global cooperation agreement in
November 2006. Under the agreement Vacon will supply AC drives
to Converteam globally. The agreement is important for Vacon
since it opens up the market for example in the growing oil
and gas industries.
Vacon Group structure
The associated companies Verteco Oy and Rotatek Finland Oy
became part of a larger holding company through a share
exchange towards the end of 2006, when Vacons holding in the
resulting holding company fell below 20 %. This arrangement
had no impact on the Groups result. In line with the growth
strategy in Asia, a sales company was established in Australia
during the final quarter. The representative office in
Thailand started operations in October and the Singapore
office was closed.
Research and development
R&D expenditure during the year totalled EUR 12.6 (10.8)
million, and EUR 0.6 million of this was capitalized as
development costs during the year. R&D costs accounted for 6.7
% of Group revenues (7.2 %).
Vacon expanded its product selection in the high-power
equipment sector from 3 MW to 5 MW. Expanding the power range
increased Vacons total offering in the low-voltage sector and
is part of the Groups product leadership approach.
Vacon unveiled the first of its new generation AC drives to
customers during 2006.
Investments
Gross investments by the Group during 2006 totalled EUR 8.5
(6.6) million. Expenditure focused mainly on information
systems, R &D testing systems and the new production line at
Vacons factory in China.
Organization and personnel
The number of Vacon personnel grew by 98 persons from the
beginning of the year. The largest increases took place at the
Vaasa factory, in the R&D unit and in the global Products &
Markets unit. At the end of December the Group employed 675
(577) people, of whom 447 (376) were in Finland and 228 (201)
in other countries. The table below shows the average number
of Vacon personnel during the review period.
1-12/2006 1-12/2005
Office 424 385
personnel
Factory 194 148
personnel
TOTAL 618 533
Shares and shareholders
Vacon had a market capitalization at the end of December of
EUR 397.1 million. The closing share price on 31 December 2006
was EUR 26.10. The lowest share price during the January-
December period was EUR 17.70 and the highest EUR 26.99. A
total of 4,439,458 Vacon shares were traded in the January-
December period, in monetary terms EUR 101.0 million.
Vacons main shareholders on 31 December 2006:
Number of shares Holding, %
Ahlström Capital Oy 2 297 996 15.0
Tapiola Mutual Pension 584 500 3.8
Insurance Company
Vaasa Engineering Oy 436 433 2.9
Koskinen Jari 356 350 2.3
Holma Mauri 347 171 2.3
Tapiola Group companies 325 300 2.1
Ehrnrooth Martti 325 070 2.1
Niemelä Harri 309 840 2.0
Investment Fund ABN Amro 234 480 1.5
Finland
Karppinen Veijo 209 349 1.4
Nominee registered and in 4 211 543 27.5
foreign ownership
Others 5 656 968 37.0
Total 15 295 000 100.0
Vacon Plcs own shares -81 572
Shares in circulation 15 213 428
The company has issued the following statutory notices of
changes during the past 12 months:
- 8 June 2006: Threadneedle Asset Management Holdings
Limited announced that the share capital and voting rights in
Vacon Plc held by the company had risen above 5 %.
- 26 June 2006: Fidelity International Limited announced that
the share capital and voting rights in Vacon Plc held by the
company and companies belonging to its group had risen above
5 %.
On 31 December 2006 members of Vacons Board of Directors, the
President and the executive Vice President held directly a
total of 561,856 shares, or 3.7 % of Vacons share stock.
Own shares
On 31 December 2006 Vacon Plc held a total of 81,572 of its
own shares (at an average price of EUR 12.39). During 2006 the
company did not acquire any more of its own shares. These own
shares account for 0.5 % of the share capital and voting
rights, so they have no significant impact on the distribution
of ownership and voting rights.
Share bonus scheme
In January 2005 Vacons Board of Directors decided to initiate
a share bonus scheme to provide long-term motivation and
commitment for the Groups management and key personnel. The
share bonus scheme will last three years. The Board decides
each year on targets for revenues, result and turnover of
working capital for each year, and these determine the size of
the bonus in accordance with the terms of the scheme.
In accordance with the terms of Vacons share bonus scheme, a
total of 13,688 shares were issued as a bonus to the key
personnel in the scheme in April 2006. The shares issued were
company shares held by the company and there is a restriction
on disposing of the shares until the end of 2007.
