##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D. C. 20549
 
 FORM 20-F
 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2006
  PFEIFFER VACUUM TECHNOLOGY AG
  FEDERAL REPUBLIC OF GERMANY
 BERLINER STRASSE 43, D-35614 ASSLAR, GERMANY
  Title of Each Class
    
    Name of Each Exchange
On Which RegisteredAmerican Depositary Shares, each representing one 
Ordinary Share 
Ordinary Shares, without nominal value
    
    New York Stock Exchange
Frankfurt Stock Exchange
    
    
  
  Yes þ
    
    
    
    No o
 
  Yes o
    
    
    
    No þ
 
  Yes þ
    
    
    
    No o
 
  þ
 
  Item 17 o
    
    
    
    Item 18 þ
 
  Yes o
    
    
    
    No þ




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##### Table of Contents



TABLE OF CONTENTS
 PagePreliminary Remarks
    
    
    5Application of Amended or New Standards
    
    
    5Forward-Looking Statements
    
    
    6PART IItem 1.
    
    Identity of Directors, Senior Management and Advisers
    
    
    7Item 2.
    
    Offer Statistics and Expected Timetable
    
    
    7Item 3.
    
    Key Information
    
    
    7A.
    
    Selected Financial Data
    
    
    7Statement of Income Data
    
    
    7Balance Sheet Data
    
    
    8Other Data
    
    
    8Selected Historical Financial Data according to U.S. GAAP
    
    
    9Exchange Rate Information
    
    
    10B.
    
    Capitalization and Indebtedness
    
    
    10C.
    
    Reasons for the Offer and Use of Proceeds
    
    
    10D.
    
    Risk Factors
    
    
    11General Economic Conditions
    
    
    11Industry and Business
    
    
    11Technological Changes and Introduction of New Products
    
    
    11Highly Competitive Industry
    
    
    11Manufacturing Facility
    
    
    11Procurement Risk
    
    
    12Human Resources Management Risk
    
    
    12Information Technology Risk
    
    
    12International Operations and Legal Risk
    
    
    12Financial
    
    
    12Financial and Liquidity Risk
    
    
    12Currency Risk
    
    
    13Item 4.
    
    Information on the Company
    
    
    13A.
    
    History and Development of the Company
    
    
    13Organization and History
    
    
    13Business and Capital Expenditures
    
    
    13B.
    
    Business Overview
    
    
    14Introduction
    
    
    14Nature of the Companys Operations and Principal Activities
    
    
    14Seasonality
    
    
    14Raw Materials and Suppliers
    
    
    14Purchasing
    
    
    14Marketing Channels
    
    
    15Dependence of the Company on Intellectual Property, Contracts and
New Manufacturing Processes
    
    
    15Competitive Position
    
    
    15Material Effects of Government Regulations
    
    
    16C.
    
    Organizational Structure
    
    
    16D.
    
    Property, Plant and Equipment
    
    
    16Item 4.A.
    
    Unresolved Staff Comments
    
    
    17Item 5.
    
    Operating and Financial Review and Prospects
    
    
    17Introduction
    
    
    17New Accounting Rules and Accounting Standards
    
    
    17Critical Accounting Policies
    
    
    17Revenue Recognition and Accounts Receivable
    
    
    18Inventory Valuation
    
    
    18Employment-Related Benefits
    
    
    18Discontinued Operations
    
    
    18
 2




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##### Table of Contents



TABLE OF CONTENTS
 PageInflation
    
    
    18Other Risks
    
    
    18A.
    
    Operating Results
    
    
    19Managements Discussion and Analysis of Financial Conditions and Results of Operations
    
    
    19Vacuum
    
    
    19Vacuum Generation
    
    
    19Vacuum Measurement and Analysis Equipment
    
    
    20Vacuum Systems
    
    
    202006 Compared to 2005
    
    
    21B.
    
    Liquidity and Capital Resources
    
    
    28Capital Expenditures
    
    
    29Foreign Currency Exchange Hedging
    
    
    29C.
    
    Research and Development, Patents and Licenses, etc.
    
    
    29D.
    
    Trend Information
    
    
    30Vacuum Industry
    
    
    30Outlook
    
    
    30Purchasing
    
    
    30E.
    
    Off-Balance Sheet Arrangements
    
    
    30F.
    
    Tabular Disclosure of Contractual Obligations
    
    
    31Item 6.
    
    Directors, Senior Management and Employees
    
    
    31A.
    
    Directors and Senior Management
    
    
    31General
    
    
    31Management Board (Vorstand)
    
    
    32Supervisory Board (Aufsichtsrat)
    
    
    33Committees of the Supervisory Board
    
    
    35B.
    
    Compensation
    
    
    36C.
    
    Board Practices
    
    
    37D.
    
    Employees
    
    
    37E.
    
    Share Ownership
    
    
    38Stock-based Compensation Plans
    
    
    39Employee Participation Program, Term: 2000 through 2005
    
    
    39Employee Participation Program, Term: 2002 through 2007
    
    
    39Item 7.
    
    Major Shareholders and Related Party Transactions
    
    
    40A.
    
    Major Shareholders
    
    
    40B.
    
    Related Party Transactions
    
    
    41C.
    
    Interest of Experts and Counsel
    
    
    41Item 8.
    
    Financial Information
    
    
    41A.
    
    Consolidated Statements and Other Financial Information
    
    
    41Export Sales
    
    
    41Legal Proceedings
    
    
    41Policy on Dividend Distributions
    
    
    42B.
    
    Significant Changes
    
    
    42Item 9.
    
    The Offer and Listing
    
    
    42A.
    
    Offer and Listing Details
    
    
    424. Market Price Information
    
    
    42Trading of ADRs on the New York Stock Exchange
    
    
    42Trading of Ordinary Shares on the Frankfurt Stock Exchange
    
    
    43C.
    
    Markets
    
    
    44General
    
    
    44Item 10.
    
    Additional Information
    
    
    45A.
    
    Share Capital
    
    
    45B.
    
    Memorandum and Articles of Association
    
    
    45Registration, Objects and Purposes of the Company
    
    
    45General
    
    
    45Annual Shareholders Meeting
    
    
    45The Supervisory Board
    
    
    45
 3




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##### Table of Contents



TABLE OF CONTENTS
 PageThe Management Board
    
    
    45Directors
    
    
    46Ordinary Shares
    
    
    46Treasury Shares
    
    
    48Dividends
    
    
    48Voting Rights
    
    
    48Change of Shareholders Rights
    
    
    49Amendments to the Articles of Association and Bylaws
    
    
    49Notification Requirements and Disclosure of Shareholdings
    
    
    49Annual Shareholders Meeting
    
    
    50Limitation on the Right to own Securities
    
    
    50Provisions that would Delay a Change in Control
    
    
    50Provisions of German Law that are Significantly Different from
Provisions of U.S. Law
    
    
    50Provisions Governing Changes in the Capital that are More
Stringent than Required by Law
    
    
    51German Corporate Governance Code Declaration
    
    
    51NYSE Comparison
    
    
    51C.
    
    Material Contracts
    
    
    51D.
    
    Exchange Control
    
    
    51E.
    
    Taxation
    
    
    52F.
    
    Dividends and Paying Agents
    
    
    54G.
    
    Statement by Experts
    
    
    54H.
    
    Documents on Display
    
    
    54Subsidiary Information
    
    
    55Item 11.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    55Exchange Rate Risk
    
    
    55Item 12.
    
    Description of Securities other than Equity Securities
    
    
    57A.
    
    Debt Securities
    
    
    57B.
    
    Warrants and Rights
    
    
    57C.
    
    Other Securities
    
    
    57D.
    
    American Depositary Shares
    
    
    57PART IIItem 13.
    
    Defaults, Dividend Arrearages and Delinquencies
    
    
    58Item 14.
    
    Material Modifications to the Rights of Security Holders and Use of Proceeds
    
    
    58Changes with Respect to Ordinary Shares
    
    
    58Treasury Shares
    
    
    58Item 15.
    
    Controls and Procedures
    
    
    58Report of Independent Registered Public Accounting Firm
    
    
    60Item 16A.
    
    Audit Committee Financial Expert
    
    
    61Item 16B.
    
    Code of Ethics
    
    
    61Item 16C.
    
    Principal Accountant Fees and Services
    
    
    61Item 16D.
    
    Exemptions from the Listing Standards for Audit Committees
    
    
    62Item 16E.
    
    Purchases of Equity Securities by the Issuer and Affiliated Purchasers
    
    
    62PART IIIItem 17.
    
    Financial Statements
    
    
    63Item 18.
    
    Financial Statements
    
    
    63Item 19.
    
    Exhibits
    
    
    64Signature
    
    
    65Exhibit 1.1Exhibit 2.6Exhibit 12.1Exhibit 12.2Exhibit 13.1Exhibit 13.2
 4




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##### Table of Contents



Preliminary Remarks
       
 
 Application of Amended or New Standards
    5




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##### Table of Contents



Forward-Looking Statements
  
    
    changes in general political, economic or business conditions, especially an economic downturn or slow economic growth
in Europe or the United States;
    
    changes in currency exchange rates and interest rates;
    
    changes in laws, regulations and government policies, particularly those relating to emissions, environmental
protections and waste disposals;
    
    introduction of competing products and possible lack of acceptance of new products or services;
    
    increased competitive pressures which may limit our ability to reduce sales incentives and raise prices;
    
    price increases, shortages or supply interruptions of production materials, or labor strikes;
    
    other risks and uncertainties, some of which are described in Item 3. D Key information under the heading Risk
Factors.
  6




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##### Table of Contents



Part I
 
 Item 1. Identity of Directors, Senior Management and Advisers
  
 Item 2. Offer Statistics and Expected Timetable
  
 Item 3. Key Information
 
 A. Selected Financial Data
 Selected Financial Data
   Year ended December 31,2006
    
    
    2005 in thousands, except per-share amountsStatement of Income DataNet sales
    
    
    179,484
    
    
    
    159,517Operating profit
    
    
    44,957
    
    
    
    36,441Net income from continuing operations
    
    
    29,786
    
    
    
    24,009Net income
    
    
    29,786
    
    
    
    23,015Net earnings per share/ADR from:Continuing operations, basic and diluted
    
    
    3.39
    
    
    
    2.75Discontinued operations, basic and diluted
    
    
    
    
    
    
    (0.11
    )Net earnings per share/ADR ()
    
    
    3.39
    
    
    
    2.64Dividends declared and paid per share (*)
    
    
    2.50
    
    
    
    1.35Dividends declared and paid per share in U.S. dollars (*)
    
    $
    3.30
    
    
    $
    1.60
 
 (*)
    
    2006: Proposed 7




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##### Table of Contents



 
  (2005:  1.35).
  December 31,2006
    
    
    2005 in thousandsBalance Sheet DataTotal net assets
    
    
    168,670
    
    
    
    139,406Share capital
    
    
    22,965
    
    
    
    22,504Equity of Pfeiffer Vacuum Technology AG shareholders
    
    
    138,337
    
    
    
    111,429Equity of minority interests
    
    
    635
    
    
    
    569
  2006
    
    
    2005Other DataAdjusted weighted average number of shares outstanding: Basic
    
    
    8,728,672
    
    
    
    8,690,524 Diluted
    
    
    8,728,672
    
    
    
    8,690,524
 8




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##### Table of Contents



Selected Historical Financial Data According to U.S. GAAP
  2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    
    
    
    
    
    
    
    
    
    (in thousands, except per-share amounts)Statement of Income DataNet sales
    
    
    179,484
    
    
    
    159,517
    
    
    
    151,512
    
    
    
    138,590
    
    
    
    150,684Gross profit
    
    
    87,612
    
    
    
    75,505
    
    
    
    72,502
    
    
    
    63,197
    
    
    
    69,002Selling and marketing expenses
    
    
    (22,478
    )
    
    
    (19,877
    )
    
    
    (18,973
    )
    
    
    (20,394
    )
    
    
    (23,944
    )General and administrative expenses
    
    
    (13,142
    )
    
    
    (12,408
    )
    
    
    (12,524
    )
    
    
    (12,153
    )
    
    
    (11,569
    )Research and development expenses
    
    
    (7,323
    )
    
    
    (6,432
    )
    
    
    (6,387
    )
    
    
    (6,301
    )
    
    
    (7,517
    )Operating profit
    
    
    44,669
    
    
    
    36,788
    
    
    
    34,618
    
    
    
    24,349
    
    
    
    25,972Income from continuing operations
before taxes and minority interests
    
    
    46,104
    
    
    
    39,337
    
    
    
    36,447
    
    
    
    28,030
    
    
    
    29,620Income from continuing operations
    
    
    29,440
    
    
    
    23,742
    
    
    
    21,814
    
    
    
    14,705
    
    
    
    20,074Loss from discontinued operations,
net of tax
    
    
    
    
    
    
    (994
    )
    
    
    (10,188
    )
    
    
    (1,959
    )
    
    
    (2,539
    )Net income
    
    
    29,440
    
    
    
    22,748
    
    
    
    11,626
    
    
    
    12,746
    
    
    
    17,535Net earnings per share/ADR from:Continuing operations, basic and diluted
    
    
    3.37
    
    
    
    2.73
    
    
    
    2.51
    
    
    
    1.68
    
    
    
    2.28Discontinued operations, basic and diluted
    
    
    
    
    
    
    (0.11
    )
    
    
    (1.17
    )
    
    
    (0.22
    )
    
    
    (0.29
    )Net earnings per share/ADR ()
    
    
    3.37
    
    
    
    2.62
    
    
    
    1.34
    
    
    
    1.46
    
    
    
    1.99Dividends declared and paid
per ordinary share (*)
    
    
    2.50
    
    
    
    1.35
    
    
    
    0.90
    
    
    
    0.70
    
    
    
    0.56Dividends declared and paid
per ordinary share in U.S. dollars (*)
    
    $
    3.30
    
    
    $
    1.60
    
    
    $
    1.23
    
    
    $
    0.88
    
    
    $
    0.59Balance Sheet DataCurrent assets from
continuing operations
    
    
    119,378
    
    
    
    104,468
    
    
    
    92,842
    
    
    
    66,445
    
    
    
    113,580Net current assets of
discontinued operations
    
    
    
    
    
    
    
    
    
    
    1,862
    
    
    
    11,592
    
    
    
    8,895Total assets
    
    
    168,384
    
    
    
    138,824
    
    
    
    125,233
    
    
    
    119,780
    
    
    
    155,496Current liabilities from
continuing operations
    
    
    23,762
    
    
    
    20,796
    
    
    
    22,443
    
    
    
    21,962
    
    
    
    19,579Net current liabilities of
discontinued operations
    
    
    
    
    
    
    
    
    
    
    1,186
    
    
    
    895
    
    
    
    907Long term debt
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,746Share capital
    
    
    22,965
    
    
    
    22,504
    
    
    
    22,504
    
    
    
    22,504
    
    
    
    22,504Shareholders equity
    
    
    138,553
    
    
    
    112,631
    
    
    
    99,355
    
    
    
    95,037
    
    
    
    92,508Other DataAdjusted weighted average number of
shares outstanding Basic
    
    
    8,728,672
    
    
    
    8,690,524
    
    
    
    8,690,524
    
    
    
    8,750,201
    
    
    
    8,790,600 Diluted
    
    
    8,728,672
    
    
    
    8,690,524
    
    
    
    8,690,524
    
    
    
