2007-10-30 07:51:21 CET
2007-10-30 07:51:21 CET
REGULATED INFORMATION
Wärtsilä - Quarterly report
INTERIM REPORT JANUARY - SEPTEMBER 2007
Wärtsilä Corporation QUARTERLY REPORT 30 October 2007 at 8.30 local time
INTERIM REPORT JANUARY - SEPTEMBER 2007
YET ANOTHER QUARTER OF STRONG ORDER INTAKE - MARKET EXPECTED TO REMAIN ACTIVE
HIGHLIGHTS OF THE THIRD QUARTER JULY- SEPTEMBER 2007
- Order intake EUR 1,514
million (1,090), growth 39%
- Net sales EUR 933 million (767), growth 22%
-
Operating result EUR 96 million (56), growth 71%
- Profitability 10.3% (7.3)
HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-SEPTEMBER 2007
- Order intake EUR 4,039
million (3,304), growth 22%
- Order book total EUR 6,162 million (4,108), growth
50%
- Net sales EUR 2,491 million (2,204), growth 13%
- Operating result EUR 233
million (162), growth 43%
- Profitability 9.3% (7.4)
- EPS 1.69 (comparable EPS
1.42)
- Cash flow strongly positive
OLE JOHANSSON, PRESIDENT & CEO:
“Good demand continued in the markets boosting
new orders and resulting in an order book of EUR 6 billion. Net sales grew
strongly by 22% supported by the strong order book in Ship Power and high
activity in Services. The enlarged manufacturing capacity in Vaasa, Trieste and
China will support continuing growth prospects.”
WÄRTSILÄ'S PROSPECTS IN 2007
Demand in the ship power and energy markets looks
likely to remain active for Wärtsilä for the next two quarters. Based on the
strong order book, Wärtsilä's net sales are expected to grow this year by around
15%. Full year profitability will exceed 9%. Wärtsilä sees further possibilities
for growth in 2008.
ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held on
Tuesday 30 October 2007 starting at 10.45 a.m. Finnish time (8.45 a.m. UK time)
at the Wärtsilä headquarters in Helsinki, Finland. The combined web- and
teleconference can be viewed on the Internet at the following address:
http://194.100.179.98:80/wip/directlink.do?newbrowser=1&pid=1841477. To
participate in the teleconference and have the possibility to ask questions,
please call: +358 9 8248 3735 and enter the PIN-code 8503. To only listen to the
teleconference call the same number and enter PIN-code 8823. An on-demand
version of the conference will be available on the company website later the
same day.
Wärtsilä Corporation
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| Raimo Lind | Eeva Kainulainen |
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| Executive Vice President & CFO | Vice President, Corporate |
| | Communications |
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Wärtsilä in brief
Wärtsilä enhances the business of its customers by providing
them with complete lifecycle power solutions. When creating better and
environmentally compatible technologies, Wärtsilä focuses on the marine and
energy markets with products and solutions as well as services. Through
innovative products and services, Wärtsilä sets out to be the most valued
business partner of all its customers. This is achieved by the dedication of
more than 15,000 professionals manning 150 Wärtsilä locations in close to 70
countries around the world.
INTERIM REPORT JANUARY-SEPTEMBER 2007
The figures in this interim report are unaudited.
THIRD QUARTER 7-9/2007 IN BRIEF
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| EUR million | 7-9/2007 | 7-9/2006 | Change |
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| Order intake | 1 514 | 1 090 | 39% |
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| Net sales | 933 | 767 | 22% |
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| Operating result | 96 | 56 | 71% |
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| % of net sales | 10.3% | 7.3% | |
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| Profit before taxes | 95 | 58 1) | 63% |
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| Earnings per share, EUR | 0.71 | 0.40 1) | |
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For comparability reasons the 7-9/2006 figure does not include Wärtsilä's share
of Ovako's profit after taxes, EUR 3 million.
REVIEW PERIOD 1-9/2007 IN BRIEF
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| MEUR | 1-9/2007 | 1-9/2006 | Change | 2006 |
--------------------------------------------------------------------------------
| Order intake | 4 039 | 3 304 | 22 % | 4 621 |
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| Order book 30 September | 6 162 | 4 108 | 50 % | 4 439 |
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| Net sales | 2 491 | 2 204 | 13 % | 3 190 |
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| Operating result | 233 | 162 | 43 % | 262 |
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| % of net sales | 9.3% | 7.4% | | 8.2% |
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| Profit before taxes | 227 | 163 1) | 39% | 255 2) |
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| Earnings per share, EUR | 1.69 | 1.42 1) | | 2.03 2) |
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| Cash flow from | 299 | 172 | 74% | 302 |
| operating activities | | | | |
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| Interest-bearing net debt | 61 | 185 | -67% | 55 |
| at the end of the period | | | | |
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| Gross capital expenditure | 172 | 142 | 21% | 193 |
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For comparability reasons the 1-9/2006 figure does not include Wärtsilä's share
of Ovako's profit after taxes, EUR 18 million and the capital gain of EUR 124
million from the sale of Assa Abloy B shares.
For comparability reasons the 2006 figure does not include Wärtsilä's share of
Ovako's profit after taxes, EUR 67 million and the capital gain of EUR 124
million from the sale of Assa Abloy B shares.
MARKET DEVELOPMENT
Ship Power
During the period, vessel order volumes have continued to grow from last year
and it is clear that for the year 2007, new all-time-high figures will be
reached, both in terms of number of vessels and tonnage. As regards the number
of vessels, contracting is approximately 15% above the previous year's level,
while tonnage is up by 40%. Among the shipbuilding nations, China has kept its
position during the review period January-September 2007, having 41% of new
vessel orders, while Korea, the number two shipbuilding nation, has 30%. Europe
has a 9% and Japan has a 10 % share of vessels ordered during 2007. On a
year-on-year comparison, China and Korea have gained market share whereas Europe
and Japan's share has diminished.
Order volumes for the bulk carrier segment doubled compared to the previous
year, and this continues to be the strongest segment. In the container vessel
segment, the boom continued in the ultra large sizes. The offshore market is
still very active and a slowdown in demand can be seen only in small supply
vessels.
