##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 Amendment No. 1 to Form 10-K on
 Form 10-K/A
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the Fiscal Year Ended December 31, 2006
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from          to
 Commission file number: 001-15423
 Grant Prideco, Inc.
 (Exact name of registrant as specified in its charter)
 Delaware(State or Other Jurisdiction 
of Incorporation or Organization)
    
    76-0312499(I.R.S. Employer
Identification No.)400 N. Sam Houston Pkwy. East 
Suite 900
Houston, Texas(Address of Principal Executive Offices)
    
    77060(Zip Code)
 (281) 878-8000  (Registrants telephone number, including area code)
 Securities registered pursuant to Section 12(b) of the Act:
 Title of Each Class
    
    Name of Each Exchange On Which RegisteredCommon Stock, par value $0.01 per share
    
    New York Stock Exchange
 Securities registered pursuant to Section 12(g) of the Act:
None
 þ o
 o þ
 þ o
 þ
  þ o o
 o þ
   DOCUMENTS INCORPORATED BY REFERENCE




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TABLE OF CONTENTS  PART IVITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULESSIGNATURESEXHIBIT INDEXConsent of KPMG Wirtschaftsprufungs-und Steuerberatungs GmbHCertification of Michael McShaneCertification of Matthew D. FitzgeraldSection 906 Certification    Table of Contents  Explanatory Note:
    
 PART IV
 
 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
  23.3
    
    Consent of KPMG Wirtschaftsprüfungs-und Steuerberatungs GmbH31.3
    
    Certification of Michael McShane31.4
    
    Certification of Matthew D. Fitzgerald32.2
    
    Section 906 Certification
   Independent Auditors Report
    
    
    A-1Balance Sheet
    
    
    A-2Income Statements
    
    
    A-4Notes to Financial Statements
    
    
    A-5
  2




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##### Table of Contents



SIGNATURES
  GRANT PRIDECO, INC.By: /s/ MICHAEL MCSHANEMichael McShaneChief Executive Officer, President, and Chairman of the Board
   Signature
    
    Capacity In Which Signed
    
    Date/s/ MICHAEL MCSHANE

Michael McShane
    
    Chief Executive Officer,
President and Chairman of the
Board
(Principal Executive Officer)
    
    September 11, 2007/s/ MATTHEW D. FITZGERALD

Matthew D. Fitzgerald
    
    Senior Vice President,
Chief Financial Officer and Treasurer
(Principal Financial Officer)
    
    September 11, 2007/s/ GREG L. BOANE

Greg L. Boane
    
    Vice President and Controller
(Principal Accounting Officer)
    
    September 11, 2007
 3




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##### Table of Contents



Independent Auditors Report
 
    
   
 KPMG
Wirtschaftsprüfungs- und Steuerberatungs
GmbH
 /s/ Mag. Helmut Kerschbaumer
    
    /s/ Lieve Van Utterbeeck
 
 A-1




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG
Balance Sheets as of March 31, 2007 and 2006
(Austrian GAAP  in EUR)
 Assets
 March 31, 2007
    
    
    March 31, 2006UnauditedA. FIXED ASSETSI. Intangible assets
    
    
    1,040,030
    
    
    
    1,390,463II. Property, plant and equipment
    
    
    35,870,387
    
    
    
    33,060,507III. Financial assets
    
    
    4,934,798
    
    
    
    5,022,34041,845,215
    
    
    
    39,473,310B. CURRENT ASSETSI. Inventories1. Raw materials and supplies
    
    
    16,178,505
    
    
    
    14,570,2462. Work-in-Process
    
    
    16,107,486
    
    
    
    15,788,1503. Finished goods
    
    
    16,696,227
    
    
    
    22,237,18948,982,218
    
    
    
    52,595,585II. Receivables and other current assets1. Accounts receivable from trade
    
    
    69,744,182
    
    
    
    47,471,8602. Accounts receivable from affiliated and associated companies
    
    
    0
    
    
    
    12,419,6093. Other receivables and current assets
    
    
    182,420,713
    
    
    
    114,648,122252,164,895
    
    
    
    174,539,591III. Cash and cash equivalents1. Cash in hand
    
    
    6,872
    
    
    
    13,5072. Cash at financial institutions
    
    
    83,434
    
    
    
    154,81590,306
    
    
    
    168,322301,237,419
    
    
    
    227,303,498C. DEFERRED CHARGES1. Employee stock participation program
    
    
    786,921
    
    
    
    1,031,0872. Other prepaid expenses
    
    
    190,760
    
    
    
    588,797977,681
    
    
    
