CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AT 30 JUNE 2006

Transcription

1 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AT 30 JUNE BALANCE SHEET 2 - INCOME STATEMENT 3 - CASH FLOW STATEMENT 4 - CHANGES IN SHAREHOLDERS' EQUITY 5 NOTES TO THE INTERIM FINANCIAL STATEMENTS Note 1 Accounting principles and valuation methods Note 2 Consolidation scope Note 3 Post-closing events Note 4 Information by business Note 5 Intangible and tangible fixed assets Note 6 Investments and other non-current assets Note 7 Investments in companies consolidated by the equity method Note 8 Shareholder s equity Note 9 Commitments and contingencies Note 10 Borrowings and other financial debt Note 11 Off-balance-sheet commitments Note 12 Other risks

2 > BALANCE SHEET ( thousands) ASSETS Notes 30/06/ /12/2005 Goodwill 5 170, ,666 Other intangible assets 5 5,262 4,214 Property, plant and equipment 5 29,253 32,464 Other tangible fixed assets 5 16,295 15,820 Rental assets 5 53,270 51,633 Investments and other non-current assets 6 6,316 12,150 Equity-accounted investments 7 6,834 Deferred tax assets 7,701 7,932 NON-CURRENT ASSETS 295, ,879 Inventories and work-in-progress 14,693 13,462 Trade receivables 135, ,637 Other receivables 39,583 29,740 Marketable securities 10 63,931 87,848 Bank and cash 10 38,563 22,382 CURRENT ASSETS 291, ,069 TOTAL 587, ,948

3 > BALANCE SHEET ( thousands) SHAREHOLDERS' EQUITY & LIABILITIES Notes 30/06/06 31/12/05 Share capital 63,021 61,450 Reserves and additional paid-in capital 110,157 92,905 Translation adjustments (5,796) 186 Net income for the period 12,135 20,038 Shareholders' equity, Group s share 8 179, ,579 Minority interests 5,287 4,812 TOTAL SHAREHOLDER' EQUITY 184, ,391 Commitments and contingencies 9 4,593 4,483 Deferred tax liabilities 2,843 2,535 Non-current borrowings , ,540 NON-CURRENT LIABILITIES 134, ,557 Commitments and contingencies 9 5,313 6,867 Current borrowings 10 35,420 33,984 Short-term bank loans 10 20,710 12,435 Advances and down-payments on outstanding orders 4,684 3,815 Trade payables 78,533 75,580 Tax and employee-related liabilities 55,681 46,388 Other liabilities 67,806 44,931 CURRENT LIABILITIES 268, ,999 TOTAL 587, ,948

4 > INCOME STATEMENT ( thousands) 30/06/ /06/ /12/2005 Sales 251, , ,156 Other operating income 4,232 3,803 7,813 Operating income 256, , ,968 Raw materials and consumables (18,597) (17,714) (38,684) External charges (131,514) (113,994) (219,185) Taxes and similar payments (5,520) (4,611) (9,036) Personnel expenses & employee profit sharing (64,281) (55,059) (112,621) Allowances for depreciation and reserves (13,680) (14,332) (26,443) Other operating expenses (1,728) (1,002) (2,792) Operating expenses (235,320) (206,711) (408,761) OPERATING PROFIT 20,792 17,165 33,207 Net interest expense (1,909) (796) (2,644) Other financial income and expense NET FINANCIAL EXPENSE (1,578) (535) (2,055) PRE-TAX INCOME 19,214 16,631 31,152 Income tax (5,862) (5,920) (10,035) INCOME OF FULLY-CONSOLIDATED COMPANIES Net income from equity-accounted investments NET INCOME BEFORE MINORITY INTERESTS 13,352 10,711 21,117 (222) 13,130 10,711 21,117 Minority interests (995) (1,026) (1,079) NET INCOME 12,135 9,685 20,038 Average number of shares 15,378,680 13,721,736 13,896,517 Net earnings per share (in euros) Average number of diluted shares 16,065,412 14,444,496 14,596,512 Fully diluted earnings per share (in euros)