Wärtsilä Ship Power market shares
The third quarter did not bring any major changes to Wärtsilä market shares. In
medium-speed main engines, Wärtsilä's share remained at 42% for the 12 month
period ending at the end of the third quarter (42% at the end of the previous
quarter). Market share for low-speed main engines grew slightly to 16% (15% at
the end of the previous quarter), while auxiliary engines' market share remained
at 5% (5% at the end of the previous quarter). The total market for medium-speed
main engines decreased from 9,400 MW to 8,700 MW. The low-speed market grew
significantly to 34,100 MW (29,400). The very high demand in the bulk carrier
segment in Asian yards has decreased the yard capacity for vessels powered by
medium-speed engines and this has led to the somewhat slower development in
demand for medium-speed engines. Bulk carriers are mainly powered by low-speed
engines.
Power Plants
Demand in the Power Plant market remained high and all segments
relevant to Wärtsilä - baseload production, industrial self-generation and grid
stability - were active during the review period. Markets continued to be
globally active.
Demand for oil-fired power plants was strong during the review period,
especially in Africa and the Middle East. The order intake for power plants
running on renewable fuels, which includes among others liquid bio-fuel power
plants, continued actively especially in Italy. Demand for gas-fired power
plants, remained at a healthy level.
Wärtsilä's market shares in Power Plants
Wärtsilä has a strong foothold in the
market for heavy fuel oil (HFO) power plants. For the period June 2006 to May
2007 Wärtsilä's market share was approximately 38% (34) of the HFO market in
Wärtsilä's power range. In the market for light fuel oil (LFO) power plants,
including liquid biofuels, Wärtsilä had 24% (23). The gas power plant market is
growing and Wärtsilä sees good growth potential in it. Wärtsilä's market share
in the relevant gas power plant market grew to approximately 12% (8).
ORDER INTAKE AND ORDER BOOK
Wärtsilä´s order intake continued to be very strong
and amounted to EUR 1,514 million (1,090) in the third quarter, representing a
39% growth. In the Ship Power business, the July - September period again marked
an all-time-high quarter with an order intake totalling EUR 766 million. This
was 56% higher than for the corresponding period in 2006. During the third
quarter orders for various kinds of merchant vessels exceeded those for the
previously dominant offshore segment. Wärtsilä also received many orders for
auxiliary engines for bulk carriers to be built in Chinese shipyards. Demand in
the offshore segment remained strong and Wärtsilä booked several orders for
anchor handlers, supply vessels, and other offshore vessels - both for European
and Asian customers. A slight slowdown could be seen in offshore supply vessels.
The Power Plant market was active during the third quarter and the order intake
for the third quarter amounted to EUR 420 million (335), representing growth of
25%. Orders for 969 MW were booked during the period. The most active market
areas in terms of order intake during the third quarter were Europe (362 MW) and
Africa (295 MW). All customer segments remained active. During the quarter
Wärtsilä was particularly successful in the Russian and Eastern European
markets. Important oil and gas industry orders were booked for gas compression
purposes in Hungary, oil pumping in Russia, and for refinery power production in
the Ukraine. Additionally, the first order ever from Belarus was secured for a
combined heat and power installation. The Italian liquid bio fuel market
continued to be active and Wärtsilä received 7 orders during the quarter for
more than 70 MW in total. Important gas-fired orders totalling 216 MW were
received from four customers in Turkey and an additional 108 MW was sold to
Azerbaijan. The African market continues to be active with orders coming from
many parts of the African continent. Wärtsilä's single biggest order this
quarter was a 122 MW oil fired plant to a utility customer in Morocco.
In the review period January-September Wärtsilä´s order intake totalled EUR
4,039 million (3,304), representing growth of 22%. The Ship Power order intake
grew by a further 19% to EUR 1,960 million from the very high level of EUR 1,651
million. The Power Plant order intake amounted to EUR 958 million (716),
representing growth of 34%.
At the end of the review period Wärtsilä's order book stood at a new all-time
high level of EUR 6,162 million (4,108), representing growth of 50%. The Ship
Power order book stood at EUR 4,183 million (2,801), corresponding to deliveries
for approximately two years. The Power Plants order book stood at EUR 1,548
million (967).
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| Order intake, third quarter | | | |
| 7-9/2007 | | | |
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| MEUR | 7-9/2007 | 7-9/2006 | Change |
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| Ship Power | 766 | 490 | 56 % |
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| Services | 326 | 266 | 23 % |
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| Power Plants | 420 | 335 | 25 % |
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| Order intake, total | 1 514 | 1 090 | 39 % |
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| Order intake Power Plants | | | |
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| MW | 7-9/2007 | 7-9/2006 | Change |
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| Oil, MW | 495 | 163 | 204 % |
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| Gas plants, MW | 402 | 425 | -5 % |
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| Renewable fuels, MW | 87 | 70 | 24 % |
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| Order intake review | | | | |
| period 1-9/2007 | | | | |
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| MEUR | 1-9/2007 | 1-9/2006 | Change | 2006 |
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| Ship Power | 1 960 | 1 651 | 19 % | 2 270 |
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| Services | 1 118 | 934 | 20 % | 1 322 |
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| Power Plants | 958 | 716 | 34 % | 1 027 |
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| Order intake, total | 4 039 | 3 304 | 22 % | 4 621 |
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| Order intake Power Plants | | | | |
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| MW | 1-9/2007 | 1-9/2006 | Change | 2006 |
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| Oil, MW | 939 | 712 | 32 % | 766 |
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| Gas plants, MW | 761 | 707 | 8 % | 1 232 |
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| Renewable fuels, MW | 404 | 229 | 76 % | 353 |
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| Orderbook by business | | | | |
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| MEUR | 30.9.2007 | 30.9.2006 | Change | 2006 |
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| Ship Power | 4 183 | 2 801 | 49 % | 3 020 |
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| Services | 429 | 338 | 27 % | 357 |
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| Power Plants | 1 548 | 967 | 60 % | 1 061 |
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| Order book, total | 6 162 | 4 108 | 50 % | 4 439 |
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NET SALES
During the third quarter Wärtsilä´s net sales increased by 22%. Ship
Power net sales grew by 69% and Services net sales by 26%. Organic growth in
Services accounted for 24% in the third quarter. Power Plants net sales
decreased by 17% due to the uneven character of the business. In terms of net
sales the fourth quarter will be the strongest for the Power Plants business.
