EXEL OYJ?S Q4 PERFORMANCE AND FINANCIAL STATEMENTS BULLETIN
EXEL OYJ STOCK EXCHANGE RELEASE 27.2.2006 at 9.25am 1
(14)
EXEL OYJS Q4 PERFORMANCE AND FINANCIAL STATEMENTS BULLETIN
2005
Summary
- Net sales for the financial year increased to EUR 91.3
(83.9) million or 8.9% over the previous year
- Net sales in Q4 were EUR 21.9 (19.8) million
- Operating profit for the financial year was EUR 12.4
(13.7) million, down 9.6% over the previous year,
representing 13.6% (16.3%) of net sales
- Operating profit in Q4 was EUR 2.2 (3.3) million,
representing 9.9% (16.8%) of net sales
- Earnings per share were EUR 0.76 (0.80) adjusted for full
dilution
- Net interest-bearing liabilities increased to 8.2 (7.4)
million, whilst net gearing improved to 30.2% (36.0%)
- Industrial profiles market very active
- Industry Division experienced excellent growth in
operating profit in 2005, up 37.8% to EUR 10.8 (7.8) million
as a result of increased volumes and improved efficiency
- Operating profit in Sport Division decreased to EUR 1.6
(5.9) million as a result of increased competition and
oversupply in the Nordic Walking segment in the Central
European markets
- The Board of Directors proposes to increase the dividend
to EUR 0.40 (0.35) per share
- Exel becomes the worlds first global pultrusion company
by acquiring Pacific Composites
CONSOLIDATED KEY FIGURES, EUR million
1.10. 1.10. Change 1.1. - 1.1. Change %
- - % -
31.12. 31.12. 31.12. 31.12
.
EUR million 2005 2004 2005 2004
Net sales 21.9 19.8 11.0% 91.3 83.9 8.9%
Operating 2.2 3.3 -34.5% 12.4 13.7 -9.6%
profit
% of net sales 9.9% 16.8% 13.6% 16.3%
Profit for the 1.7 2.3 -23.7% 8.9 9.1 -2.5%
period
Equity 27.0 20.7 30.6% 27.0 20.7 30.6%
Net interest- 8.2 7.4 9.8% 8.2 7.4 9.8%
bearing
liabilities
Invested 41.0 33.3 23.2 % 41.0 33.3 23.2%
capital
Return on 26.8% 47.6% 37.3% 47.8%
equity, %
Return on 21.3% 39.9% 34.0% 45.2%
investment, %
Solvency 50.0% 44.9% 50.0% 44.9%
ratio, %
Net gearing, % 30.2% 36.0% 30.2% 36.0%
Earnings per 0.15 0.20 -26.2% 0.78 0.84 -6.0%
share, EUR
Earnings per 0.14 0.19 -26.3% 0.76 0.80 -5.0%
share
(diluted), EUR
Equity per 2.34 1.84 27.2% 2.34 1.84 27.2%
share, EUR
IFRS REPORTING
Exel has applied IFRS reporting since the beginning of 2005,
and this interim report has been prepared in accordance with
the recognition and measurement principles of IFRS. The
reconciliation statement for the opening IFRS balance sheet
for 2004 was presented in the financial statements bulletin
released on 24 February 2005. The effects of IFRS transition
on 2004 financial statements on a quarterly basis were
explained in more detail in a stock exchange release
published on 3 May 2005. In the present interim report, the
figures published on that occasion have been used as
comparative information.
Q4 1 October-31 December 2005
Net sales
Net sales for the Exel Group increased in the last quarter
of 2005 by 11.0% to EUR 21.9 (19.8) million. The Industry
Division accounted for 68.7% or EUR 15.1 (11.7) million of
Group net sales in Q4 and the Sport Division for 31.3% or
EUR 6.9 (8.1) million.
The Industry Division continued to experience strong growth
in the last quarter, increasing net sales by 29.0%. The
Sport Division, however, suffered from weak demand for
Nordic Walking poles in the Central European markets in the
second half of the year, which could be seen in the number
of deliveries in the last quarter. The primary reason for
lower sales in this area was excessive supply among
retailers, who made a big effort to sell off stocks.
Consequently, net sales for the Sport Division decreased in
the last quarter by 15.0%.
