Vacon Plc, Stock Exchange Release, 7 February 2008 at 9.00 am:
Vacon increases market share in strong market
October-December summary:
* Order intake totalled MEUR 62.7, growth of 11.8 % from the
corresponding period in the previous
year (MEUR 56.1).
* Revenues totalled MEUR 61.4, increase of 20.4 % (MEUR
51.0).
* Operating profit was MEUR 7.5, growth of 25.0 % (MEUR
6.0).
* Cash flow from operations was MEUR 6.9 (MEUR 1.8).
* Earnings per share were EUR 0.40 (EUR 0.26), growth from
the previous year of 53.8 %.
January-December summary:
* Order intake was MEUR 237.2, increase of 20.2 % from the
corresponding period in the previous
year (MEUR 197.4).
* Revenues totalled MEUR 232.2, growth of 24.6 % (MEUR
186.4).
* Operating profit was MEUR 29.2, growth of 26.4 % (MEUR
23.1).
* Cash flow from operations was MEUR 21.1 (MEUR 15.1).
* Earnings per share were EUR 1.37 (EUR 1.04), growth from
the previous year of 31.7 %.
The clean technology market is growing strongly. The efficient use of
energy and renewable energy sources will play an increasingly
important role in the future. AC drives are one of the key products
in both areas.
According to market surveys, the AC drive market grew by about 9 % in
2007. High energy prices, increasing automation and measures to
reduce emissions increase the overall market. Worldwide, market
growth was fastest in Asia. The rapid developments in the economies
of China and India in particular were reflected in demand for AC
drives. Europe and North America retained their position as areas of
stable growth. Market surveys show that during the past year the
Asian market overtook in size the South and North American markets.
Vacon's strategic goal is profitable growth, which should be clearly
higher than market growth. In a strong market and thanks to the
excellent efforts of personnel, in 2007 the company increased its
market share and improved its operating profit as a percentage of
revenues. The earnings per share for the year was EUR 1.37. The Board
of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.75 per share be paid from the profit for 2007.
Market prospects for 2008 are positive. The wide product selection
and cost-efficiency give a competitive edge, and the renewal of the
product range over the next few years is expected to strengthen
Vacon's market position. The purchase of the TB Wood's AC drive
business announced in December 2007 gives a significant boost to
Vacon's growth potential and market position. Following this
acquisition Vacon has sales on all continents and R&D and production
on three continents.
October-December result
Order intake was 11.8 % higher than in the previous year. The final
quarter in 2006 included an exceptionally large one-time order, and
there was nothing similar to this in the final quarter of 2007.
Vacon's revenues by market area grew as follows: Europe, Middle East
and Africa together 19 %, North and South America 20 %, and Asia
including the Pacific region 36 %. Revenues in North America were
depressed by the weakening of the US dollar against the euro.
Operating profit during the final quarter was 25 % higher than one
year ago and as a percentage of revenues increased from 11.8 % in the
previous year to 12.2 %. It is estimated that the weakening of the US
dollar reduced the operating profit percentage by 0.8 percentage
points. The earnings per share rose to EUR 0.40, growth from the
previous year of EUR 0.14. The cash flow from operations was EUR 6.9
million in October - December 2007.
Result for 2007 and equity structure
MEUR 10-12/ 10-12/ 1-12/ 1-12/ Change,
2007 2006 2007 2006 %
Revenues 61.4 51.0 232.2 186.4 24.6
EBITDA 8.8 7.1 34.0 27.3 24.5
Depreciation -1.3 -1.1 -4.8 -4.2 14.3
Operating profit 7.5 6.0 29.2 23.1 26.4
Profit before tax 7.6 5.8 28.8 22.7 26.9
Profit for period 6.1 4.0 21.4 16.1 32.9
Revenues in 2007 totalled EUR 232.2 million and operating profit was
EUR 29.2 million. The operating profit as a percentage of revenues
rose to 12.6 % compared to 12.4 % in the previous year. Profitability
improved slightly compared to the previous year in consequence of the
growth in revenues.
