APC 2005 Annual Report Download - page 60

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Provisions
Short and long-term provisions totaled 1,687 million,
or 10.2% of the balance sheet total. Of this, 277 mil-
lion covered items that are expected to be paid out in
less than one year.
The bulk of these provisions (1,200 million) are for
pensions and other post-employment benefits (med-
ical care). The 174 million increase reflects the trans-
lation adjustment, for 73 million, and actuarial gains
and losses, recognized net of tax in equity, for 132
million.
Provisions for contingencies increased 13.5% to 487
million. These provisions cover product risks (war-
ranties, disputes over identified defective products),
for 140 million, economic risks (tax risks, financial
risks generally corresponding to seller’s guarantees),
for 75 million, customer risks (customer disputes
and losses on long-term contracts), for 68 million,
and restructuring, for 94 million. Additions to provi-
sions for restructuring, amounted to 69 million to
cover programs announced in 2005.
The year’s acquisitions added 25 million to provi-
sions in the balance sheet, while translation adjust-
ments added 28 million and the discounting effect
added 5 million.
Other non-current liabilities
Other non-current liabilities, comprising acquisition
debt, totaled 179 million. This included 136 million
for MGE UPS (of which 72 million stemming from the
put option granted to minority shareholders recog-
nized in accordance with IAS 32 and 39) and 42 mil-
lion for Clipsal.
During the year, 16 million was paid for the Mag-
necraft assets acquired in 2004.
Deferred taxes
Deferred tax assets came to 795 million, reflecting
the unused tax losses generated by the sale of
Legrand shares in 2002, in an amount of 371 million,
and future tax savings on provisions for pensions, in
an amount of 394 million.
Deferred tax liabilities totaled 259 million and prima-
rily comprised deferred taxes recognized on trade-
marks purchased during acquisitions.
The 91 million change over the year stems from the
use of 86 million in tax loss carryforwards and from
the recognition of 46 million in deferred taxes on
trademarks recognized in 2005.
Parent company
financial statements
Schneider Electric SA posted total portfolio revenues
of 337.8 million in 2005 compared with 463.3 mil-
lion in 2004. Profit before tax came to 401.8 million
versus 543.3 million in 2004.
Net profit stood at 450.8 million versus 558.8 mil-
lion in 2004.
Equity before appropriation of net profit rose to
6,848.9 million at December 31, 2005 from 6,780.6
million at the previous year-end. This reflects 2005
profit, changes stemming from dividends paid, and
shares issued on the exercise of stock options in an
amount of 22.4 million including additional paid-in
capital.
Subsidiaries
Schneider Electric Industries SAS
Revenue declined 4.2% to 3.0 billion from 3.1 bil-
lion the year before.
Operating profit rose by 61.0% to 278.0 million from
172.6 million in 2004 and represented 9.3% of rev-
enue.
Net profit came to 582.5 million compared with
221.8 million in 2004.
Cofibel
Cofibel’s portfolio consists entirely of Schneider Electric
SA shares.
Profit before tax came to 4.0 million versus 3.0 mil-
lion in 2004.
Profit after tax stood at 3.4 million compared with
2.3 million the year before.
Cofimines
Profit from continuing operations before tax amounted
to 1.1 million, unchanged from 2004.
After taking into account corporate income tax, net
profit stood at 1.6 million versus 0.8 million in 2004.