Wärtsilä's net sales for the review period January-September totalled EUR 2,491
million (2,204), a growth of 13%. Ship Power net sales grew strongly by 50% to
EUR 871 million (580). Power Plants net sales amounted to EUR 491 million (706).
The net sales from the Services business increased to EUR 1,119 million (916), a
growth of 22% over the corresponding period last year. Organic growth
represented 18% of Services net sales growth. Services net sales accounted for
45% of Wärtsilä's total net sales, Ship Power represented 35% and Power Plants
20%.
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| Net sales, third quarter | | | | |
| 7-9/2007 | | | | |
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| MEUR | 7-9/2007 | 7-9/2006 | Change | |
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| Ship Power | 310 | 184 | 69 % | |
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| Services | 394 | 312 | 26 % | |
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| Power Plants | 228 | 274 | -17 % | |
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| Net sales, total | 933 | 767 | 22 % | |
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| Net sales review period | | | | |
| 1-9/2007 | | | | |
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| MEUR | 1-9/2007 | 1-9/2006 | Change | 2006 |
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| Ship Power | 871 | 580 | 50 % | 985 |
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| Services | 1 119 | 916 | 22 % | 1 266 |
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| Power Plants | 491 | 706 | -31 % | 934 |
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| Net sales, total | 2 491 | 2 204 | 13 % | 3 190 |
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FINANCIAL RESULTS
In the third quarter the operating result rose to EUR 96
million (56) and the profitability increased to 10.3% (7.3). In the review
period 1-9/2007 the operating result improved to EUR 233 million (162),
representing profitability of 9.3% (7.4).
In the review period 1-9/2007 the financial items amounted to EUR -6
million
(1). Net interest totalled EUR -7 million (-9). Dividends received
amounted to EUR 7 million (8). Profit before taxes was EUR 227 million (305, out
of which EUR 142 million refers to Wärtsilä's share of Ovako profit after taxes
and sales of Assa Abloy B shares)
Taxes in the reporting period amounted to EUR 64 million (61). Taxes in the
comparison period included deferred tax assets totalling EUR +26 million
relating to previously recognized restructuring expenses.
Earnings per share for the review period were EUR 1.69 (2.59, comparable EPS
1.42).
BALANCE SHEET, FINANCING AND CASH FLOW
Liquid reserves at the end of the period amounted to EUR 202 million (143). Net
interest-bearing loan capital totalled EUR 61 million (185). The solvency ratio
was 46.1% (47.3) and gearing was 0.08 (0.15).
Cash flow from operating activities for January-September 2007 was strong and
totalled EUR 299 million (172).
HOLDINGS
Wärtsilä owns 7,270,350 B shares in Assa Abloy, or 2.0% of the total.
This holding has been booked in the balance sheet at its market value at the end
of the reporting period, EUR 106 million.
CAPITAL EXPENDITURE
Gross capital expenditure in the review period totalled EUR
172 million (142), which comprised EUR 59 million (76) in acquisitions and
investments in securities and EUR 113 million (66) in production and information
technology investments. Depreciation amounted to EUR 56 million (53).
Due to the strong volume growth the total capital expenditure for 2007 is
expected to be EUR 170 million excluding acquisitions.
STRATEGIC ACQUISITIONS AND JOINT VENTURES
In January Wärtsilä and Hyundai Heavy
Industries Co. Ltd (HHI) signed an agreement to set up a 50/50-owned joint
venture in Korea to manufacture dual-fuel engines for LNG (liquefied natural
gas) carriers. The total equity of the company will be EUR 58 million,
Wärtsilä´s share being EUR 29 million. The joint venture will manufacture
Wärtsilä 50DF dual-fuel engines for the Korean, Japanese, Chinese and Taiwanese
shipbuilding markets. The first engine will be delivered during the second half
of 2008. The Trieste delivery centre in Italy will continue to manufacture
Wärtsilä 50DF dual-fuel engines for the marine markets outside East Asia and for
the growing worldwide power plant market. In June, the European Union
competition authorities cleared the joint venture and the permits from the
different authorities to start the business, have been received.
To support its growth targets, Wärtsilä has acquired companies in order to
broaden the Services and Ship Power product offering, and to increase
geographical presence in key areas.
In February Wärtsilä acquired the Swedish company Senitec AB. The company
specializes in environmental technology products for separating waste, such as
oily water and sludge, in power plants, harbours and ships. This new business
gives Wärtsilä the possibility to expand its offering of environmental solutions
in waste management.
In February Wärtsilä acquired the entire business of Marine Propeller (Pty) Ltd
in Cape Town, South Africa. Marine Propeller (Pty) Ltd focuses mainly on
repairing propellers.
In May Wärtsilä continued extending its service offering in Propulsion services
with the acquisition of UK-based propeller repair company McCall Propellers Ltd.
The acquisitions complement Wärtsilä's propeller services.
In May Wärtsilä signed an agreement to acquire the marine business of Railko
Ltd. in the UK, a company specializing in stern tube bearing technology. The
acquisition will improve Wärtsilä´s competitive position in oil-lubricated
bearing systems and adds water-lubricated bearings to the product portfolio.
Railko's products are used on all types of vessels, from cruise ships to cargo
vessels. The acquisition was finalized at the beginning of July.
In August Wärtsilä acquired the Scottish company, Electrical Power Engineering
(Scotland) Ltd. The company specializes in electrical power engineering
solutions for marine, offshore, industrial and utilities segments.
The total acquisition price of the acquisitions mentioned above is EUR 42
million out of which EUR 24 million is reported as goodwill.
OTHER STRATEGIC ISSUES
In January Wärtsilä announced a public offer to the
minority shareholders of Wärtsilä India Ltd to acquire 1,240,599 shares, or
10.3% of the share capital. The offer period expired on 23 March 2007. The
delisting offer was successful and 8.2% of the total shares were acquired. This
implies a consideration of EUR 11 million, of which EUR 8 million has been
recognised as goodwill. Wärtsilä holds 97.9% of Wärtsilä India shares. The
shares of Wärtsilä India Ltd were delisted from the Bombay Stock Exchange on 18
June 2007.
