APC 2005 Annual Report Download - page 59

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tively. Other major transactions in 2005 included the
acquisition of ABS EMEA for 111 million and of
ELAU GmbH for 45 million. Disposals of investments
and buyouts of minority shareholders were not mate-
rial. The first added 10 million to cash, while the sec-
ond used 6 million.
The Group bought back Company shares in a net
amount of 73 million during the year versus 278
million in 2004. Dividends paid totaled 418 million
(including the
précompte equalization tax), of which
23 million to minority interests.
Other payments with a material impact on cash
include a 48 million contribution to pension plans in
the United States.
At December 31, 2005, net debt totaled 1,624 million
or 19.7% of equity attributable to equity holders of the
parent. This represents an increase of 1,100 million
from the year before, as cash from operations partial-
ly offset the increase in long and short-term debt.
The Group had 511 million in cash and 872 million
in marketable securities, comprising short-term instru-
ments such as commercial paper, monetary mutual
funds and equivalents.
Total current and non-current financial liabilities
amounted to 3,008 million. Of this, bonds represent-
ed 2,691 million, including two tranches of a 1.5
billion issue in August 2005 as part of the Group’s
EMTN program. Current financial liabilities totaled
253 million at December 31, 2005 and primarily
included bank overdrafts and accrued interest.
Equity
Equity attributable to equity holders of the parent
came to 8,244 million, or 49.6% of the balance sheet
total. The 849 million increase over the year is the
net result of the following:
Adoption of IAS 32 and IAS 39, which reduced equi-
ty by 49 million net of tax in the opening balance
sheet.This reflects an 87 million decrease stemming
from the cancellation of treasury stock previously
recorded under marketable securities and a 29 mil-
lion increase from fair value adjustments to financial
assets.
Payment of the 2004 dividend, in an amount of
395 million.
Profit for the period of 994 million.
Changes in treasury stock, which reduced equity by
69 million.
The impact of currency fluctuations, which added
285 million to the translation reserve.
Fair value adjustments to hedging instruments and
available-for-sale financial assets, in the amount of
118 million.
Changes in actuarial gains and losses stemming
from the measurement of employee benefits, which
reduced equity by 78 million.
Minority interests rose 29% to 94 million, reflecting
the 35 million profit for the period, partially offset by
dividend payments of 23 million.
interest on the vendor loan to the buyer of Legrand
shares, in an amount of 9 million. At December 31,
2005, the balance of the vendor loan set up in 2002
came to 177 million. The loan, which pays interest of
5.5%, has a maximum remaining term of ten years.
Cash and net debt
Net debt at January 1, 2005 (524.4)
Total cash and cash equivalents 975.8
Total current and
non-current financial liabilities (1,500.2)
Operating cash flows before changes
in working capital 1,548.1
Capital expenditure, net (476.0)
Changes in operating working capital (104.6)
Changes in non-operating working capital (118.8)
Free cash flow 848.7
Acquisitions
(purchase of financial investments, net) (1,267.3)
Dividends and share buybacks (468.6)
Other (212.8)
Increase in net debt (1,100.0)
Net debt at December 31, 2005 (1,624.4)
Total cash and cash equivalents 1,383.2
Total current and
non-current financial liabilities (3,007.6)
Net cash provided by operating activities before
changes in working capital totaled 1,548 million, ris-
ing from 12.4% to 13.3% of revenue.
Changes in operating working capital represented a
negative 105 million, as the Group successfully man-
aged the increase in operating receivables and inven-
tories in a period of strong revenue growth. Changes
in non operating working capital includes a 76 million
payment to the French Treasury related to the elimina-
tion of the
précompte equalization tax. A receivable in
this amount is recorded in the balance sheet under
"Other receivables and prepaid expenses".
Net cash provided by operating activities totaled
1,325 million, up 11.9% from 1,184 in 2004.
Capital expenditure, which includes capitalized devel-
opment costs, amounted to 476 million versus 330
million in 2004. These investments rose to 4.1% of
revenue from 3.2% in 2004.
Acquisitions used 1,267 million, net of acquired
cash, compared with 801 million the year before.
The investment in Juno Lighting Inc. came to 487
million, taking into account assumed debt of 167 mil-
lion (USD205 million). The acquisitions of BEI Tech-
nologies and Power Measurement Inc. represented
net amounts of 442 million and 159 million, respec-
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