2009-02-05 07:58:00 CET
2009-02-05 07:59:42 CET
REGULATED INFORMATION
Vacon - Financial Statement Release
Vacon Plc Financial Bulletin 1 January - 31 December 2008
Vacon Plc, Stock Exchange Release, 5 February 2009 at 9.00 am:
October-December summary:
- Order intake totalled MEUR 67.2 million, growth of 7.2 % from
the corresponding period
in the previous year (MEUR 62.7).
- Revenues totalled MEUR 75.2, growth of 22.5 % (MEUR 61.4).
- Operating profit was MEUR 7.5 and 10.0 % of revenues (MEUR 7.5
and 12.2 %).
- Cash flow from operations was MEUR 5.1 (MEUR 6.9).
- Earnings per share were EUR 0.32 (EUR 0.40), a decline of 20.0
% from the previous year.
January-December summary:
- Order intake was MEUR 306.5, increase of 29.2 % from the
corresponding
period in the previous year (MEUR 237.2).
- Revenues totalled MEUR 293.2, growth of 26.3 % (MEUR 232.2).
- Operating profit was MEUR 34.6, increase of 18.5 % (MEUR
29.2). Operating profit margin
was 11.8 % (12.6 %).
- Cash flow from operations was MEUR 21.9 (MEUR 21.1).
- Earnings per share were EUR 1.51 (EUR 1.37), growth from the
previous year of 10.2 %.
According to market surveys, the global AC drive market grew by about
10 % in 2008. Market growth was strong in the first half but weakened
in the second half of the year. The market grew fastest in Asia. The
rapid developments in the economies of China and India in particular
were reflected in demand for AC drives. Vacon's market share is
rising in all major market areas.
The value of the orders received by Vacon in the final quarter of the
year was EUR 67.2 million. Growth in orders in Asia rose to 28 %. In
Europe the growth in orders was 10 %. The order intake in North
America was unsatisfactory, declining 14 % from the corresponding
period in the previous year. Revenues rose to EUR 75.2 million.
Operating profit was EUR 7.5 million, which was similar to the figure
in the corresponding period in the previous year. Excluding the
impact of the purchase of the AC drives business of TB Wood's,
Vacon's order intake increased 2.1 %, revenues 16.8% and operating
profit 8.0% from the corresponding period in the previous year.
The operating profit margin in the fourth quarter was 10.0 %,
compared to 12.2 % in the corresponding period in 2007. Excluding the
impact of the TB Wood's business, the operating profit margin in the
final quarter was 11.3 %. The operating profit margin before
amortization of intangible rights (EBITA) was 11.4 % (13.2 %).
Amortization of the intangible rights generated by the acquisition of
the AC drives business of TB Wood's (EUR 0.4 million) reduced the
operating profit margin by 0.5 percentage points. The cash flow from
operations was EUR 5.1 million in October-December 2008.
The Group's profitability (EBIT- %) was weakened in the final quarter
by the higher fixed costs.
Fourth quarter earnings per share were weakened by the higher
financial costs resulting from the acquisition of the Ac drives
business of TB Wood's and by the writedown of EUR 0.5 million in
connection with the dissolving of Vacon Americas LLC.
The earnings per share for the fiscal year were EUR 1.51. The Board
of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.65 per share be paid from the profit for 2008.
2008 result and equity structure
MEUR 10-12/ 10-12/ 1-12/ 1-12/ Change,
2008 2007 2008 2007 %
Revenues 75.2 61.4 293.2 232.2 26.3
EBITDA 9.5 8.8 41.9 34.0 23.2
Depreciation -2.0 -1.3 -7.3 -4.8 52.1
Operating
profit 7.5 7.5 34.6 29.2 18.5
Profit before
tax 6.4 7.6 32.6 28.8 13.2
Profit for
period 5.1 6.1 23.9 21.4 11.7
Orders received by the Group in 2008 increased 29.2 % from the
previous year to EUR 306.5 million (EUR 237.2 million in 2007). The
order book for the acquired AC drives business of TB Wood's at the
start of the year together with the orders received during 2008
totalled EUR 22.9 million. Excluding the impact of the acquired
business, the volume of orders increased 20.0 %. The Group's order
book stood at EUR 48.0 (34.8) million at the end of the year, an
increase of EUR 13.2 million from the beginning of the year.