The balance sheet total was EUR 123.2 (86.9) million. The loan taken
at the end of December to finance the TB Wood's acquisition had an
impact on the balance sheet total, since it was included in the
Group's cash and cash equivalents at the end of the year. The equity
ratio was 52.9 %. The Group's cash flow from operations for
January-December was EUR 21.1 (15.1) million. Total receivables
increased EUR 8.0 million from the beginning of the year.
The Group's equity structure and liquidity remained strong.
Interest-bearing net debt at the end of the period totalled EUR -11.0
(-8.8) million and gearing was -17.1 % (-16.6 %). The return on
equity rose to 36.5 % (33.7 %) and the return on investment was 41.2
% (45.1 %).
The Group's order book stood at EUR 34.8 (29.7) million. The order
book grew by EUR 5.1 million from the beginning of the year.
Market position
Vacon Group revenues by market area were as follows:
MEUR 10-12/ % 10-12/ % 1-12/ % 1-12/ %
2007 2006 2007 2006
Europe, Middle
East, Africa 43.0 70.0 36.2 71.0 172.6 74.3 133.5 71.6
North and South
America 13.1 21.4 10.9 21.4 42.1 18.1 38.9 20.9
Asia and Pacific 5.3 8.6 3.9 7.6 17.5 7.6 14.0 7.5
Total 61.4 100.0 51.0 100.0 232.2 100.0 186.4 100.0
Vacon strengthened its position in all major market areas during
2007. Based on market surveys, the company estimates that it has
about four per cent of the global market.
Revenues by region increased as follows during the year: Europe,
Middle East, Africa in total 29 %, North and South America 8 %, and
Asia including the Pacific region 25 %. Growth in revenues in North
America was slowed down in particular by the weakening of the dollar
during the year. In Europe, growth in revenues was distinctly faster
than market growth. Growth in revenues in Asia and Pacific was
satisfactory but fell slightly short of expectations.
Vacon Group revenues by distribution channel
MEUR 10-12/ % 10-12/ % 1-12/ % 1-12/ %
2007 2006 2007 2006
Direct sales 27.2 44.3 20.8 40.8 99.0 42.6 76.4 41.0
Distri-butors 8.3 13.5 6.8 13.3 31.3 13.5 24.8 13.3
OEM 12.7 20.7 11.9 23.3 56.4 24.3 43.9 23.6
Brand label 13.2 21.5 11.5 22.6 45.5 19.6 41.4 22.2
Total 61.4 100.0 51.0 100.0 232.2 100.0 186.4 100.0
The Group's revenues by distribution channel increased as follows
during the year: OEM 28 %, direct sales 30 %, distributors 26 % and
brand label customers 10 %. Vacon's biggest brand label customers are
located in North America and the weak exchange rate of the dollar
against the euro had an impact on growth in this distribution
channel.
Vacon announced in October that it had signed a major contract with
Finnish system integrator The Switch. The contract strengthens
Vacon's position in the rapidly growing wind power market and has a
value of several million euros. The wind power market currently has a
value of about EUR 15 billion, and this is expected to almost double
during the next two years. Worldwide, investments of USD 45 billion
were made in different forms of renewable energy last year.
In November Vacon signed a contract worth almost EUR 2 million with
Talvivaara Projekti Oy. Vacon will supply more than 300 AC drives to
the nickel mine under construction in Sotkamo to control pumps, fans
and conveyors. The use of AC drives provides process control, and
especially when controlling pumps and fans AC drives give
considerable energy savings.
Vacon Group structure
In December Vacon announced that it was purchasing the AC drives
business of TB Wood's, part of US-based Altra Holdings Inc.. The
transaction included factories in the USA and Italy and sales
companies in India and Germany. The sale was completed at the
beginning of January 2008.
To integrate the AC drives business of TB Wood's, a new subsidiary
was established in the USA in December. The new subsidiary Vacon Inc.
is responsible for the North American AC drives business of Vacon
Group and TB Wood's. Dan Isaksson, Vice President, Corporate
Development at Vacon Group, was appointed president of the
subsidiary.