Dividend policy
The new dividend policy of Vacons Board of Directors is to
propose for approval by the Annual General Meeting of
Shareholders a dividend in line with the companys financial
performance. The goal is to pay a dividend of about 50 % of
the profit for the period. The level of dividend takes into
account the financing required to expand operations.
Dividend proposal
At the end of the financial year the distributable equity of
the parent company stands at EUR 37.7 million. The Board of
Directors proposes to the Annual General Meeting of
Shareholders to be held on 28 March 2007 that a dividend of
EUR 0.65 per share be paid from the parent companys profit
for the financial year 2006 of EUR 12.5 million and the
remainder of the profit for the year be transferred to
retained earnings. According to this proposal, a total of EUR
9.9 million would be paid in dividend.
Strategy priorities
Vacon continues with its strategy of profitable growth. Vacon
has the determination and ability to grow as a global AC drive
supplier. Vacon stands out from its main competitors by
focusing one hundred per cent on AC drives.
The companys financial targets are annual growth in revenues
of 15-20 % and achieving an operating profit (EBIT) of more
than 14 % of revenues by 2010. Vacon has also set a target for
return on equity (ROE) of more than 30 %. Growth is expected
to take place mainly organically. Vacon aims to achieve these
targets by strengthening the companys main operations on all
continents, improving the product offering and making it more
customer-oriented, and increasing investments in the customer
interface.
The companys strategic choices are focusing on AC drives,
strengthening the competitive edge through product leadership,
a multi-channel sales network, and flexible, efficient
operating methods. These are all being implemented globally,
as close as possible to the customer.
The core competences are product development, product and
application know-how, customer relations management, logistics
and mass customization. Vacon aims at more comprehensive
global management for major customers. In accordance with
Vacons international production strategy, products are
customized as close as possible to the customer. Vacon is
establishing a product development unit at the factory in
China, aiming to ensure that products are suitable for
customers in this particular market area.
Prospects
No significant changes have taken place in Vacons market
prospects. The state of the market is expected to remain
favourable in 2007. The high level of energy prices and the
growth of investments in automation boost the AC drive market.
Based on market surveys Vacon estimates that the AC drive
market is growing at an annual rate of 7-9 %.
Vacons market share is rising in all major market areas. AC
drive demand is forecast to increase in Europe and North
America by more than 5 % and in Asia by much more than 10 %,
with China and India the engines of growth. Investments in the
growing markets in Asia and Russia will strengthen Vacons
global market position.
Vacon considers that potential risks to its financial
performance in 2007 are possible problems that material
suppliers may have with capacity, sharp changes in exchange
rates, and increasing problems with the availability of key
components.
The order intake has been strong during the final months of
2006 and the first month of 2007. Vacon forecasts that
revenues in 2007 will grow by 15 20 % and that profitability
should improve from 2006.
Interim reports
Vacon is publishing three interim reports in 2007 as follows:
January-March Thursday, 26 April 2007 at 10.00 am
January-June Thursday, 2 August 2007 at 10.00 am
January-September Thursday, 25 October 2007 at 10.00 am
The Annual General Meeting of Vacon Plc will be held at 3.00
pm on Wednesday, 28 March 2007 at the head office of Vacon Plc
at Runsorintie 7, Vaasa, Finland.
Formal statement
This release contains certain forward-looking statements that
reflect the current views of the company's management. Due to
the nature of these statements, they contain risks and
uncertainties and are subject to changes in the general
economic situation and in the company's business sector.
Vacon was established in 1993 from a passion to create,
develop and produce unique AC drives for demanding needs,
globally. We are driven by a burning desire to serve our
customers as they look for ever more efficient, reliable and
easy to use options to save energy and costs. Vacon provides
AC drives in the power range 0.25 kW 5 MW.
Vaasa, 8 February 2007
VACON PLC
Board of Directors
For more information please contact:
Mr Vesa Laisi, President, phone: +358 (0)40 8371 510,
email: vesa.laisi@vacon.com
Mr. Mika Leppänen, Vice President, Finance & Control,
phone: +358 (0)40 8371 235,
email: mika.leppanen@vacon.com
Conference for the media and analysts
Vacon will hold a briefing for analysts and the media on 8
February 2007 at 11.30 am at Palace Gourmet, Eteläranta 10,
Helsinki.