    1,619,884Total Assets
    
    
    344,060,315
    
    
    
    268,396,692
 A-2




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##### Table of Contents



Liabilities and Partners Capital
 March 31, 2007
    
    
    March 31, 2006UnauditedA. PARTNERS CAPITALI. Unlimited partners share
    
    
    1,817
    
    
    
    1,817II. Limited partners share1. Stipulated deposit
    
    
    17,986,526
    
    
    
    17,986,526III. Additional paid-in capital1. Not designated capital reserves
    
    
    477,294
    
    
    
    477,294IV. Retained earnings1. Other reserves
    
    
    28,894,047
    
    
    
    28,894,047V. Net profit
    
    
    14,563
    
    
    
    139,613,756thereof profit carried forward
    
    
    13,756
    
    
    
    10,83547,374,247
    
    
    
    186,973,440B. PROVISIONS1. Accrued post employment benefits
    
    
    16,730,729
    
    
    
    14,980,2842. Pension liabilities
    
    
    551,457
    
    
    
    727,0963. Accrued anniversary bonuses
    
    
    3,854,799
    
    
    
    3,610,5694. Accrued vacations
    
    
    3,101,247
    
    
    
    2,898,4565. Other provisions and accruals
    
    
    8,527,316
    
    
    
    5,917,87032,765,548
    
    
    
    28,134,275C. LIABILITIES1. ERP loans
    
    
    0
    
    
    
    605,8732. Liabilities to financial institutions
    
    
    852,227
    
    
    
    921,5953. Advance payments received
    
    
    1,477,936
    
    
    
    2,130,9134. Accounts payable from trade
    
    
    35,882,403
    
    
    
    37,728,0985. Accounts payable to affiliated and associated companies
    
    
    215,379,241
    
    
    
    98,0436. Other liabilities
    
    
    9,906,187
    
    
    
    11,310,392thereof for taxes
    
    
    1,021,177
    
    
    
    966,633thereof social security contributions
    
    
    2,236,087
    
    
    
    2,100,160263,497,994
    
    
    
    52,794,914D. DEFERRED CREDITS
    
    
    422,526
    
    
    
    494,063Total Liabilities and Partners Capital
    
    
    344,060,315
    
    
    
    268,396,692Contingent liabilities
    
    
    723,827
    
    
    
    2,009,098
 A-3




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG
INCOME STATEMENTS
(Austrian GAAP  in EUR)
 Year Ended March 31,2007
    
    
    2006
    
    
    2005Unaudited1.
    
    Salesa) Sales  domestic
    
    
    59,720,587
    
    
    
    48,248,791
    
    
    
    36,291,059b) Sales  foreign
    
    
    546,895,375
    
    
    
    449,946,711
    
    
    
    248,584,547606,615,962
    
    
    
    498,195,502
    
    
    
    284,875,6062.
    
    Changes in work-in-process and finished goods
    
    
    (5,221,626
    )
    
    
    16,436,164
    
    
    
    9,138,2193.
    
    Own work capitalized
    
    
    266,027
    
    
    
    (135,432
    )
    
    
    96,1394.
    
    Other operating income
    
    
    2,433,010
    
    
    
    2,121,694
    
    
    
    2,886,922a) Gains from the disposals of intangible and
tangible fixed assets
    
    
    2,917
    
    
    
    3,317
    
    
    
    833b) Income from the reversal of provisions
    
    
    988,178
    
    
    
    1,134,046
    
    
    
    1,512,154c) Other
    
    
    1,441,915
    
    
    
    984,331
    
    
    
    1,373,9355.
    
    Cost of materials and services received
    
    
    (249,414,211
    )
    
    
    (249,338,504
    )
    
    
    (174,978,011
    )a) Cost of materials
    
    
    236,797,861
    
    
    
    237,918,212
    
    
    
    167,166,765b) Cost of services received for manufacturing
    
    
    12,616,350
    
    
    
    11,420,292
    
    
    
    7,811,2466.
    
    Personnel expenses
    
    
    (62,876,346
    )
    
    
    (61,774,848
    )
    
    
    (52,121,843
    )a) Wages
    
    
    36,749,533
    
    
    
    35,277,898
    
    
    
    29,537,484b) Salaries
    
    
    10,627,321
    
    
    
    8,442,647
    
    
    
    7,869,680c) Expenses for post employment benefits and
contributions to special post employment funds
    
    
    1,453,214
    
    
    
    4,129,688
    
    
    
    3,938,006d) Pension expense
    
    
    158,543
    
    
    
    892,302
    
    
    
    214,151e) Expenses for statutory social security and
payroll related taxes and contributions
    
    
    13,463,402
    
    
    
    12,911,865
    
    
    
    10,430,708f) Other social benefits
    
    
    424,333
    
    
    
    120,448
    
    
    
    131,8147.
    
