1. Changes in Intangible and Tangible Assets

Acquisition or production costs

2006

(in TEUR)	Balance as at 1 January 2006	Currency translation differences	Add-itions	Dis-posals	Changes due to business acquisitions	Trans-fers	Balance as at 31 December 2006

Intangible assets	25,601	(503)	5,968	819	43,505	270	74,022

Goodwill	124,021	(4,371)	1,805	0	89,275	0	210,730

Land and buildings	132,516	(2,800)	5,734	1,581	48,948	8,847	191,664
Technical equipment and machinery	150,455	(4,589)	10,877	5,454	25,340	(2,547)	174,082
Other equipment, factory and office
equipment	74,200	(2,196)	13,806	5,909	11,624	1,449	92,974
Assets in course of construction	4,416	(200)	8,042	811	3,860	(7,232)	8,075
Advance payments on
tangible assets	523	(17)	1,241	1	472	(787)	1,431
Total property, plant and equipment	362,110	(9,802)	39,700	13,756	90,244	(270)	468,226

Total intangible and tangible assets	511,732	(14,676)	47,473	14,575	223,024	0	752,978

rep06-en-fixed_assets_acquisition_costs.xls (Download size 20 KB)

2005

(in TEUR)	Balance as at 1 January 2005	Currency translation differences	Add-itions	Dis-posals	Changes due to business acquisitions	Trans-fers	Balance as at 31 December 2005

Intangible assets	29,025	816	2,436	8,827	2,151	0	25,601

Goodwill	110,516	5,286	0	0	8,219	0	124,021

Land and buildings	124,811	2,846	1,611	265	3,510	3	132,516
Technical equipment and machinery	134,676	5,773	6,295	692	4,160	243	150,455
Other equipment, factory and office
equipment	66,184	3,188	12,224	8,408	739	273	74,200
Assets in course of construction	939	181	3,645	96	283	(536)	4,416
Advance payments on
tangible assets	77	3	523	63	0	(17)	523
Total property, plant and equipment	326,687	11,991	24,298	9,524	8,692	(34)	362,110

Total intangible and tangible assets	466,228	18,093	26,734	18,351	19,062	(34)	511,732

rep06-en-fixed_assets_acquisition_costs_py.xls (Download size 20 KB)

Depreciation and amortization

2006

(in TEUR)	Balance as at 1 January 2006	Currency translation differences	Depreciation and amorti- zation for the year	Dis-posals	Changes due to business acquisitions	Trans-fers	Balance as at 31 December 2006

Intangible assets	16,856	(287)	6,655	160	0	(32)	23,032

Goodwill	3,338	0	0	0	0	0	3,338

Land and buildings	58,939	(1,434)	4,760	1,549	0	2,355	63,071
Technical equipment
and machinery	110,233	(3,192)	11,442	4,820	0	(5,909)	107,754
Other equipment, factory
and office equipment	52,390	(1,776)	11,527	5,425	0	3,586	60,302
Assets in course of construction	10	0	0	0	0	0	10
Advance payments on tangible
assets	0	0	0	0	0	0	0
Total property, plant
and equipment	221,572	(6,402)	27,729	11,794	0	32	231,137

Total intangible
and tangible assets	241,766	(6,689)	34,384	11,954	0	0	257,507

rep06-en-fixed_assets_accumulated_depreciation.xls (Download size 26 KB)

2005

(in TEUR)	Balance as at 1 January 2005	Currency translation differences	Depreciation and amorti- zation for the year	Dis-posals	Changes due to business acquisitions	Trans-fers	Balance as at 31 December 2005

Intangible assets	21,964	708	2,879	8,695	0	0	16,856

Goodwill	2,955	0	383	0	0	0	3,338

Land and buildings	54,180	1,586	3,286	113	0	0	58,939
Technical equipment
and machinery	98,750	4,075	7,993	442	0	(143)	110,233
Other equipment, factory
and office equipment	48,367	2,173	9,700	7,959	0	109	52,390
Assets in course of construction	0	0	10	0	0	0	10
Advance payments on tangible
assets	0	0	0	0	0	0	0
Total property, plant
and equipment	201,297	7,834	20,989	8,514	0	(34)	221,572

Total intangible
and tangible assets	226,216	8,542	24,251	17,209	0	(34)	241,766

rep06-en-fixed_assets_accumulated_depreciation_py.xls (Download size 26 KB)

Net book value

(in TEUR)	Costs as at 31 December 2006	Accumulated depreciation	Net book value as at 31 Decem- ber 2006	Net book value as at 31 Decem- ber 2005

Intangible assets	74,022	23,032	50,990	8,745

Goodwill	210,730	3,338	207,392	120,683

Land and buildings	191,664	63,071	128,593	73,577
Technical equipment and machinery	174,082	107,754	66,328	40,222
Other equipment, factory and office equipment	92,974	60,302	32,672	21,810
Assets in course of construction	8,075	10	8,065	4,406
Advance payments on tangible assets	1,431	0	1,431	523
Total property, plant and equipment	468,226	231,137	237,089	140,538

Total ingangible and tangible assets	752,978	257,507	495,471	269,966

rep06-en-fixed_assets_book_value.xls (Download size 23 KB)

Finance leases

The net book value for technical equipment and machinery includes an amount of EUR 1,006 thousand (2005: EUR 772 thousand) and the net book value for other equipment, factory and office equipment includes an amount of EUR 333 thousand (2005: EUR 73 thousand) in respect of assets held under finance lease. The total of minimum lease payments at balance sheet date amounts to EUR 1,293 thousand (2005: EUR 582 thousand). The leasing contracts have remaining terms from 7 up to 48 months.

Goodwill

(in TEUR)	2006	2005

VA TECH HYDRO	80,542	0
Andritz Ahlstrom	35,287	35,540
Acquisition of Andritz AG	59,596	59,596
Other	31,967	25,547
	207,392	120,683

rep06-en-goodwills.xls (Download size 20 KB)

In 2006, there was no need for impairment of goodwill. In 2005, the goodwill arising from the acquisition of CyberMetrics Inc. met the tests for impairment because the business did not develop according to plan. The impairment loss for this goodwill amounted to EUR 383 thousand and is related to the pulp and paper business. It was included in the income statement under impairment/amortization of goodwill.

Shares in associated companies

Accumulated assets of material associated companies included in the consolidated balance sheet as of December 31, 2006 amount to EUR 53,205 thousand, total liabilities to EUR 43,866 thousand, sales amount to EUR 82,159 thousand and net income amounts to EUR 2,506 thousand.