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56
Share of profit/(losses) of associates
The Group’s share of losses of associates came to
(3.6) million, on par with 2004.
Minority interests
Minority interests were stable at (35.2) million. They
correspond primarily to the share of profit attributable
to minority partners in MGE-UPS, Feller AG, EPS Ltd.
and a number of Chinese companies.
Profit attributable
to equity holders of the parent
Profit attributable to equity holders of the parent rose
20.6% to 994.3 million.
Earnings per share
The 22.3% increase from 3.73 to 4.56 reflects
growth in profit for the period and continuation of the
share buyback program in 2005.
Financial situation
Balance Sheet and
Cash Flow Statement items
Total assets stood at 16,615 million at December 31,
2005, up 25% from the previous year-end. Non cur-
rent assets amounted to 10,225 million and repre-
sented 62% of total assets, an increase of 25.3% from
2004.
Goodwill
Goodwill totaled 5,879 million, or 35% of total
assets, and showed an increase of 1,417 million, or
31.7%, over the period.
Acquisitions added 1,080 million, of which 322 mil-
lion (as of the date of acquisition) for Juno Lighting
Inc., 383 million for BEI Technologies, 148 million
for PMI Inc., 119 million for ABS EMEA, and 49
million for ELAU GmbH.
The currency effect added another 302 million, while
the allocation to intangible assets of a portion of the
goodwill recognized on first-time consolidation of
Kavlico reduced the total by 33 million (of which 12
million for the trademark). In accordance with IAS 32
and IAS 39, the Group recognized goodwill in the
amount of 76.7 million at January 1, 2005 in connec-
tion with the put option granted to minority sharehold-
ers of MGE.
3
Impairment tests conducted at the end of the year did
not reveal any material losses. Goodwill impairment
totaled 8.4 million for some 15 entities.
Property, plant and equipment
and intangible assets
Property, plant and equipment and intangible assets
came to 2,907 million, or 17.5% of total assets, up
23.2% from the year before.
Intangible assets
Trademarks rose 20.4% over the period to 741 mil-
lion following the recognition of Juno Lighting Inc.’s
brands in an amount of 93 million. Gross capitalized
development costs totaled 187 million (165 million
net), reflecting the capitalization in 2005 of costs relat-
ed to current projects in an amount of 109 million.
Other intangible assets, net, primarily comprising soft-
ware and patents, rose 176 million over the year. The
increase stems from the recognition of customer lists
and patents in an amount of 140 million following the
acquisitions of Juno, PMI and Kavlico, as well as 87
million in software investments, primarily as part of the
Group’s program to deploy a global SAP system.
Property, plant and equipment
Property, plant and equipment increased by 143 mil-
lion to 1,607 million. Acquisitions added 99 million,
net investments totaled 266 million and depreciation
came to 282 million. The currency effect had a posi-
tive impact of 69 million.
Investments in associates
Investments in associates decreased 17 million to
48.2 million, mainly on the full consolidation of ELAU
Administration GmbH after the Group increased its
interest to 100% in the first half of 2005. ELAU was
previously accounted for by the equity method.
Non-current financial assets
Non-current financial assets, primarily equity instru-
ments quoted in an active market and loans and
receivables related to investments, totaled 597 mil-
lion, an increase of 35% from December 31, 2004.
Starting in 2005 in accordance with IAS 32 and IAS 39,
listed investments classified as available-for-sale
financial assets were measured at fair value. Fair value
adjustments to available-for-sale financial assets–pri-
marily shares in AXA (formerly Finaxa) –amounted to
152 million at December 31, 2005. The contra entry
was posted to equity.
Unlisted available-for-sale financial assets declined by
30 million to 33 million, reflecting the full consolida-
tion of Abacus and SE Relays as from January 1,
2005. The Group acquired these companies at the end
of 2004.
Other non-current financial assets declined to 281
million from 288 million the year before due to the
payment of a 17 million receivable on the divestment
of VA Tech Schneider HV GmbH and capitalization of