Annual Report 2006 - Munters

NOTE 15 PARTIciPATIONS IN ASSOCIATED COMPANIESAerotechAsia Inc CoCountryShare ofvotes andcapital, %AcquisitionvalueReportedvalue inGroupShares inearnings2006British VirginIslands 50 4 4 –Impairment occurred in the amount of SEK 2 M (0). No business wasconducted in the company. Impairment was calculated at the estimatedrecoverable amount at a possible future liquidation of the company.NOTE 16 PREPAID EXPENSES AND ACCRUED INCOMEGroupParent Company2006 2005 2006 2005Prepaid rent and leases 6 6 1 1Prepaid insurance premiums 9 12 – –Other items 41 32 2 156 50 3 2NOTE 18 EQUITYShare capitalThe share capital SEK 125,000,000 comprises 25,000,000 shares with a parvalue of SEK 5.00. Each share entitles the holder to one vote. All shares carrythe same right to a share in the Company’s assets and profits.ReservesReserve forunrealized gainsReserve fortranslationdifferencesTotalreserves1 January 2005 2 –56 –54Cash flow hedges –3 – –3Translation differences – 140 14031 December 2005 –1 84 83Cash flow hedges 3 – 3Translation differences – –132 –13231 December 2006 2 –48 –46The reserve for unrealized gains consists of the portion of gains and lossesattributable to cash-flow hedges that are classified as effective.The reserve for translation differences consists of differences that arise whenthe income statements and balance sheets of foreign subsidiaries are translatedinto Swedish kronor.NOTE 17 FINANCIAL INSTRUMENTSA financial instrument is defined as a contract that results in a financial assetin a company and a financial liability or equity instrument in another company.Financial instruments include both primary instruments, such as accountsreceivable, accounts payable and shares, as well as derivatives, such asoptions, forward contracts and interest and currency swaps.For a description of financial risk management, refer to the section “Riskmanagement” on pages 30–31, which is part of the financial statements.Financial instruments in addition to those that arise in current operations arerelatively limited within the Munters Group. In addition to the stock optionspresented in Note 28, they consist primarily of currency hedges and interestbearingborrowing with banks (see Note 19).Holding of own sharesIn order to cover its commitments for outstanding option programs, theCompany has acquired its own shares held as treasury stock.NumberPar value, SEK1 January 2005 621,950 3,109,750Sales in 2005 –202,700 –1,013,50031 December 2005 419,250 2,096,250Sales in 2006 –14,000 –70,00031 December 2006 405,250 2,026,250Financial instruments reported at accrued acquisition valueFor accounts receivable, accounts payable and other assets and liabilities thatare reported at accrued acquisition value, reported value corresponds to fairvalue on account of the short maturity.Derivative instrumentsAt the end of the year, there were currency hedges within the Group accordingto the table below. They have been reported at fair value on the balance sheet.CurrencyNet sales amount inlocal currency, 000sReported value,SEK 000sEUR –1,858 130USD 472 925GBP 101 –12DKK 1,715 –4JPY –18,638 115PLN –700 21ZAR 6,000 –60Total 1,115Negative net selling amounts refer to purchasing and positive net selling amounts refer to selling.In total, treasury shares have been acquired for a purchase price of SEK68,870,966, corresponding to an average price including commission ofSEK 169.94 per share.Number of outstanding sharesExcluding treasury shares, the number of outstanding shares at year-endamounted to 24,594,750.Options programOutstanding options programs are described in Note 28.Dividend during the yearThe Annual General Meeting on 26 April 2006 approved the proposal of theBoard of Directors and the President of a dividend amounting to SEK 5.50 pershare, or SEK 135,194,125 in total.Proposed dividendThe Board of Directors proposes that the Annual General Meeting approve adividend of SEK 6.75 per share be paid to the shareholders, or SEK166,014,563 in total.All forward contracts fall due for payment during 2007. In accordance withthe Group’s policy, payments in most cases will be due during the first halfof the year.M U N T E R S A N N U A L R E P O R T 2 0 0 6 57