APC 2006 Annual Report Download - page 160

Company financial statements at December 31, 2006
2b - Other investment securities
Dec. 31, 2005 Increases Decreases Dec. 31, 2006
Schneider Electric SA 132,774 195,521 (235,175) 93,120
Other 16,493 101,458 (8) 117,943
Provisions for other shares (16,432) (65) - (16,497)
Net 132,835 296,914 (235,183) 194,566
2c - Advances to subsidiaries and affiliates
Dec. 31, 2005 Increases Decreases Dec. 31, 2006
Cost 2,972,934 111,611 (103,697) 2,980,848
Provisions (173) - - (173)
Net 2,972,761 111,611 (103,697) 2,980,675
During the year, the Company sold companies
acquired in 2005 to subsidiaries of the Schneider Elec-
tric Group. Six companies comprising Invensys’
Advanced Building Systems business in Europe were
sold to T.A.C. AB and Schneider Electric France for
109.4 million, while Schneider Electric SA’s 49.05%
interest in Elau, acquired in 2005 for 33.0 million,
was sold to Schneider Electric Deutschland, which
already held the remaining 50.95%.
In 2006, Schneider Electric SA participated in a share
issue by AXA, acquiring 19.4 million worth of AXA
shares and raising the value of its holding to 101.5
million. Because these shares do not fully meet the cri-
teria for classification under "Shares in subsidiaries
and affiliates", they were reclassified under "Other
investment securities" at December 31, 2006.
Also in 2006, Schneider Electric SA acquired a non-
material interest in Euronext for a total 8.0 million. It
sold the entire interest during the year.
Other material movements in this item concerned the
purchase and re-sale of Legrand shares as part of the
mechanism for exchanging Schneider Electric Shares
for Legrand shares on the exercise of options (see
note 17d). At December 31, 2006, Schneider Electric
SA held 2.2 million worth of Legrand shares following
the last exercise of options during the year. These
shares were sold back in January 2007.
The principal investments at December 31, 2006 were
as follows:
Shares in subsidiaries Carrying value
and affiliates
Schneider Electric Industries SAS 1,531,981
Cofibel 136,898
Cofimines 82,609
Digital Holdings Co Ltd 21,249
Other (less than 20 million) 6,623
Total 1,779,360
Other investment securities primarily include Schnei-
der Electric SA shares acquired for allocation on the
exercise of certain stock options. Treasury stock listed
under "Other investment securities" at December 31,
2004 was not reclassified at December 31, 2006. How-
ever, all Schneider Electric SA shares bought back
since then for allocation on the exercise of stock options
are recognized under "Marketable securities". Decreas-
es correspond to shares removed on the exercise of
stock options (49.7 million in 2006 for this item).
Pursuant to the authorization granted by shareholders
at the Annual Meeting of May 3, 2006, Schneider
Electric SA implemented a liquidity contract during the
year to maintain a liquid market for its shares. "Other
changes in treasury stock" correspond to share pur-
chases and sales by the contract manager.
At December 31, 2006, 1,796,488 Schneider Electric
SA shares were recorded under "Other investment
securities" at a total cost of 93.1 million, of which
120,000 shares assigned to the liquidity contract in an
amount of 10.0 million.
The increase in "Other" shares reflects the accounting
transfer of AXA shares in an amount of 101.5 million
from "Shares in subsidiaries and affiliates", as they
did not fully meet the criteria for classification in that
category. Provisions for impairment almost exclusively
concern investments other than treasury stock and
AXA shares classified under this item.
Note 2: Investments
2a - Shares in subsidiaries and affiliates
Dec. 31, 2005 Additions Disposals Dec. 31, 2006
Cost 2,051,782 52,021 (284,320) 1,819,483
Provisions (37,674) (2,449) - (40,123)
Net 2,014,108 49,572 (284,320) 1,779,360
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