    8,750,201
    
    
    
    8,790,600
 
 (*)
    
    2006: Proposed 9




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##### Table of Contents



Exchange Rate Information
 
 
 Year Ended December 31,
    
    High
    
    
    Low
    
    
    Average Rate
    
    
    End of Period(*)2002
    
    $
    1.0477
    
    
    $
    0.8600
    
    
    $
    0.9449
    
    
    $
    1.04772003
    
    
    1.2610
    
    
    
    1.0371
    
    
    
    1.1309
    
    
    
    1.26102004
    
    
    1.3640
    
    
    
    1.1798
    
    
    
    1.2434
    
    
    
    1.36402005
    
    
    1.3514
    
    
    
    1.1655
    
    
    
    1.2451
    
    
    
    1.18342006
    
    
    1.3320
    
    
    
    1.1831
    
    
    
    1.2560
    
    
    
    1.31812006July
    
    $
    1.2796
    
    
    $
    1.2499
    
    
    $
    1.2685
    
    
    $
    1.2752August
    
    
    1.2898
    
    
    
    1.2722
    
    
    
    1.2814
    
    
    
    1.2859September
    
    
    1.2862
    
    
    
    1.2661
    
    
    
    1.2734
    
    
    
    1.2669October
    
    
    1.2745
    
    
    
    1.2515
    
    
    
    1.2613
    
    
    
    1.2695November
    
    
    1.3190
    
    
    
    1.2700
    
    
    
    1.2883
    
    
    
    1.3190December
    
    
    1.3320
    
    
    
    1.3094
    
    
    
    1.3214
    
    
    
    1.31812007January(through January 31, 2007)
    
    $
    1.3272
    
    
    $
    1.2900
    
    
    $
    1.3001
    
    
    $
    1.2936
 
 (*)
    
    The average of the Noon Buying Rates on the last business day of each full month during the
relevant period.   
 B. Capitalization and Indebtedness
  
 C. Reasons for the Offer and Use of Proceeds
  10




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##### Table of Contents



D. Risk Factors
   
 General Economic Conditions
  
 Industry and Business
 
 Technological Changes and Introduction of New Products
  
 
 Highly Competitive Industry
  
 Manufacturing Facility
  11




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##### Table of Contents



Procurement Risk
   
 Human Resources Management Risk
  
 Information Technology Risk
  
 International Operations and Legal Risk
   
 Financial
 
 Financial and Liquidity Risk
  12




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##### Table of Contents



Currency Risk
 
 
 Item 4: Information on the Company
 
 A. History and Development of the Company
 
 Organization and History
   
 Business and Capital Expenditures
    
 
   13




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##### Table of Contents



B. Business Overview
 
 Introduction
   
 Nature of the Companys Operations and Principal Activities
     
 Seasonality
  
 Raw Materials and Suppliers
 
 Purchasing
  14




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##### Table of Contents



Marketing Channels
   
 Dependence of the Company on Intellectual Property, Contracts and New Manufacturing Processes
  
 Competitive Position
  15




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##### Table of Contents



Material Effects of Government Regulations
  
 C. Organizational Structure
  The Companys subsidiaries are:
 Identity and Location of Company
    
    Percent OwnedPfeiffer Vacuum Austria GmbH, Vienna/Austria
    
    
    100.0
    %Pfeiffer Vacuum Belgium N.V., Temse/Belgium
    
    
    100.0
    %Pfeiffer Vacuum France SAS, Buc/France
    
    
    100.0
    %Pfeiffer Vacuum GmbH, Asslar/Germany
    
    
    100.0
    %Pfeiffer Vacuum Holding B.V., De Meern/Netherlands
    
    
    100.0
    %Pfeiffer Vacuum Inc., Nashua/United States
    
    
    100.0
    %Pfeiffer Vacuum Italia S.p.A., Rho (Milano)/Italy
    
    
    100.0
    %Pfeiffer Vacuum Ltd., Newport/United Kingdom
    
    
    100.0
    %Pfeiffer Vacuum Nederland B.V., De Meern/Netherlands
    
    
    100.0
    %Pfeiffer Vacuum Scandinavia AB, Upplands Väsby (Stockholm)/Sweden
    
    
    100.0
    %Pfeiffer Vacuum (Schweiz) AG, Zurich/Switzerland
    
    
    99.4
    %Pfeiffer Vacuum Korea Ltd., Yongin-City, Kyungki-Do/South-Korea
    
    
    75.5
    %Pfeiffer Vacuum (India) Ltd., Secunderabad/India
    
    
    73.0
    %
 
 D. Property, Plant and Equipment
 2 2 2
   16




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##### Table of Contents



2
  
 Item 4. A. Unresolved Staff Comments
  
 Item 5. Operating and Financial Review and Prospects
 
 Introduction
   
 New Accounting Rules and Accounting Standards
  
 Critical Accounting Policies
  17




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##### Table of Contents



Revenue Recognition and Accounts Receivable
   
 Inventory Valuation
  
 Employment-Related Benefits
  
 Discontinued Operations
   
 Inflation
  
 Other Risks
  18




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##### Table of Contents



A. Operating Results
 
 Managements Discussion and Analysis of Financial Condition and Results of Operations
   Vacuum generation
    
    Turbopumps, rotary vane pumps, dry pumps, Roots pumpsVacuum measurement and 

analysis equipment
    
    Vacuum gauges and controllers, mass spectrometers, leak detectorsInstallation elements
    
    Fittings, flanges, valvesVacuum systems
    
    Vacuum pumping stations, leak detection systems,
multi-stage vacuum systems
 
 Vacuum
  
    
    Low vacuum: From 103 to 1 mbar, e.g. for vacuum packaging
    
    Medium vacuum: From 1 to 10-3 mbar, e.g. for decorative coating
    
    High vacuum: From 10-3 to 10-7 mbar, e.g. for equipment used in doping checks and environmental analysis
    
    Ultra-high vacuum: From 10-7 to 10-12 mbar, e.g. for space simulation or scientific research
 
 Vacuum Generation
 Turbopumps
  Rotary vane pumps
  Dry pumps
  Roots pumps
  19




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Vacuum Measurement and Analysis Equipment
 Vacuum gauges and controllers
  Mass spectrometers
  Leak detectors
  Installation elements
  
 Vacuum Systems
 TurboCube TM pumping stations
 TM
 CombiLine TM pumping stations
 TM
 Leak detection systems
  Vacu 2 multi-stage vacuum processes
  20




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Service
   
 2006 Compared to 2005  (Percentages calculated on the basis of amounts in thousands of )
  Net Sales
    high-margin
 Net Sales by Segment
  
 Year ended December 31,2006
    
    
    2005( in thousands)
    
    
    %
    
    
    ( in thousands)
    
    
    %Net sales by segmentGermany
    
    
    79,700
    
    
    
    44.4
    
    
    
    70,159
    
    
    
    43.9Europe (excluding Germany)
    
    
    52,999
    
    
    
    29.5
    
    
    
    49,720
    
    
    
    31.2United States
    
    
    41,577
    
    
    
    23.2
    
    
    
    36,301
    
    
    
    22.8Asia
    
    
    5,208
    
    
    
    2.9
    
    
    
    3,337
    
    
    
    2.1Total
    
    
    179,484
    
    
    
    100.0
    
    
    
    159,517
    
    
    
    100.0
    
 21




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##### Table of Contents



     
 Net Sales by Region
  Year ended December 31,2006
    
    
    2005( in thousands)
    
    
    %
    
    
    ( in thousands)
    
    
    %Net sales by regionGermany
    
    
    50,882
    
    
    
    28.4
    
    
    
    44,939
    
    
    
    28.2Europe (excluding Germany)
    
    
    54,434
    
    
    
    30.3
    
    
    
    51,012
    
    
    
    32.0United States
    
    
    41,309
    
    
    
    23.0
    
    
    
    36,022
    
    
    
    22.5Asia
    
    
    31,191
    
    
    
    17.4
    
    
    
    25,840
    
    
    
    16.2Rest of world
    
    
    1,668
    
    
    
    0.9
    
    
    
    1,704
    
    
    
    1.1Total
    
    
    179,484
    
    
    
    100.0
    
    
    
    159,517
    
    
    
    100.0
 Europe (excluding Germany)
       6.3  
 Germany
   
 United States of America
  
 Asia and other Regions
         3.1 million   
 22




---



##### Table of Contents



Net Sales by Product
  Year ended December 31,2006
    
    
    2005( in thousands)
    
    
    %
    
    
    ( in thousands)
    
    
    %Net sales by productTurbopumps
    
    
    78,284
    
    
    
    43.6
    
    
    
    64,397
    
    
    
    40.4Measurement and analyses equipment, components
    
    
    45,938
    
    
    
    25.6
    
    
    
    41,347
    
    
    
    25.9Service
    
    
    25,344
    
    
    
    14.1
    
    
    
    23,515
    
    
    
    14.7Backing pumps
    
    
    24,786
    
    
    
    13.8
    
    
    
    22,775
    
    
    
    14.3Systems
    
    
    4,582
    
    
    
    2.6
    
    
    
    6,935
    
    
    
    4.4Other
    
    
    550
    
    
    
    0.3
    
    
    
    548
    
    
    
    0.3Total
    
    
    179,484
    
    
    
    100.0
    
    
    
    159,517
    
    
    
    100.0
  Turbopumps
   
 Measurement and analysis equipment, Components
   
 Service
   
 23




---



##### Table of Contents



Backing pumps
  
 Systems
   
 Other
  
 Net Sales by Principal Markets
  Year ended December 31,2006
    
    
    2005( in thousands)
    
    
    %
    
    
    ( in thousands)
    
    
    %Net sales by marketsAnalytical Industry
    
    
    45,184
    
    
    
    25.1
    
    
    
    40,005
    
    
    
    25.1Industrial
    
    
    44,585
    
    
    
    24.9
    
    
    
    37,488
    
    
    
    23.5Research and Development
    
    
    37,512
    
    
    
    20.9
    
    
    
    30,809
    
    
    
    19.3Optical and Glass Coating
    
    
    26,991
    
    
    
    15.0
    
    
    
    26,695
    
    
    
    16.8Semiconductor Industry
    
    
    19,307
    
    
    
    10.8
    
    
    
    18,108
    
    
    
    11.3Chemical and Process Technology
    
    
    5,905
    
    
    
    3.3
    
    
    
    6,412
    
    
    
    4.0Total
    
    
    179,484
    
    
    
    100.0
    
    
    
    159,517
    
    
    
    100.0
 Analytical industry
   
 Industrial
   37.5 million 
 24




---



##### Table of Contents



2
 Research & development
  6.7 million,  
 Coating
  
 Semiconductors
   
 Chemical and process technology
   
 New orders and orders on hand
     5.8 million    5.5 million  
  December 31, 2006 (2005:  29.5 million)
 25




---



##### Table of Contents



Cost of Sales and Gross Profit
   Year ended December 31,2006
    
    
    2005( in thousands)
    
    
    %
    
    
    ( in thousands)
    
    
    %Cost of salesGermany
    
    
    14,361
    
    
    
    15.7
    
    
    
    15,783
    
    
    
    18.8Europe (excluding Germany)
    
    
    41,507
    
    
    
    45.2
    
    
    
    38,442
    
    
    
    45.8United States
    
    
    32,074
    
    
    
    34.9
    
    
    
    27,181
    
    
    
    32.4Rest of world
    
    
    3,887
    
    
    
    4.2
    
    
    
    2,526
    
    
    
    3.0Total cost of sales
    
    
    91,829
    
    
    
    100.0
    
    
    
    83,932
    
    
    
    100.0
    87.7 million 
  Selling and Marketing Expenses
    
  
 General and Administrative Expenses
  
 26




---



##### Table of Contents



Research and Development Expenses
  
  Operating Profit
   
  
 Net Financial Income
        
 Income Taxes
       
 Losses from Discontinued Operations
  1.0 million
 Net Income
      
   
 27




---



##### Table of Contents



B. Liquidity and Capital Resources
   75.4 million   
    7.3 million,  
4.0 million    
  9.0 million         
     
    
  
  28




---



##### Table of Contents



Capital Expenditures
   2.5 million
 Year ended December 31,2006
    
    
    2005( in thousands)
    
    
    %
    
    
    ( in thousands)
    
    
    %Capital ExpendituresLand and buildings
    
    
    1,379
    
    
    
    24.6
    
    
    
    966
    
    
    
    39.1Technical equipment and machinery
    
    
    1,670
    
    
    
    29.8
    
    
    
    242
    
    
    
    9.8Other equipment
    
    
    1,409
    
    
    
    25.1
    
    
    
    986
    
    
    
    39.9Software
    
    
    208
    
    
    
    3.7
    
    
    
    276
    
    
    
    11.2Investment properties
    
    
    944
    
    
    
    16.8
    
    
    
    
    
    
    
    Total capital expenditures
    
    
    5,610
    
    
    
    100.0
    
    
    
    2,470
    
    
    
    100.0
 long-term leases.
 
 Foreign Currency Exchange Hedging
  
 C.     Research and Development, Patents and Licenses, etc.
    
 29




---



##### Table of Contents



D. Trend Information
 
 Vacuum industry
  
 Outlook
  
 Purchasing
  
 E. Off-Balance Sheet Arrangements
  30




---



##### Table of Contents



F. Tabular Disclosure of Contractual Obligations
  Contractual Obligations
 Payments Due by PeriodLess than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 year
    
    
    1-3 years
    
    
    3-5 years
    
    
    5 years in thousandsOperating leases
    
    
    2,299
    
    
    
    842
    
    
    
    1,082
    
    
    
    360
    
    
    
    15Purchase obligations
    
    
    3,524
    
    
    
    541
    
    
    
    2,796
    
    
    
    187
    
    
    
    Maintenance contracts
    
    
    452
    
    
    
    352
    
    
    
    100
    
    
    
    
    
    
    
    Pension payments *
    
    
    24,134
    
    
    
    1,990
    
    
    
    4,249
    
    
    
    4,634
    
    
    
    13,261Total contractual obligations
    
    
    30,409
    
    
    
    3,725
    
    
    
    8,227
    
    
    
    5,181
    
    
    
    13,276
 
 *
    
    Pension payments include only payments for the next ten years as reported by the Companys
actuaries. 
 