    Amortization and depreciation
a) of intangible and tangible fixed assets
    
    
    (6,294,278
    )
    
    
    (5,854,354
    )
    
    
    (5,718,702
    )8.
    
    Other operating expenses
    
    
    (72,615,302
    )
    
    
    (59,870,750
    )
    
    
    (43,230,934
    )a) Taxes, other than income taxes
    
    
    1,236,129
    
    
    
    (474,037
    )
    
    
    1,585,269b) Other
    
    
    71,379,173
    
    
    
    60,344,787
    
    
    
    41,645,6659.
    
    Subtotal from line 1 to 8 (Earnings before
interest and taxes)
    
    
    212,893,236
    
    
    
    139,779,472
    
    
    
    20,947,39610.
    
    Income from other long term securities and loans
    
    
    134,571
    
    
    
    131,810
    
    
    
    143,77211.
    
    Income from interest and similar income
    
    
    4,318,004
    
    
    
    1,101,170
    
    
    
    380,97612.
    
    Income from revaluation of financial assets
    
    
    0
    
    
    
    46,007
    
    
    
    28,75413.
    
    Expenses from financial assetsa) Depreciation
    
    
    (17,253
    )
    
    
    0
    
    
    
    014.
    
    Interest and similar expenses
    
    
    (1,967,751
    )
    
    
    (1,455,538
    )
    
    
    (1,496,082
    )15.
    
    Subtotal
from line 10 to 14 (Financial Earnings)
    
    
    2,467,571
    
    
    
    (176,551
    )
    
    
    (942,580
    )16.
    
    Net Income
    
    
    215,360,807
    
    
    
    139,602,921
    
    
    
    20,004,81617.
    
    Reversal of untaxed reservesa) Investment allowance
    
    
    0
    
    
    
    0
    
    
    
    178,36118.
    
    Allocation to retained earningsa) Other reserves
    
    
    0
    
    
    
    0
    
    
    
    (178,361
    )19.
    
    Profit carried forward
    
    
    13,756
    
    
    
    10,835
    
    
    
    6,01920.
    
    Proposed dividend to partners
    
    
    (215,360,000
    )
    
    
    0
    
    
    
    021.
    
    Net profit
    
    
    14,563
    
    
    
    139,613,756
    
    
    
    20,010,835
 A-4




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 NOTES TO THE FINANCIAL STATEMENTS
 1. GENERAL INFORMATION
      2. ACCOUNTING PRINCIPLES
 2.1 Changes in accounting principles:
         A-5




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 (Unaudited)
  2.2. Accounting principles in detail:
  a)
    
    Intangible fixed assets are stated at acquisition cost and are amortized by straight line
method over the useful economic life as follows:
 25% p.a. software6  25% p.a. sourcing rights
 b)
    
    Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is
calculated on a straight line basis. The following rates were applied:
 3  12 % p.a. buildings6  25 % p.a. machinery, tools and equipment5  25 % p.a. furniture, fixtures and office equipment
 In case of an impairment, intangible and tangible assets are written down to fair value.
Existence of an impairment is presumed if the fair value falls significantly below the carrying
amount of an asset and recovery of such condition is not expected in the near future.Pursuant to section 13 of the Austrian Income Tax Act 1988, assets costing less than 400 EUR are
fully depreciated in the year of acquisition. In the table Development of Fixed Assets (refer
to Attachment 1 to the notes) such assets are included in the columns Additions, Disposals
and Depreciation for the year.c)
    
    Financial assetsFinancial assets are stated at acquisition cost. In case of an impairment, financial assets are
written down to fair value. Existence of an impairment is presumed if the fair value falls
significantly below the carrying amount of an investment and recovery of such condition is not
expected in the near future.Marketable securities are stated at the lower of acquisition cost or market value on the balance
sheet date.Loans are stated at acquisition cost, less repayments.
    A-6




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
         Year ended March 31,2007
    
    2006
    
    2005(Unaudited)Interest rate
    
    
    4.75
    %
    
    
    4.5
    %
    
    
    5.5
    %Salary
increases (inflation adjusted)
    
    
    3.5
    %
    
    
    3.0
    %
    
    
    3.0
    %Pension increases (inflation adjusted)
    
