Annual Report 2006 LEGO Group

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Annual Report 2006 LEGO Group LEGO Group As of 31 December 2006 Annu LEGO Holding A/S AL r E p O Annual Report 2006 rt 2006 LEGO G LEGO 2006 rt LEGO A/S, 75% (Denmark) IntErLEGO AG (Switzerland) LEGO Group LEGO Group – Denmark r O Aastvej up Denmark Europe Associates: DK-7190 Billund LEGO System A/S LEGO Estates Limited, into liq. (UK) Merlin Entertainments Group Tel.: +45 79 50 60 70 LEGO Schweiz AG S.A.R.L., 15% (Luxemburg) Europe (others) LEGOLAND Estates AG, into liq. (Switzerland) www.lego.com LEGO Park Holding UK Ltd. KIRK AG (Switzerland) – LEGO Estates Australia Pty. Ltd. – LEGO Lifestyle International Ltd. (UK) LEGO Company Limited (UK) LEGO Belgium n.v. LEGO Netherland B.V. LEGO Sverige AB LEGO Norge A/S Oy Suomen LEGO Ab (Finland) LEGO GmbH (Germany) LEGO Handelsgesells. GmbH (Austria) LEGO S.A.S. (France) LEGO S.p.A. (Italy) LEGO S.A. (Spain) LEGO Lda. (Portugal) LEGO Production s.r.o. (Czech Republic) LEGO Trading s.r.o. (Czech Republic) LEGO Hungaria Kft. LEGO Polska Sp. Z.o.o. OOO LEGO (Russia) Americas LEGO do Brazil Ltda. LEGO Canada Inc. LEGO New York Inc. (US) LEGO Mexico S.A. de C.V. Adm. de Serv. LEGO de C.V. (Mexico) LEGO Systems Inc. (US) – LEGO Dacta Inc. (US) – Dacta and Pitsco LLC, 51% (US) – LEGO Chile Ltda. – LEGO Direct Marketing Inc. (US) – LEGO Brand Retail Inc. (US) LEGO Holding A/S Aastvej 1 Asia/Africa DK-7190 Billund, Denmark LEGO Hong Kong Limited Tel: +45 79 50 60 70 Fax: +45 75 33 27 25 LEGO Australia Pty. Ltd. CVR-no: 18 59 12 35 LEGO New Zealand Ltd. Incorporated: April 1st 1995 LEGO Korea Co. Ltd. Residence: Billund LEGO South Africa (Pty.) Ltd. Financial Year: January 1st – December 31st LEGO Japan Ltd. Annual Report 2006 is published for the LEGO Group by Corporate Communications. Ownership is 100% Internet: www.LEGO.com LEGO Company Ltd. (Hong Kong) Billund · Denmark · Tel +45 79 50 60 70 · Fax +45 75 35 33 60 CENTRUM [ – Foto: Niels Åge Skovbo – 2xTorben LEGO Singapore Pte. Ltd. unless stated otherwise. ] G R A F I S K LEGO Group As of 31 December 2006 Annu LEGO Holding A/S AL r E p O Annual Report 2006 rt 2006 LEGO G LEGO 2006 rt LEGO A/S, 75% (Denmark) IntErLEGO AG (Switzerland) LEGO Group LEGO Group – Denmark r O Aastvej up Denmark Europe Associates: DK-7190 Billund LEGO System A/S LEGO Estates Limited, into liq. (UK) Merlin Entertainments Group Tel.: +45 79 50 60 70 LEGO Schweiz AG S.A.R.L., 15% (Luxemburg) Europe (others) LEGOLAND Estates AG, into liq. (Switzerland) www.lego.com LEGO Park Holding UK Ltd. KIRK AG (Switzerland) – LEGO Estates Australia Pty. Ltd. – LEGO Lifestyle International Ltd. (UK) LEGO Company Limited (UK) LEGO Belgium n.v. LEGO Netherland B.V. LEGO Sverige AB LEGO Norge A/S Oy Suomen LEGO Ab (Finland) LEGO GmbH (Germany) LEGO Handelsgesells. GmbH (Austria) LEGO S.A.S. (France) LEGO S.p.A. (Italy) LEGO S.A. (Spain) LEGO Lda. (Portugal) LEGO Production s.r.o. (Czech Republic) LEGO Trading s.r.o. (Czech Republic) LEGO Hungaria Kft. LEGO Polska Sp. Z.o.o. OOO LEGO (Russia) Americas LEGO do Brazil Ltda. LEGO Canada Inc. LEGO New York Inc. (US) LEGO Mexico S.A. de C.V. Adm. de Serv. LEGO de C.V. (Mexico) LEGO Systems Inc. (US) – LEGO Dacta Inc. (US) – Dacta and Pitsco LLC, 51% (US) – LEGO Chile Ltda. – LEGO Direct Marketing Inc. (US) – LEGO Brand Retail Inc. (US) LEGO Holding A/S Aastvej 1 Asia/Africa DK-7190 Billund, Denmark LEGO Hong Kong Limited Tel: +45 79 50 60 70 Fax: +45 75 33 27 25 LEGO Australia Pty. Ltd. CVR-no: 18 59 12 35 LEGO New Zealand Ltd. Incorporated: April 1st 1995 LEGO Korea Co. Ltd. Residence: Billund LEGO South Africa (Pty.) Ltd. Financial Year: January 1st – December 31st LEGO Japan Ltd. Annual Report 2006 is published for the LEGO Group by Corporate Communications. Ownership is 100% Internet: www.LEGO.com LEGO Company Ltd. (Hong Kong) Billund · Denmark · Tel +45 79 50 60 70 · Fax +45 75 35 33 60 CENTRUM [ – Foto: Niels Åge Skovbo – 2xTorben LEGO Singapore Pte. Ltd. unless stated otherwise. ] G R A F I S K r e v e n u e [ m d k k ] o p e r at i n g p r o f i t /( l o o s ) Financial Highlights – LEGO Group [ m d k k ] [ m D K K ] 2006 2005 2004 2003 2002 10.000 1.600 Income Statement: 1.200 Group Management Board of Directors of LEGO Holding A/S Revenue 7,823 7,050 6,315 6,792 9,601 9.000 800 Expenses (6,475) (6,582) (6,252) (7,902) (8,795) Profit/(loss) before special items, 400 financial income and expenses and tax 1,348 468 63 (1,110) 806 8.000 0 Impairment of fixed assets 292 95 (723) (172) – Restructuring expenses (112) (104) (502) (283) – (400) Operating profit/(loss) 1,528 459 (1,162) (1,565) 806 7.000 (800) Financial income and expenses 34 (3) (75) 67 (189) Profit/(loss) before tax 1,562 456 (1,237) (1,498) 617 (1.200) Profit/(loss) on continuing activities 1,430 331 (1,473) (953) 348 6.000 (1.600) Profit/(loss) on discontinuing activities – 174 (458) 18 (22) 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Net profit/(loss) for the year 1,430 505 (1,931) (935) 326 Balance Sheet: Assets relating to continuing activities 9,022 7,689 5,657 10,049 12,560 t o ta l a s s e t s [ m d k k ] e q u i t y r at i o n i n c l . Assets relating to discontinuing activities – – 2,432 – – subordinated l o a n c a p i ta l Total assets 9,022 7,689 8,089 10,049 12,560 Equity (incl. minority interest) 4,727 3,589 2,948 4,892 6,478 15.000 70% Provisions and debt relating to 14.000 60% continuing activities 4,295 4,100 4,731 5,157 6,082 13.000 Provisions and debt relating to 50% discontinuing activities – – 410 – – 12.000 40% 11.000 Cash Flow Statement: 30% Cash flows from operating activities 996 1,057 774 944 1,853 10.000 Investment in property, 20% 9.000 plant and equipment 316 265 457 709 1,264 Cash flows from financing activities (925) (1,070) (29) (560) (1,003) 8.000 10% Total cash flows 45 2,549 538 (215) (290) 7.000 0% 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Financial ratios (in %): Mogens Johansen, Gunnar Brock, Armin F. Broger, Mads Øvlisen, Kjeld Kirk Kristiansen, Torben Ballegaard Sørensen Gross margin 64.6 58.0 57.7 61.3 70.0 Operating margin (ROS) 19.5 6.5 (18.4) (23.0) 8.4 Net profit margin 18.3 7.2 (30.6) (13.8) 3.4 Mogens Johansen Armin Broger Kjeld Kirk Kristiansen Return on equity 34.4 18.1 (46.3) (16.7) 4.6 i n v e s t m e n t i n p r o p e r t y , f r e e c a s h f l o w b e f o r e ROIC I 65.4 19.1 1.2 (12.8) 8.2 p l a n t a n d e q u i p m e n t [ m d k k ] f i n a n c i n g a c t i v i t i e s [ m d k k ] Member of the Board since 1978. Member of the Board since 2005. Deputy Chairman of the Board since 1996. Iqbal Padda, Lisbeth Valther Pallesen, Jørgen Vig Knudstorp, Christian Iversen, Mads Nipper ROIC II 93.2 23.2 (23.6) (18.3) 8.2 1.400 4.000 Representing the family. Brother CEO of 7 for all mankind BV, Member of the Board since 1975. in law to Kjeld Kirk Kristiansen. Holland. Member of the Board Equity ratio 52.4 46.7 36.4 48.7 51.6 Chairman of the Board of KIRKBI 1.200 3.500 of 7 for all mankind LLC. Equity ratio (incl. Subordinated loan capital) 61.3 57.1 46.3 48.7 51.6 Member of the Board of the LEGO A/S, the LEGO Foundation, Ole Kirk’s Foundation, and Edith and Godtfred Foundation, and Edith and Godtfred Kirk 3.000 Iqbal Padda Jørgen Vig Knudstorp Christian Iversen Kirk Christiansen’s Foundation. Christiansen’s Foundation. President Employees: 1.000 Executive Vice President Chief Executive Officer Executive Vice President Mads Øvlisen and CEO for the LEGO Group from 2.500 Average number of employees (full time), Global Supply Chain and President Corporate Center 1979-2004. Majority shareholder of 800 Chairman of the Board since 1996. continuing activities 4,922 5,321 5,620 6,542 6,659 the LEGO Holding A/S group. 2.000 Lisbeth Valther Pallesen Mads Nipper Average number of employees (full time), Gunnar Brock Member of the Board since 1991. 600 Executive Vice President Executive Vice President 1.500 discontinuing activities – 1,322 1,725 1,756 1,657 Community, Education & Direct Markets & Products Member of the Board since 1995. Chairman of the Board of the Danish 400 Royal Theatre, and member of the Torben Ballegaard Sørensen 1.000 President & CEO and member of the Board of UN’s Global Compact and the Member of the Board since 2005.
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