To improve marine customer service in the rapidly growing Chinese markets,
Wärtsilä opened a large reconditioning workshop in Shanghai in March. In May
Wärtsilä also opened a service workshop close to Saigon port in Ho Chi Minh City
and an office in Hanoi to serve the growing Vietnamese shipping, shipbuilding
and power industries.
The demand for training services is steadily rising and Wärtsilä opened a new
training centre in South Korea, the world's largest shipbuilding country, to
provide training for customers' engineers.
In May Wärtsilä and Vietnam Shipbuilding Industry Corporation (Vinashin) signed
a licence agreement for the manufacture and sale of Wärtsilä low-speed marine
engines in Vietnam.
Wärtsilä Ship Power is in the process of reorganising into five Ship Power
customer segments: Merchant, Offshore, Cruise & Ferry, Navy, and Special
Vessels. The aim is to respond better to market requirements and technology
development, as well as to be prepared for market fluctuations. The new
organisation will be fully operational by the end of 2007.
MANUFACTURING
The new production facilities in both Vaasa and Trieste became
operational during the third quarter. Ramp up to full utilization is expected
during the fourth quarter as planned. Investments to increase the propulsion
production capacity, gearboxes and controllable pitch propellers in India, the
Netherlands and Norway are proceeding according to plan. Most of this additional
propulsion capacity will become available in 2008.
Construction work in the joint venture with Hyundai Heavy industries in Korea to
manufacture dual-fuel engines for LNG carriers has started and is proceeding
according to plan.
The establishment of the joint venture between Wärtsilä, China Shipbuilding
Industry Corporation (CSIC) and Mitsubishi Heavy Industries (MHI) to manufacture
large low-speed marine engines in China is proceeding according to plan.
Production is expected to begin in the fourth quarter of 2008.
Good progress has been made to enlarge the supplier base in order to ensure
capacity and availability of components.
R&D
In June Wärtsilä and MAN Diesel submitted a follow-up of the Hercules project, a
new large-scale collaborative research project; Hercules-B, to the European
Commission. The principal aim of the proposed Hercules-B is to considerably
improve the efficiency of marine diesel propulsion systems and to achieve
substantial reductions in fuel consumption and emissions. The first phase of the
Hercules project ended in September.
During the third quarter Wärtsilä introduced the new 20-cylinder 46F engine
offering more power and lower emissions while maintaining high energy
efficiency.
PERSONNEL
Wärtsilä had 15,040 (13,100) employees on average during the reporting
period and 15,811 (13,986) at the end of September. The largest personnel
increases took place in the Services business where the personnel increase was
close to 11% compared to the corresponding period 2006. At the end of the period
the Services business employed 9,288 (8,387).
SHARES AND SHAREHOLDERS
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| SHARES ON HELSINKI EXCHANGES | | | |
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| 30 September 2007 | A-share | B-share | Total | |
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| Number of shares | 23 579 | 72 228 127 | 95 807 714 | |
| | 587 | | | |
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| Number of votes | 235 795 | 72 228 127 | 308 023 997 | |
| | 870 | | | |
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| Number of shares traded, | | | | |
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| 1-9/2007 | 4 373 696 | 87 172 298 | 91 545 994 | |
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| 1 Jan.- 30 September | High | Low | Average 1) | Close |
| 2007 | | | | |
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| A-share | 50.50 | 38.05 | 45.71 | 48.60 |
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| B-share | 51.94 | 38.44 | 46.45 | 48.05 |
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| 1) Trade-weighted | | | | |
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| average price. | | | | |
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| Market capitalization | 30 Sept. | 30 Sept. | | |
| | 2007 | 2006 | | |
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| MEUR | 4616 | 3021 | | |
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| Foreign shareholders | 30 Sept. | 30 Sept. | | |
| | 2007 | 2006 | | |
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| | 32.8% | 28.5% | | |
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CHANGES IN OWNERSHIP
On 3 July 2007 Varma Mutual Pension Insurance Company
increased its holding in Wärtsilä Corporation. Following the transaction Varma
owned 2,795,615 A shares and 1,188,691 B shares giving a total holding of
3,984,306 Wärtsilä shares or 4.16% of Wärtsilä's share capital and 9.46% of the
total votes.
On 3 July 2007 Sampo plc decreased its holding in Wärtsilä Corporation.
Following the transaction Sampo owns 584,668 A shares or 0.61% of Wärtsilä's
share capital and 1.90% of the total votes.
On 22 August 2007 Svenska Litteratursällskapet i Finland r.f. increased its
holding in Wärtsilä Corporation. Following the transaction it owns over 1/20 of
the company's votes, 1,546,596 A shares and 17,000 B shares giving a total
holding of 1,563,596 Wärtsilä shares or 1.63% of Wärtsilä's share capital and
5.03% of the total votes.
On 23 August 2007 Varma Mutual Pension Insurance Company increased its holding
in Wärtsilä Corporation. Following the transaction it owns over one tenth (1/10)
of the company's votes, 3,547,257 A shares and 1,188,691 B shares giving a total
holding of 4,735,948 Wärtsilä shares or 4.94% of Wärtsilä's share capital and
11.91% of the total votes.
OPTION SCHEMES
During the review period Wärtsilä had two option schemes. The
2001 option scheme ended on 31 March 2007. The 2002 option scheme will end on 31
March 2008. Based on the option schemes altogether 192.903 shares, representing
0.2 % of the share capital remained unsubscribed at the end of the review
period.
DECISIONS TAKEN BY THE ANNUAL GENERAL MEETING
Wärtsilä's Annual General Meeting
on 14 March 2007 approved the financial statements and discharged the company's
President & CEO and the members of the Board of Directors from liability for the
financial year 2006. The Meeting approved the Board of Directors' proposal to
pay a dividend of 1.75 euros per share.
Wärtsilä's Annual General Meeting decided that the Board of Directors shall have
six members. The following were elected to the Board: Ms Maarit Aarni-Sirviö, Mr
Heikki Allonen, Mr Göran J. Ehrnrooth, Mr Antti Lagerroos, Mr Bertel
Langenskiöld and Mr Matti Vuoria.
The firm of authorized public accountants KPMG Oy Ab were appointed as the
company's auditors.