After these changes Vacon's own sales network comprises 18
subsidiaries and branch offices in Brazil, the United Arab Emirates
and Thailand.
Research & development
R&D expenditure during the year totalled EUR 14.3 (12.6) million, and
EUR 1.9 (0.6) million of this was capitalized as development costs.
R&D costs accounted for 6.2 % (6.7 %) of Group revenues. Amortization
of capitalized development costs totalled EUR 0.5 million in 2007.
In November Vacon launched the new Vacon 10 micro drive family, which
is among the smallest drives on the market, is particularly suitable
for OEMs and is competitively priced. Consulting company Frost &
Sullivan named the new Vacon 10 micro drive as the 2008 Global Micro
Drives Product of the Year for OEMs in the under 5.5 kW series.
Work on developing new products continues in accordance with the
company's plans.
Investments
Gross investments by the Group during 2007 totalled EUR 9.1 (8.5)
million. Expenditure focused on increasing and maintaining production
capacity and on information systems.
The expansion of the factory in China was completed in 2007. Work on
enlarging the Vaasa factory got underway during the final quarter of
2007. During 2008 some 9,000 square metres of production premises
will be completed to increase capacity.
Organization and personnel
The number of Vacon personnel grew by 194 persons from the beginning
of the year. At the end of December the Group employed 869 (675)
people, of whom 555 (447) were in Finland and 314 (228) in other
countries. The table below shows the average number of Vacon
personnel during the review period:
1-12/2007 1-12/2006
Office personnel 512 424
Factory personnel 260 194
TOTAL 772 618
Shares and shareholders
Vacon had a market capitalization at the end of December of EUR 426.5
million. The closing share price on 31 December 2007 was EUR 28.00.
The lowest share price during the January-December period was EUR
24.60 and the highest EUR 38.00. A total of 8,241,357 Vacon shares
were traded in the January-December period, in monetary terms EUR
245.1 million.
Vacon's main shareholders on 31 December 2007:
Number of shares Holding, %
Ahlström Capital Oy 2 297 996 15.0
Tapiola Mutual Pension Insurance Company 584 500 3.8
Vaasa Engineering Oy 424 433 2.8
Koskinen Jari 358 590 2.3
Holma Mauri 347 171 2.3
Ehrnrooth Martti 328 500 2.2
Tapiola Group companies 325 300 2.1
Niemelä Harri 309 840 2.0
Karppinen Veijo 209 349 1.4
Mutual Insurance Company Pension
Fennia 185 000 1.2
Nominee registered and in foreign
ownership 4 903 419 32.1
Others 5 020 902 32.8
Total 15 295 000 100.0
Vacon Plc's own shares -62 812
Shares outstanding 15 232 188
On 31 December 2007 members of Vacon's Board of Directors, the
President and CEO, and the Deputy to the CEO held directly a total of
568,296 shares, or 3.7 % of Vacon's share stock.
Own shares
On 31 December 2007 Vacon Plc held a total of 62,812 of its own
shares which it had acquired at an average price of EUR 12.46. This
is 0.4 % of the share capital and voting rights, so it has no major
impact on the distribution of ownership or voting rights in the
company.
Dividend proposal
At the end of the financial year the distributable equity of the
parent company stands at EUR 44.2 million. The Board of Directors
proposes to the Annual General Meeting of Shareholders to be held on
26 March 2008 that a dividend of EUR 0.75 per share be paid from the
parent company's profit for the financial year 2007 of EUR 16.4
million and the remainder of the profit for the year be transferred
to retained earnings. According to this proposal, a total of EUR 11.4
million would be paid in dividend.
Strategy
AC drives are a key product in increasing energy efficiency and in
utilizing renewable energy sources. This creates a solid base for
long-term growth in the AC drives business. By focusing one hundred
per cent on AC drives, Vacon aims to grow profitably and much faster
than the average growth rate in the sector.