Dial-in conference for investors and investment analysts
A dial-in conference in English for investors and investment
analysts will be held on the same day at 3.00 pm. President
Vesa Laisi and Mika Leppänen, Vice President, Finance and
Control, will participate in the conference. Lines can be
booked ten minutes before the conference by calling the
service number +44 207 162 0025. The conference ID code is
Vacon Oyj.
Conference link:
http://wcc.webeventservices.com/view/wl/r.htm?e=36280&s=1&k=AE
B9E13729168463DA5B20BE26019108&cb=genesys
To hear a recording of the conference, available for two
working days, call +44 207 031 4064, ID code 735871.
Distribution:
Helsinki Exchanges
Financial Supervision Authority
Main media
Consolidated income statement, MEUR
10-12/ 10-12/ 1-12/ 1-12/
2006 2005 2006 2005
Revenues 51.0 45.0 186.4 149.9
EBITDA 7.1 6.8 27.3 21.9
Depreciation -1.1 -1.0 -4.2 -3.8
Operating profit 6.0 5.8 23.1 18.1
Financial income 0.0 0.0 0.3 0.2
Financial expenses -0.2 -0.1 -0.7 -0.4
Share of result of associated 0.0 -0.2 0.0 -0.2
companies
Profit before taxes 5.8 5.5 22.7 17.7
Taxes -1.8 -1.9 -6.6 -5.5
Profit for the period 4.0 3.6 16.1 12.2
Attributable to:
Equity holders of the parent 3.9 3.5 15.8 12.0
Minority interest 0.1 0.1 0.3 0.2
Earnings per share, euro 0.26 0.24 1.04 0.79
Earnings per share diluted, 0.26 0.24 1.04 0.79
euro
Consolidated balance sheet, MEUR
31.12.2006 31.12.2005
ASSETS
Intangible assets 7.8 5.7
Tangible assets 13.3 13.6
Investments 1.4 1.1
Loans receivable and 0.8 0.6
other receivables
Deferred tax assets 1.1 1.0
Total non-current 24.3 22.0
assets
Inventories 11.7 9.2
Trade receivables and 37.8 33.2
other short-term
receivables
Cash and equivalents 13.0 11.6
Total current assets 62.6 54.0
Total assets 86.9 76.0
EQUITY AND LIABILITIES
Equity attributable to 52.0 42.3
equity holders of the
parent
Minority interest 1.0 0.5
Total equity 53.0 42.8
Deferred tax 1.2 0.7
liabilities
Pension obligations 0.7 0.6
Interest-bearing 1.8 2.0
liabilities
Other liabilities 0.0 0.0
Total non-current 3.7 3.3
liabilities
Trade payables and 25.6 26.0
other liabilities
Tax liabilities 1.5 1.4
Provisions 0.7 0.8
Interest-bearing 2.4 1.7
liabilities
Total current 30.2 29.9
liabilities
Total equity and 86.9 76.0
liabilities
Consolidated statement of changes in equity, MEUR
Attributable to equity holders of the parent company Minor- Total
ity equity
inte
rest
Share Share Own Transl- Fair Re- Total
capital Pre- shares ation value tain-
mium differ- reser- ed
reserve rences ve earnings
Share- 3.1 5.0 -0.2 -0.3 0.0 28.9 36.6 0.3 36.9
holders
equity
31.12.2004
Cash flow -0.1 -0.1 -0.1
hedging:
Hedging
result
allocated
to equity
Translation 0.2 0.2 0.2
difference
Net result 0.2 -0.1 0.1 0.1
entered in
shareholders
equity
Profit for 12.0 12.0 0.2 12.2
period
Income and 0.0 0.0 0.0 0.2 -0.1 12.0 12.1 0.2 12.3
expenses
recorded
during
period,
total
Dividend -5.3 -5.3 -5.3
paid
Purchase -1.0 -1.0 -1.0
of own
shares
Shareholde 3.1 5.0 -1.2 -0.1 -0.1 35.6 42.3 0.5 42.8
rs equity
31.12.2005
Cash flow 0.1 0.1 0.1
hedging:
Hedging
result
allocated
to equity
Hedging 0.1 0.1 0.1
result
carried
to income
statement
Translation -0.1 -0.1 -0.1
difference
Other 0.1 0.1 0.1
changes
Net result -0.1 0.2 0.1 0.2 0.2
entered in
shareholders equity
Profit for 15.8 15.8 0.3 16.1
period
