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81
Consolidated Financial Statements
On July 29, 2005, Schneider Electric acquired ABS
EMEA, Invensys’ building automation division in
Europe and the Middle East. The company has been
fully consolidated since the date of acquisition.
On August 24, 2005, the Group acquired Juno Light-
ing Inc, leader in lighting equipment for the North
American business and residential markets. Juno
Lighting Inc. has been fully consolidated since August
24, 2005.
On October 4, 2005, Schneider Electric acquired US-
based BEI Technologies Inc., a manufacturer of cus-
tomized sensors. BEI Technologies has been fully con-
solidated since October 1, 2005.
Details of goodwill arising on these acquisitions are
disclosed in note 4.
Newly consolidated companies
SE Relays has been fully consolidated since January
1, 2005. SE Relays combines the assets from the
Magnecraft business acquired in December 2004.
Abacus, acquired in November 2004, was merged into
TAC Americas on January 1, 2005 and has been fully
consolidated since that date.
Acquisitions in progress
On October 19, 2005, Schneider Electric announced
that it had signed an agreement to acquire all out-
standing shares in Australia-based Citect, a leading
supplier of SCADA (supervision, control and data
acquisition) and MES (manufacturing execution sys-
tems) solutions. On January 25, 2006, the Group
amended its offer after a competing bid was made ear-
lier in the month (see note 28 - Subsequent Events).
On November 2, 2005, Schneider Electric announced
the acquisition of US-based Silicon Power Corpora-
tion’s solid-state relay assets, sold under the Crydom
brand.
Both these transactions are subject to regulatory
approval and other customary conditions. The two
companies will be fully consolidated in the first half of
2006.
These acquisitions had no impact on the consolidated
financial statements for the year ended December 31,
2005.
3.2 - Impact of changes in the scope
of consolidation on 2005 results
Changes in the scope of consolidation had the follow-
ing impact:
Impact on 2005 revenue and profit
The following table shows the full-year impact of these
acquisitions on 2005 revenue, operating profit and
profit attributable to equity holders of the parent (i.e.,
as if the acquisitions had been made on January 1,
2005).
2005 2005
Incl.
Reported acquisitions
over the
full year
Revenue 11,678.8 12,138.1
Operating profit 1,565.3 1,628.6
Operating margin
13.4% 13.4%
Profit for the period 994.3 1,026.1
Impact on cash
Changes in the scope of consolidation had a net
impact of 1,267.3 million on the Group’s cash posi-
tion, as described below:
2005
Acquisitions (1,276.1)
Cash and cash equivalents paid (1,297.3)
Cash and cash equivalents acquired 62.2
Debt of acquired entities (41.0)
Disposals 10.0
Other operations (1.2)
Net financial investments (1,267.3)
I
mpact on the balance sheet at December 31, 2005
The impact of the year’s acquisitions on the main bal-
ance sheet items at December 31, 2005 was as fol-
lows:
Dec. 31,2005 of which
Reported Acquisitions
Goodwill 5,878.8 1,102.3
Property, plant & equipment
and intangible assets 2,906.5 308.1
Working capital 2,512.5 138.2
2004 2005
Reported Excl. Acquisitions Reported
acquisitions
Revenue 10,349.3 11,392.4 286.4 11,678.8
Operating profit 1,286.4 1,525.2 40.1 1,565.3
Operating margin 12.4% 13.4% 14.0% 13.4%
Profit attributable to equity holders
of the parent 823.9 967.6 26.7 994.3