The Group's revenues grew 26.3 % in 2008 to EUR 293.2 (232.2)
million. Growth in revenues excluding the acquisition of the TB
Wood's AC drives business was 17.4 %.
Consolidated operating profit was EUR 34.6 (29.2) million and profit
for the period was EUR 23.9 (21.4) million. Earnings per share (EPS)
grew to EUR 1.51 (1.37). The operating profit for comparable figures
was EUR 35.8 million, growth of 22.6 % from the previous year. The
operating profit margin was 11.8 % (12.6 %). For comparable figures
the operating profit was 13.1 % of revenues. The EBITA margin was
13.1 %, compared with 13.4 % in the previous year. Amortization of
intangible rights generated by the acquisition of the TB Wood's AC
drives business (EUR 1.5 million) reduced the operating profit margin
by 0.5 percentage points. Key factors contributing to the growth in
revenues were the acquisition of the TB Wood's business, Vacon's
competitive, extensive product offering, expansion of the global
sales network, and raising efficiency in production operations.
The Group's cash flow from business operations in January-December
was EUR 21.9 (21.1) million. Receivables increased altogether by EUR
15.9 million from the beginning of the year. The Group's organic
growth was financed by cash flow from operations and the acquisition
of the TB Wood's business with borrowed capital. The consolidated
balance sheet total was EUR 149.1 (123.2) million. Vacon's equity
ratio remained strong at 51.1 % (52.9 %). Interest-bearing net debt
stood at EUR 12.3 (-11.0) million at the end of the year and gearing
was 16.3 % (-17.1 %). The debt comprises the long-term loans used to
finance the acquisition of the TB Wood's AC drives business. The
return on investment was 37.0 % (41.2 %), and return on equity 34.3 %
(36.5 %).
Market position
Vacon Group revenues by market area were as follows
MEUR 10-12/ % 10-12/ % 1-12/ % 1-12/ %
2008 2007 2008 2007
Europe,
Middle East,
Africa 54.0 71.8 43.0 70.0 210.5 71.8 172.6 74.3
North and
South
America 14.0 18.6 13.1 21.4 55.9 19.1 42.1 18.1
Asia and
Pacific 7.2 9.6 5.3 8.6 26.8 9.1 17.5 7.6
Total 75.2 100.0 61.4 100.0 293.2 100.0 232.2 100.0
Vacon strengthened its position in all main market areas during 2008.
Based on market surveys, the company estimates that it has about four
per cent of the global market.
Vacon's revenues by region were as follows in 2008: Europe, Middle
East and Africa in total 71.8 % (74.3 % in 2007), North and South
America 19.1 % (18.1 %), Asia and Pacific 9.1 % (7.6 %). Excluding
the impact of the AC drives business of TB Wood's, growth in revenues
in 2008 was 7.6 % in North and South America and 16.6 % in Europe.
The corresponding figures for the fourth quarter were North and South
America -13.7 % and Europe +24.7 %.
Breakdown of Vacon Group revenues by distribution channel
MEUR 10-12/ % 10-12/ % 1-12/ % 1-12/ %
2008 2007 2008 2007
Direct
sales 42.4 56.4 27.2 44.3 146.4 49.9 99.0 42.6
Distribu-
tors 6.8 9.0 8.3 13.5 34.4 11.7 31.3 13.5
OEM 9.7 12.9 12.7 20.7 60.0 20.5 56.4 24.3
Brand
label 16.2 21.5 13.2 21.5 52.4 17.9 45.5 19.6
Total 75.2 100.0 61.4 100.0 293.2 100.0 232.2 100.0
Vacon's 2008 revenues by distribution channel were as follows: direct
sales 49.9 % (42.6 %), distributors 11.7 % (13.5 %), OEM 20.5 % (24.3
%) and brand label customers 17.9 % (19.6 %).
Vacon Group structure
In January 2008 Vacon acquired 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.
