APC 2007 Annual Report Download - page 116

3.2 - Impact of changes in the scope of consolidation on the 2007 results
Changes in the scope of consolidation had the following impact:
Impact on 2007 revenue and profit
2007 2007
Reported Incl. acquisitions
over the full year
Revenue 17,308.6 17,856.4
EBITA 2,561.7 2,593.6
EBITA margin 14.8 % 14.5 %
Operating profit 2,483.1 2,509.1
Operating margin 14.3 % 14.1 %
Profit attributable to equity holders of the parent 1,583.1 1,601.0
Other acquisitions
On May 25, 2007 the Group signed an agreement to ac-
quire all outstanding shares in Ritto GmbH & Co KG, a
German firm that designs, manufactures and markets door
stations and intercom systems for the residential and small
tertiary buildings market, for around 67 million. Ritto gen-
erated revenue of around 25 million in 2006.
On July 31, 2007, the Group acquired all outstanding
shares in Brazil-based automation company Atos Au-
tomação Industrial Ltda., for around 10 million.
These companies have been fully consolidated from their
respective acquisition dates.
Details of acquisition cost allocation are provided in note 4.
On October 10, 2007, Schneider Electric finalized the ac-
quisition of the entire capital of RBF Technologies Pty Ltd,
a leading manufacturer of industrial motor control centers
in South Africa.
On October 31 2007, the Group acquired all outstanding
shares in Profiluks Plastik ve Elektrik San. Tic. A.S., a Turk-
ish firm involved in installation systems and control.
Given the lack of reliable data at the balance sheet date
and the relatively limited size of these acquisitions, the
companies will be consolidated as from January 1, 2008.
Newly consolidated company
On October 31, 2007, Schneider Electric announced that
it had signed an agreement to create a joint venture with
Chinese partner Delixi Group called Delixi Electric. The 50-
50 joint venture manufactures, markets and distributes low-
voltage products in China via a dedicated network. It has
been accounted for by the equity method as from Novem-
ber 1, 2007.
Divestment
On October 31, 2007, following a decision by the European
Union's anti-trust authorities, the Group finalized the sale
of MGE UPS’s small systems (less than 10 kVA) to Eaton
Corp. for 425 million. This divested business includes
subsidiaries MGE UPS Systems SAS and UPE Electron-
ics (Shenzen) Co. Ltd. Based on the carrying amount of
the divested net assets, and the write-off of 221 million in
goodwill and 100 million in trademark impairment, the
capital gain recognized in the consolidated financial state-
ments amounted to 60 million, recorded under "Other op-
erating income and expenses".
Other change
In the first half of 2007, the Group bought out the minority
interests in MGE, raising its interest from 95.7% to 100%.
2006 2007
Excluding Contribution Reported
acquisitions from acquisitions
& disposals
Revenue 13,729.7 15,154.2 2,154.4
17,308.6
EBITA 2,018.7 2,272.6 289.1 2,561.7
EBITA margin 14.7 % 15.0 % 13.4 % 14.8 %
Operating profit 2,000.7 2,249.3 233.8 2,483.1
Operating margin 14.6 % 14.8 % 10.9 % 14.3 %
Profit attributable to equity holders
of the parent 1,309.4 1,402.6 180.5 1,583.1
The following table shows the full-year impact of acquisitions on 2007 revenue, operating profit and profit attributable to
equity holders of the parent (i.e., as if the acquisitions had been made on January 1, 2007).
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