5 > CASH FLOW STATEMENT ( thousands) 30/06/06 30/06/05 31/12/05 Cash and cash equivalents at the beginning of the year 97,795 65,159 65,159 CASH FLOWS FROM OPERATING ACTIVITIES Net income 12,135 9,685 20,038 Adjustments to reconcile profit (loss) to net cash provided by operating activities: Depreciation and provisions 11,070 11,484 22,679 Unrealised gains and losses from fair value adjustments 131 (406) (532) Expense and income in connection with stock options Gains and losses on disposals of fixed assets (609) (723) (1,635) Minority interests in consolidated subsidiaries net income 995 1,026 1,079 Net income of companies consolidated by the equity method 222 Deferred tax expense / (income) 1, ,545 Operating cash flows 25,214 21,738 44,283 Change in inventories (1,516) (916) 273 Change in accounts receivable, discounted notes, deferred income (9,680) (10,508) (21,063) Change in accounts payable, deferred charges (3,688) 4,921 15,049 Other changes 6,027 7,219 2,852 Changes in working capital requirements (8,858) 716 (2,890) Net cash provided by operating activities (A) 16,356 22,454 41,394 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of PPE and rental assets (14,576) (11,884) (23,218) Acquisition of intangible fixed assets (1,220) (613) (2,101) Disposal of tangible and intangible assets 2,200 2,268 4,334 Acq. of investments and other non-current assets (732) (51) (1,092) Disposal of investments and other non-current assets ,924 Net cash flows from the acquisition and disposal of subsidiaries (10,593) (34,220) (72,007) Net cash used in investing activities (B) (24,454) (44,284) (92,161) NET CASH FROM FINANCING ACTIVITIES Proceeds from capital increases 6, ,106 Dividends paid to shareholders (7,990) (5,625) (5,621) Dividends paid to the minority shareholders of the consolidated companies (514) (304) (313) Other changes in equity (558) (689) Proceeds from the issuance of new debt 12,000 2,534 80,074 Repayment of debt (17,014) (14,452) (27,739) Net cash provided by financing activities (C) (7,122) (17,646) 82,819 Effect of exchange rate fluctuations on cash (D) (790) Net change in cash and cash equivalents (A+B+C+D) (16,010) (38,992) 32,635 Closing cash and cash equivalents 81,784 26,167 97,795

6 > CHANGES IN SHAREHOLDERS EQUITY ( thousands and thousands of shares) Total Number of shares (thousa nds) Share capital Group before minority interests Addition al paid Retained in earnings capital Net income for the period Translati on reserve Total Group Minority interests Balance as of 31/12/ ,790 13,721 54,882 15,508 37,335 15,359 (352) 122,732 3,058 Exercise of warrants and stock options net income appropriation 15,359 (15,359) Distribution of dividends (5,924) (5,621) (5,621) (303) Cost of stock options Currency translation adjustments 1,634 1,600 1, Other changes (156) (156) (156) Net income for the period 10,250 9,685 9, Balance as of 30/06/ ,858 13,732 54,927 15,664 46,980 9,685 1, ,504 3,354 Exercise of warrants and stock options ,247 1,653 Capital increase ,529 6,117 29,136 35,253 Impact of remeasurement of financial instruments at fair value (205) (205) (205) Cost of stock options Currency translation adjustments (1 067) (1,062) (1,062) (6) Share of assets contributed by minority interests Other changes Net income for the period 10,867 10,353 10, Balance as of 31/12/ ,391 15,362 61,450 46,046 46,859 20, ,579 4,812 Exercise of warrants and stock options 6, ,571 5,384 6, net income appropriation 20,038 (20,038) Distribution of dividends (8,495) (7,990) (7,990) (505) Impact of the remeasurement of financial instruments on the (256) (256) (256) revaluation reserve Cost of stock options Currency translation adjustments (6,003) (5,982) (5,982) (20) Share of assets contributed by minority interests Other changes (30) (64) Net income for the period 13,130 12,135 12, Balance as of 30/06/ ,803 15,755 63,021 51,430 58,726 12,135 (5,796) 179,515 5,287 The variation of (7.3) million between the 30/06/2005 stockholders' equity presented in September 2005 and the stockholders' equity at the 30/06/2005 presented above come : - for (4) million, impact of IAS 16 and IAS 2 on the tangible assets calculated after the preparation of the interim financial statements, - for (3.3) million, absence of minority interets on Hungexpo, taking into account the engagement of purchase of minority posterior to the preparation of the interim financial statements.

