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 ------------------------------------------ Balance sheet total advances received Net gearing = (Interest-bearing liabilities cash, bank balances and financial assets) x 100 ---------------------------------------------- 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 ---------------------------------------------- Adjusted average number of shares
VACON PLC FINANCIAL BULLETIN 1 JANUARY 31 DECEMBER 2006
| Source: Vacon.