AUTHORIZATIONS GRANTED TO THE BOARD OF DIRECTORS
The AGM authorized the Board to
issue new Series A and/or Series B shares in one or several instalments. The
share issue can be executed on the conditions and at the price determined by the
Board.
Under this authorization at most totally 9,555,434 new shares may be issued.
Within this total amount of shares
- at most 2,357,958 new A shares and at most
7,197,476 new B shares are issued to the shareholders in proportion to their
existing holdings, and/or
- at most 9,555,434 B shares are issued, disapplying
the pre-emptive right of the shareholders provided that the Company has
important financial grounds for doing so.
The authorization may be exercised, within the restrictions listed above, to
develop the company's capital structure, to broaden its ownership base, as
consideration in acquisitions or when the company acquires assets related to its
business. The rights issue may also be executed as payment in kind or by using
the right of set-off.
The authorization remains in force until the following Annual General Meeting.
ORGANIZATION OF THE BOARD OF DIRECTORS
The Board of Directors of Wärtsilä
Corporation elected Antti Lagerroos as its chairman and Göran J. Ehrnrooth as
the deputy chairman. The Board decided to establish an Audit Committee, a
Nomination Committee and a Compensation Committee. The Board appointed from
among its members the following members to the Committees:
Audit Committee:
Chairman Antti Lagerroos; Members Maarit Aarni-Sirviö, Heikki
Allonen and Matti Vuoria.
Nomination Committee:
Chairman Antti Lagerroos; Members Göran J. Ehrnrooth and
Matti Vuoria.
Compensation Committee:
Chairman Antti Lagerroos; Members Heikki Allonen and
Matti Vuoria.
RISKS AND BUSINESS UNCERTAINTIES
The very high demand has led to a short supply
of certain key components. Examples of bottlenecks are castings and forgings
where global demand exceeds supply. Various measures by Wärtsilä to ensure the
availability of these key components have been initiated and many suppliers have
invested in their production capacity, many of which are already operational.
MARKET OUTLOOK
The outlook for the global economy remains strong and is expected
to remain favourable in the near future. The shipping and shipbuilding
industries continue to be active. The freight markets have remained strong and
freight rates are still at historically high levels. Slightly higher interest
rates, inflation and the recent developments in the US credit market have not
affected the shipbuilding market. However, the increase in deliveries of new
ships has become faster than growth in demand for new tonnage and this is
expected to start affecting the freight market in the medium term. The market is
expected to continue to be active, at least for the next two quarters. Also
offshore investments in both vessels and various production units are expected
to remain at a high level for at least half a year. It is also expected that the
market for passenger-cargo vessels will revive during the fall and winter.
Demand in the Power Plants business is expected to remain strong for the next
two quarters. Power Plants is enjoying all-time high inquiry levels and requests
for quotations. All relevant customer segments and geographical areas remain
active. Wärtsilä's power generation equipment brings added value in terms of
fuel flexibility and efficiency, in a market where energy security and the
responsible use of fuels are at the forefront of the energy debate.
WÄRTSILÄ'S PROSPECTS FOR 2007
Demand in the ship power and energy markets looks
likely to remain active for Wärtsilä for the next two quarters. Based on the
strong order book, Wärtsilä's net sales are expected to grow this year by around
15%. Full year profitability will exceed 9%. Wärtsilä sees further possibilities
for growth in 2008.
WÄRTSILÄ INTERIM REPORT JANUARY - SEPTEMBER 2007
This interim financial report is prepared in accordance with IAS 34 (Interim
Financial Reporting) using the same accounting policies and methods of
computation as in the annual financial statements for 2006. All figures in the
accounts have been rounded and consequently the sum of individual figures can
deviate from the presented sum figure.
Use of estimates
The preparation of the financial statements in accordance with
IFRS requires management to make estimates and assumptions that affect the
valuation of the reported assets and liabilities and other information, such as
contingent liabilities and the recognition of income and expenses in the income
statement. Although the estimates are based on the management's best knowledge
of current events and actions, actual results may differ from the estimates.
Amended and new International Financial Reporting Standards (IFRS) as of
1
January 2007:
- IFRS 7, financial instruments: Disclosures
- Amendment to IAS 1, Capital
disclosures
- IFRIC 8: Scope of IFRS 2
- IFRIC 9, Reassessment of Embedded
Derivatives
- IFRIC 10, Interim financial Reporting and Impairment.
The adoption of the new and revised standards and interpretations does not have
any material affect on the interim financial report.
This interim report is
unaudited.