    
    2.5
    %
    
    
    2.5
    %
    
    
    2.5
    %Retirement age  female employees
    
    max 60 years
    
    
    max 60 years
    
    
    max 60 yearsRetirement age  male employees
    
    max 65 years
    
    
    max 65 years
    
    
    max 65 years
       A-7




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
     2001/2002 Plan
  2006/2007 Plan (unaudited)
      A-8




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
   
    3. NOTES TO THE BALANCE SHEET
 ASSETS
 A. FIXED ASSETS
  I. Intangible assets
  II. Property, plant and equipment
  March 31, 2007
    
    March 31, 2006(Unaudited)Land
    
    730.4
    TEUR
    
    730.4
    TEURLand
unimproved
    
    4.6
    TEUR
    
    4.6
    TEUR
  A-9




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 III. Financial assets
   B. CURRENT ASSETS
 Inventory
  Accounts receivable and other current assets
  March 31, 2007 (Unaudited)
    
    March 31, 2006Residual term
    
    
    
    
    
    Residual termup to
    
    more than
    
    
    
    
    
    up to
    
    more thanTEUR
    
    Book value
    
    1 year
    
    1 year
    
    Book value
    
    1 year
    
    1 yearAccounts receivable from trade
    
    
    69,744
    
    
    
    69,744
    
    
    
    0
    
    
    
    47,472
    
    
    
    47,472
    
    
    
    0Accounts receivable from
affiliated and associated
companies
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    12,420
    
    
    
    12,420
    
    
    
    0Other receivables- financing
    
    
    175,844
    
    
    
    175,844
    
    
    
    0
    
    
    
    107,072
    
    
    
    107,072
    
    
    
    0- other
    
    
    6,577
    
    
    
    6,577
    
    
    
    0
    
    
    
    7,576
    
    
    
    7,576
    
    
    
    0Total other receivables
    
    
    182,421
    
    
    
    182,421
    
    
    
    0
    
    
    
    114,648
    
    
    
    114,648
    
    
    
    0TOTAL
    
    
    252,165
    
    
    
    252,165
    
    
    
    0
    
    
    
    174,540
    
    
    
    174,540
    
    
    
    0
  -financing
 -other
 Disclosure of allowances for accounts receivable pursuant to the requirement of section
226 (5) ACC
   A-10




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 C. DEFERRED CHARGES
  LIABILITIES AND PARTNERS CAPITAL
 A. PARTNERS CAPITAL
  March 31, 2007
    
    March 31, 2006(Unaudited)voestalpine Tubulars GmbH (unlimited partner)
    
    2
    TEUR
    
    2
    TEURvoestalpine Bahnsysteme Vermögens verwaltungs GmbH
(limited partner)
    
    8,991
    TEUR
    
    8,991
    TEURGrant Prideco European Holding LLC (limited partner)
    
    8,995
    TEUR
     
    8,995
    TEURTotal
    
    17,988
    TEUR
    
    17,988
    TEUR
 B. PROVISIONS AND ACCRUALS
  March 31, 2007
    
    March 31, 2006(Unaudited)Tax value
    
    
    
    
    
    Tax valueTEUR
    
    Book value
    
    (§14 ITA 1988)
    
    Book value
    
    (§14 ITA 1988)Accrued post employment benefits
    
    
    16,731
    
    
    
    9,410
    
    
    
    14,980
    
    
    
    8,891Pensions
    
    
    551
    
    
    
    122
    
    
    
    727
    
    
    
    133Accrued anniversary bonuses
    
    
    3,855
    
    
    
    2,372
    
    
    
    3,611
    
    
    
    2,169Accrued vacations
    
    
    3,101
    
    
    
    3,101
    
    
    
    2,898
    
    
    
    2,898Other provisions and accruals
    
    
    8,527
    
    
    
    5,096
    
    
    
    5,918
    
    
    
    3,486TOTAL
    
    
    32,765
    
    
    
    20,101
    
    
    
    28,134
    
    
    
    17,577
  March 31, 2007
    
    March 31, 2006TEUR
    
    Book value
    
    Book value(Unaudited)Accrued commissions
    
    
    1,201
    
    
    
    426Provision for warranties
    
    
    3,430
    
    
    
    3,181Accrued personnel expense
    
    
    1,032
    
    
    
    1,234Stock Option Program
    
    
    2,032
    
    
    
    0Others
    
    
    832
    
    
    
    1,077TOTAL
    
    
    8,527
    
    
    
    5,918
 A-11




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 C. LIABILITIES
 The following table presents the maturity of liabilities:
 March 31, 2007 (unaudited)
    
    
    
    
    
    March 31, 2006Book
    
    Residual term in years
    
    Book
    
    Residual term in yearsvalue
    
    
    