 Item 6. Directors, Senior Management and Employees
 
 A. Directors and Senior Management
 
 General
      31




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##### Table of Contents



Management Board (Vorstand)
 Prokura
    Vorstandsvorsitzender
  Wolfgang Dondorf
  Manfred Bender
  32




---



##### Table of Contents



Senior Officer (Prokuristin)
  
 Supervisory Board (Aufsichtsrat)
     33




---



##### Table of Contents



Name
    
    Age
    
    Principal OccupationDr. Michael Oltmanns

(Chairman)
    
    
    50
    
    
    Attorney at Law and Tax Consultant
Law Offices of Menold Bezler,
Stuttgart, Germany
First elected: 1996
Chairman since 2001
- reelected on May 31, 2006Further Supervisory Board posts 

held by Dr. Oltmanns:
    
    
    
    
    
    HPC AG, Weinheim (Chairman)
Merkur Bank KGaA, Munich/Germany (Vice Chairman)
Jetter AG, Ludwigsburg (Chairman)
Scholz AG, Essingen (Chairman)Prof. Dr. Klaus-Jürgen Kügler

(Vice Chairman)
    
    
    56
    
    
    Dean (Professor)
at Giessen-Friedberg Technical University,
Giessen, Germany
First elected: 2001
- until May 31, 2006Götz Timmerbeil
(Vice Chairman)
    
    
    39
    
    
    Certified Public Accountant and Tax Consultant,
Gummersbach, Germany
First elected: 2001
- reelected on May 31, 2006Michael J. Anderson
    
    
    49
    
    
    Managing Director Equity Capital Markets of UBS Securities,
New York, United States
First elected: 1996
- reelected on May, 31, 2006Wilfried Glaum
    
    
    60
    
    
    Business Administrator,
Hüttenberg, Germany
First elected: 2006
- since May 31, 2006Günter Schneider
    
    
    63
    
    
    Chairman of the Pfeiffer Vacuum Works Council,
First elected: 1996, (elected by the employees)
- until May 31, 2006Edgar Keller
    
    
    51
    
    
    Member of the Pfeiffer Vacuum Works Council,
First elected: 2001 (elected by the employees)
- until May 31, 2006Manfred Gath
    
    
    53
    
    
    Chairman of the Pfeiffer Vacuum Works Council,
First elected: 2006 (elected by the employees)
- since May 31, 2006Helmut Bernhardt
    
    
    50
    
    
    Development Engineer,
First elected: 2006 (elected by the employees)
- since May 31, 2006
 34




---



##### Table of Contents



Committees of the Supervisory Board:
  Audit Committee:
  Name
    
    Age
    
    Principal OccupationGötz Timmerbeil
(Chairman and Financial Expert)
    
    
    39
    
    
    Certified Public Accountant and Tax ConsultantDr. Michael Oltmanns
    
    
    50
    
    
    Attorney at Law and Tax ConsultantMichael J. Anderson
    
    
    49
    
    
    Managing Director Equity Capital Markets of UBS Securities
   Administration Committee:
  Name
    
    Age
    
    Principal OccupationDr. Michael Oltmanns
(Chairman)
    
    
    50
    
    
    Attorney at Law and Tax ConsultantGötz Timmerbeil
(Vice Chairman)
    
    
    39
    
    
    Certified Public Accountant and Tax ConsultantHelmut Bernhardt
    
    
    50
    
    
    Development Engineer
 Management Board Committee:
  35




---



##### Table of Contents



Name
    
    Age
    
    Principal OccupationDr. Michael Oltmanns
(Chairman)
    
    
    50
    
    
    Attorney at Law and Tax ConsultantGötz Timmerbeil
(Vice Chairman)
    
    
    39
    
    
    Certified Public Accountant and Tax ConsultantWilfried Glaum
    
    
    60
    
    
    Business Administrator
 
 B. Compensation
 Management Board
 Compensation Report
  Compensation Paid to Members of the Management Board
         
 Supervisory Board
 Compensation Paid to Members of the Supervisory Board
      
 36




---



##### Table of Contents



Negative Statement
  Transparency
  
 C. Board Practices
  Betriebsverfassungsgesetz of
 
 D. Employees
 December 31,2006
    
    
    2005
    
    
    2004
    
    
    2006
    
    
    2005
    
    
    2004Germany
    
    
    
    
    
    
    Foreign CountriesProduction and Service
    
    
    273
    
    
    
    277
    
    
    
    280
    
    
    
    56
    
    
    
    55
    
    
    
    57Research and Development
    
    
    75
    
    
    
    76
    
    
    
    81
    
    
    
    
    
    
    
    
    
    
    
    Selling and Marketing
    
    
    103
    
    
    
    102
    
    
    
    98
    
    
    
    95
    
    
    
    96
    
    
    
    92Administration
    
    
    53
    
    
    
    55
    
    
    
    55
    
    
    
    29
    
    
    
    30
    
    
    
    33Total
    
    
    504
    
    
    
    510
    
    
    
    514
    
    
    
    180
    
    
    
    181
    
    
    
    182
  37




---



##### Table of Contents



E. Share Ownership
  Title of
    
    Identity of
    
    Numbers
    
    Percent ofClass
    
    Person or Group
    
    Owned
    
    ClassSupervisory BoardOrdinary Shares
    
    Dr. Michael Oltmanns
    
    
    100
    
    
    
    0.0
    %Ordinary Shares
    
    Michael J. Anderson
    
    
    0
    
    
    
    0.0
    %Ordinary Shares
    
    Wilfried Glaum
    
    
    1,000
    
    
    
    0.0
    %ADRs
    
    Wilfried Glaum
    
    
    200
    
    
    
    0.0
    %Ordinary Shares
    
    Götz Timmerbeil
    
    
    0
    
    
    
    0.0
    %Ordinary Shares
    
    Gath, Manfred
    
    
    0
    
    
    
    0.0
    %Ordinary Shares
    
    Bernhardt, Helmut
    
    
    137
    
    
    
    0.0
    %
 38




---



##### Table of Contents



Title of
    
    Identity of
    
    Numbers
    
    Percent ofClass
    
    Person or Group
    
    Owned
    
    ClassManagement BoardOrdinary Shares
    
    Wolfgang Dondorf
    
    
    13,700
    
    
    
    0.2
    %ADRs
    
    Wolfgang Dondorf
    
    
    200
    
    
    
    0.0
    %Ordinary Shares
    
    Manfred Bender
    
    
    140
    
    
    
    0.0
    %
 
 Stock-based Compensation Plans
    
 Employee Participation Program, Term: 2000 through 2005
 
 
 Employee Participation Program, Term: 2002 through 2007
 
  
  39




---



##### Table of Contents



K 314
    
  
 
 Item 7. Major Shareholders and Related Party Transactions
 
 A. Major Shareholders
   Title of
    
    Identity of
    
    Amount
    
    
    Percent ofClass
    
    Person or Group
    
    Owned
    
    
    ClassDecember 31, 2006Ordinary Shares
    
    Arnhold and S. Bleichroeder Advisors, LLC,New York/U.S.A.
    
    914,400
    
    
    10.34
    %Ordinary Shares
    
    Artisan Partners Ltd., Milwaukee/U.S.A.
    
    883,275
    
    
    9.99
    %December 31, 2005Ordinary Shares
    
    Arnhold and S. Bleichroeder Advisors, LLC,New York/U.S.A.
    
    914,400
    
    
    10.52
    %Ordinary Shares
    
    Harris Associates L.P., Chicago/U.S.A.
    
    864,077
    
    
    9.94
    %Ordinary Shares
    
    Artisan Partners Ltd., Milwaukee/U.S.A.
    
    606,579
    
    
    6.98
    %December 31, 2004Ordinary Shares
    
    Arnhold and S. Bleichroeder Advisors, LLC,
New York/U.S.A.
    
    450,002
    
    
    5.18
    %Ordinary Shares
    
    Harris Associates L.P., Chicago/U.S.A.
    
    893,320
    
    
    10.28
    %
  40




---



##### Table of Contents



B. Related Party Transactions
     
 C. Interests of Experts and Counsel
  
 Item 8. Financial Information
 
 A. Consolidated Statements and Other Financial Information
  
 Export Sales
  
 
 Legal Proceedings
  41




---



##### Table of Contents



Policy on Dividend Distributions
  
  
  
 B. Significant Changes
  
 Item 9. The Offer and Listing
  
 A. Offer and Listing Details
 
 4. Market Price Information
 
 Trading of our ADRs on the New York Stock Exchange since July 16, 1996
 International Securities Identification Number:
    
    ISIN US7170671025Stock Symbol:
    
    PVFree-float as of December 31, 2006:
    
    100%
  42




---



##### Table of Contents



Price per ADRHigh
    
    
    Low($)2002
    
    
    37.53
    
    
    
    16.502003
    
    
    36.33
    
    
    
    18.752004
    
    
    45.79
    
    
    
    31.752005First Quarter
    
    
    53.49
    
    
    
    41.62Second Quarter
    
    
    54.25
    
    
    
    46.00Third Quarter
    
    
    50.73
    
    
    
    45.67Fourth Quarter
    
    
    55.40
    
    
    
    49.502006First Quarter
    
    
    66.50
    
    
    
    53.81Second Quarter
    
    
    73.95
    
    
    
    57.86Third Quarter
    
    
    66.89
    
    
    
    59.40Fourth Quarter
    
    
    87.43
    
    
    
    62.002006Month of July
    
    
    66.89
    
    
    
    60.12Month of August
    
    
    64.86
    
    
    
    59.40Month of September
    
    
    66.43
    
    
    
    62.30Month of October
    
    
    67.70
    
    
    
    62.00Month of November
    
    
    77.55
    
    
    
    67.13Month of December
    
    
    87.43
    
    
    
    78.302007Month of January through 31,
    
    
    88.59
    
    
    
    81.38
 
  
 Trading of Ordinary Shares on the Frankfurt Stock Exchange since April 15, 1998
 International Securities Identification Number:
    
    ISIN DE0006916604Stock Symbol:
    
    PFVNumber of shares issued:
    
    8,970,600Free-float as of December 31, 2006:
    
    100%
  43




---



##### Table of Contents



Price per Ordinary ShareHigh
    
    Low
    
    High
    
    Low
    
    
    
    $
    
    $2002:
    
    41.80
    
    15.80
    
    36.42
    
    15.562003:
    
    30.65
    
    16.60
    
    35.83
    
    18.102004:
    
    35.15
    
    25.40
    
    47.94
    
    31.062005:First Quarter
    
    40.09
    
    31.60
    
    51.96
    
    40.96Second Quarter
    
    42.39
    
    35.47
    
    51.08
    
    42.74Third Quarter
    
    41.75
    
    38.00
    
    50.30
    
    45.79Fourth Quarter
    
    47.25
    
    40.81
    
    55.92
    
    48.292006:First Quarter
    
    55.20
    
    44.45
    
    66.77
    
    53.47Second Quarter
    
    58.00
    
    45.00
    
    74.72
    
    57.20Third Quarter
    
    53.49
    
    46.00
    
    68.21
    
    59.15Fourth Quarter
    
    66.60
    
    49.10
    
    87.79
    
    62.332006:Month of July
    
    53.49
    
    46.74
    
    68.21
    
    59.60Month of August
    
    50.80
    
    46.00
    
    65.32
    
    59.15Month of September
    
    52.79
    
    48.62
    
    66.88
    
    61.60Month of October
    
    53.04
    
    49.10
    
    67.33
    
    62.33Month of November
    
    60.18
    
    52.71
    
    79.38
    
    69.52Month of December
    
    66.60
    
    58.60
    
    87.79
    
    77.242007:Month of January, through 31,
    
    68.30
    
    61.79
    
    88.35
    
    79.93
 
  
 C. Markets
 
 General
   44




---



##### Table of Contents



Item 10. Additional Information
 
 A. Share Capital
  
 B. Memorandum and Articles of Association
 
 Registration, Objects and Purposes of the Company
 Aktiengesellschaft Aktiengesetz
  
 General
  
 Annual Shareholders Meeting
  
 The Supervisory Board
   
 The Management Board
  45




---



##### Table of Contents



Directors
          
 Ordinary Shares
    46




---



##### Table of Contents



Barkapitalerhöhung Grundkapital
   
  
    
    that have been or might potentially be issued in the future to cover bonds containing
conversion or option rights if the bonds have been or will be issued subject to the
exclusion of the right of subscription analogously to § 186, Sub-para. 3, Sent. 4, German
Stock Corporation Act, under an authorization in force at the time the authorization goes
into effect or under an authorization replacing it;
    
    that are sold as treasury shares subject to the exclusion of the right of subscription
of the shareholders pursuant to § 186, Sub-para. 3, Sent. 4, German Stock Corporation Act
under an authorization in force at the time the authorization goes into effect or under an
authorization replacing it.
 
 
  December 31, 2006
    
    
    January 1, 2006Shares authorized
    
    
    13,635,900
    
    
    
    13,459,350Shares issued
    
    
    8,970,600
    
    
    
    8,790,600Treasury shares
    
    
    (127,076
    )
    
    
    (100,076
    )Shares outstanding
    
    
    8,843,524
    
    
    
    8,690,524
  47




---



##### Table of Contents



Treasury Shares
  
 
 Dividends
  Dividendenschein Bundesanzeiger
 
 Voting Rights
 Bilanzgewinn Jahresüberschuss
 Unternehmensverträge Beherrschungsverträge Gewinnabführungsverträge
    48




---



##### Table of Contents



Change of Shareholders Rights
 
 
 Amendments to the Articles of Association and Bylaws
   (3)
    
    Notification of said convocation, including notification of the agenda, shall be made in the
Electronic Federal Gazette (elektronischer Bundesanzeiger) at least 30 days prior to the
expiration of the deadline by which shareholders shall register for the Annual Shareholders
Meeting.(4)
    
    Only those shareholders who have registered with the Company, or with an office set forth in
the notice of convocation, in writing, by telefax or in authenticated electronic form
(Textform) (§ 126 b, German Civil Code (BGB)) by no later than the seventh day prior to the
date of the Annual Shareholders Meeting shall be entitled to attend the Annual Shareholders
Meeting, to exercise their voting rights and to make formal motions. Said registration shall
be effected in either the German or English language.(5)
    
    Certification regarding shareholdings issued in authenticated electronic form (§ 126 b,
German Civil Code) in either the German or English language by the bank or financial
institution at which the custody account is maintained shall entitle the shareholder to attend
the Annual Shareholders Meeting and exercise his or her voting rights. Said certification
shall reference the beginning of the 21st day prior to the Annual Shareholders Meeting and
shall be received by the Company or by an office that is set forth in the notice of Annual
Shareholders Meeting by no later than the seventh day prior to the date of the Annual
Shareholders Meeting.
 
 Notification Requirements and Disclosure of Shareholdings
  49




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##### Table of Contents



Annual Shareholders Meeting
     
 Limitations on the Right to own Securities
  
 Provisions that would Delay a Change in Control
  
 Provisions of German Law that are Significantly Different from Provisions of U.S. Law
  50




---



##### Table of Contents



Provisions Governing Changes in the Capital that are more Stringent than Required by Law
  
 German Corporate Governance Code Declaration
 Corporate Governance Report
  
    
    No agreement was able to be reached in negotiations with our
liability insurance (so-called D & O insurance) carrier to obtain
a lower premium if a deductible is arranged. We will therefore not
arrange for a deductible. A deductible would not improve the
overall motivation and sense of responsibility of the members of
the Management and Supervisory Boards. Both the Management and
Supervisory Boards work to the benefit of the enterprise (Point
3.8 of the Code).
    
    The members of the Supervisory Board have in the past received and
presently still receive fixed compensation, which does not contain
any performance-related variable income components. Their
compensation is stated in the compensation report (Point 5.4.7 of
the Code).
  
