1. Changes in Intangible and Tangible Assets

Acquisition or production costs

2007

(in TEUR)	Balance as at 1 January 2007	Currency translation differences	Add-itions	Changes due to business acquisitions	Disposals	Trans-fers	Balance as at 31 December 2007

Intangible assets	74,022	(435)	3,949	2,566	661	66	79,507

Goodwill	225,955	(1,929)	1,937	7,229	0	0	233,192

Land and buildings	191,664	(2,884)	8,839	5,898	4,357	3,106	202,266
Technical equipment and machinery	174,082	(4,139)	16,311	7,429	4,670	6,985	195,998
Other equipment, factory and office
equipment	92,974	(1,578)	16,463	539	9,870	(901)	97,627
Assets in course of construction	8,075	(235)	7,437	71	218	(8,015)	7,115
Advance payments on
tangible assets	1,431	(77)	4,034	262	96	(1,241)	4,313
Total property, plant and equipment	468,226	(8,913)	53,084	14,199	19,211	(66)	507,319

Total intangible and tangible assets	768,203	(11,277)	58,970	23,994	19,872	0	820,018

Fixed assets acquisition costs (Download size 24 KB)

2006*

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

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

Goodwill	124,021	(4,371)	1,805	104,500	0	0	225,955

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

Total intangible and tangible assets	511,732	(14,676)	47,473	238,249	14,575	0	768,203

Fixed assets acquisition costs-py (Download size 20 KB)

*restated

Depreciation and amortization

2007

(in TEUR)	Balance as at 1 January 2007	Currency translation differences	Depreciation and amorti- zation for the year	Impairment	Disposals	Trans- fers	Balance as at 31 December 2007

Intangible assets	23,032	(303)	10,982	0	643	66	33,134

Goodwill	3,338	0	0	2,771	0	0	6,109

Land and buildings	63,071	(1,610)	6,053	437	421	72	67,602
Technical equipment and machinery	107,754	(2,852)	14,365	561	3,930	788	116,686
Other equipment, factory
and office equipment	60,302	(1,688)	14,563	0	9,406	(926)	62,845
Assets in course of construction	10	0	23	0	0	0	33
Advance payments on tangible
assets	0	0	0	0	0	0	0
Total property, plant
and equipment	231,137	(6,150)	35,003	999	13,757	(66)	247,166

Total intangible
and tangible assets	257,507	(6,453)	45,985	3,770	14,400	0	286,409

Fixed assets accumulated depreciation (Download size 25 KB)

2006*

(in TEUR)	Balance as at 1 January 2006	Currency translation differences	Depreciation and amorti- zation for the year	impairment	Disposals	Trans- fers	Balance as at 31 December 2006

Intangible assets	16,856	(287)	6,655	0	160	(32)	23,352

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

Land and buildings	58,939	(1,434)	4,760	0	1,549	2,355	66,169
Technical equipment
and machinery	110,233	(3,192)	11,442	0	4,820	(5,909)	117,394
Other equipment, factory
and office equipment	52,390	(1,776)	11,527	0	5,425	3,586	71,152
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	0	11,794	32	254,725

Total intangible
and tangible assets	241,766	(6,689)	34,384	0	11,954	0	281,415

Fixed assets accumulated depreciation-py (Download size 26 KB)

*restated

Net book value

(in TEUR)	Costs as at 31 December 2007	Accumulated depreciation	Net book value as at 31 Decem- ber 2007	Net book value as at 31 Decem- ber 2006*

Intangible assets	79,507	33,134	46,373	50,990

Goodwill	233,192	6,109	227,083	222,617

Land and buildings	202,266	67,602	134,664	128,593
Technical equipment and machinery	195,998	116,686	79,312	66,328
Other equipment, factory and office equipment	97,627	62,845	34,782	32,672
Assets in course of construction	7,115	33	7,082	8,065
Advance payments on tangible assets	4,313	0	4,313	1,431
Total property, plant and equipment	507,319	247,166	260,153	237,089

Total ingangible and tangible assets	820,018	286,409	533,609	510,696

Fixed assets book value (Download size 23 KB)

*restated

Finance leases

The net book value for technical equipment and machinery includes an amount of TEUR 777 (2006: TEUR 1,006) and the net book value for other equipment, factory and office equipment includes an amount of TEUR 448 (2006: TEUR 333) in respect of assets held under finance lease. The total of minimum lease payments at balance sheet date amounts to TEUR 1,403 (2006: TEUR 1,293). The lease contracts have terms from 60 up to 84 months.

Goodwill

(in TEUR)	2007	2006*

VA TECH HYDRO	97,836	95,767
Andritz Ahlstrom	32,577	35,287
Acquisition of Andritz AG	59,596	59,596
Other	37,074	31,967
	227,083	222,617

Goodwill (Download size 21 KB)

*restated

Impairment

In 2007, the goodwill arising from the acquisition of Pilão met the characteristics for impairment because the business did not develop according to plan. The impairment loss for this goodwill amounted to TEUR 2,771 and is related to the Pulp and Paper Business. It was included in the income statement under impairment of goodwill. The value of the reporting unit was estimated using discounted cash flow forecasts using a weighted average cost of capital of 11.01%. In 2006, there was no need for impairment of goodwill.

Furthermore, in 2007 the Company recorded impairment charges in the amount of TEUR 999 for buildings and technical equipment in the Pulp and Paper and Feed and Biofuel Business Areas.

Shares in associated companies

Accumulated assets of material associated companies included in the consolidated balance sheet as of December 31, 2007 amounted to TEUR 50,607, total liabilities to TEUR 39,871, Sales amounted to TEUR 89,971 and net income amounted to TEUR 1,497.