During 2008 Vacon established sales companies in South Korea, Mexico,
Denmark and Czech Republic and representative offices in Romania and
Ukraine. At the end of 2008 Vacon's own sales network comprised 21
subsidiaries as well as representative offices in Brazil, The United
Arab Emirates and Thailand in addition to Romania and Ukraine.
Research and development
R&D expenditure during the year totalled EUR 17.0 (14.3) million, and
EUR 2.3 (1.9) million of this was capitalized as development costs.
R&D costs accounted for 5.8 % of the Group's revenues (6.2 %).
Amortization of capitalized development costs totalled EUR 0.6 (0.5)
million in 2008.
During 2008 Vacon increased the number of personnel at its R&D units
in Finland and China. Following the acquisition of the TB Wood's
business, Vacon now has R&D in the USA and Italy as well.
Vacon aims to renew its product offering during 2009 - 2010. Work on
developing the new products continued during 2008 in accordance with
the company's plans. The new generation products are more competitive
in terms of features and costs. Vacon launched the first of the new
generation AC drives during 2008.
Investments
Gross investments by the Group during the year, excluding the
purchase of the TB Wood's AC drives business, totalled EUR 11.2 (9.1)
million. Expenditure focused on increasing and maintaining production
capacity, expanding the sales network, and on standardizing and
developing information systems.
The extension to Vacon's factory in Vaasa, Finland was completed in
October 2008. During the year the company announced plans to build
new factories in China and the USA.
Organization and personnel
The number of Vacon personnel has increased by 328 since the
beginning of the year. At the end of December the Group employed 1197
(869) people, of whom 639 (555) were in Finland and 558 (314) in
other countries.
The table below shows the average number of Vacon employees during
the review period:
1-12/2008 1-12/2007
Office personnel 687 512
Factory personnel 444 260
TOTAL 1,131 772
Shares and shareholders
Vacon had a market capitalization at the end of December of EUR 278.0
million. The closing share price on 31 December 2008 was EUR 18.30.
The lowest share price during the January-December period was EUR
17.0 and the highest EUR 32.44. A total of 4,915,722 Vacon shares
(32.1 % of the share stock) were traded in the January-December
period, in monetary terms EUR 131.0 million. According to the
shareholder register updated on 31 December 2008, Vacon had 4,525
registered shareholders. Shares that were nominee registered and in
foreign ownership amounted to 33.1 % of the share stock.
Vacon's main shareholders on 31 December 2008 were:
Number of Holding, %
shares
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 360,670 2.4
Holma Mauri 347,171 2.3
Ehrnrooth Martti 333,000 2.2
Tapiola Group companies 325,300 2.1
Niemelä Harri 309,840 2.0
OP-Delta fund 268,904 1.8
Karppinen Veijo 209,349 1.4
Nominee registered and in foreign
ownership 5,055,742 33.1
Others 4,778,095 31.2
Total 15,295,000 100.0
Vacon Plc's own shares -101,812
Shares outstanding 15,193,188
On 31 December 2008 members of Vacon's Board of Directors, the
President and CEO, and the Deputy to the CEO held directly a total of
558,185 shares, or 3.6 % of Vacon's share stock.
Own shares
On 31 December 2008 Vacon Plc held a total of 101,812 of its own
shares which it had acquired at an average price of EUR 19.6. This is
0.7 % 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 48.5 million. The Board of Directors
proposes to the Annual General Meeting of Shareholders to be held on
1 April 2009 that a dividend of EUR 0.65 per share be paid from the
parent company's profit for the financial year 2008 of EUR 17.3
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.
Business strategy
AC drives are a key product in production automation, increasing
energy efficiency and 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 product ranges on the market, heavy investment in R&D
and in group-level competence development coupled with 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 long-term 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, and declining component prices. The company reduced its
foreign currency risk relating to the US dollar 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, and a customer-oriented
way of working.
Risks and factors causing uncertainty in the near future
The global financial crisis turned critical during the fourth quarter
of 2008 and this has increased the probability of a decline in
industrial investment. On
the other hand, it is especially when market conditions are difficult
that
companies have the need to improve the cost-efficiency of their
operations, which
in turn encourages them to invest in solutions that improve energy
efficiency,
such as AC drives.