 NYSE Comparison
   
 C. Material Contracts
  
 D. Exchange Controls
  51




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##### Table of Contents



E.     Taxation
 Taxation
  
    
    are a beneficial owner of some of our ordinary shares/ADRs;
    
    are holding some of our ordinary shares/ADRs as a capital asset;
    
    are a resident of the United States for purposes of the Income Tax Treaty between the
United States and Germany (the Income Tax Treaty), which generally includes: An
individual U.S. resident; a corporation created or organized under the laws of the United
States, any state thereof or the District of Columbia; and a partnership, estate or trust,
to the extent its income is subject to taxation in the United States as the income of an
U.S. resident, either in its hands or in the hands of its partners or beneficiaries;
    
    are not holding any of our ordinary shares/ADRs as part of the business property of your
permanent establishment in Germany or, if you are an individual, as part of your fixed base
in Germany that you use to perform independent personal services; and
    
    are not subject to the limitation on benefit restrictions in the Income Tax Treaty, if
you are not an individual.
  We strongly urge you to consult your tax advisor as to the United States federal income and German
tax consequences and any other tax consequences of holding our ordinary shares/ADRs. You should
also discuss with your tax advisor any facts and circumstances that may be unique to you.
 Withholding Tax on Dividends
   52




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##### Table of Contents



Withholding Tax Refund Procedures
  
   Reduced United States Tax Rate for Certain Dividends
   
    
    it is eligible for benefits of a comprehensive income tax treaty with the United States
that the Internal Revenue Service determines is satisfactory for these purposes and that
includes an exchange of information program, or
    
    the stock of the foreign corporation on which the dividend is paid is readily tradable on
an established securities market in the United States.
   53




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##### Table of Contents



Taxation of Capital Gains
   German Capital Tax (Vermögensteuer)
 (Vermögensteuer (Vermögensteue
 Other German Taxes
  
 F.     Dividends and Paying Agents
  
 G.     Statement by Experts
  
 H.     Documents on Display
    54




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##### Table of Contents



I.     Subsidiary Information.
  
 Item 11.     Quantitative and Qualitative Disclosures about Market Risk
   
 Exchange Rate Risk
 Transaction Risk and Currency Risk Management
  
 Effects of Currency Translation
   55




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##### Table of Contents



Foreign Currency Exchange Risk
   2006
    
    2005Currency
    
    Percentage of Sales
    
    Percentage of SalesU.S. dollars
    
    23%
    
    23%Swiss francs
    
    5%
    
    4%British pounds
    
    4%
    
    4%Other foreign currencies
    
    5%
    
    6%
     Foreign
Currency Options  December 31, 2006 (All maturing in 2007)
 Contract Amount
    
    Weighted Average
    
    Fair Value onOption Strike
    
    December 31, 2006Price( in thousands)
    
    
    
    ( in thousands)U.S. dollar (USD) put (short)
    
    
    8,781
    
    
    
    1.2527
    
    
    
    307
  
 Foreign
Currency Forward Contracts  December 31, 2006 (All maturing in 2007)
 Contract Amount
    
    Weighted Average
    
    Fair Value onForward Exchange
    
    December 31, 2006Rate( in thousands)
    
    
    
    ( in thousands)U.S. dollar (USD)
    
    
    2,381
    
    
    
    1.26
    
    
    
    110
  
 56




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##### Table of Contents



Interest Rate Risk
  Commodity Price Risk
  
 Item 12. Description of Securities other than Equity Securities
 
 A.     Debt Securities
  
 B. Warrants and Rights
  
 C.     Other Securities
  
 D.     American Depositary Shares
  57




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##### Table of Contents



Part II
 
 Item 13.     Defaults, Dividend Arrearages and Delinquencies
  
 Item 14.     Material Modifications to the Rights of Security Holders and Use of Proceeds
 
 Changes with Respect to Ordinary Shares
 
 Treasury Shares
 
 
 
 Item 15.     Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
  Managements Annual Report on Internal Control over Financial Reporting
   58




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Changes in Internal Control over Financial Reporting
   59




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
      .
   
 60




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##### Table of Contents



Item 16A.     Audit Committee Financial Expert
 Audit Committee and Financial Expert
  
 Item 16B.     Code of Ethics
  
 Item 16C.     Principal Accountant Fees and Services
   Year ended December 31,2006
    
    
    2005( in thousands)Audit fees
    
    
    564
    
    
    
    407Audit-related fees
    
    
    13
    
    
    
    25Tax fees
    
    
    46
    
    
    
    45All other fees
    
    
    17
    
    
    
    13Total
    
    
    640
    
    
    
    490
  Audit Committees Pre-approval Policies and Procedures
  61




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##### Table of Contents



Item 16D.      Exemptions from the Listing Standards for Audit Committees
  
 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
 Treasury Stock
  
 Period
    
    Total Number
    
    Average Price
    
    Total Number
    
    Maximum Numberof Shares
    
    per Share
    
    of Shares
    
    of Shares thatPurchased
    
    
    
    
    
    Purchased as
    
    May Yet BePart of Publicly
    
    Purchased UnderAnnounced
    
    the ProgramsPrograms| | | |June 16, 2006
    
    
    5,000
    
    
    
    46.93
    
    
    
    5,000
    
    
    
    5,000June 23, 2006
    
    
    5,000
    
    
    
    47.74
    
    
    
    5,000
    
    
    
    10,000June 26, 2006
    
    
    5,000
    
    
    
    47.68
    
    
    
    5,000
    
    
    
    15,000June 28, 2006
    
    
    7,000
    
    
    
    46.07
    
    
    
    7,000
    
    
    
    22,000July 4, 2006
    
    
    5,000
    
    
    
    49.85
    
    
    
    5,000
    
    
    
    27,000
 
 62




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##### Table of Contents



PART III
 
 Item 17.     Financial Statements.
  
 Item 18.     Financial Statements.
  63




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##### Table of Contents



Item 19.      Exhibits
 Documents filed as exhibits to this Annual Report:
 1.1
    
    Articles of Association and Bylaws (Satzung) of the Company, as amended at January 18, 2007
(English translation), to the Annual Report of the Company pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2006 on Form 20-F,
filed with the U.S. Securities and Exchange Commission on March 29, 2007.1.2
    
    Internal Rules of Procedure (Geschäftsordnung) of the Company (English translation included),
incorporated herein by reference to Exhibit 1.2 to the Annual Report of the Company pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended
December 31, 2000 on Form 20-F, filed with the U.S. Securities and Exchange Commission on
March 26, 2001.2.1
    
    Amended and Restated Deposit Agreement, dated July 15, 1998, among the Company, the Bank of
New York, as Depositary, and each Holder and Beneficial Owner from time to time of American
Depositary Receipts issued thereunder, including therein a form of American Depositary Receipt
representing the American Depositary Shares registered, incorporated herein by reference to
Exhibit (a) to Post-Effective Amendment No. 2 to the Form F-6, Registration Statement of the
Company and The Bank of New York as Depositary, filed with the U.S. Securities and Exchange
Commission on July 10, 1998.2.2
    
    Form of Certificate of Ordinary Shares, without nominal value (English translation included)
incorporated herein by reference to Exhibit 2.2 to the Annual Report of the Company pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended
December 31, 2000 on Form 20-F, filed with the U.S. Securities and Exchange Commission on
March 26, 2001.2.3
    
    Terms of Issuance of Convertible Bonds issued in 2000 (English version), incorporated herein
by reference to Exhibit 2.4 to the Annual Report of the Company pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2000 on
Form 20-F, filed with the U.S. Securities and Exchange Commission on March 26, 2001.2.4
    
    Terms of Issuance of Convertible Bonds issued in 2002 (English version), incorporated herein
by reference to Exhibit 2.5 to the Annual Report of the Company pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2002 on
Form 20-F, filed with the U.S. Securities and Exchange Commission on March 25, 2003.2.5
    
    German Corporate Governance Code and incorporation of the Companys recommendations into
its corporate strategy (English version), filed with the U.S. Securities and Exchange
Commission on March 24, 2004.2.6
    
    Form of Certificate of Ordinary Shares, without nominal value (English translation included),
incorporated herein by reference to Exhibit 2.6 to the Annual Report of the Company pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended
December 31, 2006 on Form 20-F, filed with the U.S. Securities and Exchange Commission on
March 29, 2007.8.1
    
    Significant subsidiaries: Please see part C (Organizational Structure) in Item 4 (Information
on the Company).12.1
    
    Certification of the Chairman of the Management Board pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002, filed with the U.S. Securities and Exchange Commission on March
29, 2007.12.2
    
    Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002, filed with the U.S. Securities and Exchange Commission on March 29, 2007.13.1
    
    Certification of the Chairman of the Management Board pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, filed with the U.S. Securities and Exchange Commission on March
29, 2007.13.2
    
    Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, filed with the U.S. Securities and Exchange Commission on March 29, 2007.99.1
    
    The Companys Code of Ethics (English version), incorporated herein by reference to Exhibit
99.1 to the Annual Report of the Company pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934 for the fiscal year ended December 31, 2004 on Form 20-F, filed with the
U.S. Securities and Exchange Commission on March 30, 2005.
 64




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##### Table of Contents



SIGNATURE
   PFEIFFER VACUUM TECHNOLOGY AGBy: /s/ Wolfgang Dondorf


Wolfgang DondorfChief Executive Officer(Chairman of the Management Board)PFEIFFER VACUUM TECHNOLOGY AGBy: /s/ Manfred Bender


Manfred BenderChief Financial Officer(Member of the Management Board)
 65




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##### 



INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
 PageReport of Independent Registered Public Accounting Firm, Ernst & Young
    
    
    F-2Consolidated Statements of Income for the years
ended December 31, 2006 and 2005
    
    
    F-3Consolidated Balance Sheets at December 31, 2006 and 2005
    
    
    F-4Consolidated
Statements of Changes in Shareholders Equity for the years ended December 31, 2006 and 2005
    
    
    F-5Consolidated Statements of Cash Flows for the years ended December 31, 2006 and 2005
    
    
    F-6Notes to the Consolidated Financial Statements
    
    
    F-7




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
        
 F-2




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 
 CONSOLIDATED STATEMENTS OF INCOME
 Year ended December 31,Note
    
    
    2006
    
    
    2005 in thousandsNet sales
    
    
    24
    
    
    
    179,484
    
    
    
    159,517Cost of sales
    
    
    
    
    
    
    (91,829
    )
    
    
    (83,932
    )Gross
profit
    
    
    
    
    
    
    87,655
    
    
    
    75,585Selling and marketing expenses
    
    
    
    
    
    
    (22,469
    )
    
    
    (20,028
    )General and administrative expenses
    
    
    
    
    
    
    (12,909
    )
    
    
    (12,436
    )Research and development expenses
    
    
    
    
    
    
    (7,320
    )
    
    
    (6,680
    )Operating profit
    
    
    24
    
    
    
    44,957
    
    
    
    36,441Interest income
    
    
    
    
    
    
    1,996
    
    
    
    1,496Interest expenses
    
    
    
    
    
    
    (98
    )
    
    
    (156
    )Foreign exchange gains (losses)
    
    
    
    
    
    
    (463
    )
    
    
    1,209Income
before income taxes
    
    
    
    
    
    
    46,392
    
    
    
    38,990Income taxes
    
    
    18
    
    
    
    (16,606
    )
    
    
    (14,981
    )Net income from continuing operations
    
    
    
    
    
    
    29,786
    
    
    
    24,009Net results from discontinued operations, net of tax
    
    
    27
    
    
    
    
    
    
    
    (994
    )Net income
    
    
    
    
    
    
    29,786
    
    
    
    23,015Thereof attributable to:Pfeiffer Vacuum Technology AG shareholders
    
    
    
    
    
    
    29,624
    
    
    
    22,907Minority interests
    
    
    
    
    
    
    162
    
    
    
    108Earnings* per share (in )
    
    
    26Total earnings per share, basic/diluted
    
    
    
    
    
    
    3.39
    
    
    
    2.64Net earnings from continuing operations, basic/diluted
    
    
    
    
    
    
    3.39
    
    
    
    2.75
 
 *
    
    Attributable to Pfeiffer Vacuum Technology AG shareholders F-3




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 
 CONSOLIDATED BALANCE SHEETS
 December 31,Note
    
    
    2006
    
    
    2005 in thousandsASSETSIntangible assets
    
    
    5
    
    
    
    319
    
    
    
    333Property, plant and equipment
    
    
    6
    
    
    
    22,901
    
    
    
    21,301Investment properties
    
    
    7
    
    
    
    1,838
    
    
    
    1,093Investment securities
    
    
    8
    
    
    
    17,535
    
    
    
    6,000Prepaid pension cost
    
    
    20
    
    
    
    145
    
    
    
    Deferred tax assets
    
    
    18
    
    
    
    5,585
    
    
    
    6,430Other non-current assets
    
    
    11
    
    
    
    1,822
    
    
    
    905Total non-current assets
    
    
    
    
    
    
    50,145
    
    
    
    36,062Inventories
    
    
    9
    
    
    
    15,520
    
    
    
    13,747Trade accounts receivable
    
    
    10
    
    
    
    23,934
    
    
    
    22,481Other accounts receivable
    
    
    11
    
    
    
    1,801
    
    
    
    1,259Prepaid expenses
    
    
    
    
    
    
    449
    
    
    
    872Investment securities
    
    
    8
    
    
    
    1,000
    
    
    
    3,000Other current assets
    
    
    
    
    
    
    467
    
    
    
    334Cash and cash equivalents
    
    
    12
    
    
    
    75,354
    
    
    
    61,651Total current assets
    
    
    
    
    
    
    118,525
    
    
    
    103,344Total assets
    
    
    
    
    
    
    168,670
    
    
    
    139,406SHAREHOLDERS EQUITY AND LIABILITIESEquityShare capital
    
    
    13
    
    
    
    22,965
    
    
    
    22,504Additional paid-in capital
    
    
    13
    
    
    
    13,305
    
    
    
    5,819Retained earnings
    
    
    14
    
    
    
    104,269
    
    
    
    86,377Other equity components
    
    
    15
    
    
    
    1,520
    
    
    
    (833
    )Treasury shares
    
    
    16
    
    
    
    (3,722
    )
    
    
    (2,438
    )Equity of Pfeiffer Vacuum Technology AG shareholders
    
    
    
    
    
    
    138,337
    
    
    
    111,429Minority interests
    
    
    
    
    
    
    635
    
    
    
    569Total shareholders equity
    
    
    
    
    
    
    138,972
    
    
    
    111,998Deferred tax liabilities
    
    
    18
    
    
    
    308
    
    
    
    820Convertible bonds
    
    
    19
    
    
    
    
    
    
    
    461Provisions for pensions
    
    
    20
    
    
    
    3,859
    
    
    
    4,476Total non-current liabilities
    
    
    
    
    
    
    4,167
    
    
    
    5,757Trade accounts payable
    
    
    21
    
    
    
    4,428
    
    
    
    3,184Other accounts payable
    
    
    21
    
    
    
    2,571
    
    
    
    2,659Provisions
    
    
    22
    
    
    
    13,564
    
    
    
    11,315Income tax liabilities
    
    
    
    
    
    
    3,420
    
    
    
    3,118Customer deposits
    
    
    
    
    
    
    1,548
    
    
    
    1,375Total current liabilities
    
    
    
    
    
    
    25,531
    
    
    
    21,651Total shareholders equity and liabilities
    
    
    
    
    
    
    168,670
    
    
    
    139,406
 F-4




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 
 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
 ( in thousands)
 Equity of Pfeiffer Vacuum Technology AG ShareholdersShare
    
    
    Additional
    
    
    Retained
    
    
    Other Equity
    
    
    Treasury
    
    
    
    
    
    
    Minority
    
    
    TotalNote
    
    
    Capital
    
    
    Paid-in Capital
    
    
    Earnings
    
    
    Components
    
    
    Shares
    
    
    Total
    
    
    Interests
    
    
    EquityBalance on January 1, 2005
    
    
    
    
    
    
    22,504
    
    
    
    5,327
    
    
    
    71,291
    
    
    
