PDF (7.3 MB) - GILDEMEISTER Interim Report 3rd Quarter 2012

Results of Operations, Financial Position and Net Worth: Value Reporting / Investments 47weighted average cost of capital (wacc)2010 2009Risk-free interest rate 3.3% 3.9%Market risk premium 5.0% 5.0%Beta factor 1.0 1.0Cost of equity after tax 8.3% 8.9%Cost of debt capital before tax 9.1% 5.8%Tax rate (28.8%) 2.6% 1.7%Cost of debt capital after tax 6.5% 4.1%Share of equity 30% 33%Share of debt capital 70% 67%Cost of capital after tax 7.0% 5.7%Tax rate 28.8% 28.8%Cost of capital before tax (wacc) 9.8% 8.0%business reportFinancial Position / Net WorthInformation on planned future net investments can be found in the “Futuredevelopment of the gildemeister group” on page 115.InvestmentsInvestments in property, plant and equipment, and in intangible assets amounted to€ 39.0 million (previous year: € 26.5 million). Despite the difficult past two years, we havepushed our development projects in order to also be able to offer our innovations in themarket in the future. Depreciation of property, plant and equipment, taking intoaccount capitalised development costs and finance leases, of € 29.5 million was at theprevious year’s level (€ 29.1 million).The main focus of investments was the majority equity interest in Cellstrom andtherefore entry into the energy storage solutions market. At the in-house exhibition inBielefield, gildemeister presented for the first time an “Energy Solutions Park” andintroduced the new business area of large machines (dmg-xxl machines). Moreover, weinvested in the further development of our innovative products, for example in the newgeneration of 5-axis universal milling machines and in high-tech machines forproduction turning. In addition, we invested in building up our sales and service activitiesin Malaysia – one of 23 cooperation markets with our partner, Mori Seiki. Further investmentsserved to make available the necessary tools, models and resources for production.Additions to financial assets amounted to € 11.0 million, primarily through a 33%investment in mg Finance GmbH, as well as through the acquisition of a 5% interest inYounicos ag and through a 50% investment in dmg / Mori Seiki Australia Pty. Ltd. Investmentsamounted in total to € 50.0 million (previous year: € 57.8 million).