The cornerstones of Vacon's strategy are systematic development of
product leadership and international expansion to ensure growth. One
of the broadest range of products on the market, heavy investment in
R&D, and flexible and cost-effective production support product
leadership. The acquisition of the AC drives business of TB Wood's
will enable Vacon to support its customers in all main market areas
and with a broader product portfolio.
The company's financial goal is to achieve revenues of EUR 500
million and an operating profit (EBIT) of more than 14 % by 2012.
Vacon has set an annual target for return on equity (ROE) of more
than 30 %. Most of this growth will be organic, but Vacon does not
exclude the possibility of further acquisitions. Organic growth will
be financed by cash flow from operations and in the case of further
acquisitions the gearing target is a maximum of 60 %. Factors that
will help improve the operating profit are expanding the product
selection into higher power drives, launching the new product
generation, transferring production of the components used in AC
drives to countries with even lower costs, and the reduction in the
US dollar risk as a result of the acquisition of the TB Wood's AC
drives business.
Vacon's success now and in the future is based on outstanding
products and services, quality, a brand with a growing global
presence, cost-efficiency and logistic speed, a customer-oriented way
of working, and a passionate attitude. Vacon will continue its
international expansion in 2008 in the areas of product development,
sales, services and production.
It is the policy of Vacon's Board of Directors to propose for
approval by the Annual General Meeting a dividend consistent with the
company's 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.
Prospects for 2008
No significant changes have taken place in Vacon's market prospects.
The state of the market is expected to remain favourable in 2008. The
AC drive is one of the most important tools in enhancing energy usage
and an important component in renewable energy power plants. High
energy prices, increasing automation and measures to reduce emissions
increase the market for AC drives. Based on market surveys Vacon
estimates that the AC drive market is growing at an annual rate of
about 9 %.
AC drive demand is forecast to increase in Europe by about 9 %, in
North America by more than 6 % and in Asia by much more than 10 %,
with China and India the engines of growth. Investments in the
growing markets in North America, Asia and Russia will reinforce
Vacon's global market position.
The purchase of the TB Wood's AC drive business announced in December
2007 gives a significant boost to Vacon's growth potential and market
position. The broad range and cost-efficiency of the combined product
portfolio give a competitive edge, and the renewal of the product
range over the next few years is expected to strengthen Vacon's
market position.
Vacon considers that potential risks to its financial performance in
2008 are problems that material suppliers may have with capacity,
increasing problems with the availability of key components and
increases in their prices, and the weakening of the US dollar.
Revenues in 2008 are forecast to rise by more than 25 % (by more than
15 % on comparable figures) and profitability to weaken slightly from
2007 in consequence of integrating the TB Wood's AC drive business
during the year. This is not, however, expected to have any material
impact on Vacon Group's earnings per share in 2008. Earnings per
share are forecast to exceed EUR 1.50 in 2008.
Events after end of year
Vacon completed the acquisition of the AC drives business of TB
Wood's. Vacon paid USD 29 million for the business. The calculations
for allocating the purchasing price and goodwill have not been
completed yet. The loan and cash funds for the acquisition were
included in the balance sheet at the end of the year.
The purchased drives business will be included in Vacon's
consolidated financial statements as from the beginning of January
2008. The acquisition is not expected to have a significant impact on
Vacon Group's earnings per share in 2008.
Financial reports in 2008
Vacon is publishing three interim reports in 2008 as follows:
- January-March Thursday, 24 April 2008 at 9.00 am
- January-June Thursday, 7 August 2008 at 9.00 am
- January-September Thursday, 23 October 2008 at 9.00 am
The 2007 Annual Report will be published in week 11 (10-14 March).
The Annual General Meeting of Vacon Plc will be held at 3.00 pm on
Wednesday, 26 March 2008 at the company's head office 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 in brief
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, 7 February 2008
VACON PLC
Board of Directors
For more information please contact:
* Mr Vesa Laisi, President & CEO, phone: +358 (0)40 8371 510
* Mr Mika Leppänen, Vice President, Finance & Control,
phone: +358 (0)40 8371 235
Conference for media and analysts
Vacon will hold a briefing for analysts and the media at 11.30 am on
7 February 2007 in the Vivaldi meeting room at the Radisson SAS
PlazaHotel, Mikonkatu 23, Helsinki.