The most significant risks for Vacon in the near future are a
weakening in general
demand and intensified competition on prices. Other major risks
relate to the
availability of certain raw materials and components and developments
in their prices.
Purchase agreements for raw materials and components are mainly
annual
agreements that contain price and exchange rate clauses relating to
changes in
the global market prices for raw materials and other materials. The
global recession may restrict the business opportunities for certain
component suppliers.
Another factor that affects the company's profitability is the value
of the euro
against other invoicing currencies, of which the most important are
the US dollar
and the Chinese RMB.
Prospects for 2009
It is difficult to estimate developments in AC drive markets in 2009
in the current state of the global economy, and the estimates given
contain uncertainties.
Vacon expects the AC drive market as a whole to slightly decrease in
2009 compared to the previous year. Investments to improve the energy
efficiency of electric motor drives and in renewable energy
generation will increase, but investments to improve industrial
processes and in new building will fall.
Vacon has a 4 % market share. The global sales network, the renewal
of the product selection, and the relatively low market share,
coupled with a flexible organization support the development of
Vacon's business even in a difficult market situation. Vacon will
adapt its investments in growth to the prevailing market situation so
as to secure its profitability.
Vacon forecasts that revenues in 2009 will remain at the same level
as in previous year. Profitability and earnings per share will
slightly decrease from the year 2008.
Financial reports in 2009
Vacon is publishing three interim reports in 2009 as follows:
- January-March Wednesday, 22 April 2009 at 9.30 am
- January-June Wednesday, 5 August 2009 at 9.30 am
- January-September Tuesday, 27 October 2009 at 9.30 am
The 2008 Annual Report will be published in week 11 (9-13 March). The
Annual General Meeting of Vacon Plc will be held in Vaasa at 3.00 pm
on Wednesday, 1 April 2009 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 develop and produce
AC drives globally. It is a matter of honour for Vacon to offer
customers efficient, reliable and easy to use means for improving
process control and saving energy and costs. Vacon's solutions
represent clean technology. They can be used to control the speed of
electric motors used by industry and municipal engineering, and in
power generation using renewable energy. Vacon provides AC drives in
the power range 0.25 kW - 5 MW. Revenues in 2008 totalled EUR 293.2
million.
Vaasa, 5 February 2009
VACON PLC
Board of Directors
For more information please contact:
Mr Vesa Laisi, President and CEO, phone: +358 (0)40 8371 510
Mr Mika Leppänen, CFO and 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
5 February 2009 in the Vivaldi meeting room at the Radisson SAS Hotel
Plaza, 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 5 February 2009. President and CEO Vesa
Laisi and Mika Leppänen, CFO and 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 four working days, call +44 207 031 4064,
ID code 824277.
Conference link:
http://wcc.webeventservices.com/view/wl/r.htm?e=133671&s=1&k=28093E9BC3328013EF8B970FE456E8B3&cb=genesys
Distribution
Nasdaq OMX Nordic Exchange Helsinki
Financial Supervision Authority
Main media
Accounting principles
The 2008 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
2007 consolidated financial statements. The figures presented in the
financial statement release are audited.