7 > NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Note 1 -Significant accounting policies The condensed consolidated interim financial statements of GL events Group were prepared by the Board of Directors on 5 September 2006 The annual financial statements of GL events Group established on 31 December 2005 were prepared in compliance with IFRS (International Financial Reporting Standards) published by the IASB (International Accounting Standards Board) on 31 December 2005 in accordance with the regulation adopted providing for its adoption published in the Official Journal of the European Union published on the fiscal year cut-off date. The condensed consolidated interim financial statements at 30 june 2006 have been established in accordance with IAS 34. As condensed financial statements, they dosen t present the whole of information necessary for the establishment of the annual statements. There have been no changes in significant accounting policies applied for preparing the financial statements of 30 June 2006 in relation to those applied to prepare the financial statements of 31 December For a detailed presentation of these accounting policies readers are consequently referred to the 2005 annual report. The following new standards, that entered into effect on 1 January 2006 and published in the Official Journal of the European Union Journal on the closing date of the financial statements have also been applied, though do not have a material impact on the financial information presented herein: Amendment to IAS 19 on actuarial gains and losses, Group benefit plans and disclosure requirements ; amendments to IAS 39 on the fair value option and cash flow hedges in connection with future intercompany transactions; Group sales are not subject to cyclical or seasonal trends. However, GL events' activity in the event industry market is dependent on the holding of exceptional events (political, cultural, sports, economic) or trade shows and exhibitions that do not systematically recur on the same date every year. Note 2 Scope of consolidation Changes in the scope of consolidation in the period were as follows: Companies SECCSE (Centre de congrès de Saint Etienne) SEPCFD (Polydôme Clermont Ferrand) GL events China Expo Service Cote d Azur Standard Décoration Kobé Sepelcom Sepel Eurexpo Rio Centro Date of change Created 1 January 2006 Created 1 January 2006 Created 1 January 2006 Merged (GL E&D) 1 January 2006 Merged (GL E&D) 1 January 2006 Acquired 1 January 2006 Acquired 1 March 2006 Equity-accounted as of 1 January 2006 Concession April 2006 In October 2005, GL events acquired a 24.1% stake in Sepel that manages Eurexpo, the exhibition centre of the city of Lyon. In January 2006, this stake was increased to 30.2%. This investment was consolidated under the equity method as of 1 January 2006.

8 > NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Acquisition of 49% of Sepelcom. This company, a specialist in organizing trade shows for professionals and the general public manages such prestigious events as Sirha (the international hotel catering and food trade exhibition), Piscine (the international swimming pool and pool environment show) and the Lyon international trade fair and has average annual sales of 25 million. Sepelcom is a 51%-owned subsidiary of Sepel. Consolidated on 1 March Acquisition of Kobé, a specialist in medical meetings and conventions with de portfolio of 30 of events and annual sales of 4 million. Consolidation on 1 January GL events was awarded a 50-year concession for the Rio de Janeiro exhibition park. Riocentro is the largest event venue in South America. With 140 acres and 87,000 m² of exhibition space, parking for 9,000 vehicles, a natural lake and 5 interconnected halls, Riocentro's installations have been ideally designed to host events both for professionals and the general public. In 2005, Riocentro hosted 76 trade shows and exhibitions including the Book Show attracting more than 800,000 visitors. GL events anticipate sales from the venue of 10 million. Creation of SECCSE and SEPCFD, operating companies of respectively the Fauriel convention centre in Saint-Etienne and the Clermont Ferrand Polydôme effective 1 January Creation of GL events China. Internal reorganization: Expo Service Cote d Azur and Standard Décoration were merged into GL Espace & Décor effective 1 January A pro forma income statement is presented below and includes for 2005 the following adjustments: Restatement of Kobé (acquired 1 January 2006), Sepelcom (acquired 1 March 2006), Performance Organisation (acquired 1 September 2005), Hungexpo (acquired 1 April 2005) and Padova Fiere (acquired 1 September 2005). - Consolidation of sales and earnings for the period from January to June 2005 for the companies Kobé, Performance Organisation and Padova Fiere, January to March 2005 for Hungexpo and March to June 2005 for Sepelcom, - Consolidation of financial expense financiers calculated on the basis of the payout price at 3% to finance all companies acquired net of tax for the period indicated above.

