APC 2005 Annual Report Download - page 132

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130
Note 2 - Investments
2a) Shares in subsidiaries and affiliates
In 2005, Schneider Electric SA acquired the six com-
panies comprising Invensys’ Advanced Buildings Sys-
tems business in Europe for 109.4 million.
Schneider Electric SA also finalized the acquisition of
a 49.05% interest in ELAU in 2005 for a total 32.4
million. Schneider Electric exercised a call option
held at end-2004 on the remaining outstanding
shares, which are now held by Schneider Electric
Deutschland.
At December 31, 2005, Schneider Electric SA held
10.1 million worth of Legrand shares following the
last exercise of options during the year as part of the
mechanism for exchanging Schneider Electric shares
for Legrand shares on the exercise of options (see
note 17d). These shares were sold back to Legrand
SAS in January 2006.
Lastly, Schneider Electric SA chose to receive the
2004 Finaxa dividend paid in 2005 in the form of
Finaxa shares. This increased the value of its invest-
ment by 5.3 million.
Following Finaxa’s merger into AXA, Schneider Elec-
tric SA exchanged the Finaxa shares in its portfolio at
December 16, 2005 for AXA shares at a parity of 15
AXA shares for 4 Finaxa shares.
Schneider Electric SA now holds 8,816,670 AXA
shares. In accordance with accounting rules, these
shares are recognized in the portfolio at the same cost
as the Finaxa shares. Based on the closing price on
December 31, 2005, these shares were worth 240.3
million.
During the year, Schneider Electric SA sold the shares
it held in Infra+ to its subsidiary Schneider Electric
France. The Infra+ shares were valued at 23.6 mil-
lion. The principal investments at December 31, 2005
were as follows:
O
ther investment securities primarily include Schneide
r
Electric SA shares acquired for allocation on the exer-
cise of certain stock options. Treasury stock listed
under "Other investment securities" at December 31,
2004 was not reclassified at December 31, 2005. How-
ever, all Schneider Electric SA shares bought back in
2005 for allocation on the exercise of stock options
were recognized under "Marketable securities".
At December 31, 2005, 2,678,706 Schneider Electric
SA shares were recorded under "Other investment
securities" at a total cost of 132.8 million. Decreases
correspond to shares removed on the exercise of
stock options. Provisions for impairment cover invest-
ments other than treasury stock classified under this
item.
Dec. 31, 2004 Additions Disposals Dec. 31, 2005
Cost 1,918,376 157,444 (24,038) 2,051,782
Provisions (37,691) - 17 (37,674)
Net 1,880,685 157,444 (24,021) 2,014,108
2b) Other investment securities
Dec. 31, 2004 Increases Decreases Dec. 31, 2005
Schneider Electric SA 159,209 - (26,435) 132,774
Other 16,495 - (2) 16,493
Provisions for other shares (16,356) (76) - (16,432)
Net 159,348 (76) (26,437) 132,835
Shares in subsidiaries Carrying value
and affiliates
Schneider Electric Industries SAS 1,531,981
Cofibel 136,896
Cofimines 82,608
AXA 82,061
Satchwell Control Systems Ltd 59,736
ELAU Administration Gmbh 32,952
Digital Holdings Co Ltd 21,221
Other (less than 20 million) 66,653
Total 2,014,108