Dial-in conference for investors and investment analysts
A dial-in conference in English for investors and investment analysts
will be held at 3.00 pm on 7 February 2007. President and CEO 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". To hear a recording of the
conference, available for two working days, call +44 207 031 4064, ID
code 782084.
Conference link:
http://wcc.webeventservices.com/view/wl/r.htm?e=103013&s=1&k=63A0F9E271F95486B0B9E3CFC83264DD&cb=genesys
Distribution
Helsinki Exchanges
Financial Supervision Authority
Main media
Accounting principles
The 2007 financial statement release has been prepared in accordance
with IFRS recognition and measurement principles. Vacon has prepared
this release applying the same IFRS accounting principles as in its
2006 consolidated financial statements. The figures presented in the
financial statement release are audited.
Consolidated income statement, MEUR
10-12/ 10-12/ 1-12/ 1-12/
2007 2006 2007 2006
Revenues 61.4 51.0 232.2 186.4
EBITDA 8.8 7.1 34.0 27.3
Depreciation -1.3 -1.1 -4.8 -4.2
Operating profit 7.5 6.0 29.2 23.1
Financial income 0.3 0.0 0.6 0.3
Financial expenses -0.2 -0.2 -1.0 -0.7
Profit before taxes 7.6 5.8 28.8 22.7
Income taxes -1.4 -1.8 -7.4 -6.6
Profit for the period 6.1 4.0 21.4 16.1
Attributable to:
Equity holders of the parent 6.0 3.9 20.9 15.8
Minority interest 0.1 0.1 0.5 0.3
Earnings per share, euro 0.40 0.26 1.37 1.04
Earnings per share diluted, euro 0.40 0.26 1.37 1.04
Consolidated balance sheet, MEUR
31.12.2007 31.12.2006
ASSETS
Intangible assets 9.6 7.8
Tangible assets 14.7 13.3
Investments 1.9 1.4
Loans receivable and other receivables 0.4 0.8
Deferred tax assets 1.5 1.1
Total non-current assets 28.2 24.3
Inventories 14.7 11.7
Trade and other receivables 45.8 37.8
Cash and cash equivalents 34.4 13.0
Total current assets 94.9 62.6
Total assets 123.2 86.9
EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent company 62.9 52.0
Minority interest 1.1 1.0
Total equity 64.0 53.0
Deferred tax liabilities 1.6 1.2
Employee benefits 0.8 0.7
Interest-bearing liabilities 19.1 1.8
Total non-current liabilities 21.6 3.7
Trade and other payables 30.9 25.6
Income tax liabilities 1.6 1.5
Provisions 0.8 0.7
Interest-bearing liabilities 4.3 2.4
Total current liabilities 37.6 30.2
Total equity and liabilities 123.2 86.9
2007 calculation of changes in shareholders' equity, MEUR
Min- To-
Attributable to equity holders of the parent ority tal
inte- equi-
rest ty
Sha- Sha- Own Transla- Reva- Re- To-
re re shares tion lu- tai- tal
capital pre differ- ation ned
mium rence fund earn-
ings
Share-
holders'
equity
31.12.2005 3.1 5.0 -1.2 -0.1 -0.1 35.6 42.3 0.5 42.8
Cash flow
hedging:
Hedging
result
allocated to
equity 0.1 0.1 0.1
Transferred
as
adjust-ment
to sales
income 0.1 0.1 0.1
Translation
difference -0.1 -0.1 -0.1
Other changes 0.1 0.1 0.1
Net income
recorded
directly in
equity -0.1 0.2 0.1 0.2 0.2
Profit for
period 15.8 15.8 0.3 16.1
Income and
expenses
recorded
during
period,
total -0.1 0.2 15.9 16.0 0.3 16.3
Dividend paid -6.3 -6.3 -6.3
Minority
interest in
new
subsidiaries 0.2 0.2
Shareholders'
equity