    
    
    
    
    
    
    
    
    
    
    valueTEUR
    
    
    
    
    
    up to 1
    
    1 to 5
    
    more than 5
    
    
    
    
    
    up to 1
    
    1 to 5
    
    More than 5European Recovery Program (ERP) Bank
loans
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    606
    
    
    
    606
    
    
    
    0
    
    
    
    0Liabilities to financial institutions
    
    
    852
    
    
    
    92
    
    
    
    368
    
    
    
    392
    
    
    
    922
    
    
    
    6
    
    
    
    0
    
    
    
    916Advance payments received
    
    
    1,478
    
    
    
    1,478
    
    
    
    0
    
    
    
    0
    
    
    
    2,131
    
    
    
    2,131
    
    
    
    0
    
    
    
    0Trade accounts payable- 3rd party
    
    
    35,882
    
    
    
    35,882
    
    
    
    0
    
    
    
    0
    
    
    
    37,728
    
    
    
    37,728
    
    
    
    0
    
    
    
    0Accounts payable to affiliated and
associated companies- trade
    
    
    19
    
    
    
    19
    
    
    
    0
    
    
    
    0
    
    
    
    98
    
    
    
    98
    
    
    
    0
    
    
    
    0- dividends
    
    
    215,360
    
    
    
    215,360
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0Total accounts payable to affiliated and
Associated companies
    
    
    215,379
    
    
    
    215,379
    
    
    
    0
    
    
    
    0
    
    
    
    98
    
    
    
    98
    
    
    
    0
    
    
    
    0Other liabilities- other
    
    
    9,906
    
    
    
    9,906
    
    
    
    0
    
    
    
    0
    
    
    
    11,310
    
    
    
    11,310
    
    
    
    0
    
    
    
    0thereof for taxes
    
    
    1,021
    
    
    
    1,021
    
    
    
    0
    
    
    
    0
    
    
    
    967
    
    
    
    967
    
    
    
    0
    
    
    
    0thereof for social security
    
    
    2,236
    
    
    
    2,236
    
    
    
    0
    
    
    
    0
    
    
    
    2,100
    
    
    
    2,100
    
    
    
    0
    
    
    
    0TOTAL
    
    
    263,497
    
    
    
    262,737
    
    
    
    368
    
    
    
    392
    
    
    
    52,795
    
    
    
    51,879
    
    
    
    0
    
    
    
    916
  in TEUR
    
    March 31, 2007
    
    March 31, 2006(Unaudited)Wages and Salaries
    
    
    3,688
    
    
    
    4,455Taxes and dues
    
    
    1,021
    
    
    
    967Social security contributions
    
    
    2,236
    
    
    
    2,100Expense for early retirement plan
    
    
    620
    
    
    
    907Expense for paid absence and
accrued Christmas and vacation
remunerations
    
    
    1,590
    
    
    
    1,536
  D. DEFERRED CREDIT
  A-12




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 Contingent Liabilities
  4. NOTES TO THE STATEMENT OF INCOME
 Sales
 Year Ended March 31,2007
    
    2006
    
    2005(Unaudited)(TEUR)Sales  domestic
    
    
    59,721
    
    
    
    48,249
    
    
    
    36,291Sales  export
    
    
    546,895
    
    
    
    449,947
    
    
    
    248,585Sales  Total
    
    
    606,616
    
    
    
    498,196
    
    
    
    284,876- thereof European Union
    
    
    104,605
    
    
    
    91,502
    
    
    
    56,770- thereof Europe  Other than EU
    
    
    5,726
    
    
    
    6,052
    
    
    
    5,244- thereof Former Soviet Union (FSU)
    
    
    98,363
    
    
    
    65,679
    
    
    
    36,014- thereof USA
    
    
    196,808
    
    
    
    177,916
    
    
    
    105,926- thereof Near / Middle East
    
    
    79,830
    
    
    
    55,748
    
    
    
    22,210- thereof Others
    
    
    121,284
    
    
    
    101,299
    
    
    
    58,712
   Year Ended March 31,2007
    
    2006
    
    2005(Unaudited)TEURWarranty expense
    
    
    555
    
    
    
    565
    
    
    
    269Other expenses
    
    
    144
    
    
    
    170
    
    
    
    971Other
    
    
    289
    
    
    
    399
    
    
    
    272TOTAL
    
    
    988
    
    
    
    1,134
    
    
    
    1,512
 A-13




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 Personnel expenses
  Year Ended March 31,2007
    
    2006
    
    2005(Unaudited)Blue collar workers
    
    
    890
    
    
    