Consolidated income statement, IFRS, MEUR
10-12/ 10-12/ 1-12/ 1-12/
2008 2007 2008 2007
Revenues 75.2 61.4 293.2 232.2
Other operating income 0.1 0.1 0.2 0.2
Change in inventories of
finished goods and work
in progress -3.7 0.2 0.2 1.4
Materials and services -34.8 -31.8 -150.8 -123.0
Employee benefit costs -13.7 -10.8 -52.7 -38.9
Other operating expenses -13.4 -10.3 -48.2 -37.7
Depreciation -1.0 -0.7 -3.5 -2.8
EBITA 8.6 8.1 38.4 31.2
Amortization -1.1 -0.6 -3.8 -1.9
Operating profit 7.5 7.5 34.6 29.2
Financial income and
expenses -1.0 0.1 -2.0 -0.4
Profit before taxes 6.4 7.6 32.6 28.8
Income taxes -1.3 -1.4 -8.7 -7.4
Profit for period 5.1 6.1 23.9 21.4
Attributable to:
Equity holders of the
parent 4.9 6.0 23.1 20.9
Minority interest 0.2 0.1 0.8 0.5
Earnings per share,
euro 0.32 0.40 1.51 1.37
Earnings per share
diluted, euro 0.32 0.40 1.51 1.37
Condolidated balance sheet, IFRS, MEUR
31.12.2008 31.12.2007
ASSETS
Goodwil 8.3 1.5
Development costs 4.8 3.0
Intangible assets 14.9 5.2
Tangible assets 16.3 14.7
Loans receivable and other
receivables 0.2 0.2
Deferred tax assets 2.6 1.5
Other financial assets 3.3 2.2
Total non-current assets 50.3 28.2
Inventories 21.3 14.7
Trade and other receivables 61.7 45.8
Cash and cash equivalents 15.7 34.4
Total current assets 98.8 94.9
Total assets 149.1 123.2
EQUITY AND LIABILITIES
Share capital 3.1 3.1
Share premium reserve 5.0 5.0
Own shares -2.6 -1.2
Translation difference -0.1 -0.5
Retained earnings 68.7 56.5
Minority interest 1.4 1.1
Total equity 75.5 64.0
Deferred tax liabilities 3.5 1.6
Employee benefits 1.4 0.8
Interest-bearing liabilities 15.8 19.1
Total non-current liabilities 20.7 21.6
Trade and other payables 37.6 30.9
Income tax liabilities 1.5 1.6
Provisions 1.6 0.8
Interest-bearing liabilities 12.2 4.3
Total current liabilities 52.9 37.6
Total equity and liabilities 149.1 123.2
2008 Calculation of changes in shareholders' equity, IFRS, MEUR
Minor- Total
ity equit
inter- y
Attributable to equity holders of the parent est
Sha- Share Own Tran- Revalu Re- Tot
re pre- shar- sla ation tained al
Capi- mium es tion earn-
tal Reser- differ- fund ings
ve rence
Share-
holders'
equity
31.12.
2006 3.1 5.0 -1.2 -0.2 0.1 45.2 52.0 1.0 53.0
Cash flow
hedging.
Transfer-
red as
adjust
ment
to sales
income -0.1 -0.1 -0.1
Transla-
tion
difference -0.3 -0.3 -0.3
Other
changes 0.2 0.2 0.2
Net
income
recorded
directly
in
equity -0.3 0.0 0.2 -0.1 -0.1
Profit for
period 20.9 20.9 0.4 21.4
Income
and
expenses
recorded
during
period,
total -0.3 0.0 21.2 20.8 0.4 21.3
Dividend
paid -9.9 -9.9 -0.3 -10.2
Share-
holders'
equity
31.12.
2007 3.1 5.0 -1.2 -0.5 0.0 56.5 62.9 1.1 64.0
Cash flow
hedging:
Translation
difference 0.4 0.4 0.4
Recognized
tax -0.1 -0.1 -0.1
Other
changes 0.3 0.3 0.0 0.3
Net
income
directly in
equity 0.0 0.0 0.0 0.4 0.0 0.3 0.7 0.0 0.7
Profit for
period 23.1 23.1 0.8 23.9
Total income
and expenses
recorded for
the period 0.4 0.0 23.4 23.8 0.8 24.6
Dividend paid -11.1 -11.1 -0.5 -11.6
Purchase of
own shares -1.5 -1.5 -1.5
Shareholders'
equity
31.12.2008 3.1 5.0 -2.6 -0.1 0.0 68.7 74.1 1.4 75.5
Consolidated cash flow statement, IFRS, MEUR
31.12.2008 31.12.2007
Profit for the period 23.9 21.4
Depreciation 7.3 4.8
Financial income and expenses 2.0 0.5
Taxes 8.7 7.4
Other adjustments 0.5 0.1
Change in working capital -10.1 -5.5
Cash flow from financial items
and tax -10.4 -7.5
Cash flow from operating
activities 21.9 21.1
Purchase of subsidiary -20.4 0.0
Investments in tangible and
intangible assets -9.2 -8.6
Proceeds from disposal of
tangible and intangible assets -0.1 0.4
Other investments -1.7 -0.6
Change in long-term loans
receivable 0.0 0.2
Proceeds from disposal of other
investments 0.6 0.0
Cash flow from investing
activities -30.8 -8.6
Proceeds from long-term
borrowings 0.0 21.9
Repayment of long-term loans -3.9 -0.2
Proceeds from short-term
borrowings 7.9 1.0
Repayment of short-term loans 0.0 -2.2
Purchase of own shares -1.5 0.0
Financial leasing payments 0.0 -0.3
Dividends paid -11.9 -10.2
Cash flow from financial activities -9.4 10.0
Change in liquid funds -18.3 22.5
Liquid funds at start of period 34.4 13.0Translation differences for liquid
funds -0.4 -1.2
Liquid funds at end of period 15.7 34.4
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).