    (2,624
    )
    
    
    (2,438
    )
    
    
    94,060
    
    
    
    454
    
    
    
    94,514Foreign currency translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,177
    
    
    
    
    
    
    
    2,177
    
    
    
    80
    
    
    
    2,257Net loss from
cash flow hedges
    
    
    25
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (386
    )
    
    
    
    
    
    
    (386
    )
    
    
    
    
    
    
    (386
    )Earnings recorded
directly in equity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,791
    
    
    
    
    
    
    
    1,791
    
    
    
    80
    
    
    
    1,871Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,907
    
    
    
    
    
    
    
    
    
    
    
    22,907
    
    
    
    108
    
    
    
    23,015Total earnings for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,907
    
    
    
    1,791
    
    
    
    
    
    
    
    24,698
    
    
    
    188
    
    
    
    24,886Dividend payments
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    (7,821
    )
    
    
    
    
    
    
    
    
    
    
    (7,821
    )
    
    
    (73
    )
    
    
    (7,894
    )Employee participation program
    
    
    19
    
    
    
    
    
    
    
    492
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    492
    
    
    
    
    
    
    
    492Balance on December 31, 2005
    
    
    
    
    
    
    22,504
    
    
    
    5,819
    
    
    
    86,377
    
    
    
    (833
    )
    
    
    (2,438
    )
    
    
    111,429
    
    
    
    569
    
    
    
    111,998Revaluation of
available-for-sale securities
    
    
    8
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,485
    
    
    
    
    
    
    
    3,485
    
    
    
    
    
    
    
    3,485Foreign currency translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,587
    )
    
    
    
    
    
    
    (1,587
    )
    
    
    (26
    )
    
    
    (1,613
    )Net gain from
cash flow hedges
    
    
    25
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    455
    
    
    
    
    
    
    
    455
    
    
    
    
    
    
    
    455Earnings recorded
directly in equity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,353
    
    
    
    
    
    
    
    2,353
    
    
    
    (26
    )
    
    
    2,327Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    29,624
    
    
    
    
    
    
    
    
    
    
    
    29,624
    
    
    
    162
    
    
    
    29,786Total earnings for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    29,624
    
    
    
    2,353
    
    
    
    
    
    
    
    31,977
    
    
    
    136
    
    
    
    32,113Dividend payments
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    (11,732
    )
    
    
    
    
    
    
    
    
    
    
    (11,732
    )
    
    
    (70
    )
    
    
    (11,802
    )Employee participation program
    
    
    19
    
    
    
    
    
    
    
    232
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    232
    
    
    
    
    
    
    
    232Share buyback
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,284
    )
    
    
    (1,284
    )
    
    
    
    
    
    
    (1,284
    )Conversion of
convertible bonds
    
    
    13,19
    
    
    
    461
    
    
    
    7,254
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,715
    
    
    
    
    
    
    
    7,715Balance on December 31, 2006
    
    
    
    
    
    
    22,965
    
    
    
    13,305
    
    
    
    104,269
    
    
    
    1,520
    
    
    
    (3,722
    )
    
    
    138,337
    
    
    
    635
    
    
    
    138,972
 F-5




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 Year ended December 31,Note
    
    
    2006
    
    
    2005 in thousandsCash flows from operating activities:Income before income taxes
    
    
    
    
    
    
    46,392
    
    
    
    38,990Adjustment for interest income/interest expense
    
    
    
    
    
    
    (1,898
    )
    
    
    (1,340
    )Interests received
    
    
    
    
    
    
    1,748
    
    
    
    1,269Interests paid
    
    
    
    
    
    
    (101
    )
    
    
    (153
    )Income taxes paid
    
    
    
    
    
    
    (15,444
    )
    
    
    (14,677
    )Depreciation/amortization
    
    
    5,6,7
    
    
    
    3,114
    
    
    
    3,202Non-cash personnel expenses (convertible bonds)
    
    
    19
    
    
    
    232
    
    
    
    492Changes in inventory reserves
    
    
    
    
    
    
    19
    
    
    
    693Provisions for doubtful accounts
    
    
    
    
    
    
    (363
    )
    
    
    104Income from disposals of fixed assets
    
    
    
    
    
    
    (21
    )
    
    
    (56
    )Changes in net cash from discontinued operations
    
    
    
    
    
    
    
    
    
    
    (504
    )Effects of changes in assets and liabilities:Inventories
    
    
    
    
    
    
    (2,092
    )
    
    
    (158
    )Receivables and other assets
    
    
    
    
    
    
    (2,346
    )
    
    
    (279
    )Provisions, including pensions and income tax liabilities
    
    
    
    
    
    
    881
    
    
    
    (2,726
    )Payables, other liabilities
    
    
    
    
    
    
    1,674
    
    
    
    (356
    )Net cash provided by operating activities
    
    
    
    
    
    
    31,795
    
    
    
    24,501Cash flow from investing activities:Proceeds from disposals of fixed assets
    
    
    
    
    
    
    162
    
    
    
    134Proceeds from disposals of discontinued operations
    
    
    
    
    
    
    
    
    
    
    171Total capital expenditures
    
    
    5,6,7
    
    
    
    (5,610
    )
    
    
    (2,470
    )Purchase of investment securities
    
    
    8
    
    
    
    (8,985
    )
    
    
    (7,998
    )Redemptions of investment securities
    
    
    
    
    
    
    3,000
    
    
    
    9,000Net cash used in investing activities
    
    
    
    
    
    
    (11,433
    )
    
    
    (1,163
    )Cash flow from financing activities:Dividend payments
    
    
    14
    
    
    
    (11,732
    )
    
    
    (7,821
    )Redemptions of convertible bonds
    
    
    
    
    
    
    
    
    
    
    (77
    )Dividend payments to minority shareholders
    
    
    
    
    
    
    (70
    )
    
    
    (73
    )Share buyback
    
    
    16
    
    
    
    (1,284
    )
    
    
    Proceeds from conversion of convertible bonds
    
    
    19
    
    
    
    7,254
    
    
    
    Net cash used in financing activities
    
    
    
    
    
    
    (5,832
    )
    
    
    (7,971
    )Effect of foreign exchange rate changes on cash and cash
equivalents
    
    
    
    
    
    
    (827
    )
    
    
    1,298Net increase in cash and cash equivalents
    
    
    
    
    
    
    13,703
    
    
    
    16,665Cash and
cash equivalents at beginning of year
    
    
    
    
    
    
    61,651
    
    
    
    44,986Cash and cash equivalents at end of year
    
    
    12
    
    
    
    75,354
    
    
    
    61,651
 F-6




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 Remarks Relating to the Company and its Accounting and Valuation Methods
 1. General Remarks Relating to the Company
      
 2. Application of Amended or New Standards
  F-7




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
   3. Accounting and Valuation Methods
 Consolidated companies and principles of consolidation
   Name of company
    
    Location
    
    
    Holdings (in %)Pfeiffer Vacuum Technology AG
    
    D-AsslarPfeiffer Vacuum GmbH
    
    D-Asslar
    
    
    100.0Pfeiffer Vacuum Austria GmbH
    
    A-Vienna
    
    
    100.0Pfeiffer Vacuum (Schweiz) AG
    
    CH-Zurich
    
    
    99.4Pfeiffer Vacuum France SAS
    
    F-Buc
    
    
    100.0Pfeiffer Vacuum Ltd.
    
    GB-Newport
    
    
    100.0Pfeiffer Vacuum Nederland B. V.
    
    NL-De Meern
    
    
    100.0Pfeiffer Vacuum Scandinavia AB
    
    S-Upplands
    
    
    100.0Pfeiffer Vacuum Inc.
    
    USA-Nashua
    
    
    100.0Pfeiffer Vacuum Holding B. V.
    
    NL-De Meern
    
    
    100.0Pfeiffer Vacuum Belgium N. V.
    
    B-Temse
    
    
    100.0Pfeiffer Vacuum Italia S. p. A.
    
    I-Rho
    
    
    100.0Pfeiffer Vacuum (India) Ltd.
    
    IND-Secunderabad
    
    
    73.0Pfeiffer Vacuum Korea Ltd.
    
    KR-Yongin-City, Kyungki-Do
    
    
    75.5
     F-8




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
   Foreign currency translation
 
  Income recognition
  Cost of sales
  Selling and marketing expenses
  General and administrative expenses
  F-9




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 Research & development
  Property, plant and equipment and intangible assets
  Production halls, production and administration buildings and similar facilities
    
    2040 yearsMachinery and equipment (including IT equipment)
    
    315 yearsSoftware*
    
    25 years
 
 *
    
    There are currently no intangible assets with indefinite useful lives.     Investment properties
  F-10




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 Investment securities
  Inventories
  Accounts receivable and other financial assets
  Derivatives and hedging transactions
   Cash and cash equivalents
  F-11




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 Provisions
  Pensions
   Income taxes
   Trade and other accounts payable
  Treasury shares
  F-12




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 Share-based compensation
  Discontinued operations
  Use of estimates
   4. Transition to IFRS as Basis for the Accounting
 Previous GAAP and IFRS opening balance
  Revaluations
  F-13




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  Reconciliation of equity from U.S. GAAP to IFRS:
 Note
    
    
    Jan. 1, 2005
    
    
    Dec. 31, 2005 in thousandsEquity according to U.S. GAAP
    
    
    
    
    
    
    99,355
    
    
    
    112,631Revaluation of personnel provisions
    
    
    i
    )
    
    
    (1,554
    )
    
    
    (1,682
    )Revaluation of pension provisions
    
    ii)
    
    
    (6,501
    )
    
    
    (6,228
    )Omission of Minimum Pension Liability
    
    iii)
    
    
    164
    
    
    
    3,756Deferred taxes on revaluations (first-time adoption)
    
    iv)
    
    
    3,050
    
    
    
    3,040Inclusion of minority interests in equity*
    
    
    v
    )
    
    
    
    
    
    
    631Currency variances from subsequent valuation
    
    
    
    
    
    
    
    
    
    
    (150
    )Equity according to IFRS
    
    
    
    
    
    
    94,514
    
    
    
    111,998Total difference between IFRS and U.S. GAAP
    
    
    
    
    
    
    (4,841
    )
    
    
    (633
    )
 
 *
    
    Including related foreign exchange rate differences Reconciliation of net income* from U.S. GAAP to IFRS:
 Year endedNote
    
    
    December 31, 2005 in thousandsNet income according to U.S. GAAP
    
    
    
    
    
    
    22,748Different valuation of personnel provisions
    
    
    i
    )
    
    
    (128
    )Different valuation of pension provisions
    
    ii)
    
    
    273Different deferred taxes
    
    iv)
    
    
    (10
    )Share-based compensation
    
    
    v
    )
    
    
    (492
    )Inclusion of minority interests (according to IFRS 1.41)
    
    vi)
    
    
    516Net income according to IFRS
    
    
    
    
    
    
    22,907Total difference between IFRS and U.S. GAAP
    
    
    
    
    
    
    159
 
 *
    
    Net income attributable to Pfeiffer Vacuum Technology AG shareholders i) Revaluation of personnel provisions  
 ii) Revaluation of pension provisions   
 iii) Omission of Minimum Pension Liability
 iv) Deferred taxes on revaluation 
 F-14




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 v) Share-based payment  
 vi) Minority interests
 Effects on the statements of cash flow
  Notes to the Consolidated Balance Sheets and Consolidated Statements of Income
 5. Intangible Assets
  Intangible assets
    
    2006
    
    
    2005 in thousandsAcquisition costBalance on January 1,
    
    
    2,945
    
    
    
    2,657Currency changes
    
    
    (28
    )
    
    
    36Additions
    
    
    208
    
    
    
    276Disposals
    
    
    
    
    
    
    (24
    )Balance on December 31,
    
    
    3,125
    
    
    
    2,945DepreciationBalance on January 1,
    
    
    2,612
    
    
    
    2,386Currency changes
    
    
    (28
    )
    
    
    36Additions
    
    
    222
    
    
    
    214Disposals
    
    
    
    
    
    
    (24
    )Balance on December 31,
    
    
    2,806
    
    
    
    2,612Net book value on December 31,
    
    
    319
    
    
    
    333
  F-15




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 6. Property, Plant and Equipment
  Property, plant and equipment 2006
 Technical
    
    
    Other Equipment,
    
    
    ConstructionLand and
    
    
    Equipment and
    
    
    Factory and Office
    
    
    inBuildings
    
    
    Machinery
    
    
    Equipment
    
    
    Progress
    
    
    Total in thousandsAcquisition or
manufacturing costBalance on January 1, 2006
    
    
    27,217
    
    
    
    23,203
    
    
    
    15,599
    
    
    
    
    
    
    
    66,019Currency changes
    
    
    (5
    )
    
    
    (20
    )
    
    
    (155
    )
    
    
    
    
    
    
    (180
    )Additions
    
    
    1,379
    
    
    
    893
    
    
    
    1,409
    
    
    
    777
    
    
    
    4,458Disposals
    
    
    
    
    
    
    (101
    )
    
    
    (909
    )
    
    
    
    
    
    
    (1,010
    )Reclassifications
    
    
    140
    
    
    
    (10
    )
    
    
    
    
    
    
    10
    
    
    
    140Balance on December 31, 2006
    
    
    28,731
    
    
    
    23,965
    
    
    
    15,944
    
    
    
    787
    
    
    
    69,427DepreciationBalance on January 1, 2006
    
    
    12,239
    
    
    
    20,078
    
    
    
    12,401
    
    
    
    
    
    
    
    44,718Currency changes
    
    
    (4
    )
    
    
    (12
    )
    
    
    (140
    )
    
    
    
    
    
    
    (156
    )Additions
    
    
    936
    
    
    
    915
    
    
    
    982
    
    
    
    
    
    
    
    2,833Disposals
    
    
    
    
    
    
    (101
    )
    
    
    (768
    )
    
    
    
    
    
    
    (869
    )Balance on December 31, 2006
    
    
    13,171
    
    
    
    20,880
    
    
    
    12,475
    
    
    
    
    
    
    
    46,526Net book value on
December 31, 2006
    
    
    15,560
    
    
    
    3,085
    
    
    
    3,469
    
    
    
    787
    
    
    
    22,901
 Property, Plant and Equipment 2005
 Technical
    
    
    Other Equipment,
    
    
    ConstructionLand and
    
    
    Equipment and
    
    
    Factory and Office
    
    
    inBuildings
    
    
    Machinery
    
    
    Equipment
    
    
    Progress
    
    
    Total in thousandsAcquisition or
manufacturing costBalance on January 1, 2005
    
    
    26,245
    
    
    
    23,760
    
    
    
    15,349
    
    
    
    
    
    
    
    65,354Currency changes
    
    
    6
    
    
    
    18
    
    
    
    194
    
    
    
    
    
    
    
    218Additions
    
    
    966
    
    
    
    242
    
    
    
    986
    
    
    
    
    
    
    
    2,194Disposals
    
    
    
    
    
    
    (817
    )
    
    
    (930
    )
    
    
    
    
    
    
    (1,747
    )Balance on December 31, 2005
    
    
    27,217
    
    
    
    23,203
    
    
    
    15,599
    
    
    
    
    
    
    
    66,019DepreciationBalance on January 1, 2005
    
    
    11,352
    
    
    
    19,813
    
    
    
    12,081
    
    
    
    
    
    
    
    43,246Currency changes
    
    
    4
    
    
    
