PDF Document 2.46 MB - Geveko

Report of the directors(38.6) is attributable to IndustrialOperations and a deficit of SKr 8.4million (profit 108.8) is attributableto Management of Securities. Un -absorbed costs amounted to SKr 19.5million (13.7).The Group’s net result frominterest and other financial earningsand costs was negative SKr 32.9million (neg 9.0). Of the deteriorationof SKr 23.9 million in relation to theprevious year, SKr 12.6 million wasattributable to currency fluctuationsbetween 2006 and 2007.The consolidated result after taxwas a loss of SKr 24.6 million (profit116.3). The year’s tax charge amountedto SKr 6.9 million (8.4). After adjustmentfor minority holdings of SKr4.0 million (2.7), the year’s resultattributable to the parent company’sshareholder is a loss of SKr 20.5million (profit 119.0).The Group’s liquid funds in -cluding short-term placementsamounted to SKr 106 million (134)at the end of the year. As of 31December 2007, listed shares arestated as current assets. The liquidityratio, i.e. current assets excludinginventories in relation to currentliabilities, was 142 (112) %.The Group’s equity ratio at 31December 2007 was 37.0 (60.2) %.The main reason for the reduction isthe share redemption scheme carriedout in 2007.The Group’s cash flow fromoperations before investmentsamounted to SKr 11.7 million (54.7).Investments in tangible fixed assetsamounted to SKr 77.8 million (41.4).Net sales of securities amounted toSKr 323 million (69).A dividend of SKr 11 per share(11) was paid, amounting in total toSKr 46.4 million (46.4). In addition,a further SKr 75 per share, or SKr316.4 million was paid to share -holders by way of a share redemptionscheme. The Group’s net debton 31 December 2007 amounted toSKr 216 million (240).Industrial OperationsIndustrial Operations’ net turnoveramounted to SKr 1,079 million(1,035) in 2007. Turnover increasedby 4.2 (4.4) %. The increase is attributableto acquisitions. The grossprofit rose by 6.3% to SKr 221.1million (207.9).Industrial Operations’ operatingprofit amounted to SKr 43.0 million(38.6). The operating margin was 4.0(3.7) % and the return on operativecapital was 6.8 (6.9) %. The contri -bution to the result from associatecompanies is included in the operatingprofit as these companies arefully integrated into IndustrialOperations. The cost of technicaldevelopment, sales, administrationand management amounted to SKr194.0 million (187.4).Management of securitiesManagement of Securities’ resultdeclined by SKr 100.4 million to aloss of SKr 8.4 million (profit 108.8).The holding of listed securitieshad a market value at 31 December2007 of SKr 234 million (563), whichwas also the book value. The value ofthe Equities Portfolio, includingcapital gains/losses, declined by SKr18.2 million (increase 100.4).During the year shares werepurchased for SKr 179 million (272)and sold for SKr 502 million (341),i.e. net sales of SKr 323 million (69).TaxationThe tax for the year relates to operatingsubsidiaries. The parent companyhad no tax charge.Future outlookIndustrial Operations is primarilyinvolved in the road-marking business.In Western Europe this is amature industry with growth mainlyvia acquisition. In Central andEastern Europe organic growth predominates.Geveko’s mainmarkets are subject to intenselycompetitive pricing. Geveko’s aim isto generate profitable growth andconsolidate its position as the leadingsupplier of horizontal road markingsSKr million300250200150100500Net debt2003 2004 2005 2006 2007in Europe. This will be accomplishedby having cost-effective production,a highly decentralised organisationthat is characterised by flexibility,and the provision of high-qualityand innovative products.EmployeesThe average number of employees in2007 was 638 (611). The number ofemployees in Geveko’s foreign companieswas 479 (444). Wages, salariesand other benefits amounted to SKr231 million (210). Notes 4, 34 and35 provide information about thenumber of employees per countryand a specification of payroll costs.Guidelines for benefits ofsenior management personnelThe Board will propose that theAGM to be held on 24 April 2008establishes the following guidelinesfor the remuneration and otherbenefits of senior management personnel.The company aims to offer acompetitive remuneration package,the criteria for which are based onthe importance of the tasks, competencerequirements, experience andperformance. The package shall consistof the following components:fixed basic salary, variable salary,pension benefits, other benefits andseverance conditions.The variable component shallamount to no more than 40% of thefixed annual salary, and be based onthe result in relation to agreed indi-49