    853
    
    
    
    727White collar workers
    
    
    144
    
    
    
    138
    
    
    
    134TOTAL
    
    
    1,034
    
    
    
    991
    
    
    
    861Contracted labor (blue collar workers)
    
    
    
    
    
    
    
    
    
    
    12
  Year Ended March 31,2007
    
    2006
    
    2005(Unaudited)Post
    
    
    
    
    
    Post
    
    
    
    
    
    Postemployment
    
    
    
    
    
    employment
    
    
    
    
    
    employmentTEUR
    
    benefits
    
    Pensions
    
    benefits
    
    Pensions
    
    benefits
    
    PensionsBoard Members and
key account managers
    
    
    23
    
    
    
    -81
    
    
    
    224
    
    
    
    150
    
    
    
    203
    
    
    
    -109Other staff
    
    
    2,097
    
    
    
    241
    
    
    
    4,568
    
    
    
    773
    
    
    
    4,289
    
    
    
    352Subtotal
    
    
    2,120
    
    
    
    160
    
    
    
    4,792
    
    
    
    923
    
    
    
    4,492
    
    
    
    243- less interest component
    
    
    -667
    
    
    
    -1
    
    
    
    -662
    
    
    
    -30
    
    
    
    -554
    
    
    
    -29TOTAL
    
    
    1,453
    
    
    
    159
    
    
    
    4,130
    
    
    
    893
    
    
    
    3,938
    
    
    
    214
    Financial results
  Other information
  A-14




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
  Fair Value(Unaudited)
    
    TEUR
    
    maturityForeign currency forward transactions
    
    
    4,618
    
    
    < 1 year
  5. DESCRIPTION OF SIGNIFICANT GAAP DIFFERENCES WITH RESPECT TO EACH OF THE YEARS ENDED MARCH 31,
2006 AND 2005
  Inventories
  Provisions for defined benefit pension plan 1 )
     Provisions for post employment benefits 1
   A-15




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
  Accrued anniversary bonuses 1
   1)
    
    For differences arising from changes in accounting policy in the financial
statements according to Austrian GAAP refer to Note 2.1.1.
 Financial instruments
      Unrealized gain/loss on available for sale securities
    A-16




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 6. DESCRIPTION OF ADDITIONAL SIGNIFICANT GAAP DIFFERENCES WITH RESPECT TO THE YEAR ENDED MARCH 31,
2007 (Unaudited)
 Provisions for defined benefit pension plan and post employment benefits
    Employee stock option program (2006/07 plan)
   Financial instruments
    A-17




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 7. Statements of Cash Flows (in accordance with International Accounting Standard No. 7)
 For the year ended March 31,2007
    
    2006
    
    2005EUR
    
    EUR
    
    EUR(Unaudited)Cash flows from operating activitiesNet income for the year
    
    
    215,360,807
    
    
    
    139,602,921
    
    
    
    20,004,816Adjustments to reconcile net income to net cash
provided in operating activities:Loss/gain on sale of assets
    
    
    0
    
    
    
    18,399
    
    
    
    (755
    )Depreciation and Amortization
    
    
    6,311,530
    
    
    
    5,854,354
    
    
    
    5,718,702Revaluation of financial assets
    
    
    0
    
    
    
    (46,007
    )
    
    
    (28,754
    )Changes in current assets and liabilities:Accounts receivable
    
    
    (9,852,713
    )
    
    
    (26,071,730
    )
    
    
    (29,843,044
    )Inventories
    
    
    3,613,367
    
    
    
    (15,197,606
    )
    
    
    (15,893,794
    )Other current assets
    
    
    999,248
    
    
    
    (936,435
    )
    
    
    (2,655,204
    )Other assets
    
    
    642,202
    
    
    
    (136,879
    )
    
    
    558,462Advance payments
    
    
    (652,977
    )
    
    
    (1,108,076
    )
    
    
    2,527,930Accounts payable
    
    
    (1,924,496
    )
    
    
    7,653,314
    
    
    
    12,410,591Other current liabilities
    
    
    (2,150,984
    )
    
    
    4,162,972
    
    
    
    5,387,463Other long term liabilities
    
    
    4,631,274
    
    
    
    4,969,158
    
    
    
    5,136,083Cash provided by operating activities
    
    
    216,977,258
    
    
    
    118,764,386
    
    
    
    3,322,494Cash flows from investing activitiesSale of assets  proceeds
    
    
    728
    
    
    
    101,460
    
    
    
    755Additions to property, plant and equipment, net
    
    
    (8,591,728
    )
    