    14
    
    
    
    174
    
    
    
    
    
    
    
    192Additions
    
    
    883
    
    
    
    1,068
    
    
    
    1,013
    
    
    
    
    
    
    
    2,964Disposals
    
    
    
    
    
    
    (817
    )
    
    
    (867
    )
    
    
    
    
    
    
    (1,684
    )Balance on December 31, 2005
    
    
    12,239
    
    
    
    20,078
    
    
    
    12,401
    
    
    
    
    
    
    
    44,718Net book value on
December 31, 2005
    
    
    14,978
    
    
    
    3,125
    
    
    
    3,198
    
    
    
    
    
    
    
    21,301
  
 F-16




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 7. Investment Properties
  2006
    
    
    2005 in thousandsAcquisition or manufacturing costBalance on January 1
    
    
    4,352
    
    
    
    4,352Additions
    
    
    944
    
    
    
    Disposals
    
    
    (660
    )
    
    
    Reclassifications
    
    
    (140
    )
    
    
    Balance on December 31
    
    
    4,496
    
    
    
    4,352DepreciationBalance on January 1
    
    
    3,259
    
    
    
    3,235Additions
    
    
    59
    
    
    
    24Disposals
    
    
    (660
    )
    
    
    Reclassifications
    
    
    
    
    
    
    Balance on December 31
    
    
    2,658
    
    
    
    3,259Net book value on December 31
    
    
    1,838
    
    
    
    1,093
    
  
 8. Investment Securities
  December 31,2006
    
    
    2005Net Book
    
    
    
    
    
    
    Unrealized
    
    
    Net Book
    
    
    
    
    
    
    UnrealizedValue
    
    
    Fair Value
    
    
    Gain/Loss
    
    
    Value
    
    
    Fair Value
    
    
    Loss in thousandsCurrent investment securitiesHeld to maturity
    
    
    1,000
    
    
    
    1,001
    
    
    
    1
    
    
    
    3,000
    
    
    
    2,961
    
    
    
    (39
    )Non-current investment securitiesAvailable for sale
    
    
    12,537
    
    
    
    12,537
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Held to maturity
    
    
    4,998
    
    
    
    4,187
    
    
    
    (811
    )
    
    
    6,000
    
    
    
    5,750
    
    
    
    (250
    )17,535
    
    
    
    16,724
    
    
    
    (811
    )
    
    
    6,000
    
    
    
    5,750
    
    
    
    (250
    )
  
 F-17




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 9. Inventories
  December 31,2006
    
    
    2005 in thousandsRaw materials
    
    
    6,132
    
    
    
    5,441Work in process
    
    
    4,590
    
    
    
    3,989Finished products
    
    
    8,116
    
    
    
    7,773Reserves
    
    
    (3,318
    )
    
    
    (3,456
    )Total inventories, net
    
    
    15,520
    
    
    
    13,747
  
  2006
    
    
    2005 in thousandsBalance at beginning of year
    
    
    3,456
    
    
    
    4,394Currency changes
    
    
    (59
    )
    
    
    (166
    )Additions
    
    
    295
    
    
    
    693Inventory written off
    
    
    (374
    )
    
    
    (1,465
    )Balance at end of year
    
    
    3,318
    
    
    
    3,456
 10. Trade Accounts Receivable
  December 31,2006
    
    
    2005 in thousandsTrade accounts receivable
    
    
    24,320
    
    
    
    23,255Allowance for doubtful accounts
    
    
    (386
    )
    
    
    (774
    )Trade accounts receivable, net
    
    
    23,934
    
    
    
    22,481
   2006
    
    
    2005 in thousandsBalance at beginning of year
    
    
    774
    
    
    
    1,026Currency changes
    
    
    (23
    )
    
    
    (69
    )Additions
    
    
    77
    
    
    
    264Accounts written off
    
    
    (442
    )
    
    
    (447
    )Balance at end of year
    
    
    386
    
    
    
    774
  F-18




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 11. Other Accounts Receivable and Other Non-current Assets
      
 12. Cash and Cash Equivalents
  13. Share Capital and Additional Paid-in Capital
  
      
 14. Paid and Proposed Dividends
     
  
 F-19




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 15.    Other Equity Components
   Unrealized
    
    
    Foreign Currency
    
    
    Revaluation ofGains/Losses on
    
    
    Translation
    
    
    Available-for-SaleHedges
    
    
    Adjustments
    
    
    Securities
    
    
    Total in thousandsBalance on January 1, 2005
    
    
    190
    
    
    
    (2,814
    )
    
    
    
    
    
    
    (2,624
    )Changes in fair value of cash flow
hedges (net of tax)
    
    
    (386
    )
    
    
    
    
    
    
    
    
    
    
    (386
    )Changes in foreign currency
translation
    
    
    
    
    
    
    2,177
    
    
    
    
    
    
    
    2,177Balance on December 31, 2005
    
    
    (196
    )
    
    
    (637
    )
    
    
    
    
    
    
    (833
    )Changes in fair value of cash flow
hedges (net of tax)
    
    
    455
    
    
    
    
    
    
    
    
    
    
    
    455Changes in foreign currency
translation
    
    
    
    
    
    
    (1,587
    )
    
    
    
    
    
    
    (1,587
    )Revaluation of securities classified
as available-for-sale (net of tax)
    
    
    
    
    
    
    
    
    
    
    3,485
    
    
    
    3,485Balance on December 31, 2006
    
    
    259
    
    
    
    (2,224
    )
    
    
    3,485
    
    
    
    1,520
 16. Treasury Shares
  
 17. Long-term Debt
  
 18. Income Taxes (from Continuing Operations)
   Year ended December 31,2006
    
    
    2005 in thousandsGermany
    
    
    38,025
    
    
    
    30,859Outside Germany
    
    
    8,367
    
    
    
    8,13146,392
    
    
    
    38,990
 F-20




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  Year ended December 31,2006
    
    
    2005 in thousandsCurrent taxesGermany
    
    
    14,089
    
    
    
    12,102Outside Germany
    
    
    2,617
    
    
    
    2,43616,706
    
    
    
    14,538Deferred taxesGermany
    
    
    (378
    )
    
    
    (112
    )Outside Germany
    
    
    278
    
    
    
    555(100
    )
    
    
    443Income tax expenses
    
    
    16,606
    
    
    
    14,981
    
  Year ended December 31,2006
    
    
    2005 in thousandsIncome before income taxes
    
    
    46,392
    
    
    
    38,990Expected tax expense using a tax rate of 37.87%
    
    
    17,569
    
    
    
    14,766Capitalization of German corporate tax reduction claims
    
    
    (1,098
    )
    
    
    Non-deductible expenses
    
    
    49
    
    
    
    329Loss carryforwards for a non-German subsidiary
    
    
    (28
    )
    
    
    (178
    )Taxes due to dividend payments
    
    
    12
    
    
    
    69Tax debits due to tax filings in prior years
    
    
    226
    
    
    
    Higher/lower foreign tax rates
    
    
    (274
    )
    
    
    (14
    )Other
    
    
    150
    
    
    
    9Income tax expense
    
    
    16,606
    
    
    
    14,981
 
  December 31,2006
    
    
    2005 in thousandsDeferred tax assetsPensions
    
    
    4,187
    
    
    
    4,217Personnel and other provisions
    
    
    1,057
    
    
    
    936Inventories
    
    
    1,032
    
    
    
    745Intangible assets
    
    
    195
    
    
    
    279Property, plant and equipment
    
    
    51
    
    
    
    Allowance for doubtful accounts
    
    
    20
    
    
    
    105Cash flow hedges
    
    
    
    
    
    
    120Tax loss carryforwards
    
    
    
    
    
    
    28Total deferred tax assets
    
    
    6,542
    
    
    
    6,430Deferred tax liabilitiesProperty, plant and equipment
    
    
    (568
    )
    
    
    (543
    )Tax-privileged reserves of the Swedish subsidiary
    
    
    (288
    )
    
    
    (262
    )Cash flow hedges
    
    
    (158
    )
    
    
    Inventories
    
    
    (123
    )
    
    
    (9
    )Unrealized gains from available-for-sale securities
    
    
    (67
    )
    
    
    Allowance for doubtful accounts
    
    
    (61
    )
    
    
    (6
    )Total deferred tax liabilities
    
    
    (1,265
    )
    
    
    (820
    )Total deferred taxes, net
    
    
    5,277
    
    
    
    5,610
 F-21




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  December 31,2006
    
    
    2005 in thousandsDeferred tax assets
    
    
    5,585
    
    
    
    6,430Deferred tax liabilities
    
    
    (308
    )
    
    
    (820
    )Total deferred taxes, net
    
    
    5,277
    
    
    
    5,610
  Year ended December 31,2006
    
    
    2005 in thousandsPensions
    
    
    (10
    )
    
    
    187Personnel and other provisions
    
    
    (132
    )
    
    
    (57
    )Inventories
    
    
    (165
    )
    
    
    (103
    )Allowance for doubtful accounts
    
    
    133
    
    
    
    (11
    )Tax loss carryforwards
    
    
    28
    
    
    
    179Property, plant and equipment
    
    
    (28
    )
    
    
    (85
    )Tax-privileged reserves of the Swedish subsidiary
    
    
    15
    
    
    
    262Other
    
    
    59
    
    
    
    71Total deferred taxes
    
    
    (100
    )
    
    
    443
      
  
   F-22




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 19.     Convertible Bonds and Share-based Compensation
  Employee
Participation Program, Term: 2000 through 2005
 
 Employee
Participation Program, Term: 2002 through 2007
 
  
  
 F-23




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  Number of
    
    
    Number of Shares
    
    
    Number of Shares
    
    
    Weighted AverageShares from Bonds
    
    
    from Bonds
    
    
    from Total
    
    
    Exercise Price perIssued in 2000
    
    
    Issued in 2002
    
    
    Bonds Issued
    
    
    ShareConvertible
shares outstanding
on January 1, 2005
    
    
    120,000
    
    
    
    190,000
    
    
    
    310,000
    
    
    
    44.86Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    (10,000
    )
    
    
    (10,000
    )
    
    
    42.86Redeemed
    
    
    (120,000
    )
    
    
    
    
    
    
    (120,000
    )
    
    
    48.03Convertible shares
outstanding on
December 31, 2005
    
    
    
    
    
    
    180,000
    
    
    
    180,000
    
    
    
    42.86Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    
    
    
    
    (180,000
    )
    
    
    (180,000
    )
    
    
    42.86Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Redeemed
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Convertible shares
outstanding on
December 31, 2006
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
  
 20.      Pensions and Similar Obligations
 Defined
benefit plans
   Year ended December 31,2006
    
    
    2005 in thousandsService cost
    
    
    1,179
    
    
    
    1,027Interest cost
    
    
    2,235
    
    
    
    2,229Expected return on plan assets
    
    
    (1,906
    )
    
    
    (2,202
    )Net periodic pension cost
    
    
    1,508
    
    
    
    1,054
 F-24




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  December 31,2006
    
    
    2005 in thousandsPresent value of funded pension obligations
    
    
    (49,719
    )
    
    
    (49,934
    )Present value of unfunded pension obligations
    
    
    (633
    )
    
    
    (744
    )Total present value of pension obligations
    
    
    (50,352
    )
    
    
    (50,678
    )Fair value of plan assets
    
    
    44,917
    
    
    
    41,595Present value of net obligations
    
    
    (5,435
    )
    
    
    (9,083
    )Unrecognized actuarial losses
    
    
    1,721
    
    
    
    4,607Net amount recorded in balance sheets
    
    
    (3,714
    )
    
    
    (4,476
    )Thereof: Prepaid pension costs
    
    
    145
    
    
    
    Thereof: Provisions for pensions
    
    
    (3,859
    )
    
    
    (4,476
    )
  2006
    
    
    2005 in thousandsPresent value of benefit obligations on January 1
    
    
    50,678
    
    
    
    44,486Service cost
    
    
    1,179
    
    
    
    1,027Interest cost
    
    
    2,235
    
    
    
    2,229Actuarial gains/losses
    
    
    (1,655
    )
    
    
    4,236Benefit payments
    
    
    (1,756
    )
    
    
    (1,664
    )Currency changes
    
    
    (329
    )
    
    
    364Present value of benefit obligations on December 31
    
    
    50,352
    
    
    
    50,678
  December 31,2006
    
    
    2005 in thousandsFair value of plan assets on January 1
    
    
    41,595
    
    
    
    39,835Expected return on plan assets
    
    
    1,906
    
    
    
    2,202Company contributions
    
    
    2,158
    
    
    
    1,377Benefit payments
    
    
    (1,756
    )
    
    
    (1,664
    )Actuarial gains/losses
    
    
    1,210
    
    
    
    (356
    )Currency changes
    
    
    (196
    )
    
    
    201Fair value of plan assets on December 31
    
    
    44,917
    
    
    
    41,595
  December 31,2006
    
    
    2005%
    
    
    %GermanyDiscount rate
    
    
    4.60
    
    
    
    4.40Long-term rate of increase in compensation levels
    
    
    2.75
    
    
    
    2.75Expected long-term rate of return on assets
    
    
    4.60
    
    
    
    4.50United States, Netherlands, BelgiumDiscount rate
    
    
    4.60  5.75
    
    
    
    4.20  5.75Long-term rate of increase in compensation levels
    
    
    3.00
    
    
    
    3.00Expected long-term rate of return on assets
    
    
    4.50  7.50
    
    
    
    4.50  7.50
  
 F-25




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  December 31,2006
    
    
    
    
    
    
    2005 in thousands
    
    
    %
    
    
     in thousands
    
    
    %Equity securities
    
    
    12,232
    
    
    
    27.2
    
    
    
    8,757
    
    
    
    21.0Fixed-income securities
    
    
    27,311
    
    
    
    60.8
    
    
    
    27,151
    
    
    
    65.3Cash and cash equivalents
    
    
    3,800
    
    
    
    8.5
    
    
    
    4,121
    
    
    
    9.9Other
    
    
    1,574
    
    
    
    3.5
    
    
    
    1,566
    
    
    
    3.844,917
    
    
    
    100.0
    
    
    
    41,595
    
    
    
    100.0
   December 31,2006
    
    
    2005 in thousandsPresent value of benefit obligation
    
    
    50,352
    
    
    
    50,678Fair value of plan assets
    
    
    44,917
    
    
    
    41,595Surplus/deficit
    
    
    (5,435
    )
    
    
    (9,083
    )Experience adjustments on plan liabilities
    
    
    (1,655
    )
    
    
    4,236Experience adjustments on plan assets
    
    
    1,210
    
    
    
    (356
    )
 Defined
contribution plans
  
 21.      Trade Accounts Payable and Other Payables
   22.      Provisions
  December 31,2006
    
    
    2005 in thousandsWarranty provisions
    
    
    1,929
    
    
    
    2,887Personnel provisions
    
    
    10,932
    
    
    
    7,816Other provisions
    
    
    703
    
    
    
    612Total
    
    
    13,564
    
    
    
    11,315
   F-26




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  Warranty
    
    
    Personnel
    
    
    Other
    
    
    Total in thousandsBalance on January 1, 2006
    
    
    2,887
    
    
    
    7,816
    
    
    
    612
    
    
    
    11,315Currency changes
    
    
    (54)
    
    
    
    (117)
    
    
    
    (29)
    
    
    
    (200)Additions
    
    
    844
    
    
    
    9,426
    
    
    