Profit
The Exel Groups operating profit decreased in the last
quarter by 34.5% to EUR 2.2 (3.3) million. The comparative
figures for the last quarter in 2004 include the positive
effect of a one-time release of pension provisions of EUR
471 thousand due to the transfer of employee disability
pensions to a payment-based system.
Operating profit for the Industry Division in the last
quarter of 2005 increased by 39.1% to EUR 3.2 (2.3) million.
Operating profit for the Sport Division was negative at EUR
-1.1 (+1.0) million.
FINANCIAL STATEMENT 1 January-31 December 2005
NET SALES
Net sales for the Exel Group grew in 2005, ending the year
at EUR 91.3 (83.9) million. This represents growth on the
previous year of 8.9%. The share of net sales from exports
and international operations was 85%.
The Groups main line of business, the Industry Division,
experienced strong growth; net sales for 2005 amounted to
EUR 56.8 (48.3) million, an increase of 17.5%. The majority
of this growth was organic and resulted from an increase in
demand for new and existing customer applications. The
inclusion of the Austrian subsidiary Faserprofil as of April
2005 increased net sales for the Industry Division by EUR
3.1 million. The Industry Division accounted for 62.2% of
total Group sales.
Net sales for the Sport Division in 2005 fell by 2.9% from
the previous year to EUR 34.5 (35.5) million. The Sport
Division accounted for 37.8% of total Group sales. The
market for Nordic Walking products in Central Europe
stagnated towards the end of the year. New markets are still
in the process of being commercialised. Floorball products
and laminates sales both grew over 10%.
PROFIT
Operating profit for the Exel Group in 2005 fell by 9.6% to
EUR 12.4 (13.7) million but remained at a good level.
Operating profit represented 13.6% (16.3%) of net sales.
Operating profit for the Industry Division continued to
improve clearly from the previous year to EUR 10.8 (7.8)
million. Increased volumes, improved efficiency and
stringent cost control are the main reasons behind this
improvement.
Operating profit for the Sport Division fell noticeably
short of the previous year, amounting to EUR 1.6 (5.9)
million. During 2005 the organisation of the Sports Division
was strengthened, and major investments were undertaken in
opening new markets (North America, Far East, new European
countries). These investments, combined with increased
competition and oversupply in the main Central European
markets affected profit negatively.
The availability of carbon fibre was exceptionally scarce
throughout 2005. The lack of supply also increased raw
material price levels, although it was possible to transfer
some of the increase to product prices.
The Groups net financial expenses in 2005 were EUR 342
(467) thousand. The Groups profit before taxes was EUR 12.0
(13.2) million and profit for the financial year EUR 8.9
(9.1) million.
BALANCE SHEET AND FINANCIAL POSITION
The consolidated balance sheet total at the end of the
financial year stood at EUR 54.6 (46.3) million. The
increase was caused by the acquisition in Austria combined
with the working capital demand due to the increase in sales
volumes.
Equity at the end of the financial year was EUR 27.0 (20.7)
and solvency ratio 50.0% (44.9%). Interest-bearing net
liabilities amounted to EUR 14.0 (12.6) million, of which
short-term liabilities accounted for EUR 4.3 (4.1) million.
Net interest-bearing liabilities were EUR 8.2 (7.4) million,
and net gearing amounted to 30.2 % (36.0%).
Cash flow from business operations was positive at EUR +7.9
(+15.9) million. The decrease from the previous year was due
to the exceptionally low working capital at the turn of the
previous year resulting mainly from accounts receivable. In
addition, due to the good result in the 2004 financial year,
taxes were paid at the start of 2005 for the previous year
amounting to EUR 1.5 million. Operative capital expenditure
was financed with cash flow from business operations. To
fund the acquisition, interest-bearing liabilities were
increased. At the end of the financial year, the Groups
liquid assets stood at EUR 5.8 (5.1) million.