29 October 2007
Wärtsilä Corporation
Board of Directors
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| CONDENSED INCOME STATEMENT | | | |
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| MEUR | 1-9/2007 | 1-9/2006 | 2006 |
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| Net sales | 2 491 | 2 204 | 3 190 |
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| Other income | 11 | 14 | 25 |
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| Expenses | -2 214 | -2 002 | -2 881 |
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| Depreciation and impairment | -56 | -53 | -72 |
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| Operating result | 233 | 162 | 262 |
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| Financial income and expenses | -6 | 1 | -7 |
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| Net income from assets available | | 124 | 124 |
| for sale | | | |
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| Share of profit of associates | | 19 | 68 |
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| Profit before taxes | 227 | 305 | 447 |
--------------------------------------------------------------------------------
| Taxes for the period | -64 | -61 | -94 |
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| Profit for the financial period | 163 | 245 | 353 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | 161 | 244 | 351 |
| company | | | |
--------------------------------------------------------------------------------
| Minority interest | 1 | 1 | 2 |
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| Total | 163 | 245 | 353 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share attributable to equity holders of the | |
| parent company: | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 1.69 | 2.59 | 3.72 |
--------------------------------------------------------------------------------
| Diluted earnings per share, EUR | 1.68 | 2.56 | 3.71 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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| CONDENSED BALANCE SHEET | | | |
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| MEUR | 30 Sep | 30 Sep 2006 | 31 Dec 2006 |
| | 2007 | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 647 | 593 | 602 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 357 | 298 | 315 |
--------------------------------------------------------------------------------
| Equity in associates | 11 | 3 | 3 |
--------------------------------------------------------------------------------
| Investments available for sale | 168 | 163 | 183 |
--------------------------------------------------------------------------------
| Deferred tax receivables | 72 | 81 | 87 |
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| Other receivables | 43 | 7 | 43 |
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| | 1 297 | 1 146 | 1 233 |
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| Current assets | | | |
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| Equity in associates | 1 | 127 | 6 |
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| Inventories | 1 113 | 881 | 838 |
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| Other receivables | 980 | 807 | 932 |
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| Cash and cash equivalents | 202 | 143 | 179 |
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| | 2 296 | 1 958 | 1 955 |
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| Assets | 3 593 | 3 104 | 3 188 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity | | | |
--------------------------------------------------------------------------------
| Share capital | 335 | 331 | 334 |
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| Other shareholders' equity | 889 | 886 | 882 |
--------------------------------------------------------------------------------
| Total equity attributable to equity | 1 225 | 1 217 | 1 217 |
| holders of the parent | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 8 | 10 | 13 |
--------------------------------------------------------------------------------
| Total shareholders' equity | 1 232 | 1 227 | 1 230 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
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| Interest-bearing debt | 253 | 208 | 205 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 80 | 58 | 74 |
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| Other liabilities | 76 | 74 | 73 |
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| | 409 | 341 | 352 |
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| Current liabilities | | | |
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| Interest-bearing debt | 43 | 123 | 66 |
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| Other liabilities | 1 909 | 1 413 | 1 540 |
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| | 1 951 | 1 536 | 1 606 |
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--------------------------------------------------------------------------------
| Total liabilities | 2 360 | 1 877 | 1 958 |
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--------------------------------------------------------------------------------
| Shareholders' equity and | 3 593 | 3 104 | 3 188 |
| liabilities | | | |
--------------------------------------------------------------------------------
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| CONDENSED CASH FLOW STATEMENT | | | |
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| MEUR | 1-9/2007 | 1-9/2006 | 2006 |
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| Cash flow from operating activities: | | | |
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| Profit before taxes | 227 | 305 | 447 |
--------------------------------------------------------------------------------
| Depreciation and impairment | 56 | 53 | 72 |
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| Financial income and expenses | 6 | -1 | 6 |
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| Selling profit and loss of fixed | -3 | -121 | -129 |
| assets and other adjustments | | | |
--------------------------------------------------------------------------------
| Share of profit of associates | | -19 | -68 |
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| Changes in working capital | 126 | 16 | 52 |
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| Cash flow from operating | 411 | 234 | 379 |
| activities before | | | |
| Financial items and taxes | | | |
--------------------------------------------------------------------------------
| Net financial items and income taxes | -112 | -62 | -77 |
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| Cash flow from operating activities | 299 | 172 | 302 |
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| Cash flow from investing activities: | | | |
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| Investments in shares and | -59 | -76 | -86 |
| acquisitions | | | |
--------------------------------------------------------------------------------
| Net investments in tangible and | -110 | -53 | -94 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of shares | | 149 | 318 |
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| Cash flow from other investing | 11 | 9 | 11 |
| activities | | | |
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| Cash flow from investing activities | -159 | 29 | 148 |
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--------------------------------------------------------------------------------
| Cash flow from financing activities: | | | |
--------------------------------------------------------------------------------
| Issuance of share capital | 3 | 7 | 19 |
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| New long-term loans | 65 | 2 | 6 |
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| Amortization and other changes in | -30 | -31 | -37 |
| long-term loans | | | |
--------------------------------------------------------------------------------
| Dividends paid | -168 | -141 | -283 |
--------------------------------------------------------------------------------
| Changes in short term loans and other | 15 | -10 | -92 |
| financing activities | | | |
--------------------------------------------------------------------------------
| Cash flow from financing activities | -115 | -174 | -387 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds, increase (+) | 25 | 27 | 63 |
| / decrease (-) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 179 | 120 | 120 |
| beginning of period | | | |
--------------------------------------------------------------------------------
| Fair value adjustments, investments | | | 1 |
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| Exchange rate changes | -4 | -4 | -4 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of | 202 | 143 | 179 |
| period | | | |
--------------------------------------------------------------------------------
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| STATEMENT OF CHANGES IN SHAREHOLDERS' | | | |
| EQUITY | | | |
--------------------------------------------------------------------------------
| MEUR | Total equity attributable to equity | Minority | Tota |
| | holders of the parent | | l |
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| | | | | | | interest | equi |
| | | | | | | | ty |
--------------------------------------------------------------------------------
| | | | | Fair | | | |
| | | | | value | | | |
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| | | Share | Trans | and | | | |
| | | | - | | | | |
--------------------------------------------------------------------------------
| | Shar | issue | latio | other | Retained | | |
| | e | | n | | | | |
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| | capi | premi | diffe | reserv | earnings | | |
| | tal | um | rence | es | | | |
| | | | s | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 334 | 58 | 3 | 128 | 693 | 13 | 1 |