9 > NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Pro-forma consolidated income statement ( thousands) 30/06/06 30/06/05 Sales 251, ,845 Other operating incomes 4,232 3,922 Operating expenses (235,320) (234,672) OPERATING PROFIT 20,792 15,095 Net interest expense (1,909) (819) Other financial income and expense NET FINANCIAL EXPENSE (1,578) (557) PRE-TAX INCOME 19,214 14,538 Income tax (5,862) (5,773) NET INCOME OF FULLY CONSOLIDATED 13,352 8,765 Earnings from equity-accounted investments (222) 1,197 CONSOLIDATED NET INCOME BEFORE MINORITY INTERESTS 13,130 9,962 Minority interests (995) (1,271) NET INCOME 12,135 8,690 Average number of shares 15,378,680 13,721,736 Net earnings per share (in euros) Average number of diluted shares 16,065,412 14,444,496 Fully diluted earnings per share (in euros) On a like-for-like basis, the operating margin improved 2.11 points increasing from 6.14% at 30 June 2005 to 8.25% for the first half of 2005, accompanied by a 39.6% increase in net income. Note 3 Post-closing events ACQUISITION OF FAGGA, A BRAZILIAN EVENT ORGANIZATION SPECIALIST GL events is in the process of finalizing the acquisition of Fagga Eventos, a leading South America and event organization specialist (conventions, exhibitions, corporate events). Based in Rio de Janeiro, Sao Paulo and Salvador de Bahia, Fagga Eventos organizes major events in Brazil, in particular proprietary and co-proprietary trade shows, such as Expo Construçao (Building & Construction), Sustentavel (Sustainable Development), Expo Logitica (Transport & Logistics) or the highly prestigious International Book Fair that attracts more than 800,000 visitors. In line with GL events' development strategy, this acquisition offers a perfect fit with the concession recently awarded for the Riocentro exhibition centre that is currently not an owner or organizer of events. With sales of 9 million (BRL 24 million) and a net margin of more than 13%, Fagga Eventos is a particularly well-run operation that through GL events will gain access to additional resources to pursue its growth. The two majority shareholders and managers of the company are committed, in partnership with GL events, to pursue together growth opportunities of the Group in this country.

10 > NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PUDONG EXPO - SHANGHAI EXHIBITION AND CONVENTION CENTRE GL events was selected by the city of Shanghai to manage and promote the exhibition and event venue located in the new Pudong district, the city's and country's financial centre. Launched in 2005, Pudong Expo has a total available exhibition and event space of m², including 2 large halls of 5.000m². This contract should generate sales of approximately 12 million over the fiveyear concession period. GL events' presence in Shanghai, one of the world's most financially dynamic cities, perfectly illustrates the Group's strategy of focussing on strong growth and highly attractive destinations. ASIAN GAMES 2006 OF DOHA GL events has just been awarded a contract for the installation of the Sponsors Village of the Asian Games, providing a showcase for the top athletes of the Asian continent to be held between the 1st and the 15th of December 2006 in Doha Qatar. This contract should generate minimum sales of $4 million. Note 4 Information by business CONSOLIDATED SALES BY BUSINESS LINE Consolidated sales Consolidated sales Change ( thousands) 30/06/06 30/06/05 N / N-1 Change N / N-1 (%) Global services ,7% % of total sales 55,5% 62,5% Venue and event management ,7% % of total sales 44,5% 37,5% TOTAL GL EVENTS GROUP ,5% CONSOLIDATED OPERATING PROFIT BY BUSINESS ( thousands) 30/06/06 30/06/05 Global services Venue and event management TOTAL GL EVENTS GROUP