CAPITAL EXPENDITURE AND DEPRECIATION
Group capital expenditure on fixed assets amounted to EUR
4.1 million, of which operative capital investments
accounted for approximately EUR 2.3 million. The most
significant investment was the acquisition of the operations
of Faserprofil GmbH in Austria at the beginning of April
2005. The acquisition accounted for an estimated EUR 2.1
million, of which fixed assets inclusive of goodwill was EUR
1.8 million. This sum includes a surplus payment based on
the development of operations that will likely be paid in
the future. In addition, investments in maintenance and
productivity were continued, and the capacity of the
Industry Division was increased by investing in new
production lines at both the German and Austrian factories.
Total depreciation of non-current assets during the year
under review amounted to EUR 3.6 (3.2) million. Goodwill is
not amortized under IFRS. According to impairment tests that
have been performed, no write-downs were required.
PERSONNEL
The number of Exel Group employees on 31 December 2005 was
466 (419), of whom 315 (297) worked in Finland and 151 (122)
in other countries. The average number of personnel during
the financial year was 467 (441). The increase over the
previous year was due to the acquisition of the Austrian
unit and an increase in personnel in the Sport Division in
Finland.
BUSINESS SEGMENTS
Group operations are divided according to primary reporting
segment into two parts represented by the Industry Division
and Sport Division.
Industry Division
Key figures for the Industry Division for the reporting
period were as follows:
1.10. 1.10. Change 1.1. - 1.1.- Change
- -
31.12. 31.12. % 31.12. 31.12. %
EUR million 2005 2004 2005 2004
Net sales 15.1 11.7 29.0% 56.8 48.3 17.5%
Operating profit 3.2 2.3 39.0% 10.8 7.8 37.8%
% of net sales 21.5% 19.9% 19.0% 16.2%
Average personnel 241 218 10.6% 236 224 5.4%
Net sales in Industry Division increased by 17.5% over the
previous year to EUR 56.8 million. Operating profit improved
further to EUR 10.8 (7.8) million. Increased volumes,
improved efficiency and stringent cost control are the main
reasons behind this improvement.
Exel achieved its strategic goal of becoming the global
leader in the pultrusion industry. To be able to serve our
customers who operate globally, the decision was taken to
establish a factory in China. All measures connected with
establishing the new unit were carried out during the
financial year so that the prerequisites exist for beginning
the construction project.
Due to increased demand in Europe and new application areas,
new production lines were opened at the profiles factory in
Germany and at the Austrian unit that was acquired in the
spring.
Sport Division
Key figures for the Sport Division for the reporting period
were as follows:
1.10. - 1.10. Change 1.1. 1.1.- Change
- % - %
31.12. 31.12. 31.12 31.12
. .
EUR million 2005 2004 2005 2004
Net sales 6.9 8.1 -15.0% 34.5 35.5 -2.9%
Operating profit -1.1 1.0 -208.0% 1.6 5.9 -73.0%
% of net sales -15.5% 12.2% 4.6% 16.5%
Average 228 206 10.7% 231 217 6.5%
personnel
Net sales for the Sport Division decreased 2.9% on the
previous year to EUR 34.5 (35.5) million. The Nordic Walking
markets weakened and competition intensified in the German-
speaking markets towards the end of the year. Exel invested
heavily in opening new markets, particularly in North
America, China and Japan. These efforts, however, did not
offset the decrease in sales in traditional markets.
Floorball operations have developed strongly with new
products and strengthened marketing efforts. Exel also
signed an agreement to be the main sponsor of the 2006
Floorball World Championships.
Operating profit for the Sport Division decreased to EUR 1.6
million from the previous years EUR 5.9 million due to
heavy marketing investments, intensified competition and
Nordic Walking stock clearance of retailers in Germany and
Austria. Major efforts to open new Nordic Walking markets
will continue, alongside work to strengthen the organisation
and develop the Nordic Fitness Sports concept.
Significant efforts are being made to open new markets in
North America, where a new subsidiary, Exel USA, Inc., is
working to spread the sport, and in China, where joint
marketing with our partner CISS is progressing. During the
last quarter, the necessary business licenses were granted
by Chinese officials, and operations in China began.
The market for OEM products (windsurfing masts and laminate
components) was stable. Sales of laminates have increased
over the previous year, and new industrial applications are
being developed.
SHARES AND SHARE CAPITAL
The Annual General Meeting of Exel Oyj held on 14 April 2005
approved the Boards proposal to distribute a dividend of
EUR 0.35 per share (0.70 before split), representing a total
of EUR 3,930,500, for the financial year 2004.