    940
    
    
    
    11,210Utilization
    
    
    (380
    )
    
    
    (5,580
    )
    
    
    (635
    )
    
    
    (6,595
    )Releases
    
    
    (1,368
    )
    
    
    (613
    )
    
    
    (185
    )
    
    
    (2,166
    )Balance on December 31, 2006
    
    
    1,929
    
    
    
    10,932
    
    
    
    703
    
    
    
    13,564
 23.      Commitments and Other Financial Obligations
   Payments due by Period in thousandsTotal
    
    
    < 1 Year
    
    
    13 Years
    
    
    35 Years
    
    
    > 5 YearsOperating leases
    
    
    2,299
    
    
    
    842
    
    
    
    1,082
    
    
    
    360
    
    
    
    15Purchase obligations
    
    
    3,524
    
    
    
    541
    
    
    
    2,796
    
    
    
    187
    
    
    
    Repair and maintenance
    
    
    452
    
    
    
    352
    
    
    
    100
    
    
    
    
    
    
    
    Expected pension payments *
    
    
    24,134
    
    
    
    1,990
    
    
    
    4,249
    
    
    
    4,634
    
    
    
    13,261Total
    
    
    30,409
    
    
    
    3,725
    
    
    
    8,227
    
    
    
    5,181
    
    
    
    13,276
 
 *
    
    Pension payments include only payments for the next ten years  
  24.      Segment Reporting
   F-27




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  Continuing OperationsEurope
    
    
    
    
    
    
    
    
    
    
    Others/(Excluding
    
    
    United
    
    
    Rest of
    
    
    Elimi-
    
    
    
    
    
    
    DiscontinuedGermany
    
    
    Germany)
    
    
    States
    
    
    World
    
    
    nations
    
    
    Total
    
    
    Operations
    
    
    Group in thousandsNet sales
    
    
    144,202
    
    
    
    53,425
    
    
    
    41,635
    
    
    
    6,118
    
    
    
    (65,896
    )
    
    
    179,484
    
    
    
    
    
    
    
    179,484Third party
    
    
    79,700
    
    
    
    52,999
    
    
    
    41,577
    
    
    
    5,208
    
    
    
    
    
    
    
    179,484
    
    
    
    
    
    
    
    179,484Intercompany
    
    
    64,502
    
    
    
    426
    
    
    
    58
    
    
    
    910
    
    
    
    (65,896
    )
    
    
    
    
    
    
    
    
    
    
    Operating profit
    
    
    37,368
    
    
    
    3,525
    
    
    
    3,255
    
    
    
    872
    
    
    
    (63
    )
    
    
    44,957
    
    
    
    
    
    
    
    44,957Financial income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,435
    
    
    
    1,435
    
    
    
    
    
    
    
    1,435Income before income
tax
    
    
    37,368
    
    
    
    3,525
    
    
    
    3,255
    
    
    
    872
    
    
    
    1,372
    
    
    
    46,392
    
    
    
    
    
    
    
    46,392Segment assets
    
    
    124,165
    
    
    
    20,556
    
    
    
    20,824
    
    
    
    3,125
    
    
    
    
    
    
    
    168,670
    
    
    
    
    
    
    
    168,670Segment liabilities
    
    
    20,187
    
    
    
    7,036
    
    
    
    1,867
    
    
    
    608
    
    
    
    
    
    
    
    29,698
    
    
    
    
    
    
    
    29,698Capital expenditures:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Property,
plant and equipment *
    
    
    4,915
    
    
    
    367
    
    
    
    104
    
    
    
    16
    
    
    
    
    
    
    
    5,402
    
    
    
    
    
    
    
    5,402Intangible assets
    
    
    201
    
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    208
    
    
    
    
    
    
    
    208Depreciation *
    
    
    2,482
    
    
    
    277
    
    
    
    62
    
    
    
    71
    
    
    
    
    
    
    
    2,892
    
    
    
    
    
    
    
    2,892Amortization
    
    
    202
    
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    222
    
    
    
    
    
    
    
    222
 
 *
    
    including investment properties  Continuing OperationsEurope
    
    
    
    
    
    
    
    
    
    
    Others/(Excluding
    
    
    United
    
    
    Rest of
    
    
    Elimi-
    
    
    
    
    
    
    DiscontinuedGermany
    
    
    Germany)
    
    
    States
    
    
    World
    
    
    nations
    
    
    Total
    
    
    Operations
    
    
    Group in thousandsNet sales
    
    
    124,906
    
    
    
    49,779
    
    
    
    36,366
    
    
    
    4,386
    
    
    
    (55,920
    )
    
    
    159,517
    
    
    
    461
    
    
    
    159,978Third party
    
    
    70,159
    
    
    
    49,720
    
    
    
    36,301
    
    
    
    3,337
    
    
    
    
    
    
    
    159,517
    
    
    
    461
    
    
    
    159,978Intercompany
    
    
    54,747
    
    
    
    59
    
    
    
    65
    
    
    
    1,049
    
    
    
    (55,920
    )
    
    
    
    
    
    
    
    
    
    
    Operating profit
    
    
    28,853
    
    
    
    3,773
    
    
    
    3,095
    
    
    
    613
    
    
    
    107
    
    
    
    36,441
    
    
    
    (1,462
    )
    
    
    34,979Financial income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,549
    
    
    
    2,549
    
    
    
    32
    
    
    
    2,581Income before
income tax
    
    
    28,853
    
    
    
    3,773
    
    
    
    3,095
    
    
    
    613
    
    
    
    2,656
    
    
    
    38,990
    
    
    
    (1,430
    )
    
    
    37,560Segment assets
    
    
    95,482
    
    
    
    19,524
    
    
    
    21,694
    
    
    
    2,706
    
    
    
    
    
    
    
    139,406
    
    
    
    
    
    
    
    139,406Segment liabilities
    
    
    18,527
    
    
    
    6,044
    
    
    
    2,311
    
    
    
    526
    
    
    
    
    
    
    
    27,408
    
    
    
    
    
    
    
    27,408Capital expendituresProperty, plant
and equipment *
    
    
    1,664
    
    
    
    277
    
    
    
    144
    
    
    
    109
    
    
    
    
    
    
    
    2,194
    
    
    
    
    
    
    
    2,194Intangible assets
    
    
    258
    
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    276
    
    
    
    
    
    
    
    276Depreciation *
    
    
    2,521
    
    
    
    342
    
    
    
    50
    
    
    
    75
    
    
    
    
    
    
    
    2,988
    
    
    
    247
    
    
    
    3,235Amortization
    
    
    188
    
    
    
    26
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    214
    
    
    
    3
    
    
    
    217
 
 *
    
    including investment properties  Continuing OperationsMeasurementand Analysis
    
    
    
    
    
    
    Backing
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    DiscontinuedTurbopumps
    
    
    Equipment
    
    
    Service
    
    
    pumps
    
    
    Systems
    
    
    Other
    
    
    Total
    
    
    Operations
    
    
    Group in thousandsNet sales (third party)
    
    
    78,284
    
    
    
    45,938
    
    
    
    25,344
    
    
    
    24,786
    
    
    
    4,582
    
    
    
    550
    
    
    
    179,484
    
    
    
    
    
    
    
    179,484Segment assets
    
    
    69,653
    
    
    
    26,926
    
    
    
    17,615
    
    
    
    20,096
    
    
    
    4,604
    
    
    
    29,776
    
    
    
    168,670
    
    
    
    
    
    
    
    168,670Capital expendituresProperty, plant and
equipment
    
    
    2,762
    
    
    
    676
    
    
    
    425
    
    
    
    492
    
    
    
    102
    
    
    
    945
    
    
    
    5,402
    
    
    
    
    
    
    
    5,402Intangible assets
    
    
    91
    
    
    
    54
    
    
    
    29
    
    
    
    29
    
    
    
    5
    
    
    
    0
    
    
    
    208
    
    
    
    
    
    
    
    208
 F-28




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  Continuing OperationsMeasurementand Analysis
    
    
    
    
    
    
    Backing
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    DiscontinuedTurbopumps
    
    
    Equipment
    
    
    Service
    
    
    pumps
    
    
    Systems
    
    
    Other
    
    
    Total
    
    
    Operations
    
    
    Group in thousandsNet sales (third party)
    
    
    64,397
    
    
    
    41,347
    
    
    
    23,515
    
    
    
    22,775
    
    
    
    6,935
    
    
    
    548
    
    
    
    159,517
    
    
    
    461
    
    
    
    159,978Segment assets
    
    
    56,850
    
    
    
    24,309
    
    
    
    16,094
    
    
    
    17,432
    
    
    
    5,700
    
    
    
    19,021
    
    
    
    139,406
    
    
    
    
    
    
    
    139,406Capital expendituresProperty, plant and
equipment
    
    
    908
    
    
    
    487
    
    
    
    331
    
    
    
    379
    
    
    
    89
    
    
    
    
    
    
    
    2,194
    
    
    
    
    
    
    
    2,194Intangible assets
    
    
    112
    
    
    
    72
    
    
    
    41
    
    
    
    39
    
    
    
    12
    
    
    
    
    
    
    
    276
    
    
    
    
    
    
    
    276
  25.      Financial Instruments
 Fair
value
  Interest
rate risks
  
 Fiscal
year ended December 31, 2006
 < 1 Year
    
    
    1-2 Years
    
    
    2-3 Years
    
    
    3-4 Years
    
    
    4-5 Years
    
    
    >5 Years
    
    
    Total in thousandsSecurities held
to maturity
    
    
    1,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,998
    
    
    
    5,998Cash and cash
equivalents
    
    
    75,354
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    75,354Total
    
    
    76,354
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,998
    
    
    
    81,352
 Fiscal year ended December 31, 2005
 < 1 Year
    
    
    1-2 Years
    
    
    2-3 Years
    
    
    3-4 Years
    
    
    4-5 Years
    
    
    >5 Years
    
    
    Total in thousandsSecurities held
to maturity
    
    
    3,000
    
    
    
    1,002
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,998
    
    
    
    9,000Cash and cash
equivalents
    
    
    61,651
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    61,651Total
    
    
    64,651
    
    
    
    1,002
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,998
    
    
    
    70,651
 F-29




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 Credit
risks
  Liquidity
risks
  Foreign
exchange rate risks
         
 
   
 F-30




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 26.     Earnings Per Share
  Year ended December 31,2006
    
    
    2005 in thousandsNet income from continuing operations ( in thousands))
    
    
    29,624
    
    
    
    23,901Net income ( in thousands)
    
    
    29,624
    
    
    
    22,907Weighted average number of shares
    
    
    8,728,672
    
    
    
    8,690,524Number of conversion rights
    
    
    
    
    
    
    Adjusted weighted average number of shares
    
    
    8,728,672
    
    
    
    8,690,524Earnings per share (in )Earnings from continuing operations per share (basic/diluted)
    
    
    3.39
    
    
    
    2.75Earnings per share (basic/diluted)
    
    
    3.39
    
    
    
    2.64
    
 27.      Discontinued Operations
  
  Year ended December 31,2006
    
    
    2005 in thousandsLoss from discontinued operations before income tax benefit
    
    
    
    
    
    
    (1,208
    )Income tax benefit
    
    
    
    
    
    
    352Net loss from discontinued operations
    
    
    
    
    
    
    (856
    )Loss on disposal of discontinued operations before income tax benefit
    
    
    
    
    
    
    (222
    )Income tax benefit
    
    
    
    
    
    
    84Net loss on disposal of discontinued operations
    
    
    
    
    
    
    (138
    )Total loss from discontinued operations before income tax benefit
    
    
    
    
    
    
    (1,430
    )Income tax benefit
    
    
    
    
    
    
    436Net total loss from discontinued operations
    
    
    
    
    
    
    (994
    )
   F-31




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 Additional Notes and Supplemental Information
 28.      Related Party Disclosures
    29.     Events After the Balance Sheet Date
  30.      Personnel Expenses
  Year ended December 31,2006
    
    
    2005 in thousandsWages and salaries
    
    
    38,353
    
    
    
    35,797Social security, pension and other benefit cost
    
    
    8,892
    
    
    
    8,157Thereof for pensions
    
    
    2,262
    
    
    
    1,520Total
    
    
    47,245
    
    
    
    43,954
 
 31.      Number of Employees
   December 31,2006
    
    
    2005Annual averageMale
    
    
    560
    
    
    
    562Female
    
    
    125
    
    
    
    129Total
    
    
    685
    
    
    
    691Balance sheet dateMale
    
    
    557
    
    
    
    564Female
    
    
    127
    
    
    
    127Total
    
    
    684
    
    
    
    691
 F-32




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  32.     Management Board
  
    
    Wolfgang Dondorf (CEO), Diplom-Ingenieur
 
    
    Manfred Bender (CFO), Diplom-Betriebswirt
 
 33.      Supervisory Board
   
    
    Dr. Michael Oltmanns (Chairman), Attorney at Law and Tax AdvisorFurther Supervisory Board seats:
 
    
    HPC AG, Weinheim (chairman)
    
    Jetter AG, Ludwigsburg (chairman)
    
    Merkur Bank KGaA, Munich (vice chairman)
    
    Scholz AG, Essingen (chairman)
 
    
    Götz Timmerbeil (Vice Chairman since May 31, 2006, and chairman of
the Audit Committee), Certified Public Accountant and Tax Advisor
    
    Prof. Dr. Klaus-Jürgen Kügler (Vice Chairman,
until May 31, 2006),Dean at the Giessen-Friedberg Technical University
    
    Michael J. Anderson, Investment Banker
    
    Helmut Bernhardt (Employee representative, since May 31, 2006), Development Engineer
    
    Manfred Gath (Employee representative, since May 31, 2006), Chairman of the Employee Council
    
    Wilfried Glaum (since May 31, 2006), Business Administrator
    
    Edgar Keller (Employee representative, until May 31, 2006), Commercial Staff Member
    
    Günter Schneider (Employee representative, until May 31, 2006), former Chairman of the Employee Council
  34.      Exempting Provision Under § 264 (3), HGB
  F-33




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 35.      Audit Fees for Independent Auditors
   Year ended December 31,2006
    
    
    2005 in thousandsAudit fees
    
    
    564
    
    
    
    407Audit
related fees
    
    
    13
    
    
    
    25Tax fees
    
    
    46
    
    
    
    45All other
fees
    
    
    17
    
    
    
    13Total
    
    
    640
    
    
    
    490
 36.      German Corporate Governance Code/Declaration Pursuant to § 161 AktG
  
    
    No agreement was able to be reached in negotiations with our
D & O insurance carrier to obtain a lower premium if a
deductible is arranged. The Company will therefore not
arrange for a deductible. A deductible would not improve the
overall motivation and sense of responsibility of the
Management and Supervisory Boards. Both the Management and
Supervisory Boards work to the benefit of the enterprise.(Point 3.8 of the Code)
 
    
    The members of the Supervisory Board have in the past
received and presently still receive fixed compensation,
which does not contain any performance-related variable
income elements. Their compensation is stated in the
compensation report.(Point 5.4.7 of the Code)
 
 37.     NYSE Comparison
   38.     Authorization for Issuance of Consolidated Financial Statements
  F-34




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 39.      Summary of Differences Between IFRS and U.S. GAAP
  Net Income
 Year ended December 31,2006
    
    
    2005 in thousandsNet income according to IFRS
    
    
    29,624
    
    
    