11 > NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Note 5 Intangible assets & tangible assets ( thousands) 31/12/05 Increases Decreases Translation Changes in scope/ 30/06/06 adjustments reclassifications Intangible assets Goodwill 155,666 17,340 (2,614) 6 170,399 Depreciation (1) (1) Net 155,666 17,339 (2,614) 6 170,398 Other intangible assets 9,933 1,134 (7) (61) 2,985 13,984 Amortization (5,719) (742) 6 67 (2,333) (8,722) Net 4, (1) ,262 Net total 159,881 17,731 (1) (2,608) ,660 This increase reflects notably the acquisition of Sepelcom, Sepel, Kobé and the increase in the shareholding in Package to 100%. Property, plant and equipment Lands and constructions 50, (37) (4,107) (58) 46,720 Amortization (18,426) (528) 8 1, (17,467) Net 32,464 (496) (29) (2,639) (48) 29,253 Other tangible fixed assets 46,766 3,502 (1,642) (657) ,299 Amortization (30,946) (2,758) 1, (426) (32,004) Net 15, (216) (96) 16,295 Net total 48, (2,855) (143) 45,548 Rental assets Capitalized rental assets 100,567 11,002 (3,322) (325) ,203 Rental equipment /capital leases 2,930 (1,275) 1,655 Rental inventories 15, (30) (5) 15,092 Cost 118,584 11,042 (4,627) (330) ,950 Amort. capitalized rental assets (57,566) (6,992) 2, (360) (62,406) Amort. rental equipment /capital leases (2,750) (91) 1,275 (1,565) Amort. & deprec. rental inventories (6,635) (1,095) 20 1 (7,709) Depreciation & amortization (66,951) (8,178) 3, (360) (71,680) Net total 51,633 2,864 (1,015) (133) (79) 53,270

12 > NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Note 6 Investments and other non-current assets ( thousands) 31/12/05 Increases Decreases Translation adjustments Changes in scope / 30/06/06 reclassifications Non-consolidated investments 8, (190) (6,248) 2,776 Provisions (101) (5) (106) Net 8, (190) (6,252) 2,671 Other non-current assets 3, (157) 3,651 Provisions (6) (6) Net 3, (158) 3,646 Net total 12, (347) (6,252) 6,316 Note 7 Equity-accounted investments ( thousands) Share in net assets 30/06/06 Depreciation Gross value Net Share in net assets of equityaccounted investments at 31 December 2005 Share in earnings of the period (222) (222) Distribution of dividends (60) (60) Change in scope 7,116 7,116 Share in net assets of equityaccounted investments at 30 June ,834 6,834 Equity-accounted investments include exclusively the 30.26% shareholding in Sepel Eurexpo. Note 8 Shareholder s equity GL events' share capital increased from 1,570,860 or 491,701 new shares following the exercise of 17,900 stock options and 947,602 BSA warrants (2 warrants for 1 share). On 5 September 2006, the share capital of GL events was 63,416,544 divided into 15,854,136 shares of 4 per share. The shareholder s meeting o 19 may 2006 approved a dividend of 0.52 euros per share, 7990 thousands euros.

13 > NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Note 9 Commitments and contingencies ( thousands) 31/12/05 Increase Utilization s Decrease Reversal Translatio n adjustme nts Changes in scope/rec lassificati ons 30/06/06 Provisions for employee-related 7 1, (244) (26) (82) risks 1,648 Provisions for tax contingencies 556 (153) 403 Provision for post-retirement benefits 4, (105) (131) 4,593 Other provisions 4, (1,058) (15) (262) (4) 3,262 Total 11, (1,560) (41) (475) 3 9,906 Note 10 Loans and borrowings ( thousands) 31/12/05 Increase of borrowin gs Reimb. Of borrowin gs Translatio n adjustme nts Changes in scope/recl 30/06/06 assification s Property leases 1,001 (49) 952 Non-current borrowings 164,466 12,000 (16,767) (14) 2 159,687 Other capital leases 951 (160) 792 Financial instruments (36) (248) (284) Other financial liabilities 679 (72) 607 Employee profit-sharing (113) 501 Long term financial debt 167,524 12,150 (17,160) (14) (246) 162,254 Short term bank loans 12,435 8,275 (30) 30 20,710 Total Loans and borrowings 179,959 20,425 (17,160) (44) (216) 182,964 Marketable investments securities (87,848) 30,403 (82) (6,406) (63,931) Bank and cash (22,382) (14,826) 442 (1,796) (38,563) Cash and cash equivalents (110,229) 15, (8,202) (102,494) Net debt 69,729 36,002 (17,160) 317 (8,418) 80,470 Note 11 Off-balance sheet commitments and other contingencies Since 31 December 2005, there have been no material changes in off-balance sheet commitments. Note 12 Other risks The policy for managing bank risks described in note 26 of the annual financial statements of 31 December 2005 remains unchanged on 30 June The conditions of all bank covenants were fulfilled on 30 June 2006.