The AGM approved the proposal of the Board of Directors to
double the number of shares of the company and to increase
the share capital of the company with a bonus issue of EUR
56,150. After the increase the share capital of Exel Oyj
increased to EUR 2,021,400 divided between 11,230,000
shares, each with a counter-book value of EUR 0.18. At the
same time the AGM authorised the Board of Directors to
increase share capital by a maximum of EUR 100,000, to
acquire the companys own shares representing no more than
10% of the Companys total share capital, and to convey the
companys own shares.
The subscription for the first part (A) of the 2001 warrant
programme for key employees commenced on 1 June 2002, and
95,800 subscriptions were made in 2005. Employees have the
right to subscribe for a total of 55,400 company shares
through 27,700 option rights by the end of 2005 with unused
option rights. The subscription for the second part (B) of
the 2001 warrant programme for key employees commenced on 1
October 2003, and 74,150 subscriptions were made in 2005.
Employees have the right to subscribe for a total of 57,100
company shares through 28,550 option rights by the end of
2005 with unused option rights. The subscription period for
all option rights ends on 30 April 2006.
Exels share capital has increased during the year due to
subscriptions made under the warrant programme by EUR 81,372
to EUR 2,069,802, and the number of shares registered in the
Trade Register has increased to 11,498,900.
During the financial year the highest share price quoted was
EUR 14.80 (12.00 and the lowest EUR 11.35 (5.87). At the end
of the year, the share price was EUR 13.05 (11.50). The
average share price during the financial year was EUR 12.73
(9.02).
A total of 4,114,242 (7,924,940) shares were traded during
the year, which represents 35.7% (73.2%) of the average
number of shares. On 31 December 2005, Exels market
capitalisation was EUR 150.1 (127.0) million.
SHAREHOLDERS AND DISCLOSURES
On 31 December 2005, 4.9% of the shares and votes of Exel
were owned or controlled, directly or indirectly, by the
President & CEO and the members of the Board.
At the end of 2005 the company had a total of 2,967 (2,380)
shareholders. During the year under review, Exel received no
disclosures under Chapter 2, section 9 of the Securities
Market Act.
CORPORATE GOVERNANCE
Exel complies with the general insider trading guidelines
issued by the Helsinki Stock Exchange on 1 January 2006, as
well with official regulations related to the governance of
public joint stock companies. Exels corporate governance
principles are available on the company website
www.exel.net.
Exel Oyjs wholly owned subsidiary Exel Sports Oy began
operations on 1 April 2005. The new company incorporated the
marketing, sales, logistics and product development
operations of the Sport Divisions consumer products, and 25
personnel transferred to the new company from the parent
company. Exel board member Mika Sulin was appointed Managing
Director of Exel Sports Oy.
MANAGEMENT AND AUDITORS
On 14 April 2005 the Annual General Meeting appointed Kari
Haavisto, Peter Hofvenstam, Vesa Kainu, and Ove Mattsson to
continue on the Board of Directors. Torgny Eriksson, Esa
Karppinen and Matti Virtaala were elected as new members.
Ove Mattsson was re-elected Chairman of the Board. Ari
Jokelainen is President & CEO and Vesa Korpimies Deputy
Managing Director.
PricewaterhouseCoopers Oy, Authorised Public Accountants,
with Christian Savtschenko-Alexandroff, APA, as principal
auditor, and Johan Kronberg, APA, served as company
auditors.
EVENTS AFTER THE FINANCIAL YEAR
The decision was made at the end of January 2006 to
subcontract all finishing, assembly and packaging operations
for poles and floorball products to China. This transfer
will take place in phases throughout the year with the goal
of having all these operations handled completely in China
by the beginning of 2007. This will necessitate the
restructuring of operations at the Mäntyharju factory. Due
to the reorganisation, negotiation procedure with personnel
began on 1 February 2006. As a result of these negotiations,
the number of personnel is estimated to be decreased by 60-
70 persons. The restructuring is estimated to cause non-
recurring costs amounting approximately to EUR 2 million
during the year 2006. Based on the current sales volume it
is estimated to increase the profit before taxes annually
with minimum EUR 2 million starting from 2007.
