Annual Report 2010 - Frauenthal Holding AG

Shareholder value
Operating Review
Growing the value of the Frauenthal Group is one of management’s prime objectives. Economic value added (EVA) and
return on capital employed (ROCE) are the key measures used as levers of performance at Group level.
value measures
EUR ’000 2010 2009
Revenue 539,385 454,487
eBita 21,705 -24,919
Taxes at average effective rate -5,426 0
noPat 16,279 -24,919
Capital employed 189,854 173,867
WACC in % 7.08 % 6.08 %
Cost of capital 13,442 10,571
roCe in % 8.57 % -14.33 %
eva 2.837 -35.490
eva per share in eur 0.3 -3.9
Due to the return to profi t in 2010 all of the key performance indicators improved. EBITA was up by EUR 46.6m. The tax
due on the Company’s earnings at the 25 % average effective rate is EUR 5.4m, yielding a net operating profi t after tax
(NOPAT) of EUR 16.3m. This indicator is related to capital employed throughout the Group, and the ROCE thus calculated
shows the extent to which Frauenthal is meeting investors’ expectations in terms of returns. The weighted average cost of
capital (WACC) was adjusted to the changes in the Group‘s fi nancing and in fi nancial markets, and was 7.08 % in 2010.
The other key indicator, economic value added (EVA), turned positive by EUR 2.8m (2009: -35.5m). EVA is the difference
between NOPAT and ROCE, and is a measure of profi tability. These improvements refl ected the good performance of all
Frauenthal’s business operations, which led to a signifi cantly higher return on investment.
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