31.12.2006 3.1 5.0 -1.2 -0.1 0.1 45.2 52.0 1.0 53.0
Cash flow:
hedging
Hedging
result
allocated
to equity 0.0 0.0 0.0
Transferred as
adjustment to sales
income -0.1 -0.1 -0.1
Translation difference -0.3 -0.3 -0.3
Profit/loss from hedging
of net investment -0.1 -0.1 -0.1
Recognized tax 0.0 0.0 0.0
Other changes 0.3 0.3 0.0 0.3
Net income recorded
directly in equity 0.0 0.0 0.0 -0.4 0.0 0.3 -0.1 0.0 -0.1
Profit for period 20.9 20.9 0.5 21.4
Total income and expenses
recorded for the period -0.4 0.0 21.2 20.8 0.5 21.3
Dividend paid -9.9 -9.9 -0.3 -10.2
Minority interest in new
subsidiaries 0.0 0.0
Shareholders' equity
31.12.2007 3.0 5.0 -1.2 -0.5 0.0 56.5 62.9 1.1 64.0
Consolidated cash flow statement, MEUR
31.12.2007 31.12.2006
Profit for the period 21.4 16.1
Depreciation 4.8 4.2
Financial income and expenses 0.5 0.4
Taxes 7.4 6.6
Other adjustments 0.1 -0.1
Change in working capital -5.5 -5.7
Cash flow from financial items and tax -7.5 -6.4
Cash flow from operating activities 21.1 15.1
Investments in tangible and intangible assets -8.6 -7.0
Proceeds from disposal of tangible and
intangible assets 0.4 0.5
Loans granted 0.0 -1.4
Other investments -0.6 -0.5
Repayment of loan receivables 0.2 0.0
Proceeds from disposal of other investments 0.0 0.3
Cash flow from investing activities -8.6 -8.1
Share issue 0.0 0.1
Proceeds from long-term borrowings 21.9 0.4
Repayment of long-term loans -0.2 -0.2
Proceeds from short-term borrowings 1.0 5.0
Repayment of short-term loans -2.2 -4.3
Financial leasing payments -0.3 -0.3
Dividends paid -10.2 -6.3
Cash flow from financial activities 10.0 -5.5
Change in liquid funds 22.5 1.6
Segment information
Reporting on Vacon Group's 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.
Vacon's operations are organized in the following functions: Products
and Markets, Production, Research & Development, Finance and
Administration, Human Resources, IT and Process 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 three sales
areas: EMEA (Europe, Middle East and Africa), Americas (North and
South America) and APAC (Asia and Pacific).
Financial ratios
Per share data
IFRS IFRS
IFRS 2007 IFRS 2006 2005 2004 FAS 2003
Earnings per share, EUR 1.37 1.04 0.79 0.71 0.50
Equity per share, EUR 4.13 3.42 2.78 2.39 2.11
Dividend per share EUR*) 0.75 0.65 0.41 0.35 0.55
Dividend payout ratio, %*) 54.59 62.57 52.12 49.31 109.32
Effective dividend yield
%*) 2.7 2.5 2.3 3.0 5.6
Price/earnings ratio 20.4 25.1 22.2 16.6 19.5
Lowest trading price, EUR 24.60 17.70 11.85 9.95 6.70
Highest trading price, EUR 38.00 26.99 17.50 11.99 10.65
Share price at year end,
EUR 28.00 26.10 17.50 11.78 9.80
Average trading price, EUR 30.01 22.60 14.68 11.00 8.95
Market capitalization,
MEUR 426.50 397.10 266.00 180.00 148.50
Trading volume, no. of 5 693 3 427 4 231
shares 8 241 357 4 439 458 881 027 544
Trading volume, % 54.1 29.2 37.5 22.6 27.9
Adjusted average number of
shares during the 15 226 15 209 15 203 15 186 15 150
financial year**) 997 303 147 805 000
Number of shares at year 15 232 15 213 15 199 15 282 15 150
end **) 188 428 740 200 000
*) The 2007 dividend is the Board of Directors' proposal to the
Annual General Meeting.