| equity on 31 | | | | | | | 230 |
| December 2006 | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | 1 | | | | 2 |
| differences | | | | | | | |
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| Other changes | | | | | | -6 | -6 |
--------------------------------------------------------------------------------
| Available-for | | | | | | | |
| -sale | | | | | | | |
| investments | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| gain / loss from fair valuation, |
--------------------------------------------------------------------------------
| net of taxes |
--------------------------------------------------------------------------------
| | | | | -9 | | | -9 |
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| Cash flow | | | | 18 | | | 18 |
| hedges after | | | | | | | |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Net income | | | 1 | 9 | | -5 | 5 |
| recognized | | | | | | | |
| directly in | | | | | | | |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | 161 | 1 | 163 |
| the financial | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | 1 | 9 | 161 | -4 | 167 |
| recognized | | | | | | | |
| income an | | | | | | | |
| expense for | | | | | | | |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Options | 1 | 2 | | | | | 3 |
| exercised | | | | | | | |
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| Dividends | | | | | -167 | -1 | -168 |
| paid | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 335 | 60 | 4 | 137 | 688 | 8 | 1 |
| equity on 30 | | | | | | | 232 |
| September | | | | | | | |
| 2007 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | 329 | 44 | 7 | 147 | 626 | 10 | 1163 |
| equity on 31 | | | | | | | |
| December 2005 | | | | | | | |
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| Translation | | | -2 | | | -1 | -2 |
| differences | | | | | | | |
--------------------------------------------------------------------------------
| Other changes | | | | | | 1 | 1 |
--------------------------------------------------------------------------------
| Available-for | | | | | | | |
| -sale | | | | | | | |
| investments | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| gain/loss from fair valuation, |
--------------------------------------------------------------------------------
| net of taxes |
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| | | | | 10 | | | 10 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| transferred to income statement, |
--------------------------------------------------------------------------------
| net of taxes |
--------------------------------------------------------------------------------
| | | | | -81 | | | -81 |
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| Cash flow | | | | 26 | | | 26 |
| hedges after | | | | | | | |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Net income | | | -2 | -45 | | 0 | -46 |
| recognized | | | | | | | |
| directly in | | | | | | | |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | 244 | 1 | 245 |
| the financial | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | -2 | -45 | 244 | 1 | 199 |
| recognized | | | | | | | |
| income and | | | | | | | |
| expense for | | | | | | | |
| the period | | | | | | | |
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| Options | 2 | 5 | | | | | 7 |
| exercised | | | | | | | |
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| Dividends | | | | | -141 | | -141 |
| paid | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 331 | 49 | 5 | 102 | 729 | 10 | 1228 |
| equity on 30 | | | | | | | |
| September | | | | | | | |
| 2006 | | | | | | | |
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| BUSINESS SEGMENTS | | | | |
--------------------------------------------------------------------------------
| Income statement 1-9/2007 | Power | Holdings | Unallocat | Group |
| | | | ed | |
--------------------------------------------------------------------------------
| MEUR | Businesse | | | |
| | s | | | |
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| Net sales | 2 491 | | | 2 491 |
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| Operating result | 233 | | | 233 |
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| Financial income and expenses, | | 6 | -12 | -6 |
| dividends | | | | |
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| Profit before taxes | | | | 227 |
--------------------------------------------------------------------------------
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| Assets | 3 368 | 131 | 94 | 3 593 |
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| Liabilities | 2 229 | | 131 | 2 360 |
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| Investments | 172 | | | 172 |
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| Depreciation and impairment | -56 | | | -56 |
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--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement 1-9/2006 | Power | Holdings | Unallocat | Group |
| | | | ed | |
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| MEUR | Businesse | | | |
| | s | | | |
--------------------------------------------------------------------------------
| Net sales | 2 204 | | | 2 204 |
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| Operating result | 162 | | | 162 |
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| Financial income and expenses, | | 8 | -7 | 1 |
| dividends | | | | |
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| Net income from assets | | 124 | | 124 |
| available for sale | | | | |
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| Share of profit of associates | | 18 | | 19 |
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| Profit before taxes | | | | 305 |
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--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | 2 734 | 270 | 100 | 3 104 |
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| Liabilities | 1 756 | | 120 | 1 877 |
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| Investments | 142 | | | 142 |
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| Depreciation and impairment | -53 | | | -53 |
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| Geographical segments | Europe | Asia | Americas | Other | Group |
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| MEUR | | | | | |
--------------------------------------------------------------------------------
| Net sales 1-9/2007 | 1 034 | 903 | 313 | 241 | 2 491 |
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| Net sales 1-9/2006 | 860 | 804 | 403 | 136 | 2 204 |
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| INTANGIBLE ASSETS AND PROPERTY, PLANT & | | |
| EQUIPMENT | | |
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| MEUR | 1-9/2007 | 1-9/2006 | 2006 |
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| Intangible assets | | | |
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| Book value at 1 January | 602 | 541 | 541 |
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| Changes in exchange rates | -6 | -1 | -4 |
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| Acquisitions | 46 | 59 | 69 |
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| Additions | 22 | 14 | 22 |
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| Depreciation and impairment | -22 | -20 | -28 |
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| Disposals and intra-balance sheet | 5 | | 2 |
| transfer | | | |
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| Book value at end of period | 647 | 593 | 602 |
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| Property, plant and equipment | | | |
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| Book value at 1 January | 315 | 273 | 273 |
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| Changes in exchange rates | -1 | -4 | -6 |
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| Acquisitions | 1 | 18 | 18 |
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| Additions | 91 | 52 | 84 |
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| Companies sold | -17 | | |
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| Depreciation and impairment | -34 | -33 | -44 |
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| Disposals and intra-balance sheet | 2 | -8 | -11 |
| transfer | | | |
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| Book value at end of period | 357 | 298 | 315 |
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| GROSS CAPITAL EXPENDITURE | | | |
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| MEUR | 1-9/2007 | 1-9/2006 | 2006 |
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| Investments in securities and | 59 | 76 | 86 |
| acquisitions | | | |
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| Other investments | 113 | 66 | 107 |
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| Group | 172 | 142 | 193 |
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--------------------------------------------------------------------------------
| During the review period investments in the factories in Vaasa, Finland and |
| Trieste, Italy amounted to EUR 31 million, and Wärtsilä had commitments |
| related to the investment programmes amounting to EUR 4 million at the end |
| of the review period. The investment in the enlargement of propulsion |
| equipment manufacturing in the Netherlands and China amounted to EUR 16 |
| million during the review period, and Wärtsilä had commitments related to |
| the enlargements amounting to EUR 13 million at the end of the review |
| period. In addition, Wärtsilä's commitment related to the investment |
| programme in the Korean joint venture Wärtsilä Hyundai Engine Company Ltd. |
| amounted to EUR 6 million at the end of the review period. |
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| IMPACT OF ACQUISITIONS ON THE CONSOLIDATED BALANCE SHEET | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| During the reporting period Wärtsilä has acquired the propeller repair |