The strategic focus for the Group is the Industry Division,
which continues to expand. At the end of February the
Australian company Pacific Composites Pty. Ltd will be
acquired. Through the acquisition of Pacific Composites,
Exel establishes itself as the worlds first global
pultrusion company. The acquisition will extend the product
range and reinforce Exels leading positions. The
acquisition helps Exel serve international clients globally.
At the same time the establishment of operations in China
and the Far East markets gathers pace, and the range of
products is expanding. Net sales of Pacific Composites
during July 2004 June 2005 were EUR 19.8 million and
profit before taxes EUR 1.8 million. Net sales during July
December 2005 were EUR 12.0 million, an increase of 25%
compared to the corresponding period previous year. The
profit before taxes for the same period amounted to EUR 1.4
million.
The cash consideration for Pacific Composites shares
amounts to EUR 17.5 million (AUD 28 million). In addition,
pursuant to the authorization by the AGM on 14 April 2005,
Exels share capital will be increased by a new share issue
to Lemarne Corporation Limited of 230,743 shares, with an
estimated market value of EUR 2.8 million (AUD 4.5 million).
OUTLOOK FOR THE FUTURE
Pacific Composites will significantly increase net sales for
the Industry Division. During 2006 the operations of Pacific
Composites will be integrated into the Group. The
acquisition strengthens and speeds up the growth of business
operations particularly in the Far East markets. The lack of
supply of carbon fibre will continue in 2006, which will
limit growth opportunities.
The main markets for Nordic Walking products in Central
Europe will remain weak during the spring as retail chains
continue to sell off existing stocks. Demand is expected to
recover by the summer. Efforts to open new Nordic Walking
markets continue. New markets are expected to add to sales
during the end of the year. The partial subcontracting of
pole and floorball products to the Far East will cause non-
recurring costs during 2006 but will improve the
profitability of the Sport Division from 2007.
Based on the above, Group net sales are expected to increase
significantly. Due to major restructuring of sports
production and the acquisition of Pacific Composites, the
profit will be influenced by a number of non-recurring
items, meaning that the profit before taxes is expected to
be slightly lower than 2005.
BOARD PROPOSAL FOR DIVIDEND DISTRIBUTION
Exels strategic goals include distributing dividends equal
to at least 40% of the profit for the financial year unless
otherwise required by growth and liquidity.
On 31 December 2005 the Group's distributable funds totalled
EUR 19,530 thousand and those of the parent company EUR
19,023 thousand.
The Board proposes to the Annual General Meeting that a
dividend be paid for the 2005 financial year of EUR 0.40
(0.35) per share for a total of EUR 4,720,257, which
represents 53% of the profit for the financial year.
FINANCIAL REPORTING IN 2006
The 2005 Annual Report will be published on the companys
website and in printed format during week 10.
The Annual General Meeting will be held on Thursday 6 April
2006 beginning at 10.00 am in the banqueting hall of
Satakuntatalo at Lapinrinne 1 A, Helsinki, Finland.
The Group will issue quarterly interim reports on 5 May
2006, 26 July 2006 and 26 October 2006.
PRESS CONFERENCE
Exel will hold a press conference regarding the financial
statements today Monday 27 February 2006 for the media and
analysts at 11.00am in the Pavilion Cabinet of the Scandic
Hotel Simonkenttä at Simonkatu 9, Helsinki, Finland. The
acquisition of Pacific Composites will also be handled in
the press conference.
Mäntyharju, 27 February 2006
EXEL OYJ Ari Jokelainen
Board of Directors President
Further information:
Ari Jokelainen, President, tel. +358 (0)50 590 6750
Ilkka Silvanto, CFO and Administrative Director, tel. +358
(0)50 598 9553
CONDENSED CONSOLIDATED INCOME STATEMENT, EUR 1000
1.10.- 1.10.- Change 1.1.- 1.1- Change
31.12 31.12 31.12. 31.12.
.
