| 12. | Earnings per share |
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| | The undiluted earnings per share figure is calculated by dividing the profit for the financial year belonging to |
| | the parent company's shareholders by the weighted average number of shares outstanding during the financial year. |
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| 2007 |
| 2006 |
| | Profit for financial year belonging to parent company shareholders, EUR million | 25.8 | | 26,596 |
| Weighted average number of shares outstanding, 1000 pcs |
| 18,209 |
| 18,168 |
| | Earnings per share, EUR | | | | | 1.42 | | 1.46 |
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| | When calculating the earnings per share adjusted by dilution, the weighted average of the number of shares takes into account the dilution of all potentially diluting shares. The Group has share options (option scheme 2000) that increase the number of diluting shares. The share options have a dilution effect when the subscription price of the options is lower than the fair value of the share. A dilution effect arises from the number of shares that have to be issued without consideration because with the funds obtained from the exercising of the options the Group could not issue the same number of shares at fair value. The fair value of the share is based on the average price of the shares during the financial year. |
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| Profit for financial year belonging to parent company shareholders, EUR million | 25.8 |
| 26.6 |
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| Weighted average number of shares outstanding, 1000 pcs |
| 18,209 |
| 18,168 |
| | Effect of share options 2000, 1000 pcs | | | 0 | | 7 |
| Diluted weighted average number of shares, 1000 pcs |
| 18,209 |
| 18,174 |
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| Diluted earnings per share, EUR |
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| 1.42 |
| 1.46 |
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| 13. | Dividend per share |
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| | For 2006 a dividend of 0.85 euros per share was paid. At the Annual General Meeting to held on 27 March 2008 the payment of a dividend of 0.85 euros per share will be proposed, representing a total dividend of EUR 15.5 million. The proposed dividend has not been recognised as a dividend liability in these financial statements. |
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| 14. | Intangible assets |
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| EUR million |
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| Other |
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| Intangible |
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| intangible |
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| Intangible assets |
| rights | Goodwill | Trademark | assets | Total |
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| | Acquisition cost 1 Jan | | 20.6 | 10.0 | 3.2 | 2.3 | 36.1 | |
| Translation difference |
| -1.0 | -2.3 | -0.3 | -0.1 | -3.8 |
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| | Increases | | 0.5 | - | - | - | 0.5 | |
| Acquisition of subsidiary |
| 0.0 | - | - | - | 0.0 |
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| | Decreases | | -0.3 | - | - | - | -0.3 | |
| Transfers between items |
| 0.6 | - | - | - | 0.6 |
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| | Acquisition cost 31 Dec | | 20.4 | 7.7 | 2.9 | 2.2 | 33.1 | |
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| Accumulated depreciation and impairment 1 Jan | 13.7 | - | - | 1.4 | 15.1 |
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| | Translation difference | | -0.5 | -1.3 | - | -0.1 | -1.8 | |
| Accumulated depreciation |
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| | of decreases and transfers | | -0.3 | - | - | - | -0.3 | |
| Depreciation in financial year |
| 2.0 | - | - | 0.3 | 2.4 |
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| | Accumulated depreciation 31 Dec | 14.9 | -1.3 | 0.0 | 1.7 | 15.3 | |
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| | Carrying amount 31 Dec 2007 | 5.5 | 8.9 | 2.9 | 0.5 | 17.8 | |
| Carrying amount 31 Dec 2006 |
| 6.9 | 10.0 | 3.2 | 0.9 | 21.0 |
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| | Goodwill has not been depreciation as of 1 January 2004. | | | | |
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| Goodwill and trademark impairment testing |
