APC 2007 Annual Report Download - page 167

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Company financial statements at December 31, 2007
Note 14:
Net financial income
Dec. 31, 2007 Dec. 31, 2006
Dividends 20,930 557,104
Net interest income 133,010 121,740
Other (1,769) (1,075)
Net financial income 152,171 677,769
The main 2007 dividends received by Schneider Electric
SA were paid by subsidiaries Cofibel, in an amount of 7.2
million, and Digital Holdings Japan, in an amount of 2.7
million, as well as by AXA, in an amount of 10.4 million.
Subsidiary Schneider Electric Industries SAS paid no div-
idend in 2007, compared with a dividend of 537.9 million
in 2006.
Note 15: Net non-recurring
income/(expense)
Dec. 31, 2007 Dec. 31, 2006
Net gains/(losses)
on fixed and financial
asset disposals 3,089 10,866
Provisions net
of reversals 3,760 (1,212)
Other non-recurring
income - net (5,462) 5,789
Net non-recurring
income/(expense) 1,387 15,443
As in 2006, capital gains stemmed primarily from the sale
of Schneider Electric SA shares held under "Other invest-
ment securities" for allocation on exercise of stock options.
Capital gains on the sale of Schneider Electric SA shares
held under "Marketable securities" are recorded under
"Other non-recurring income – net". Aggregate income
from the sale of Schneider Electric SA shares amounted to
6.2 million in 2007 compared with 10.1 million in 2006.
The 3.8 million provision recorded in 2006 for stock op-
tion plan 24 (see note 8a) was reversed in 2007.
Note 16: Net income
tax benefit
In 2007, this item primarily included group relief recorded
by the tax group headed by Schneider Electric SA. Group
relief totaled 79.4 million, down sharply from 201.6
million the year before, reflecting non-recurring items in
subsidiary Schneider Electric Industries SAS’ income
statement.
Schneider Electric SA is the parent company of the tax
group comprising all French subsidiaries that are over
95%-owned. Tax loss carryforwards available to the Com-
pany in this capacity totaled 14.9 million at December 31,
2007.
Note 17: Off-balance sheet
commitments
17a - Partnership obligations
Share of the liabilities of "SC" non-trading companies at-
tributable to Schneider Electric SA as partner of the com-
panies concerned: Not material.
Share of the liabilities of "SNC" flow-through entities at-
tributable to Schneider Electric SA as partner of the enti-
ties concerned: Not material.
17b - Guarantees given and received
Commitments given:
Counterguarantees of bank guarantees: ............ None
Other guarantees given: .......................... 6.5 million
Commitments received:
Bank counterguarantees: ................................... None
17c - Off-balance sheet instruments
The Company does not purchase or sell any off-balance
sheet instruments. Hedging transactions are carried out by
the manager of the Group cash pool, Boissière Finance, a
wholly-owned subsidiary of Schneider Electric Industries
SAS, which in turn is wholly-owned by Schneider Electric
SA. However, in 2007, Schneider Electric SA set up inter-
est rate swaps to hedge two bond issues made during the
year.
17d - Exchange of Legrand shares
As part of its public exchange offer for Legrand SA, Schnei-
der Electric SA made a commitment to exchange shares
held upon exercise of options granted by Legrand for
Schneider Electric shares. When Legrand SA was sold to
KKR/Wendel Investissement, Schneider Electric SA set up
a call and put system for the Legrand shares created
through the exercise of said options. These shares are re-
sold to Legrand SAS (formerly known as FIMAF), an in-
vestment vehicle of the KKR/Wendel Investissement
consortium.
The stock option plans in question are fully covered.
Note 18: Other information
18a - Number of employees
At December 31, 2007, the Company had two employees.
18b - Consolidated financial
statements
Schneider Electric SA is the parent company of the Group
and therefore publishes the consolidated financial state-
ments of the Schneider Electric Group.
Note 19: Subsequent events
None.
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