Income and -0.1 0.2 15.9 16.0 0.3 16.3
expenses
recorded
during
period,
total
Dividend -6.3 -6.3 -6.3
paid
Minority 0.2 0.2
holding in
new subsidiaries
Shareholde 3.1 5.0 -1.2 -0.1 0.1 45.2 52.0 1.0 53.0
rs equity
31.12.2006
Consolidated cash flow statement, MEUR
31.12.2006 31.12.2005
Profit for the period 16.1 12.2
Depreciation 4.2 3.8
Other adjustments 6.9 6.0
Change in working -5.7 -7.1
capital
Cash flow from -6.4 -5.2
financial items and tax
Cash flow from 15.1 9.7
operating activities
Investments in tangible -7.0 -6.4
and intangible assets
Proceeds from disposal 0.5 0.2
of tangible and
intangible assets
Loans granted -1.4 0.0
Other investments -0.5 -0.2
Change in long-term 0.0 0.2
loans receivable
Proceeds from disposal 0.3 0.0
of other investments
Cash flow from -8.1 -6.2
investing activities
Payments from share 0.1 0.0
issue
Proceeds from long-term 0.4 1.2
borrowings
Repayment of long-term -0.2 -0.9
loans
Proceeds from short- 5.0 0.0
term borrowings
Repayment of short-term -4.3 -1.3
loans
Purchase of own shares 0.0 -1.0
Finance lease payments -0.3 -0.3
Dividends paid -6.3 -5.3
Other changes in 0.0 0.0
shareholders equity
Cash flow from -5.5 -7.6
financial activities
Change in liquid funds 1.6 -4.1
Segment information
Reporting on Vacon Groups operations is firstly by business
segment and secondly by geographical segment.
Vacon has one business segment, AC drives. The figures for the
primary segment are identical with the figures for the whole
Group. Vacons operations are organized in the following
functions: Products and Markets, Production, Research &
Development, Finance and Administration, Human Resources, IT
and Process Development, and Corporate Development. To ensure
that the organisation is customer-oriented, operations are
controlled by customer segments that are called business
areas. These business areas are: Component Customers,
Solutions Customers, OEM and Brand Label Customers, and
Service and After-Market Services.
The secondary, geographical segment is divided into four sales
areas: Europe, North America, Asia and Australia, and Other
Countries.
Financial ratios
Per share data
IFRS IFRS IFRS FAS 2004 FAS 2003 FAS 2002
2006 2005 2004
Earnings per 1.04 0.79 0.71 0.65 0.50 0.43
share, EUR
Equity per 3.42 2.78 2.39 2.29 2.11 1.78
share, EUR
Dividend per 0.65 0.41 0.35 0.35 0.55 0.17
share EUR*)
Payout 62.57 52.12 49.31 54.01 109.32 39.60
ratio, %*)
Effective 2.5 2.3 3.0 3.0 5.6 2.3
dividend
yield %*)
P/E multiple 25.1 22.2 16.6 18.2 19.5 17.2
Lowest 17.70 11.85 9.95 9.95 6.70 5.60
trading
price, EUR
Highest 26.99 17.50 11.99 11.99 10.65 11.60
trading
price, EUR
Share price 26.10 17.50 11.78 11.78 9.80 7.40
at year end,
EUR
Average 22.60 14.68 11.00 11.00 8.95 9.68
trading
price, EUR
Market 397.10 266.00 180.00 180.00 148.50 112.11
capitalizati
on, MEUR
Trading 4 439 5 693 3 427 3 427 4 231 4 599
volume, no. 458 881 027 027 544 195
of shares
Trading 29.2 37.5 22.6 22.6 27.9 30.4
volume, %
Weighted 15 209 15 203 15 186 15 186 15 150 15 150
average 303 147 805 805 000 000
number of
shares **)
Number of 15 213 15 199 15 282 15 282 15 150 15 150
shares at 428 740 200 200 000 000
year end **)
*) The dividend for the 2006 fiscal year is the Boards
proposal to the AGM.
**) Average number of shares in the year was 15 209 303. The
number of shares in circulation is 15 213 428.