Acquired business operations
On 1 January 2008 the Group acquired the AC drives business of TB
Wood's, part of US-based Altra Holdings Inc. The estimated final
price is USD 29.2 million. According to initial calculations, the
acquisition of TB Wood's generates goodwill of EUR 6.6 million, which
is based on the anticipated opportunities for expansion and synergy
benefits.
MEUR
Acquisition cost
Cash price 19.8
Direct costs relating to acquisition 1.3
Total acquisition cost 21.1
Fair value of net assets acquired 14.5
Goodwill 6.6
Allocation of goodwill:
Europe, Middle East and Africa 2.7
North and South America 3.7
Asia and Pacific 0.2
Impact on cash flow was as follows:
Total acquisition cost -21.1
Loans raised 19.4
Cash funds received 0.7
Net payment for acquisition
from cash funds 0.9
Carrying Fair value Useful commercial life in
amount years
Identified intangible
assets
Customer relations 4.4 5
Technology developed 4.2 5
Tangible assets 1.8 2.2
Inventories 5.4 5.5
Receivables, total 2.8 2.8
Cash and bank balances 0.7 0.7
Assets, total 10.8 19.8
Non-current
liabilities 0.3 0.3
Current liabilities 3.5 3.5
Deferred tax
liabilities 1.5
Liabilities, total 3.8 5.3
Net assets 14.5
Acquisition cost 19.8
Direct costs relating
to
acquisition 1.3
Goodwill 6.6
Financial ratios
Per share data
IFRS IFRS IFRS IFRS IFRS
2008 2007 2006 2005 2004
Earnings per share,
EUR 1.51 1.37 1.04 0.79 0.71
Equity per share,
EUR 4.88 4.13 3.42 2.78 2.39
Dividend per share
EUR*) 0,65 0.75 0.65 0.41 0.35
Dividend payout
ratio, %*) 42,94 54.59 62.57 52.12 49.31
Effective dividend
yield %*) 3,6 2.7 2.5 2.3 3.0
Price/earnings ratio 12,1 20.4 25.1 22.2 16.6
Lowest trading
price, EUR 17.00 24.60 17.70 11.85 9.95
Highest trading
price, EUR 32.44 38.00 26.99 17.50 11.99
Share price at year
end, EUR 18.30 28.00 26.10 17.50 11.78
Average trading
price, EUR 26.65 30.01 22.60 14.68 11.00
Market
capitalization, MEUR 278.00 426.50 397.10 266.00 180.00
Trading volume, no.
of shares 4 915 722 3 427
8 241 357 4 439 458 5 693 881 027
Trading volume, % 32.3 54.1 29.2 37.5 22.6
Adjusted average
number of shares
during the financial
15 238 15 226 15 209 15 203 15 186
year**) 236 997 303 147 805
Number of shares at
15 193 15 232 15 213 15 199 15 282
year end **) 188 188 428 740 200
*) The 2008 dividend is the Board of Directors' proposal to the
Annual General Meeting.