    
    (4,992,399
    )
    
    
    (893,912
    )Additions to intangible assets
    
    
    (162,725
    )
    
    
    (172,951
    )
    
    
    (574,182
    )Decrease / increase in financial assets
    
    
    70,290
    
    
    
    81,372
    
    
    
    (997,540
    )Cash used in investing activities
    
    
    (8,683,436
    )
    
    
    (4,982,518
    )
    
    
    (2,464,879
    )Cash flows from financing activitiesDividends paid
    
    
    (139,600,000
    )
    
    
    (20,000,000
    )
    
    
    (12,900,000
    )Repayment of long-term debt
    
    
    0
    
    
    
    (1,287,551
    )
    
    
    (247,332
    )Repayment of other liabilities  financing
    
    
    0
    
    
    
    (605,029
    )
    
    
    (1,331,063
    )Cash used in financing activities
    
    
    (139,600,000
    )
    
    
    (21,892,580
    )
    
    
    (14,478,395
    )INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
    
    68,693,822
    
    
    
    91,889,288
    
    
    
    (13,620,780
    )voestalpine group treasury, beginning of year
    
    
    107,072,255
    
    
    
    13,109,521
    
    
    
    28,873,360Cash, beginning of year
    
    
    168,322
    
    
    
    2,241,769
    
    
    
    98,710voestalpine group treasury, end of year
    
    
    (175,844,094
    )
    
    
    (107,072,255
    )
    
    
    (13,109,521
    )Cash, end of year
    
    
    90,306
    
    
    
    168,322
    
    
    
    2,241,769Non-cash items:Proposed dividends
    
    
    215,360,000
    
    
    
    0
    
    
    
    0
 A-18




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 8. Statements of Partners Capital (Austrian GAAP)
 Unlimitedpartners
    
    
    Limited partners
    
    
    Additional
    
    
    Retained
    
    
    Netshare
    
    
    share
    
    
    paid-in capital
    
    
    earnings
    
    
    profit
    
    
    TOTALEUR
    
    
    EUR
    
    
    EUR
    
    
    EUR
    
    
    EUR
    
    
    EURBalance, March 31, 2004
    
    
    1,817
    
    
    
    17,986,526
    
    
    
    477,294
    
    
    
    28,715,685
    
    
    
    12,906,019
    
    
    
    60,087,341Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,004,816
    
    
    
    20,004,816Dividends paid 2003/04
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,900,000
    )
    
    
    (12,900,000
    )Allocation to retained
earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    178,361
    
    
    
    
    
    
    
    178,361Balance, March 31, 2005
    
    
    1,817
    
    
    
    17,986,526
    
    
    
    477,294
    
    
    
    28,894,047
    
    
    
    20,010,835
    
    
    
    67,370,519Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    139,602,921
    
    
    
    139,602,921Dividends paid
2004/05
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (20,000,000
    )
    
    
    (20,000,000
    )Balance, March 31, 2006
    
    
    1,817
    
    
    
    17,986,526
    
    
    
    477,294
    
    
    
    28,894,047
    
    
    
    139,613,756
    
    
    
    186,973,440Net income (Unaudited)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    215,360,807
    
    
    
    215,360,807Dividends paid
2005/06 (Unaudited)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (139,600,000
    )
    
    
    (139,600,000
    )Dividends proposed
2006/07 (Unaudited)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (215,360,000
    )
    
    
    (215,360,000
    )Balance, March 31, 2007
(Unaudited)
    
    
    1,817
    
    
    
    17,986,526
    
    
    
    477,294
    
    
    
    28,894,047
    
    
    
    14,563
    
    
    
    47,374,247
 Dipl. Ing. Hubert WASTL
Hilkka WITT
  A-19




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG
    
    Attachment IDEVELOPMENT OF FIXED ASSETS
 Purchase-/Production CostPosition on
    
    
    
    
    
    
    
    
    
    Reclassi-
    
    Position on
    
    Depreciation
    
    Book Value
    
    Book Value
    
    DepreciationApril 1, 2006
    
    Additions
    
    Disposals
    
    fication
    
    March 31, 2007
    
    (cumulative)
    
    March 31, 2007
    
    March 31, 2006
    
    for the yearEUR
    
    (Unaudited)
    
    (Unaudited)
    
    (Unaudited)
    
    (Unaudited)
    
    (Unaudited)
    
    (Unaudited)
    
    EUR
    
    (Unaudited)EUR
    
    EUR
    
    EUR
    
    EUR
    
    EUR
    
    EUR
    
    
    
    EURSoftware
    
    
    3,092,422
    
    
    