**) The average number of shares during the year was 15 226 997. The
total number of shares outstanding was 15 232 188.
Key figures showing the Group's financial performance
IFRS IFRS IFRS FAS
IFRS 2007 2006 2005 2004 2003
Revenues, MEUR 232.2 186.4 149.9 128.6 112.3
Increase in revenues, % 24.6 24.3 16.6 14.5 15.2
Operating profit, MEUR 29.2 23.1 18.1 15.9 11.8
Increase in operating profit, % 26.4 27.6 13.8 N/A 19.2
Operating profit, % of revenues 12.6 12.4 12.1 12.4 10.5
Profit before taxes, MEUR 28.8 22.7 17.7 15.9 11.7
Profit before taxes, % of revenues 12.4 12.2 11.8 12.4 10.4
Return on equity, % 36.5 33.7 30.5 31.3 26.1
Return on investment, % 41.2 45.1 40.8 38.6 31.7
Interest-bearing net liabilities,
MEUR -11.0 -8.8 -7.9 -10.6 -6.2
Net gearing, % -17.1 -16.6 -18.3 -28.9 -19.1
Equity ratio, % 52.9 61.7 56.8 56.2 55.8
Gross capital expenditure, MEUR 9.1 8.5 6.6 4.6 4.8
Gross capital expenditure, % of
revenues 3.9 4.6 4.4 3.6 4.3
R & D costs, MEUR 14.3 12.6 10.8 9.8 8.9
R & D costs, % of revenues 6.2 6.7 7.2 7.6 7.9
Number of personnel at the end of
the period 869 675 577 469 436
Order book, MEUR 34.8 29.7 18.8 12.0 12.3
Commitments and contingencies. MEUR
31.12.2007 31.12.2006
Commitments and contingencies 1.1 1.8
Financing commitments 1.0 1.5
Currency derivatives, MEUR
31.12.2007 31.12.2006
Forward exchange contracts
Fair value 0.4 0.1
Nominal value 12.7 14.9
Group quarterly performance, MEUR
10-12/ 7-9/ 4-6/ 1-3/ 1-12/ 1-9/ 1-6/ 1-3/
2007 2007 2007 2007 2007 2007 2007 2007
Revenues 61.4 58.7 59.8 52.3 232.2 170.8 112.1 52.3
Operating
profit 7.5 7.8 7.7 6.3 29.2 21.7 14.0 6.3
Profit
before tax 7.6 7.5 7.5 6.2 28.8 21.2 13.7 6.2
Calculation of financial ratios
Earnings per share = Profit for the financial year
attributable to equity holders of the parent company
------------------------------------------------------
Adjusted average number of
shares
Equity per share = Equity attributable to the equity
holders of the parent company
-------------------------------------------------------
Adjusted average number of
shares at year end
Dividend per share = Dividend for the financial year
------------------------------------------------------
Adjusted
number of shares at year end
Dividend payout ratio = Dividend for the financial year x 100
------------------------------------------------------
Profit for period
attributable to equity holders of the parent company
Effective dividend yield = Dividend per share x 100
----------------------------------------------------
Adjusted closing share
price at year end
Price/earnings ratio = Adjusted closing share price at year
end
-----------------------------------------------------
Earnings per share
Return on equity = Profit for the financial year x 100
-----------------------------------------------------------
Shareholders' equity (incl.
minority interest), average of the beginning and end of the year
Return on investment = (Profit before taxes + interest and
other financial expenses) x 100
-----------------------------------------------------------
Balance sheet total -
non-interest-bearing liabilities, average of the beginning
and end of the year
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 = Research and development costs recognized in income
statement (incl. costs covered with subsidies) and capitalized
development expenses
Market capitalization = Number of shares outstanding at year end x
closing share price
Trading volume-% = Number of shares traded during the year
---------------------------------------------- Adjusted average number of
shares
VACON PLC FINANCIAL BULLETIN 1 JANUARY - 31 DECEMBER 2007
| Source: Vacon.
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