    22,907Personnel provision (Note 39a)
    
    
    401
    
    
    
    128Pensions (Note 39b)
    
    
    (689
    )
    
    
    (273
    )Deferred taxes (Note 39c)
    
    
    111
    
    
    
    10Minority interests (Note 39d)
    
    
    (7
    )
    
    
    (516
    )Share based payments (Note 39e)
    
    
    
    
    
    
    492Net income according to U.S. GAAP *
    
    
    29,440
    
    
    
    22,748
  Year ended December 31,2006
    
    
    2005Numerator:Net income ( in thousands)
    
    
    29,440
    
    
    
    22,748Denominator:Denominator
for basic earnings per share -
weighted-average shares
    
    
    8,728,672
    
    
    
    8,690,524Effect of dilutive securities:Stock-based compensation
    
    
    
    
    
    
    Denominator
for diluted earnings per share -
adjusted weighted-average shares and assumed conversions
    
    
    8,728,672
    
    
    
    8,690,524Basic earnings per share/ADR ()
    
    
    3.37
    
    
    
    2.62Diluted earnings per share/ADR ()
    
    
    3.37
    
    
    
    2.62
   F-35




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  December 31,2006
    
    
    2005( in thousands)Shareholders equity according to IFRS
    
    
    138,972
    
    
    
    111,998Personnel provisions (Note 39a)
    
    
    2,083
    
    
    
    1,682Pensions (Note 39b)
    
    
    5,539
    
    
    
    6,228Adjustment SFAS No. 158 and Minimum Pension Liability,
net of tax (Note 39b)

    
    (4,519
    )
    
    
    (3,756
    )Deferred taxes (Note 39c)
    
    
    (2,929
    )
    
    
    (3,040
    )Foreign exchange rate differences *
    
    
    111
    
    
    
    150Inclusion of minority interests into equity
including related currency variances (Note 39d)
    
    
    (704
    )
    
    
    (631
    )Shareholders equity according to U.S. GAAP
    
    
    138,553
    
    
    
    112,631
 
 *
    
    Resulting from balance sheet translation of pensions and deferred taxes of U.S. subsidiary F-36




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
RECONCILIATION CONSOLIDATED BALANCE SHEET
 December
31, 2006Note
    
    

IFRS
    
    

Adjustments
    
    

U.S.
GAAP in thousandsASSETSIntangible assets
    
    
    
    
    
    
    319
    
    
    
    
    
    
    
    319Property, plant and equipment
    
    
    39f
    )
    
    
    22,901
    
    
    
    1,838
    
    
    
    24,739Investment properties
    
    
    39f
    )
    
    
    1,838
    
    
    
    (1,838
    )
    
    
    Investment securities
    
    
    
    
    
    
    17,535
    
    
    
    
    
    
    
    17,535Prepaid pension cost
    
    
    39b
    )
    
    
    145
    
    
    
    (145
    )
    
    
    Deferred tax assets
    
    
    39c
    )
    
    
    5,585
    
    
    
    (1,001
    )
    
    
    4,584Other non-current assets
    
    
    
    
    
    
    1,822
    
    
    
    7
    
    
    
    1,829Total non-current assets
    
    
    
    
    
    
    50,145
    
    
    
    (1,139
    )
    
    
    49,006Inventories
    
    
    
    
    
    
    15,520
    
    
    
    
    
    
    
    15,520Trade accounts receivable
    
    
    
    
    
    
    23,934
    
    
    
    
    
    
    
    23,934Other accounts receivable
    
    
    
    
    
    
    1,801
    
    
    
    
    
    
    
    1,801Prepaid expenses
    
    
    
    
    
    
    449
    
    
    
    
    
    
    
    449Investment securities
    
    
    
    
    
    
    1,000
    
    
    
    
    
    
    
    1,000Other current assets
    
    
    
    
    
    
    467
    
    
    
    
    
    
    
    467Deferred tax assets
    
    
    39c
    )
    
    
    
    
    
    
    853
    
    
    
    853Cash and cash equivalents
    
    
    
    
    
    
    75,354
    
    
    
    
    
    
    
    75,354Total current assets
    
    
    
    
    
    
    118,525
    
    
    
    853
    
    
    
    119,378Total assets
    
    
    
    
    
    
    168,670
    
    
    
    (286
    )
    
    
    168,384SHAREHOLDERS EQUITY AND LIABILITIESShareholders equityShare capital (13,635,900 no-par value
ordinary shares authorized; 8,970,600
issued and 8,843,524 outstanding)
    
    
    
    
    
    
    22,965
    
    
    
    
    
    
    
    22,965Additional paid-in capital
    
    
    39e
    )
    
    
    13,305
    
    
    
    (2,998
    )
    
    
    10,307Retained earnings
    
    
    
    
    
    
    104,269
    
    
    
    7,622
    
    
    
    111,891Other equity components
    
    
    40
    
    
    
    1,520
    
    
    
    (4,408
    )
    
    
    (2,888
    )Treasury shares, at cost
(127,076 ordinary shares)
    
    
    
    
    
    
    (3,722
    )
    
    
    
    
    
    
    (3,722
    )Equity of
Pfeiffer Vacuum Technology AG shareholders
    
    
    
    
    
    
    138,337
    
    
    
    216
    
    
    
    138,553Minority interests
    
    
    39d
    )
    
    
    635
    
    
    
    (635
    )
    
    
    Total shareholders equity
    
    
    
    
    
    
    138,972
    
    
    
    (419
    )
    
    
    138,553Minority interests
    
    
    39d
    )
    
    
    
    
    
    
    635
    
    
    
    635Deferred tax liabilities
    
    
    39c
    )
    
    
    308
    
    
    
    (308
    )
    
    
    Provisions for pension
    
    
    39b
    )
    
    
    3,859
    
    
    
    1,575
    
    
    
    5,434Total non-current liabilities
    
    
    
    
    
    
    4,167
    
    
    
    1,902
    
    
    
    6,069Trade accounts payable
    
    
    
    
    
    
    4,428
    
    
    
    
    
    
    
    4,428Other accounts payable
    
    
    
    
    
    
    2,571
    
    
    
    
    
    
    
    2,571Provisions
    
    
    39a
    )
    
    
    13,564
    
    
    
    (2,077
    )
    
    
    11,487Income tax liabilities
    
    
    39c
    )
    
    
    3,420
    
    
    
    308
    
    
    
    3,728Customer deposits
    
    
    
    
    
    
    1,548
    
    
    
    
    
    
    
    1,548Total current liabilities
    
    
    
    
    
    
    25,531
    
    
    
    (1,769
    )
    
    
    23,762Total liabilities and shareholders equity
    
    
    
    
    
    
    168,670
    
    
    
    (286
    )
    
    
    168,384
 F-37




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
RECONCILIATION CONSOLIDATED BALANCE SHEET
 December 31, 2005Note
    
    
    IFRS
    
    
    Adjustments
    
    
    U.S. GAAP in thousandsASSETSIntangible assets
    
    
    39b
    )
    
    
    333
    
    
    
    154
    
    
    
    487Property, plant and equipment
    
    
    39f
    )
    
    
    21,301
    
    
    
    1,093
    
    
    
    22,394Investment properties
    
    
    39f
    )
    
    
    1,093
    
    
    
    (1,093
    )
    
    
    Investment securities
    
    
    
    
    
    
    6,000
    
    
    
    
    
    
    
    6,000Prepaid pension cost
    
    
    39b
    )
    
    
    
    
    
    
    
    
    
    
    Deferred tax assets
    
    
    39c
    )
    
    
    6,430
    
    
    
    (1,867
    )
    
    
    4,563Other non-current assets
    
    
    
    
    
    
    905
    
    
    
    7
    
    
    
    912Total non-current assets
    
    
    
    
    
    
    36,062
    
    
    
    (1,706
    )
    
    
    34,356Inventories
    
    
    
    
    
    
    13,747
    
    
    
    
    
    
    
    13,747Trade accounts receivable
    
    
    
    
    
    
    22,481
    
    
    
    
    
    
    
    22,481Other accounts receivable
    
    
    
    
    
    
    1,259
    
    
    
    
    
    
    
    1,259Prepaid expenses
    
    
    
    
    
    
    872
    
    
    
    
    
    
    
    872Investment securities
    
    
    
    
    
    
    3,000
    
    
    
    
    
    
    
    3,000Other current assets
    
    
    
    
    
    
    334
    
    
    
    
    
    
    
    334Deferred tax assets
    
    
    39c
    )
    
    
    
    
    
    
    1,124
    
    
    
    1,124Cash and cash equivalents
    
    
    
    
    
    
    61,651
    
    
    
    
    
    
    
    61,651Total current assets
    
    
    
    
    
    
    103,344
    
    
    
    1,124
    
    
    
    104,468Total assets
    
    
    
    
    
    
    139,406
    
    
    
    (582
    )
    
    
    138,824SHAREHOLDERS EQUITY AND LIABILITIESShareholders equityShare capital (13,459,350 no-par value
ordinary shares authorized; 8,790,600
issued and 8,690,524 outstanding)
    
    
    
    
    
    
    22,504
    
    
    
    
    
    
    
    22,504Additional paid-in capital
    
    
    39e
    )
    
    
    5,819
    
    
    
    (2,998
    )
    
    
    2,821Retained earnings
    
    
    
    
    
    
    86,377
    
    
    
    7,806
    
    
    
    94,183Other equity components
    
    
    40
    
    
    
    (833
    )
    
    
    (3,606
    )
    
    
    (4,439
    )Treasury shares, at cost
(100,076 ordinary shares)
    
    
    
    
    
    
    (2,438
    )
    
    
    
    
    
    
    (2,438
    )Equity of Pfeiffer Vacuum Technology AG Shareholders
    
    
    
    
    
    
    111,429
    
    
    
    1,202
    
    
    
    112,631Minority interests (Note 39e)
    
    
    39d
    )
    
    
    569
    
    
    
    (569
    )
    
    
    Total shareholders equity
    
    
    
    
    
    
    111,998
    
    
    
    633
    
    
    
    112,631Minority interests
    
    
    39d
    )
    
    
    
    
    
    
    554
    
    
    
    554Deferred tax liabilities
    
    
    39c
    )
    
    
    820
    
    
    
    (820
    )
    
    
    Convertible bonds
    
    
    
    
    
    
    461
    
    
    
    
    
    
    
    461Provisions for pensions
    
    
    39b
    )
    
    
    4,476
    
    
    
    (94
    )
    
    
    4,382Total non-current liabilities
    
    
    
    
    
    
    5,757
    
    
    
    (360
    )
    
    
    5,397Trade accounts payable
    
    
    
    
    
    
    3,184
    
    
    
    
    
    
    
    3,184Other accounts payable
    
    
    
    
    
    
    2,659
    
    
    
    
    
    
    
    2,659Provisions
    
    
    39a
    )
    
    
    11,315
    
    
    
    (1,675
    )
    
    
    9,640Income tax liabilities
    
    
    39c
    )
    
    
    3,118
    
    
    
    820
    
    
    
    3,938Customer deposits
    
    
    
    
    
    
    1,375
    
    
    
    
    
    
    
    1,375Total current liabilities
    
    
    
    
    
    
    21,651
    
    
    
    (855
    )
    
    
    20,796Total liabilities and shareholders equity
    
    
    
    
    
    
    139,406
    
    
    
    (582
    )
    
    
    138,824
 F-38




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 a)      Personnel Provisions:
  b)      Pensions:
      c)      Income Taxes:
  F-39




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  December 31,2006
    
    
    2005( in thousands)Deferred tax assets according to IFRS
    
    
    5,585
    
    
    
    6,430Personnel provisions
    
    
    (805
    )
    
    
    (653
    )Pensions
    
    
    657
    
    
    
    (90
    )Deferred tax assets according to U.S. GAAP
    
    
    5,437
    
    
    
    5,687Thereof long-term deferred tax assets
    
    
    4,584
    
    
    
    4,563Thereof short-term deferred tax assets
    
    
    853
    
    
    
    1,124Deferred tax liabilities according to IFRS and U.S. GAAP *
    
    
    (308
    )
    
    
    (820
    )
 
 *
    
    Under U.S. GAAP, the deferred tax liabilities in the year 2005 were not separately disclosed but included in income tax liabilities  d)      Minority Interest:
  e)      Additional Paid-in Capital/Share Based Payments:
  f)      Investment Properties:
  F-40




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 40.      Additional Disclosure Information Required by U.S. GAAP
 Defined
Benefit Plans
    December 31,2006
    
    
    2005( in thousands)Projected benefit obligation*
    
    
    (50,352
    )
    
    
    (50,509
    )Fair value of plan assets*
    
    
    44,917
    
    
    
    41,599Unfunded status of plans
    
    
    (5,434
    )
    
    
    (8,910
    )Unrecognized actuarial loss
    
    
    6,999
    
    
    
    10,359Unrecognized prior service cost
    
    
    81
    
    
    
    150Unrecognized transition obligation
    
    
    200
    
    
    
    227Prepaid pension cost
    
    
    1,846
    
    
    
    1,826
 
 *
    
    As disclosed in Note 20 to the Consolidated Financial Statements  December 31,2006
    
    
    2005( in thousands)Intangible assets from pension accounting
    
    
    
    
    
    
    154Prepaid pension costs
(prior to SFAS No.158 or Minimum Pensions Liability)
    
    
    2,805
    
    
    
    2,810Accrued pensions
(prior to SFAS No. 158 or Minimum Pensions Liability)
    
    
    (959
    )
    
    
    (985
    )Minimum Pension Liability Adjustment
    
    
    
    
    
    
    (6,207
    )SFAS No. 158 adjustment
    
    
    (7,280
    )
    
    
    Other comprehensive income (before taxes)
    
    
    7,280
    
    
    
    6,054Net amount
    
    
    1,846
    
    
    
    1,826
  Other Equity Components/Accumulated Other Comprehensive Income
 Other Equity Components
 December 31,2006
    
    
    2005( in thousands)Total other equity components according to IFRS, net
    
    
    1,520
    
    
    
    (833
    )Adjustment for SFAS No. 158, net of tax of K 2,761
    
    
    (4,519
    )
    
    
    Adjustment for Minimum pension liability,
net of tax of K 2,298
    
    
    
    
    
    
    (3,756
    )Currency translation adjustment
    
    
    111
    
    
    
    150Total other equity components according to U.S. GAAP, net
    
    
    (2,888
    )
    
    
    (4,439
    )
 F-41




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
   Tax
contingencies
  Share-based Payments
  Shipping and Handling Costs
  Cash Flow Hedges
  Advertising
  Adoption of New Accounting Rules
 FASB Statement
No. 123 (revised 2004), Share-Based Payment,
   F-42




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##### Table of Contents



PFEIFFER VACUUM TECHNOLOGY AG
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 FASB Statement No. 155 Accounting for Certain Hybrid
Financial Instruments  an amendment of FASB Statements No. 133 and 140.
 FASB Statement No. 156 Accounting for Servicing of Financial
Assets  an amendment of FASB Statement No. 140.
 FASB Statement No. 157 Fair Value Measurements.
 FASB Statement No. 158 Employers Accounting for Defined
Benefit Pension and Other Postretirement Plans  an amendment of FASB Statements No. 87, 88, 106
and 132(R).
 Interpretation No. 48 Accounting for Uncertainty in Income Taxes  an Interpretation of FASB Statement No. 109 (FIN
48).
 F-43