2005 2004 % 2005 2004 %
Net sales 21,945 19,776 11.0% 91,288 83,857 8.9%
Other -34 33 -203.0% 186 111 67.6%
operating
income
Operating -18,727 -15,538 -20.5% -75,502 -67,085 -12.5%
expenses
Depreciation -1,015 -958 -5.9% -3,584 -3,181 -12.7%
and
impairment
Operating 2,169 3,313 -34.5% 12,388 13,702 -9.6%
profit
Net -112 -131 13.7% -342 -467 26.8%
financial
items
Profit 2,057 3,182 -35.4% 12,046 13,236 -9.0%
before tax
Income taxes -332 -922 64.0% -3,144 -4,110 23.5%
Profit for 1,725 2,260 -23.7% 8,902 9,126 -2.5%
the period
Earnings per 0.15 0.20 -26.2% 0.78 0.84 -6.0
share, EUR
Earnings per 0.14 0.19 -26.3% 0.76 0.80 -5.0
share
(diluted),
EUR
CONDENSED BALANCE SHEET, EUR 1000
31.12.200 31.12.200 Change
5 4
ASSETS
Non-current assets
Goodwill 3,877 3,188 689
Other intangible assets 880 926 -46
Tangible assets 15,395 13,742 1,653
Deferred tax assets 1,070 310 760
Other non-current assets 103 100 3
Total non-current assets 21,325 18,266 3,059
Current assets
Inventories 15,361 13,269 2,092
Trade receivables and other 11,697 9,568 2,129
receivables
Income tax receivables 460 0 460
Cash in hand and at bank 5,778 5,150 628
Total current assets 33,296 27,987 5,308
Total assets 54,621 46,253 8,368
LIABILITIES AND SHAREHOLDERS EQUITY
Equity
Share capital 2,070 1,932 138
Rights issue 287 817 -530
Premium fund 5,142 3,390 1,752
Retained earnings 10,628 5,427 5,201
Profit for the financial period 8,902 9,126 -224
Equity attributable to the equity 27,029 20,692 6,337
holders of parent company
Minority interest 11 0 11
Equity total 27,040 20,692 6,348
Non-current liabilities
Non-current interest bearing 9,611 8,456 1,155
liabilities
Deferred tax liabilities 407 297 110
Current liabilities
Current interest bearing 4,346 4,141 205
liabilities
Trade payables and other 13,217 12,666 551
liabilities
Total liabilities 27,581 25,560 2,021
Total liabilities and 54,621 46,253 8,368
shareholders equity
STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY, EUR 1000
Share Rights Premium Retained Total
Capital Issue Fund Earnings
Equity on 1 Jan. 1,870 135 3,028 12,429 17,462
2004
Rights issue 62 682 357 1,101
Exchange rate differences 1 1
Other items 5 -5
Dividend distributed -6,998 -6,998
Profit for the financial 9,126 9,126
year
Equity 31 Dec. 1,932 817 3,390 14,553 20,692
2004
Equity 1 Jan. 2005 1,932 817 3,390 14,553 20,692
Rights issue 138 -530 1,752 1,360
Exchange rate differences 6 6
Dividend distributed -3,931 -3,931
Profit for the financial 8,902 8,902
year
Equity 31 Dec. 2,070 287 5,142 19,530 27,029
2005
CONSOLIDATED CASH FLOW STATEMENT, EUR 1000
1.1.31 1.1.31. Change
.12. 12.
