Financing Strategy

Financing Strategy

The last five years, Phoenix Mecano invested some EUR 77 million in tangible assets. The bulk of the investment so far has been for machinery and equipment. This reflects Phoenix Mecano's policy of automating production in order to exploit economies of scale.

Cashflow was considerably in excess of investments, whereby the company achieved a total free cashflow of EUR 100.3 million to date. Phoenix Mecano finances its acquisitions entirely from the cashflow, without having to borrow fresh capital.

Key figures*:
		2007	2006	2005
Consolidated gross sales	Mio. EUR	389,4	346,5	315.0
Change	%	12,4	10,0	1.5
Operational Cashflow	Mio. EUR	55.1	51.7	44.7
Change	%	6.6	15.8	-4.2
in % of sales	%	14.1	14.9	14.2
Operating Income	Mio. EUR	38.8	35.8	27.5
Change	%	8.4	31.1	-1.5
in % of sales	%	10.0	10.3	8.7
Earnings before interest and taxes	Mio. EUR	38.8	35,8	23.8
Change	%	8.4	50.7	-15.0
Net result before minority interests	Mio. EUR	30.0	27.8	-8.8
Change	%	7.9	415.1	-159.4
in % of sales	%	7.7	8,0	-2.8
in % of equity capital	%	16.4	16.7	-6.3
Number of employees
(average over the year)	Employees	4'981	4'194	3'753
Gross sales per employee	1000 EUR	79.6	82.6	83.9
Expenditure per employee	1000 EUR	22.9	24.8	25.7
Total assets	Mio. EUR	287.6	263.7	285.0
Shareholders equity	Mio. EUR	182.5	166.9	142.9
in % of the total assets	%	63.5	63.3	49.4
Net indeptedness	Mio. EUR	4.3	13.0	22.0
in % of equity capital	%	2.4	7.8	15.6
Cashflow from business operations	Mio. EUR	38.8	25.5	38.1
Free Cashflow	Mio. EUR	21.7	12.2	25.1
Investments in tangible assets	Mio. EUR	16.3	19.4	13.3