APC 2005 Annual Report Download - page 105

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103
20.7 - Interest rate risk
At December 31, 2005, gross debt totaled 3,008 million, of which 90% was fixed rate. Total cash and cash
equivalents amounted to 1,383 million.
A one point increase or decrease in interest rates would have the effect of increasing or reducing the Group’s
net finance costs by 10.0 million.
The use of currency swaps to hedge intragroup loans and borrowings exposes part of the Group’s debt to
changes in the rate spread between the euro and the hedged currencies. The sensitivity calculation above does
not take this effect into account.
Consolidated Financial Statements
Note 21 - Related party transactions
21.1 - Associates
These are primarily companies over which the Group has significant influence. They are accounted for by the
equity method. Transactions with these related parties, which are carried out on arm’s length terms, are as
follows:
Dec. 31, Dec. 31,
2005 2004
Statement of income
Revenue 8.3 8.3
Cost of sales (15.7) (11.9)
Other operating
income/(expense) 0.6 1.5
F
inancial income and expenses
- -
Balance sheet
Loans - -
Trade receivables 8.1 5.1
Other accounts receivable - -
Non current debt - -
Accounts payable 1.6 1.7
Off balance
sheet commitments
Guarantees given - 32.8
Guarantees received 4.0 -
Guarantees given at December 31, 2004 have been
transferred to a third party. They are listed in the
Group’s commitments at December 31, 2005.
21.2 - Related parties
with significant influence
No transactions were carried out with Board members
or corporate officers during the year other than in the
normal course of business.
Compensation and benefits paid to the Group’s top
senior executives are described in note 27.3.
Note 22 - Segment information
The Group is divided into four operating divisions. Performance assessments and management decisions are
notably based on operating profit (earnings before interest and tax).
Data by region includes the contribution from the Growth Platforms (building automation and security, secured
power and sensors for repetitive machines). Details are provided in Chapter 4 of the Annual Report (Business
Review).
Dec. 31, 2005 Europe North Asia- Rest of Total
America Pacific the world
Revenue (1) 5,643 3,047 2,031 958 11,679
Segment profit (Ebit) 762 406 263 134 1,565
Balance sheet
Property, plant and
equipment and intangible assets 1,642 753 477 34 2,906
Goodwill 2,480 2,561 736 102 5,879
Working capital requirement 1,150 559 505 299 2,513
Capital employed (2) 5,272 3,873 1,718 435 11,298