†rsrapport Nycomed - Takeda Pharmaceuticals International GmbH

ACCOUNTSCHIEF FINANCIAL OFFICER`s REPORTRestructuring expensesOne of the outcomes of the project to restructure the Nordic production structurewas the decision to close down the factory in Oslo. Based on a detailed implementationplan, a restructuring cost of DKK 120 million was provided for in theprofit and loss account for 2000. The restructuring cost relates to employeecosts, building rent, fixed assets and consultant fees.Financial items and taxNet financial expenses in 2000 were DKK 231 million compared to DKK 148 millionin seven months of 1999. Recalculated on a full year basis, net financialitems were reduced by DKK 33 million from 1999 to 2000 as a consequence ofcontinuing positive cash flows during both 1999 and 2000.The debt portfolio is denominated in various currencies matching to a largeextent the overall revenue split. 60% of total debt is fixed rate debt with maturitySeptember 2002, 18% is fixed until May 2009, with the remainder being floatingrate debt.A total of DKK 196 million was repaid on long term debt in 2000 of which DKK152 million were scheduled repayments. Total scheduled repayments for 2001are DKK 137 million.Nycomed hedges 100% of all currency risk related to balance sheet items exceptequity. In addition 75 – 100% of expected 12 months rolling cash flow is hedged.The tax income for the year was DKK 14 million due to a negative result beforetax of DKK 57 million. The tax income is effected by a reduction of the Danishtax rate from 32% to 30%, effective from January 1 st 2001, which resulted in atotal positive effect on deferred tax of DKK 32 million. This is offset by the amortizationof DKK 53 million goodwill which is not deductible for tax purposes andwhich consequently has a negative impact on the effective tax rate. Excludingthese two items the tax expense would have been DKK 18 million from a negativeresult before tax of DKK 4 million. The main reason for the tax expense wereadjustments related to prior years and expenses not deductible for tax purposes.–37–