2005 2004
Cash flow from business operations
Profit for the financial year 8,902 9,126 -224
Total adjustments 6,935 7,623 -688
Change in net working capital -2,760 1,657 -4,417
Cash flow from business
Operations 13,077 18,406 -5,329
Financial expenses paid -498 -409 -89
Financial income received 162 50 112
Income taxes paid -4,823 -2,136 -2,687
Net cash flow from business
operations 7,918 15,911 -7,993
Cash flow from investing activities
Acquisitions -2,056 -7,181 5,125
Investments in tangible and
intangible assets -2,377 -3,187 810
Proceeds from sales of fixed 62 44 18
assets
Cash flow from investing -4,371 -10 324 5,953
activities
Cash flow from financing
Share issue 1,360 1,102 258
Proceeds from long term borrowings 2,000 5,100 -3,100
Repayments of long term borrowings -2,011 -2,588 577
short-term loans
Change in short term borrowings -30 345 -375
Repayment of finance leases -307 -157 -150
Dividend distributed -3,931 -6,998 3,067
Net cash flow from financing -2,919 -3,196 277
Change in liquid funds 628 2,391 -1,763
Liquid funds at the beginning of 5,150 2,759 2,391
the period
Change in liquid funds 628 2,391 -1,763
Liquid funds at the end of the 5,778 5,150 628
period
QUARTERLY INFORMATION, EUR million
IV/20 III/20 II/20 I/200 IV/200 III/200 II/200 I/200 I-IV
05 05 05 5 4 4 4 4 /2004
Net sales by segment
Industry 15.1 13.8 15.5 12.5 11.7 11.5 13.4 11.7 48.3
Sport 6.9 8.6 9.7 9.2 8.1 8.9 9.8 8.8 35.3
Total net sales 21.9 22.4 25.2 21.7 19.8 20.4 23.2 20.5 83.9
Operating profit by segment
Industry 3.2 2.5 3.3 1.8 2.3 2.0 2.5 1.0 7.8
Sport -1.1 0.5 1.7 0.4 1.0 1.3 2.7 1.0 5.9
Total operating 2.2 3.0 5.0 2.2 3.3 3.3 5.2 1.9 13.7
profit
Financial income -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 -0.5
and expenses
Profit before 2.1 2.9 4.9 2.1 3.2 3.2 5.1 1.8 13.2
taxes
Income taxes -0.3 -0.9 -1.3 -0.6 -0.1 -1.0 -1.6 -0.6 -4.1
Profit for the 1.7 2.1 3.6 1.5 2.3 2.2 3.5 1.2 9.1
financial year
Earnings per 0.15 0.18 0.32 0.14 0.21 0.20 0.32 0.11 0.84
share, EUR
Earnings per 0.14 0.17 0.31 0.13 0.19 0.19 0.31 0.11 0.80
share (diluted),
EUR
Average number of shares,
undiluted, 1000 11521 11302 11230 11230 10998 10768 10766 10766 10826
shares
Average number of shares,
diluted, 1000 11611 11574 11393 11524 11464 11268 11162 11136 11464
shares
Average number 469 498 485 417 424 456 453 406 441
of personnel
COMMITMENTS AND CONTINGENCIES, EUR 1000
31.12. 31.12.
2005 2004
On own behalf
Mortgages 2,953 2,954
Corporate mortgages 12,500 12,500
Lease liabilities
- falling due in less than
1 year
216 223
- falling due in 1-5 263 1,563
years
Other commitments 66 67
DERIVATIVE CONTRACTS, NOMINAL VALUES, EUR 1000
31.12.2005 31.12.2004
Currency derivatives
Forward 0 877
contracts
Purchased 0 750
currency options
Sold currency 0 371
options
Interest swaps (NPV)
Interest swaps 1,748 2,636
CONSOLIDATED KEY FIGURES, EUR 1000
1.1.- 1.1.- Change %
31.12. 31.12.
2005 2004
Net sales 91,288 83,857 8.9%
Operating profit 12,388 13,702 -9,6%
% of net sales 13.6% 16,3%
Profit before taxes 12,046 13,236 -9.0%
% of net sales 13.2% 15.8%
Profit for the financial year 8,902 9,126 -2.5%
% of net sales 9.8% 10.9%
Equity 27,040 20,692 30.6%
Interest-bearing liabilities 13,957 12,597 10.8%
Liquid funds 5,778 5,150 12.2%
Net interest-bearing liabilities 8,179 7,447 9.8%
Capital employed 40,997 33,290 23.2%
Return on equity, % 37.3% 47.8%
Return on investment, % 34.0% 45.2%
Solvency ratio, % 50.0% 44.9%
Net gearing, % 30.2% 36.0%
Capital expenditure 4,119 5,803 -29.0%
% of net sales 4.5% 6.9%
R & D expenses 2,323 1,956 18.8%
% of net sales 2.5% 2.3% 9.1%
Order Stock of the Group 12,381 13,798 -10.3%
Earnings per share, EUR 0.78 0.84 -7.0%
Earnings per share (diluted), 0.76 0.80 -4.0%
EUR
Equity per share, EUR
Number of shares, 1000
- undiluted, average 11,359 10,826 4.9%
- diluted, average 11,550 11,464 0.8%
Average number of personnel 467 441 5.9%
