Annual Report 2006

Notes to the Consolidated Financial
Statements 2006 of the Mikron Group
The investment property (see note 6.8) generated rental revenue of CHF 2.7 million and services related to this property of
CHF 1.4 million. The updated fair value appraisal resulted in a revaluation of CHF 0.7 million. In addition, other operating
income includes information technology services rendered to third parties and other operating revenues.
5.5 Other operating expenses
CHF 1‘000 Note 2006 2005
Other expenses -25‘908 -27‘793
Expenses for lease commitments not recognized (operating lease) 7.4 -4‘443 -5‘672
Loss on sale of tangible assets 0 -3
Capital and other taxes (excl. Income taxes) -694 -1‘002
Total other operating expenses -31‘045 -34‘470
Other operating expenses mainly comprise of expenditure for office/working space and infrastructure of CHF 5.9 million,
marketing and sales expenses totaling CHF 6.6 million, personnel related expenses of CHF 3.8 million and research and development
costs amounting to CHF 2.4 million. The reversal of unused provisions has affected the operating expenses positively.
The expense for off-balance sheet lease obligations principally includes rents for owner-used property and other operating
leases.
5.6 Financial income and expenses
CHF 1‘000 2006 2005
Financial income 4‘901 11‘303
Financial expenses -7‘117 -9‘669
Total financial result - net -2‘216 1‘634
The financial result is composed of the following items:
CHF 1‘000 2006 2005
Interest income 924 2‘338
Interest expenses -595 -314
Total interest result - net 329 2‘024
Exchange gains 3‘953 8‘947
Exchange losses -5‘826 -8‘673
Other financial income 24 18
Other financial expenses -696 -682
Total other financial result - net -2‘545 -390
Total financial result - net -2‘216 1‘634
Net interest result consists of interest income on short-term financial assets, the interest expense in connection with finance
lease obligations and the impact of the discounting of long-term provisions. The prior-year figure includes interest income
on loans to the Plastics Technology division, which was subsequently sold off. Major exchange rate fluctuations led to net
currency losses of CHF 1.9 million (prior year: currency gain of CHF 0.3 million). The costs for bank guarantees to cover
customer advance and progress payments are disclosed under other financial expenses.
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