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| | Goodwill is attributed to the segments Vaisala Measurement Systems and Vaisala Solutions. Trademark EUR 2.9 (3.2) million is attributed to the segment Vaisala Measurement Systems. The balance sheet value of goodwill and trademarks is assessed at least once per year to ascertain any possible impairment. Trademark value is assessed by the relief-from-royalty method by comparing the present value of the royalty payments saved with the value of thetrademark. For impairment testing the goodwill is attributed to three different cash generating units, i.e. EUR 4.6 million (2006 EUR 5.1 million) to a North American lightning detection systems business unit, EUR 1.1 million (2006 EUR 1.2 million) to a North American airport weather support systems business unit, and EUR 3.3 million (2006 EUR 3.7 million) to a North American radar systems business unit. The value of the recoverable amount of the cash generating unit is based on value-in-use calculations. The cash flow forecasts used in these calculations are based on actual operating profit and management-approved five-year forecasts. Estimated amounts of sales are based on existing fixed assets and the most important assumptions of the forecasts are the sales distribution for each country and the margin received from the products. Vaisala’s sector-specific capital yield requirement before taxes (WACC) has been used as the discount rate. The components of the yield requirement are the risk-free yield percentage, the market risk premium, the sector-specific beta coefficient as well as the cost and target capital structure of borrowing. The discount rate in 2007 was 15.2% (2006 15.9%). Cash flows after the management-approved forecast period have been calculated using the residual value method, in which the average of operating profits of the last four planning periods have been multiplied by four and discounted using the discount rate described above and the zero-growth percentage. On the basis of impairment testing there is no need for impairment recognitions. On the basis of sensitivity analyses made, reasonable changes to the assumptions used do not result in impairment of the goodwill of North American lightning detection systems business unit or North American radar systems business unit. At the North American airport weather business unit, a weakening of more than 6 per cent in sales or the margin receivable from products would result in an impairment recognition. |
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| 15. | Tangible assets |
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| Advance |
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| EUR million |
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| Other | payments and |
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| Land and | Buildings and | Machinery | tangible | construction |
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| Tangible assets |
| waters | structures | and equipment | assets | in progress | Total |
| | Acquisition cost 1 Jan | | 2.7 | 31.5 | 47.3 | 2.5 | 3.2 | 87.2 |
| Translation difference |
| -0.2 | -0.3 | -1.1 | -0.2 | 0.0 | -1.8 |
| | Increases | | - | 0.0 | 2.8 | 0.4 | 3.7 | 7.0 |
| Decreases |
| - | 0.0 | -1.9 | 0.0 | - | -1.9 |
| | Transfers between items |
| - | 0.0 | 1.8 | 0.0 | -2.5 | -0.6 |
| Acquisition cost 31 Dec |
| 2.6 | 31.2 | 49.0 | 2.7 | 4.4 | 89.8 |
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| Accumulated depreciation and impairment 1 Jan | - | 13.7 | 38.5 | 1.6 | - | 53.8 |
| | Translation difference | | - | -0.1 | -0.9 | 0.0 | - | -1.0 |
| Accumulated depreciation |
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| | of decreases and transfers | | - | 0.0 | -1.9 | 0.0 | - | -1.9 |
| Depreciation in financial year |
| - | 1.7 | 3.9 | 0.3 | - | 5.8 |
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| Accumulated depreciation 31 Dec | 0.0 | 15.3 | 39.5 | 1.9 | 0.0 | 56.7 |
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| Carrying amount 31 Dec 2007 | 2.6 | 15.9 | 9.5 | 0.8 | 4.4 | 33.1 |
| | Carrying amount 31 Dec 2006 | | 2.7 | 17.8 | 8.9 | 0.9 | 3.2 | 33.5 |
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| | The undepreciated acquisition cost of machinery and equipment belonging the tangible fixed assets was EUR 25.4 million on 31.12.2007 (EUR 25.0 million 31.12.2006). |
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| | Tangible fixed assets include the following assets acquired on finance leases: | | |
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| Machinery and |
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| 2007 EUR million |
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| equipment |
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| | Acquisition cost | | | | 1.2 | | | |
| Accumulated depreciation |
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| -0.7 |
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| | Carrying amount 31 Dec 2007 | | 0.4 | | | |
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| Machinery and |
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| 2006 EUR million |
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| equipment |
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| | Acquisition cost | | | | 1.3 | | | |
| Accumulated depreciation |
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| -0.8 |
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| | Carrying amount 31 Dec 2006 | | 0.5 | | | |