    75,058
    
    
    
    2,034
    
    
    
    
    
    
    
    3,165,446
    
    
    
    2,663,691
    
    
    
    501,754
    
    
    
    722,845
    
    
    
    296,148Energy easement
    
    
    1,924,487
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,924,487
    
    
    
    1,924,487
    
    
    
    
    
    
    
    
    
    
    
    Sourcing rights
    
    
    2,262,253
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,262,253
    
    
    
    2,111,067
    
    
    
    151,186
    
    
    
    368,195
    
    
    
    217,009Payments on account and software not yet in use
    
    
    299,423
    
    
    
    87,667
    
    
    
    
    
    
    
    
    
    
    
    387,090
    
    
    
    
    
    
    
    387,090
    
    
    
    299,423
    
    
    
    Intangible Assets
    
    
    7,578,586
    
    
    
    162,725
    
    
    
    2,034
    
    
    
    
    
    
    
    7,739,276
    
    
    
    6,699,245
    
    
    
    1,040,030
    
    
    
    1,390,463
    
    
    
    586,816Built-up land with residential buildingsProperty value
    
    
    730,381
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    730,381
    
    
    
    
    
    
    
    730,381
    
    
    
    730,381
    
    
    
    Value of buildings
    
    
    48,556,714
    
    
    
    311,171
    
    
    
    
    
    
    
    422,994
    
    
    
    49,290,979
    
    
    
    43,260,060
    
    
    
    6,030,819
    
    
    
    6,134,869
    
    
    
    838,215Vacant land
    
    
    4,633
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,633
    
    
    
    
    
    
    
    4,633
    
    
    
    4,633
    
    
    
    Land and buildings
    
    
    49,291,728
    
    
    
    311,171
    
    
    
    
    
    
    
    422,994
    
    
    
    50,025,893
    
    
    
    43,260,060
    
    
    
    6,765,833
    
    
    
    6,869,883
    
    
    
    838,215Machinery and equipment
    
    
    168,509,667
    
    
    
    6,489,967
    
    
    
    206,697
    
    
    
    203,243
    
    
    
    174,996,180
    
    
    
    150,419,083
    
    
    
    24,577,097
    
    
    
    21,675,802
    
    
    
    3,791,188Fixtures and fittings, tools and equipment
    
    
    16,951,085
    
    
    
    1,401,597
    
    
    
    157,788
    
    
    
    26,623
    
    
    
    18,221,517
    
    
    
    15,807,803
    
    
    
    2,413,714
    
    
    
    2,137,212
    
    
    
    1,151,718Payments on account and tangible assets in course of construction
    
    
    2,377,610
    
    
    
    2,139,403
    
    
    
    1,750,410
    
    
    
    (652,860
    )
    
    
    2,113,743
    
    
    
    
    
    
    
    2,113,743
    
    
    
    2,377,610
    
    
    
    Property, plant and equipment
    
    
    237,130,091
    
    
    
    10,342,138
    
    
    
    2,114,895
    
    
    
    
    
    
    
    245,357,333
    
    
    
    209,486,946
    
    
    
    35,870,387
    
    
    
    33,060,507
    
    
    
    5,781,121Investments
    
    
    44
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44
    
    
    
    
    
    
    
    44
    
    
    
    44
    
    
    
    Loans receivable
    
    
    916,168
    
    
    
    
    
    
    
    70,290
    
    
    
    
    
    
    
    845,878
    
    
    
    
    
    
    
    845,878
    
    
    
    916,168
    
    
    
    Securities (loan stock rights) held as fixed assets
    
    
    4,179,327
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,179,327
    
    
    
    90,452
    
    
    
    4,088,876
    
    
    
    4,106,128
    
    
    
    17,253Financial Assets
    
    
    5,095,540
    
    
    
    
    
    
    
    70,290
    
    
    
    
    
    
    
    5,025,249
    
    
    
    90,452
    
    
    
    4,934,798
    
    
    
    5,022,340
    
    
    
    17,253Total Assets
    
    
    249,804,216
    
    
    
    10,504,863
    
    
    
    2,187,219
    
    
    
    
    
    
    
    258,121,858
    
    
    
    216,276,643
    
    
    
    41,845,215
    
    
    
    39,473,310
    
    
    
    6,311,530
 A-20




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##### Table of Contents



EXHIBIT INDEX
 Exhibit Number
    
    Description23.3
    
    Consent of KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH31.3
    
    Certification of Michael McShane31.4
    
    Certification of Matthew D. Fitzgerald32.2
    
    Section 906 Certification