PDF Document 2.46 MB - Geveko

Business concept, strategy and financial targetsFinancial targetsThe Group’s overriding objective isto earn a return on equity of at least13% per year and an equity ratio thatdoes not fall below 35%.In 2007 a business plan wasadopted for the Group’s developmentover the next three years. The objectiveis to achieve an operating marginof 8%.The operating margins for 2004-2007 were reduced by the depreciationof goodwill arising in connectionwith acquisitions. Excluding thisdepreciation, the margin is increasingby 1.5 to 1.8 percentage points ayear.The results for 2007 and 2006were adversely affected by disturbancesto the activities in GreatBritain, Denmark and Romania.Financial targets – Follow-up 2007-2003Outcome 2007 2006 2005 2004 2003Operating margin, % 4.0 3.7 5.1 6.5 9.5EBITA, % 5.3 5.3 6.3 8.3 9.5Return on:Operating capital, % 6.8 6.9 9.6 - -Capital employed, % - - - 14.3 20.9ForecastBusiness Area Road Markings’ activitiesare highly seasonal, withemphasis on the second and thirdquarters. Much of the volume in theroad marking industry is decided onthe basis of procurements that takeplace during the first half of the year.The full-year effects of acquisitionscompleted during the second half of2007 are expected to have afavourable effect on turnover. Theseasonal character of Business AreaRoad Markings means that most ofGeveko’s result is generated duringthe second half of the year. For thisreason, Geveko does not forecast itsresult for the full year before, at theearliest, the publication of the company’sinterim report for the firsthalf-year.The A1 Motorway will run from Gdansk on Poland’s Baltic coast to the Czech border where it will join the D1 Motorway in the CzechRepublic. The contractor Technom, which was acquired by Geveko in 2007, has carried out application of road markings on the A1Motorway. Some 90 km of the motorway are expected to be ready in 2008.11