**) The average number of shares during the year was 15 238 236. The
total number of shares outstanding was 15 193 188.
Key figures showing the Group's financial performance
IFRS 2008 IFRS IFRS IFRS IFRS
2007 2006 2005 2004
Revenues, MEUR 293.2 232.2 186.4 149.9 128.6
Increase in revenues, % 26.3 24.6 24.3 16.6 14.5
Operating profit, MEUR 34.6 29.2 23.1 18.1 15.9
Increase in operating
profit,
% 18.5 26.4 27.6 13.8 N/A
Operating profit, % of
revenues 11.8 12.6 12.4 12.1 12.4
Profit before taxes, 32.6
MEUR 28.8 22.7 17.7 15.9
Profit before taxes, %
of
revenues 11.1 12.4 12.2 11.8 12.4
Return on equity, % 34.3 36.5 33.7 30.5 31.3
Return on investment, % 37.0 41.2 45.1 40.8 38.6
Interest-bearing net
liabilities, MEUR 12.3 -11.0 -8.8 -7.9 -10.6
Gearing, % 16.3 -17.1 -16.6 -18.3 -28.9
Equity ratio, % 51.1 52.9 61.7 56.8 56.2
Gross capital
expenditure,
MEUR 11.2 9.1 8.5 6.6 4.6
Gross capital
expenditure,
% of revenues 3.8 3.9 4.6 4.4 3.6
R & D costs, MEUR 17.0 14.3 12.6 10.8 9.8
R & D costs, % of
revenues 5.8 6.2 6.7 7.2 7.6
Number of personnel at
the
end of the period 1 197 869 675 577 469
Order book, MEUR 48.0 34.8 29.7 18.8 12.0
***) The 2008 gross capital expenditure figure does not include the
acquisition of TB Woods'.
Commitments and contingencies, MEUR
31.12.2008 31.12.2007
Commitments and contingencies 2.2 1.1
Financing commitments 0.6 1.0
Group quarterly performance, MEUR
10-12/ 7-9/ 4-6/ 1-3/ 1-12/ 1-9/ 1-6/ 1-3/
2008 2008 2008 2008 2008 2008 2008 2008
Revenues 75.2 74.2 78.0 65.9 293.2 218.1 143.9 65.9
Operating
profit 7.5 9.1 10.4 7.6 34.6 27.1 18.0 7.6
Profit before
tax 6.4 8.2 10.6 7.3 32.6 26.2 17.9 7.3
Calculation of financial ratios
Profit for the financial year attributable to equity
holders of the parent company
Earnings per ----------------------------------------------------
share =
Adjusted average number of shares
Shareholders' equity - minority hoilding
Equity per --------------------------------------------------
share =
Adjusted average number of shares at year end
Dividend for the financial year
Dividend per ---------------------------------------------------
share =
Adjusted number of shares at year end
Dividend Dividend for the financial year x 100
payout ratio
=
---------------------------------------------------
Profit for period attributable
to equity holders of the parent company
Dividend per share x 100
Effective -------------------------------------------------
dividend
yield =
Adjusted closing share price at year end
Adjusted closing share price at year end
Price/earnings -------------------------------------------------
ratio =
Earnings per share
Profit for the financial year x 100
Return on -----------------------------------------------------
equity =
Shareholder' equity (incl. minority interest), average
of the beginning and end of the year
(Profit before taxes + interest
and other financial expenses) x 100
Return on -------------------------------------------------------
investment =
Balance sheet total - non-interest-bearing liabilities,
average of the beginning and end of the year
Shareholders' equity (incl. minority interest) x 100
Equity ratio = ------------------------------------------------------
Balance sheet total - advances received
(Interest-bearing liabilities -
cash, bank balances and financial assets) x 100
Gearing = -----------------------------------------------------
Shareholders' equity (incl. minority interest)
Research and development costs recognized in
R & D costs = income statement (incl. costs covered with
subsidies) and capitalized development expenses
Number of shares outstanding at year end
Market x closing share price
capitalization
of share stock
=
Share turnover Number of shares traded during the year
-% =
----------------------------------------------------
Adjusted average number of shares
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