| business of the South African company Marine Propeller (Pty) Ltd., a Swedish |
| environmental technology company Senitec AB, a propeller repair company |
| McCall propellers Ltd. in U.K., marine business of the UK-based Railko Ltd., |
| a company specializing in synthetic stern tube bearing technology and a |
| Scottish company Electrical Power Engineering (Scotland) Ltd. specializing |
| in electrical power engineering solutions for marine, offshore, industrial |
| and utilities segments. In addition Wärtsilä acquired 8.2% of Wärtsilä India |
| Ltd. and at the end of the review period the percentage of ownership was |
| 97.9% |
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| MEUR | 1-9/2007 | | |
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| Acquisition costs | 53 | | |
--------------------------------------------------------------------------------
| Acquired assets to fair value | 20 | | |
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| Goodwill | 33 | | |
--------------------------------------------------------------------------------
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| Specification of acquired assets: | | | |
--------------------------------------------------------------------------------
| Intangible assets | 14 | | |
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| Property, plant and equipment | 1 | | |
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| Inventories | 3 | | |
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| Receivables | 9 | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 2 | | |
--------------------------------------------------------------------------------
| Minority interest | 3 | | |
--------------------------------------------------------------------------------
| Liabilities | -6 | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | -4 | | |
--------------------------------------------------------------------------------
| Total | 20 | | |
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--------------------------------------------------------------------------------
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| INTEREST-BEARING LOAN CAPITAL | | | |
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| MEUR | 30 Sep | 30 Sep 2006 | 31 Dec 2006 |
| | 2007 | | |
--------------------------------------------------------------------------------
| Long-term liabilities | 253 | 208 | 205 |
--------------------------------------------------------------------------------
| Current liabilities | 43 | 123 | 66 |
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| Loan receivables | -33 | -5 | -36 |
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| Cash and bank balances | -202 | -143 | -179 |
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| Net | 61 | 185 | 55 |
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| FINANCIAL RATIOS | 1-9/2007 | 1-9/2006 | 2006 |
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| Earnings per share, EUR | 1.69 | 2.59 | 3.72 |
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| Diluted earnings per share, EUR | 1.68 | 2.56 | 3.71 |
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| Equity per share, EUR | 12.78 | 12.86 | 12.74 |
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| Solvency ratio, % | 46.1 | 47.3 | 47.0 |
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| Gearing | 0.08 | 0.15 | 0.07 |
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| PERSONNEL | | | |
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| | 1-9/2007 | 1-9/2006 | 2006 |
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| On average | 15 040 | 13 100 | 13 264 |
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| At end of period | 15 811 | 13 986 | 14 346 |
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| CONTINGENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| MEUR | 30 Sep | 30 Sep 2006 | 31 Dec 2006 |
| | 2007 | | |
--------------------------------------------------------------------------------
| Mortgages | 14 | 15 | 20 |
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| Chattel mortgages | 9 | 21 | 21 |
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| Total | 23 | 37 | 42 |
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| Guarantees and contingent | | | |
| liabilities | | | |
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| On behalf of Group companies | 412 | 300 | 317 |
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| Nominal amount of rents according | | | |
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| to leasing contracts | 52 | 50 | 50 |
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| Total | 465 | 350 | 367 |
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| NOMINAL VALUES OF DERIVATIVE | | | |
| INSTRUMENTS | | | |
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| MEUR | Total | of which | |
| | amount | closed | |
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| Interest rate swaps | 140 | | |
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| Foreign exchange forward contracts | 1 133 | 131 | |
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| Currency options, purchased | 14 | | |
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| CONDENSED INCOME STATEMENT, | | | | | |
| QUARTERLY | | | | | |
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| MEUR | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2007 | 2007 | 2007 | 2006 | 2006 | 2006 | 2006 |
--------------------------------------------------------------------------------
| Net sales | 933 | 797 | 761 | 986 | 767 | 845 | 592 |
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| Other income | 3 | 4 | 4 | 11 | 4 | 8 | 2 |
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| Expenses | -821 | -710 | -683 | -880 | -696 | -764 | -541 |
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| Depreciation and | -19 | -18 | -18 | -18 | -18 | -18 | -18 |
| impairment | | | | | | | |
--------------------------------------------------------------------------------
| Operating result | 96 | 73 | 63 | 99 | 56 | 70 | 36 |
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| Financial income | -2 | -1 | -4 | -8 | 1 | 2 | -3 |
| and expenses | | | | | | | |
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| Net income from | | | | | | 124 | |
| assets available | | | | | | | |
| for sale | | | | | | | |
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| Share of profit | | | | 50 | 4 | 8 | 7 |
| of associates | | | | | | | |
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| Profit before | 95 | 72 | 60 | 141 | 61 | 204 | 40 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Taxes for the | -26 | -20 | -17 | -33 | -20 | -53 | 12 |
| period | | | | | | | |
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| Profit for the | 68 | 52 | 42 | 108 | 42 | 151 | 52 |
| financial period | | | | | | | |
--------------------------------------------------------------------------------
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| Attributable to: | | | | | | | |
--------------------------------------------------------------------------------
| Equity holders | 68 | 52 | 42 | 107 | 41 | 150 | 52 |
| of the parent | | | | | | | |
| company | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 1 | 1 | | 1 | | | |
| interest | | | | | | | |
--------------------------------------------------------------------------------
| Total | 68 | 52 | 42 | 108 | 42 | 151 | 52 |
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| Earnings per share attributable to equity | | | | |
| holders of the parent company: | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.71 | 0.54 | 0.44 | 1.13 | 0.44 | 1.60 | 0.55 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings | 0.70 | 0.54 | 0.44 | 1.15 | 0.43 | 1.58 | 0.55 |
| per share, EUR | | | | | | | |
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| CALCULATION OF FINANCIAL RATIOS | |
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| Earnings per share (EPS) | |
--------------------------------------------------------------------------------
| profit before taxes - income taxes - minority interests |
--------------------------------------------------------------------------------
| -------------------------------------------------------- | |
| -------- | |
--------------------------------------------------------------------------------
| Adjusted number of shares over the financial year | |
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| Equity per share | |
--------------------------------------------------------------------------------
| Shareholders' equity | |
--------------------------------------------------------------------------------
| ---------------------------------------------------------------- |
--------------------------------------------------------------------------------
| Adjusted number of shares at the end of the period |
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| Solvency ratio | |
--------------------------------------------------------------------------------
| Shareholders' equity + minority interests | x 100 |
--------------------------------------------------------------------------------
| -------------------------------------------------------- | |
| -------- | |
--------------------------------------------------------------------------------
| Balance sheet total - advances received | |
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| Gearing | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities - cash and bank balances |
--------------------------------------------------------------------------------
| -------------------------------------------------------- | |
| ------- | |
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| Shareholders' equity + minority interests | |
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