14 > MANAGEMENT DISCUSSION AND ANALYSIS 1 Analysis of the consolidated interim financial statements of 30 June 2006 In the 2006 first half, GL events had sales of million, advancing 21.1% (+ 10.2% at comparable exchange rates and structure). Pursuing its international expansion, sales from outside France accounted for 32% of total sales in the first half. The breakdown of net sales by major business line was as follows: CONSOLIDATED SALES BY BUSINESS LINE Consolidated sales Consolidated sales Change ( thousands) 30/06/06 30/06/05 N / N-1 Change N / N-1 (%) Global services ,7% % of total sales 55,5% 62,5% Venue and event management ,7% % of total sales 44,5% 37,5% TOTAL GL EVENTS GROUP ,5% Operating profit increased 21.1% to 20.8 million boosting the operating margin of 8.25% versus 7.80% at 30 June On a like-for-like basis the margin advanced 2.11 points. Supplies purchased and other general expenses remained stable during the period increasing in line with sales. Staff costs as a percentage of sales increased 0.5%. Net financial expense increased from 0.5 million at 30 June 2005 to 1.6 million at the end of the 2006 first half. This increase reflects primarily a rise in average net borrowing between the two periods combined with higher interest rates. Balance sheet changes include primarily investments in connection with rental assets and the acquisition of new subsidiaries. The seasonal nature of exhibitions and large events has a significant impact on working capital requirements. For example whereas the World Summit on the Information Society in Tunis generated significant working capital at 31 December 2005, no significant event has occurred in the 2006 first half. On this basis, pre-tax income and gearing trends were as follows: ( thousands) 30/06/06 31/12/05 30/06/05 Net sales Pre-tax income % 7,6% 7,2% 7,6% Shareholders' equity Net financial debt Gearing 43,5% 39% 56% After an income tax charge 5.9 million, earnings from equity-accounted investments of (0.2) million and minority interests of (1) million, Group net income increased 25% in relation to 30 June 2005 to 12.1 million.

15 > MANAGEMENT DISCUSSION AND ANALYSIS 2 Post-closing events ACQUISITION OF FAGGA, A BRAZILIAN EVENT ORGANIZATION SPECIALIST GL events is in the process of finalizing the acquisition of Fagga Eventos, a leading South America and event organization specialist based in Rio de Janeiro, Sao Paulo and Salvador de Bahia. In line with GL events' development strategy, this acquisition offers a perfect fit with the concession recently awarded for the Riocentro exhibition centre. PUDONG EXPO - SHANGHAI EXHIBITION AND CONVENTION CENTRE GL events was selected by the city of Shanghai to manage and promote the exhibition and event venue located in the new Pudong district, the city's and country's financial centre. ASIAN GAMES 2006 OF DOHA GL events has just been awarded a contract for the installation of the Sponsors Village of the Asian Games, providing a showcase for the top athletes of the Asian continent to be held between the 1st and the 15th of December 2006 in Doha Qatar. This contract should generate minimum sales of $4 million outlook In the second half the Group will participate in many events including: the International Exhibition for Automotive Industry in Budapest, Biennale de la Danse, World Congress of Emulsions 2006, the Convention of the French Society of Internal Medicine (SNFMI) in Lyon, the Asian Games in Doha Qatar, etc. In light of the growth of the first half and the quality of orders for the period, the Group maintains its guidance for 2006 sales growth of more than 14%. In addition, the contribution of the Venue and Event management to Group sales is increasing as planned which should improve GL events' margins. 4 GL events parent company financial highlights ( thousands) 30/06/ /06/ /12/2005 Sales 8,481 9,184 17,512 Net income 15,431 10,871 9,096