Key figures showing the Groups financial performance
IFRS IFRS IFRS FAS FAS FAS
2006 2005 2004 2004 2003 2002
Revenues, MEUR 186.4 149.9 128.6 128.6 112.3 97.5
Increase in 24.3 16.6 14.5 14.5 15.2 7.7
revenues, %
Operating profit, 23.1 18.1 15.9 14.7 11.8 9.9
MEUR
Increase in 27.6 13.8 N/A 24.6 19.2 -4.8
operating profit,
%
Operating profit, 12.4 12.1 12.4 11.4 10.5 10.2
% of revenues
Profit before 22.7 17.7 15.9 14.7 11.7 9.8
taxes, MEUR
Profit before 12.2 11.8 12.4 11.4 10.4 10.1
taxes, % of
revenues
Return on equity, 33.7 30.5 31.3 29.7 26.1 26.2
%
Return on 45.1 40.8 38.6 37.8 31.7 30.4
investment, %
Interest-bearing -8.8 -7.9 -10.6 -11.5 -6.2 -0.8
net liabilities,
MEUR
Net gearing, % -16.6 -18.3 -28.9 -32.9 -19.1 -3.0
Equity ratio, % 61.7 56.8 56.2 55.7 55.8 51.7
Gross investments 8.5 6.6 4.6 4.2 4.8 4.7
in fixed assets,
MEUR
Gross investments 4.6 4.4 3.6 3.3 4.3 4.8
in fixed assets, %
of revenues
R & D costs, MEUR 12.6 10.8 9.8 9.8 8.9 7.1
R & D costs, % of 6.7 7.2 7.6 7.6 7.9 7.3
revenues
Number of 675 577 469 469 436 426
personnel at year
end
Order book, MEUR 29.7 18.8 12.0 12.0 12.3 15.5
***)
Commitments and contingencies. MEUR
31.12.2006 31.12.2005
Commitments and 1.8 2.1
contingencies
Financing commitments 1.5 1.7
Currency derivatives. MEUR
31.12.2006 31.12.2005
Forward exchange
contracts
Fair value 0.1 -0.3
Nominal value 14.9 17.5
Vacon started to apply hedge accounting to derivative
instruments, in accordance with IAS 39, from the beginning of
the 2005 fiscal year. Derivative instruments are valued at
fair value on the closing date. Changes in fair value are
entered in the fair value reserve in shareholders equity in
so far as they meet the conditions of hedge accounting.
Changes in the fair value of derivative instruments that do
not meet these conditions are entered directly in the income
statement. The value of items entered in the fair value
reserve by the end of the fiscal year was EUR -0.1 million.
The remainder of the difference in value has been entered in
the income statement. Derivative instruments are used to hedge
foreign currency denominated cash flows.
Group quarterly performance, MEUR
10- 7-9/ 4-6/ 1-3/ 1-12/ 1-9/ 1-6/ 1-3/
12/ 2006 2006 2006 2006 2006 2006 2006
2006
Revenues 51.0 47.6 45.0 42.8 186.4 135.4 87.9 42.8
Operating 6.0 5.8 5.7 5.6 23.1 17.1 11.3 5.6
profit
Profit 5.8 5.8 5.5 5.6 22.7 16.8 11.1 5.6
before tax
Calculation of financial ratios
Earnings per share = Profit for the period attributable to
equity holders of the parent
-------------------------------------
Adjusted average number of shares
Equity per share = Equity attributable to the equity
holders of the parent
--------------------------------------
Adjusted number of shares at the end of
period
Dividend per share = Dividend paid in period
--------------------------------------
Adjusted number of shares at year end
Payout ratio = Dividend paid in period x 100
----------------------------------------
Profit for period attributable to equity
holders of parent
Effective dividend yield = Dividend per share x100
-------------------------------------
Adjusted market share price at year end
P/E multiple = Adjusted market share price at year end
------------------------------------------
Earnings per share
Return on equity = Profit for year x 100
------------------------------------------
Shareholders equity (including minority
interest), average of start and end of
period
Return on investment = (Result before tax + interest and
financial expenses) x 100
------------------------------------------
Balance sheet total interest-free
liabilities, average of start and end of
period
Equity ratio = Shareholders equity (incl. minority
interest) x 100
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Balance sheet total advances received
Net gearing = (Interest-bearing liabilities cash, bank
balances and financial assets) x 100
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Shareholders equity (incl. minority interest)
R & D costs = R & D costs recognized in income statement
(incl. costs covered by grants received) and
capitalised R&D costs
Market value of shares =
Number of shares outstanding at the end of the
year * the closing share price
Trading volume -% = Number of shares traded in period
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Adjusted average number of shares
VACON PLC FINANCIAL BULLETIN 1 JANUARY 31 DECEMBER 2006
| Source: Vacon.