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General information

Vedior N.V. (the ‘Company’ or the ‘Group’) is a company domiciled in the Netherlands and quoted on the stock exchange of Euronext Amsterdam and included in the AEX index. The consolidated financial statements of the Company for the year ended 31 December 2006 comprise the Company and its subsidiaries.

All information in these financial statements is in millions of Euro, unless stated otherwise.

Statement of compliance

The consolidated financial statements have been prepared in compliance with International Financial Reporting Standards (‘IFRS’) and the interpretations adopted by the International Accounting Standards Board (‘IASB’) as endorsed by the European Union.

 Adoption of new and revised standards

Vedior adopted all new and revised Standards and Interpretations issued by the International Accounting Standards Board (‘IASB’) and the International Financial Reporting Interpretations Committee (‘IFRIC’) of the IASB that are relevant to its operations and effective for annual reporting periods beginning on 1 January 2006.

For 2006 no new or revised Standards were relevant for Vedior’s operations and therefore there is no impact on this or the prior year’s balance sheet or income statement. The Standards and Interpretations that were in issue but not yet effective for reporting periods beginning on 1 January 2006 were not adopted. Vedior anticipates that the adoption of these Standards and Interpretations will have no material financial impact on the financial statements of the Group in future periods.

Change of accounting policy

As of 2006, Vedior has changed the accounting policy for put options of minority shareholders that have rights to sell their minority interest to Vedior. Under the new policy, pursuant to these put options granted to certain minority shareholders, Vedior recognises an obligation to buy the minority shares upon certain conditions instead of classifying them as a minority share in the balance sheet and to disclose the liability as an off balance sheet obligation. The effects of this change of accounting policy are set out below. For a description of the new accounting policy refer to the section on Business combinations.

Effects on balance sheet	Minority interest	Deferred consideration business  combinations	Retained earnings	Goodwill
Balance at 1 January 2005	-23		277	792
Restatement	19	-38	-19	38
Balance at 1 January 2005	-4	-38	258	830

The accounting policy change has no effect on the profit for the year, but the profit attributable to minority shareholders is reclassified to profit attributable to the equity holders of Vedior N.V. (2005: €4 million). This part of the profit will not be distributable to shareholders of Vedior N.V. until the options have been exercised. A legal reserve is accounted for in the Company’s equity (please refer to this page). The comparative information has been restated for comparison purposes.

The effects on the income statement and the earnings per share are summarised in the tables below.

Effects on Income statement	2006	2005
Profit attributable to equity holders Vedior N.V.	178	154
Effect of restatement	8	4
Profit attributable to equity holders Vedior N.V.	186	158

 

Effects on earnings per share	2006 after restatement	2006 before restatement	2005 after  restatement	2005 before  restatement
Earnings per share
Basic earnings per share	1.09	1.04	0.93	0.91
Diluted earnings per share	1.08	1.03	0.92	0.90
Earnings per share Excluding gain on disposal of subsidiaries and associates
Basic earnings per share	1.06	1.02	0.84	0.82
Diluted earnings per share	1.05	1.00	0.83	0.81

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